Xiansixing (00595) announced that its wholly-owned subsidiaries, AVEGL and Jiaying, will subscribe for 57.5 million and 17.5 million new shares of Tongyi at the price of 1 yuan per share, which will involve 57.5 million yuan and 17.5 million yuan respectively.

Tongyi engages in the trading of semiconductors and electronic components, while AVEGL and Jiaying each hold 50% equity in Tongyi, after the completion of the subscription, AVEGL and Jiaying will hold 75% and 25% of the issued share capital of Tongyi respectively. .

However, since AVEGL does not have control of the same board of directors, Tongyi will not become a subsidiary of AVEGL, and Tongyi will continue to be accounted for as a jointly controlled entity of First Thought.

First thought that AVEGL and Jiaying agreed to inject additional funds into Tongyi through equity, as the business development and expansion of Tongyi requires additional funds.