Minsheng Securities Hosts Inaugural Semiconductor Investment Summit in Wuxi

On the evening of September 24th,the China Securities Regulatory Commission (CSRC) released the "Opinions on Deepening the Reform of the Mergers and Acquisitions (M&A) and Restructuring Market for Listed Companies." The relevant policies are expected to significantly boost the M&A and restructuring market,promoting market activity and corporate transformation and upgrading through specific and effective measures.

On September 26th,the "Smart Investment in the Future of Core Technology,United in a New Pattern — 2024 Minsheng Securities Semiconductor Technology Enterprise Investment and M&A Summit" was grandly held in Wuxi.The event was co-hosted by the Financial Committee Office of the Wuxi Municipal Committee of the Communist Party of China and Minsheng Securities Co.,Ltd.,with the support of the Wuxi Semiconductor Industry Association and China Merchants Bank Wuxi Branch.As this conference was the first investment and M&A summit held in the industry after the official announcement of the "Six Mergers and Acquisitions Policies," it attracted significant attention and emphasis from all parties.Nearly 200 attendees,including government leaders and authoritative figures,well-known entrepreneurs and experts in the industry,industrial funds,and key personnel from numerous well-known investment institutions and financial institutions,participated in the meeting,filling the venue to capacity with an overwhelming presence.

Leaders gathered to discuss the vast sea of "core" technology,with multiple institutions signing on-site agreements.

Zhang Hongjun,Deputy Secretary of the Financial Work Committee of the Wuxi Municipal Committee of the Communist Party of China,stated in his speech that in recent years,Wuxi has deeply implemented the spirit of the 20th National Congress of the Communist Party of China and the central financial work会议精神,closely focusing on the purpose of financial services to the real economy.Wuxi has introduced special policies to support the high-quality development of listed companies,established a high-quality development fund for listed companies,built a new type of service platform called the "Financial Living Room," and carried out "one-on-one" full coverage research and business services.These efforts have continuously promoted the quantitative and qualitative improvement of the "Wuxi Plate" in the capital market.He emphasized that Chairman Wu Qing proposed the "Support for Six Mergers and Acquisitions" opinions the day before yesterday,further stimulating the vitality of the M&A and restructuring market.Today,we are holding the Semiconductor Technology Enterprise Investment and M&A Summit here for the first time,which is another important measure to implement policy requirements at all levels and promote financial empowerment for industrial development.He hopes that entrepreneurs will seize the opportunity,communicate in-depth,seek cooperation opportunities together,and create more models of win-win situations between capital and industry.He also hopes that Minsheng Securities will fully leverage its advantages as a leading domestic investment bank,provide comprehensive and professional financial services for corporate investment and M&A,and create a golden brand for financial services.

Xiong Leiming,President of Minsheng Securities,warmly welcomed the participants.In his speech,he mentioned that the integrated circuit industry is Wuxi's "ace industry" with the longest development history.Currently,Minsheng Securities is actively involved in the large-scale layout of Wuxi's semiconductor industry,providing diversified and full-chain comprehensive financial services for Wuxi government departments and semiconductor enterprises to jointly explore opportunities,integrate resources,and promote development.In the future,Minsheng Securities will also closely follow the requirements of the Wuxi Municipal Party Committee and Municipal Government,empower semiconductor enterprises in Wuxi through policy and resource integration,capital,and financial services,and jointly build a collaborative and efficient development pattern.

In recent years,the global semiconductor industry has faced significant changes,with China's semiconductor industry playing an important role in the reorganization of the global supply chain.As international situations become more complex and technical barriers deepen,China's efforts to promote independent innovation,technological breakthroughs,and domestic substitution in the semiconductor industry continue to increase.Faced with technical bottlenecks in chip design,manufacturing,packaging and testing,equipment,and materials,the intellectual support of industry experts is particularly important.

As a boutique securities firm focused on high-tech and strategic emerging industries,Minsheng Securities has been deeply involved in the semiconductor industry and has always been committed to providing customers with comprehensive financial services.To better respond to the national strategy for the independent control of semiconductors and to fully leverage the important role of industry experts in promoting technological innovation,industrial integration,and capital operations,Minsheng Securities has specially hired nine industry experts with profound professional backgrounds and rich experience in the semiconductor field as company consultants at this conference.With the guidance and industry insights of these experts,Minsheng Securities will further provide more accurate financial solutions for semiconductor enterprises and help promote the independent development and international competitiveness of China's semiconductor industry.

As global technological competition becomes increasingly fierce,especially in the semiconductor industry,China is entering a critical period of accelerated catch-up and breakthrough.The government has always played a crucial role in promoting regional economic development and industrial upgrading.Wuxi's various districts rely on policy guidance and industrial resource advantages to actively build platforms and promote in-depth integration of enterprises and capital.With the government's leadership,the innovative momentum of enterprises and the resource support of capital are fully combined,promoting the growth and improvement of the entire semiconductor industry chain.At the conference,Minsheng Securities signed cooperation agreements with Wuxi High-tech Zone and two enterprises,promoting a win-win cooperation among Wuxi's sector,the cooperating enterprises,and Minsheng Securities.This further accelerates the integration and development of the regional semiconductor industry chain,laying the foundation for Wuxi to build a more robust semiconductor industry ecosystem.In addition,Minsheng Securities signed cooperation agreements with another 21 cooperating enterprises,initiating resource sharing and achieving complementary advantages.

