Shanghai, Jan 26, 2026, 08:25 CST — Premarket.
- Shareholders vote at 2:30 p.m. local time on a proposed private placement of new A shares
- Stock last closed at 56.34 yuan, up 0.61%, after a sharp January run
- Investors are watching dilution, funding mix and the next regulatory steps
TongFu Microelectronics Co., Ltd.’s yuan-denominated Class A shares (002156.SZ) are in focus before Monday’s open, with shareholders due to vote later in the day on a package of proposals tied to a planned private placement of new stock. The company said the extraordinary meeting is scheduled for 2:30 p.m. local time (0630 GMT) in Nantong, Jiangsu province.
The vote matters now because it sets the financing tone for a chip packaging and testing firm that has been riding a strong early-year move. Packaging and testing — outsourced assembly and test, or OSAT — has become a bottleneck business when demand swings and customers push for more advanced processes.
TongFu shares ended Friday at 56.34 yuan, up 0.61% on the day and up about 49% since the start of the year. The stock hit its 10% daily limit — the cap for most main-board shares in China — on Jan. 21, and Friday’s trading volume was about 237 million shares.
In a January filing, the company said it plans to raise up to 4.4 billion yuan by selling no more than about 455.3 million new A shares — up to 30% of its existing share capital — to no more than 35 investors, a private placement that typically comes at a discount to the market. The issue price must be at least 80% of the average share price over the 20 sessions before pricing and the new shares would be locked up for six months, while proceeds are earmarked for capacity upgrades across storage-chip, automotive, wafer-level and high-performance computing packaging and testing, plus 1.23 billion yuan for working capital and bank-loan repayment.
TongFu has also been lining up debt funding. It said it received registration acceptance from the National Association of Financial Market Institutional Investors for up to 30 billion yuan of issuance in China’s interbank bond market, including 10 billion yuan of super short-term commercial paper and 20 billion yuan of medium-term notes, with the quota valid for two years.
The stock’s rally this month was fuelled in part by the company’s latest profit outlook. TongFu forecast 2025 net profit attributable to shareholders of 1.10 billion to 1.35 billion yuan, up 62.34% to 99.24% from a year earlier, citing higher capacity utilisation, stronger revenue and a better mix of mid-to-high-end products, along with tighter cost control and investment gains.
Analysts have been leaning into the sector’s momentum. In a note dated Jan. 25, Huang Chen at First Shanghai Securities said domestic packaging and testing firms should benefit from an AI-driven investment cycle and singled out TongFu alongside peers JCET Group (600584.SS) and Yongxing Electronics (688362.SS).
Even if shareholders approve the placement, investors will still have to wait on the timetable and final terms — including the price and the investor list — as the process moves through review and registration steps.
But the downside scenario is straightforward: dilution could bite if the placement price comes in at a steep discount, or if approvals drag out while the stock cools. The company has also flagged that the profit forecast is preliminary and not yet audited, a reminder that the market is trading the estimate before the final numbers land.
The next catalyst is the shareholder vote due after 2:30 p.m. on Monday and the follow-up disclosure of the voting result and any timetable for the proposed share sale. Traders will also watch for signals on when TongFu might tap its new debt quota alongside the equity plan.
