Recently, Longkou Union Chemical issued an announcement regarding a capital increase in its joint-stock company and related-party transactions. The announcement shows that the company plans to jointly increase the capital of its joint-stock company, Shanghai Milai Xincheng Semiconductor Co., Ltd. (referred to as "Milaicheng"), with multiple institutions. The total amount of this capital increase is CNY 361 million, of which Longkou Union Chemical plans to contribute CNY 60 million.
Based on a pre-money valuation of CNY 1.5 billion, after the completion of this capital increase, Longkou Union Chemical 's equity stake in Milai Xincheng will be passively diluted from 37.28% to 33.27%.
Founded in March 2025, Milai Xincheng is registered in the Pudong New Area of Shanghai. Its registered capital before the capital increase was CNY 23.9143 million, with Gao An as the legal representative. As the founder and technical director of the company, Gao An previously worked at ASML and participated in work related to DUV and EUV (Extreme Ultraviolet) Lithography projection scanners (responsible for reticle contamination detection in EUV, and wafer alignment in DUV, among others).
The main business of Milai Xincheng is projection exposure equipment. It has mastered full-process system design technology, as well as system integration technology for whole machine software and hardware integration, whole machine calibration, and performance debugging involving over a thousand detailed steps, and possesses successful practical experience.
Shanghai Xinyihe Technology Co., Ltd. is a wholly-owned subsidiary of Milai Xincheng, mainly engaged in the R&D, production, and sales of optical components for projection exposure machines. Its optical products cover high-end, mid-range, and low-end categories, playing a key role in "driving whole machine requirements and achieving independent optical supporting."
Financial data shows that in 2025, Milai Xincheng achieved an operating revenue of CNY 40.4843 million and a net profit of CNY -71.8413 million; in the first half of 2026 (unaudited), it achieved an operating revenue of CNY 8.0149 million and a net profit of CNY -61.5906 million. As of the end of June 2026, the company's total assets were CNY 337 million, and its net assets were CNY 182 million.
Notably, this is already the third investment by Longkou Union Chemical in Milai Xincheng . In July 2025, Longkou Union Chemical invested CNY 120 million, subscribing at a pre-money valuation of CNY 500 million to acquire a 19.35% equity stake; in November 2025, it increased its capital by CNY 200 million, subscribing at a pre-money valuation of CNY 700 million, increasing its shareholding ratio to 37.28%.
Founded in 2007, Longkou Union Chemical is located in Longkou City, Shandong Province, and mainly produces various high-performance organic pigments.
In terms of performance, the company's operating revenue in 2023, 2024, and 2025 was CNY 428 million, CNY 535 million, and CNY 512 million, representing year-on-year growth of -20.96%, 24.80%, and -4.21%, respectively; the net profit attributable to shareholders was CNY 33.8298 million, CNY 56.4321 million, and CNY 52.6427 million, representing year-on-year growth of -47.27%, 66.81%, and -6.72%, respectively.
In the first half of 2026, the company achieved an operating revenue of CNY 262 million, a year-on-year decrease of 2.57%; the net profit attributable to shareholders was CNY 5.8320 million, a significant year-on-year drop of 82.72%.
The funding source for this capital increase is the company's own and self-raised funds. Longkou Union Chemical stated that the company's investment in Milai Xincheng is a new foothold for its transformation and upgrading strategy, which is conducive to accelerating the layout of strategic business areas and building a new development model for the transition from a "traditional manufacturing" to a "technology-driven" company.
Editor | Liu Chengxing Source | Compiled from the internet