Jingzhida, a Shanghai STAR Market maker of semiconductor test and inspection equipment, has proposed a large private placement while a major shareholder prepares to cash out—an unusual juxtaposition that has unsettled some investors. The company filed to raise up to RMB 29.59 billion (RMB 2.96 billion; roughly $420m) to expand semiconductor memory testing production, build a high-end chip test R&D centre and top up working capital, even as its controlling shareholder announced plans to sell a small but valuable block of stock worth an estimated RMB 417 million.
The fundraising proposal is the company’s first follow-on financing since its July 2023 IPO and would far exceed its IPO proceeds of RMB 10.99 billion. Management says the money will be channelled into three projects: an RMB 821 million semiconductor memory test equipment R&D and industrialisation project, an RMB 1.538 billion high-end chip testing and frontier technology R&D centre, and RMB 600 million to replenish working capital. Executives position the move as a bid to accelerate the firm’s climb up the technology curve and broaden its “equipment platform + solutions” offering.
The timing is sensitive. Jingzhida’s share price has exploded over the past 18 months—from a low of RMB 36.38 in September 2024 to a peak of RMB 319.71 in late February, a rise of roughly 778%. On the same day the placement was announced, shareholder Yuan Chuangli Qingyuan and its concerted parties disclosed plans to sell up to 1.4545 million shares (no more than 1.55% of total equity) through centralized trading between March 23 and June 22. At the March 2 closing price the sale would raise about RMB 417 million; the shareholder also sold smaller parcels last year, generating roughly RMB 73 million.
The company’s operational picture is mixed. For 2025 Jingzhida reported revenue of RMB 1.13 billion, up 40.7% year-on-year, while net profit attributable to shareholders fell to RMB 68.8 million, down 14.1%. Management attributes the margin pressure to heavier R&D spending and stock-based compensation tied to a 2025 restricted-share incentive plan, as well as an ongoing product mix shift toward semiconductor offerings that are still “climbing” the margin curve.
Why this matters goes beyond one company. Test and inspection equipment are critical nodes in the semiconductor supply chain and are a strategic priority for Beijing’s drive to onshore advanced chipmaking capabilities. A successful scale-up at Jingzhida would strengthen domestic supply of memory-test equipment, reducing dependence on overseas vendors. Yet the combination of aggressive fundraising, elevated valuations after a dramatic share rally, insider selling and short-term profit weakness raises governance and execution questions that investors and regulators will watch closely as China’s capital markets increasingly prioritise investor protection alongside industrial policy.