Konfoong Materials International (SHE:300666) will invest 50 million yuan as a limited partner in a private equity fund, according to a Wednesday aftermarket filing with the Shenzhen Stock Exchange.
The investment is equivalent to 6.4% of the 781 million yuan subscribed capital of the Shanghai Xinlian Qichen Phase II Private Equity Fund Partnership.
Xinlian Equity Investment (Hangzhou) will hold 89.63% of the fund with a 700 million yuan investment, while Shanghai Shenhe Investment will subscribe for 30 million yuan or 3.84%, and Xinlian Private Equity Fund Management (Hangzhou) Partnership will invest 1 million yuan, or a 0.13% stake.
The fund has a term of seven years and will invest in upstream semiconductor equipment, materials and components, semiconductor design companies, and hard-technology sectors including AI, robotics and new energy.
Shares of the semiconductor materials manufacturer rose 5% during afternoon trading on Thursday.