On the evening of March 24, FlyingK AI material announced that its wholly-owned subsidiary and Cheng Display intend to purchase 100% of the shares of JNC Corporation's (hereinafter referred to as "JNC") wholly-owned subsidiary JNCLC and JNCNM, respectively (collectively referred to as "JNC Suzhou," and collectively with JNC and JNCP referred to as the "JNC Group"), as well as all patents related to display liquid crystals held by the JNC Group. Additionally, JNC plans to increase capital by cash investment in Cheng Display, with the intention of acquiring no more than 5.10% of its shares, and the company waives its right of priority subscription for this increase in capital. The valuation for 100% ownership of JNC Suzhou is set at 17 million yuan (including tax), and the valuation for the transfer of all patents related to display liquid crystals of the JNC Group is set at 20 million yuan (including tax).

The announcement indicates that the purpose of this subsidiary asset acquisition and capital increase is to optimize the industrial structure, strengthen resource integration, and focus on the liquid crystal business, thereby consolidating and enhancing the company's core competitiveness, which aligns with the company's long-term development plan and the interests of all shareholders. This transaction will not have a significant adverse impact on the company's current and future financial condition and operating results, and it does not harm the interests of the company and all shareholders, especially minority shareholders. Upon completion of this transaction, Hecheng Display will become a holding subsidiary of the company, and Hecheng Display will hold 100% equity of JNC Suzhou. JNC Suzhou will be included in the company's consolidated financial statements.

Since its establishment in 2002, Fly-up Materials has consistently focused on innovation and breakthroughs in the materials industry. Starting with the independent research, development, and production of UV-curable materials for optical communication, the company has continuously sought technological collaboration across industries. It has gradually expanded its core business scope to include integrated circuit manufacturing, display screens, and pharmaceutical intermediates, providing customized and differentiated material solutions for its customers.

Recently, company officials indicated that the rapid development of AI has led to a surge in demand for high-performance chips, which reflects the growing market demand for high-performance semiconductor materials. To better support this development trend, Feikai Materials will continue to increase its investment in product research and development, establish close cooperative relationships with universities and research institutions, and jointly carry out cutting-edge technology research. At the same time, the company will also continue to develop packaging materials that meet the requirements of low stress, high thermal conductivity, and high reliability.

Besides R&D follow-up, stable supply of production capacity is equally crucial. In the semiconductor industry, technological advancements and market demand changes are very rapid, and customers have extremely high demands for the quantity and delivery cycle of materials. According to a company representative, this year, the company plans to build a new semiconductor materials production base, "Suzhou Kaixin," in Suzhou. The construction of this new base will significantly increase the company's semiconductor materials production capacity, better supporting the development of the industry. It is reported that the base is expected to start construction in the first quarter of this year and is planned to be put into production by the end of 2026. The new base will add an annual capacity of 30,000 tons, mainly producing ultra-high purity solvents, semiconductor wet process chemicals, and photoresists, among other key materials.