Fang Jing,the Chief Analyst of the Electronics Industry at Minsheng Securities Research Institute,presented the latest strategic views in his speech.He mentioned that looking back at the growth of the semiconductor industry over the past 20 years,each major semiconductor cycle has been driven by representative product demands,such as the PC era from 2002 to 2007; the smartphone era from 2012 to 2018.Standing in the present,the wave of AI began in 2023,which is currently mainly about cloud capital expenditure construction,and will subsequently empower traditional applications such as mobile phones,PCs,automobiles,and the Internet of Things,driving the main driving factor of the next major semiconductor cycle.

At the meeting,many experts,scholars,industry leaders,and enterprise representatives delivered keynote speeches on the development status and broad prospects of the semiconductor technology industry,sharing wonderful insights.

Gu Wei,President of Wuxi Guolian Group,Secretary of the Party Committee of Guolian Securities,and Chairman of Minsheng Securities,pointed out in his concluding speech at the conference that the summit aims to build a high-end platform for in-depth exchanges among participating enterprises,promoting cooperation in the fields of investment,financing,and mergers and acquisitions,exploring new opportunities together,and opening a new chapter of win-win cooperation.He stated that the integration work between Guolian Securities and Minsheng Securities is progressing steadily.In the future,the integrated trillion-level securities company will have more capabilities and resources to continue to work hand in hand with the industry and institutions to promote the prosperity and development of China's semiconductor industry.

Leveraging the "Three Investments" Engine Advantage to Expand the Efficacy of Industry-Finance Integration

As one of the few cities in the country with a full industrial chain development of integrated circuits,Wuxi has built a full industrial chain map covering design,manufacturing,packaging and testing,equipment,materials,etc.,with comprehensive strength firmly in the domestic "first echelon." Faced with the opportunities of AI and memory chips entering a growth period,automotive and energy chips entering a consolidation period,and equipment and materials entering an accelerated period of domestic substitution,under the leadership of leading enterprises,Wuxi's major project capacities continue to be released,and the development of the integrated circuit industry continues to maintain a strong momentum,ushering in a golden development period.Entering the post-Moore era,facing new challenges and opportunities,Wuxi has made the development of the integrated circuit industry an important content of accelerating the development of new quality productive forces according to local conditions.

On September 24,the China Securities Regulatory Commission (CSRC) formulated the "Opinions on Deepening the Reform of the Mergers and Acquisitions Market of Listed Companies," insisting on the market-oriented direction and better playing the role of the capital market as the main channel in mergers and acquisitions.The "M&A Six Articles" clearly state that mergers and acquisitions are an important way for enterprises to carry out resource integration,scale expansion,or industrial upgrading.The measures to promote mergers and acquisitions actively encourage traditional industries to reasonably increase industrial concentration through restructuring and strongly support and guide more resource elements to gather in the direction of new quality productive forces,which will further promote the capital market to better play its important role in serving the real economy and developing new quality productive forces.

It is reported that this semiconductor technology enterprise investment and merger and acquisition summit aims to build a platform for in-depth exchanges among participating enterprises and promote cooperation in the fields of investment,financing,and mergers and acquisitions.Through the integration of policies and resources,capital,and financial services,it will empower semiconductor enterprises and new quality productive forces in the development of Wuxi,and jointly build a collaborative and efficient development pattern.

As one of the earlier securities companies in the market to propose the "Investment + Investment Banking + Investment Research" strategy and continue to implement it,Minsheng Securities has become an industry leader with investment banking business as the leader,"Investment" + "Investment Research" as the two wings,three investments linked,main business prominent,distinctive features,and differentiated competitive capabilities.It is reported that Minsheng Securities has always been deeply involved in regions and industries,committed to providing integrated,comprehensive financial services for sci-tech enterprises,small and medium-sized growing enterprises,and local governments through "three investments." At the end of last year,Wuxi Guolian Group officially became the largest shareholder of Minsheng Securities.While giving full play to the advantages of shareholder empowerment,Minsheng Securities also spares no effort in supporting local introduction and cultivation of high-quality innovative enterprises and assisting in Wuxi's investment attraction and other aspects to "repay" regional development.At the beginning of 2024,Minsheng Securities held the 2024 Capital Market Summit in Wuxi,signed strategic cooperation agreements with Hui Mountain District and Xi District of Wuxi City,reached a tripartite cooperation with Liangxi District and high-tech enterprises,and established strategic cooperation with many well-known investment institutions.In June 2024,Minsheng Securities co-hosted a high-level aerospace industry development conference with the People's Government of Liangxi District and the Financial Committee Office of the Wuxi Municipal Committee,and established the "Liangxi Minsheng Aerospace Industry Fund" at the conference,which has successfully promoted the settlement of two aerospace industry enterprises,Helium Star Alliance and Kairui Xingtong,in Wuxi.In addition,Minsheng Securities also actively participated in the Hui Mountain Investment Cooperation Forum held by Hui Mountain District,continuously expanding the field of cooperation.On the basis of serving Wuxi's investment attraction and deepening cooperation,Minsheng Securities further leverages its investment research advantages to serve the financing,research,and market value management needs of local listed companies in Wuxi,as well as the think tank needs of the Wuxi municipal government and various relevant economic and financial management departments,promoting regional high-quality development with high-quality research.

