Shanghai, Feb 1, 2026, 10:28 (GMT+8) — The market has closed.
Tongfu Microelectronics announced a 200 million yuan raise through a 270-day sci-tech innovation bond priced at 1.77%, according to a filing. The chip packaging and testing company is now on traders’ radar for the upcoming onshore session. The bond, maturing Oct. 26, was arranged by China Merchants Bank under a debt program registered with the China Interbank Market Dealers Association, the filing revealed.
Timing is crucial. Chinese chip stocks have been volatile, reacting to funding moves and profit news. Packaging and testing sits at a critical juncture—it’s the stage that transforms wafers into shippable parts and can limit supply of high-end chips.
Tongfu used last week to push its advanced packaging strategy. In a Jan. 29 investor briefing, board secretary Jiang Shu highlighted expansions in fan-out, wafer-level, and flip-chip packaging capacities. The company is also developing “Chiplet” and “2D+” packaging technologies. The filing named key clients like Advanced Micro Devices, Texas Instruments, NXP Semiconductors, and MediaTek. It also mentioned a planned equity raise, pending approvals from the stock exchange and the China Securities Regulatory Commission. CNINFO
A sci-tech innovation bond refers to debt in China’s interbank market linked to technology-oriented issuers and projects. Tongfu’s offering is short-dated paper—more like a corporate IOU than a traditional long-term bond—and it’s usually rolled over or paid off swiftly.
Tongfu’s profit forecast is also weighing on the trade. The company projects net profit attributable to shareholders for 2025 between 1.1 billion yuan and 1.35 billion yuan, marking a jump of 62.34% to 99.24% compared to last year. This boost comes from increased capacity utilization, higher sales of mid-to-high-end products, tighter cost management, and gains from investments.
Tongfu’s A-shares ended Friday at 52.06 yuan, gaining 1.15%. This was a rare bright spot as the Shanghai Composite dropped 0.96% and the Shenzhen Component Index slipped 0.66%. Meanwhile, the ChiNext Index edged up 1.27%, according to a market report.
Still, the stock hasn’t followed a smooth path. It’s dropped roughly 7.6% over the last five sessions but remains up around 38% year-to-date, per market data.
The near-term outlook is risky. What starts as a short note could turn into a refinancing challenge later this year if onshore credit tightens. Plus, any hiccup in the equity plan or weaker chip demand might undercut the growth story that’s been driving momentum.
Traders are now focused on further details about the company’s wider funding plans and the schedule for its equity raise, while keeping an eye on earnings announcements across the sector. Tongfu’s next earnings update is due April 17, per the earnings calendar.
