AXT's majority-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., entered into definitive agreements with institutional investors led by a major Asian asset manager. The transaction provides for a minimum investment of RMB 1.91 billion (approx. US$285 million) and up to a maximum of RMB 3.67 billion (approx. US$545 million) in Tongmei's ordinary shares. Concurrently, AXT agreed to recapitalize Tongmei by subscribing for approximately US$400 million in new shares. Proceeds will fund expansion of indium phosphide semiconductor substrate manufacturing capacity and general working capital. Assuming the maximum investment, AXT will own approximately 73.40% of Tongmei. The closing is subject to customary conditions, including regulatory approvals, with an expected completion date in December 2026. AXT is a material science company that develops and manufactures high-performance compound semiconductor substrate wafers.
