Loongson Technology Corporation Limited issued an announcement stating that the 14th meeting of the 2nd Board of Directors was held on May 26, 2026. The meeting approved the 2026 Private Placement Plan for A-Shares. The company plans to privately issue A-shares to specific investors to raise a total of no more than RMB 2.3 billion. The proceeds will be used for the R&D and industrialization of chips built on the Xnm process, research on core technologies for CPUs and general-purpose GPUs, as well as working capital replenishment.
The raised funds will be allocated to four projects. Approximately RMB 971 million will be invested in the R&D and industrialization of information chips based on the Xnm process. Around RMB 485 million will go to the research of core CPU technologies adopting the Xnm process. About RMB 360 million will be deployed for the R&D of key general-purpose GPU technologies on the Xnm process, and RMB 483 million will be used to supplement working capital. All projects are closely aligned with the company’s core business, aiming to accelerate product iteration and strengthen market competitiveness.
The company stated that this private placement is intended to achieve breakthroughs in core integrated circuit technologies and build a secure and controllable information technology system. As the only domestic enterprise that adheres to independent instruction set architectures to develop an open information technology system and industrial ecosystem separate from the x86 and ARM architectures, Loongson has fully mastered core technologies including instruction set architectures, CPUs, general-purpose GPUs and operating systems. Upon completion of the funded projects, the company will shift its strategic focus from technological catch-up to ecosystem development, and expand its business from policy-driven markets to fully open markets.
Under the placement plan, the offering will be made to no more than 35 qualified specific investors. The total number of new shares to be issued will not exceed 10% of the company’s total share capital before the offering, equivalent to a maximum of 40.1 million shares. The issue price will be no lower than 80% of the average trading price of the company’s shares over the 20 trading days prior to the pricing benchmark date. Shares subscribed by investors shall not be transferred within six months after the completion of the offering.
After the placement, Beijing Tiantong Xinyuan Technology Co., Ltd. will remain the controlling shareholder, and Hu Weiwu and Jin Hong will continue to be the actual controllers. The company’s controlling rights will stay unchanged.
(Reprinted from https://news.eccn.com/）