Shanghai Zhencheng Microelectronics Technology Co., Ltd. announced that it has entered into an capital increase agreement to issue common stock for gross proceeds of CNY 60,000,000 on November 13, 2020. The transaction will include participation from new investor Jiangsu Nanfang Bearing Co.,Ltd. (SZSE:002553) for 51% stake in the company. Post the transaction, CNY 10,408,163 will go to registered capital and the rest will go to capital reserve. The transaction has been approved in the eighth (temporary) meeting of the fifth board of directors of the investor and doesn't need approval at the shareholders meeting for deliberation. The company will expects to receive tranche 1 of CNY 30,000,000 before November 30, 2020, of which CNY 5,204,082 million will go to registered capital, and CNY 24,795,918 will be included in the capital reserve while tranche 2 of CNY 30,000,000 before March 31, 2021, of which CNY 5,204,081 will go to registered capital, and CNY 24,795,919 will be included in the capital reserve.