In terms of focusing on semiconductor technology,the investment banking team of Minsheng Securities has three distinct characteristics: First,it has always adhered to the strategy of "Investment Banking + Investment + Investment Research," deeply exploring potential projects with an investment perspective and providing customers with comprehensive financial solutions; second,it was the first to establish a service team focused on the semiconductor industry,dedicated to supporting the development of enterprises in the industry; third,it is rooted in Wuxi,giving full play to the government's emphasis on the semiconductor industry,providing high-quality investment and research services for local enterprises,and assisting enterprises from other places to settle and develop in Wuxi.Since 2019,Minsheng Securities has provided professional and efficient comprehensive financial services for nearly 40 semiconductor customers,successfully completing the IPO projects of Nova Star Cloud,Sinan Navigation,Tiancheng Technology,Xidi Micro,Hongwei Technology,Xingsen Technology's refinancing project,and Zhonghuan Stock's merger and reorganization project.At the same time,it is also continuously providing listing services for nearly 30 semiconductor enterprises,covering all major fields such as semiconductor design,manufacturing,packaging and testing,equipment,and materials.The successful co-hosting of the Semiconductor Technology Enterprise Investment and M&A Summit with the Financial Committee Office of the Wuxi Municipal Committee of the Communist Party of China is a significant initiative for Minsheng Securities to delve into regional and industry-specific services,using financial services to promote new quality productive forces.This event will further stimulate the vitality of Wuxi's semiconductor technology industry development and press the accelerator for financial empowerment of high-quality regional development.

"Guotai Junan + Minsheng" Steadily Advances Towards Becoming a Top-tier Investment Bank

The integration of Guotai Junan Securities and Minsheng Securities this year has attracted significant market attention.

Since Guotai Junan Securities released the reorganization draft on August 8th,in less than a month,Guotai Junan Securities issued the "Resolution Announcement of the First Temporary Shareholders' Meeting and the First A-Share Class Shareholders' Meeting of Guotai Junan Securities Co.,Ltd.in 2024" on September 4th,indicating that the acquisition of Minsheng Securities by Guotai Junan Securities has completed the full set of prescribed actions before submitting for regulatory review,marking an important milestone.

It is well known that the integration and merger of securities firms is always a massive project,involving various aspects such as regulation,shareholders,employees,and business integration,with high complexity and operational difficulty.The smooth "clearance" of a series of actions in the "Guotai Junan + Minsheng" integration reflects the supportive attitude of all relevant parties towards this merger,as well as a good expectation for the long-term growth value and shareholder returns after the merger.With various favorable factors,the integration work between Minsheng Securities and Guotai Junan Securities is progressing orderly and is expected to become the first successful case of market-oriented mergers and acquisitions by securities firms after the Central Financial Work Conference and a demonstrative case for the integrated development of the Yangtze River Delta.

In the past five years,Minsheng Investment Banking has been among the industry leaders in the number of IPOs approved,underwriting and sponsorship revenue,and the number of projects under review.In 2023,Minsheng Securities approved 18 IPO projects,ranking third in the industry; 20 companies were listed,ranking fourth in the industry; and 18 companies were listed on the stock transfer system,ranking third among sponsoring brokers.In the first half of 2024,Minsheng Securities' investment banking business continued to lead the industry,completing 4 sponsored listing projects,ranking second in the industry; with 26 projects under review,ranking third in the industry.

Minsheng Securities Research Institute is one of the fastest-growing research teams in the domestic capital market,with leading research in the fields of artificial intelligence,TMT,metals,energy,automobiles,and strategy.Over the past three years,despite the shrinking scale of the fund distribution market and industry pressure,Minsheng Securities' investment research business has made a strong comeback from the bottom of the industry,with a sevenfold increase in distribution over three years and a tenfold increase in market share.In the first half of 2024,Minsheng Securities achieved a distribution income of 201 million yuan,becoming the only securities firm among the top twenty in terms of distribution commission income to achieve positive year-on-year growth in distribution commission income in the first half of 2024,advancing by 10 positions and reaching the ninth place in the industry,strongly breaking into the top ten against the trend.

In addition,Minsheng Securities' fixed income business is dedicated to creating a distinctive market-making trading business model,insisting on empowering the business with financial technology,and its market activity and reputation have been increasing year by year.It has built a differentiated competitive advantage in the industry and established the market "boutique market maker" brand.In addition to its advantageous investment banking business,fixed income business,and rapidly developing research business,the company's investment business,brokerage business,and other businesses and subsidiaries have achieved coordinated development.Minsheng Securities has developed into a securities company with influence and core competitiveness in the industry.