Zhiyang Innovation: Plans to invest 300 million yuan in Lingming Photonics in cash

According to Daily Economic News, on February 25th, Zhiyang Innovation (688191.SH) announced that the company has signed a “Strategic Investment Intent Agreement” with Shenzhen Lingming Photonics Technology Co., Ltd. The transaction to acquire Lingming Photonics’ equity through issuing shares and/or convertible bonds, cash, etc., has been terminated. However, the company plans to increase its capital and purchase some equity in Lingming Photonics with cash, with an initial investment amount of approximately 300 million yuan. The pre-investment valuation is preliminarily estimated to be between 2.7 billion and 3 billion yuan, and the post-investment shareholding ratio is approximately 9.09% to 10.00%. It is expected that the company will become a significant shareholder holding more than 9% of Lingming Photonics, with the right to nominate a director candidate and a veto right on overall sales. Although the investment amount does not meet the standards for submitting to the shareholders’ meeting for approval, due diligence, audits, and other related matters will still be carried out. The valuation will be further determined based on the results. An initial investment intention deposit of 50 million yuan will be paid for this investment.