1.25 billion! Another LCD module listed company was taken over by the State-owned Assets Supervision and Administration Commission

In December and March, McGee Technology issued an announcement that the company’s controlling shareholder Xinjiang Kinetic Oriental Equity Investment Co., Ltd. ('Kineton Oriental') and Shenzhen Yuanzhi Fuhai Investment Management Co., Ltd. ('Yuaneng Oriental') Zhifuhai') signed a share transfer framework agreement.

The agreement stipulates that Kinetic Energy will transfer all the shares of the listed company (approximately 184 million shares, accounting for 26.48% of the company's total share capital) to the transferee Yuan Zhifuhai at a transfer price of 12 .500 million yuan, a premium of about 17% over the current share price. The transfer price will not be adjusted with changes in the transaction price of the listed company in the secondary market.

In fact, the transfer of the controlling shareholder's control rights of McGee Technology also has the color of releasing the controlling shareholder's pledge risk. According to the announcement of McGee Technology on November 15th, McGee Technology’s controlling shareholder Kinetic Energy holds approximately 184 million shares of listed companies, accounting for 26.48% of the total share capital of listed companies, of which about 169 million shares are located. The pledged freeze state accounts for 24.30% of the total equity of listed companies, and the pledge rate is relatively high.

Shenzhen State-owned Assets Supervision and Administration Commission Shenzhen has set up a special group since last month, arranging tens of billions of special funds, starting from both debt and equity, and reducing Shenzhen’s A shares in a market-oriented and professional manner. The risk of pledged shares of listed companies. Among them, Yuanzhi Fuhai is a large-scale industrial Mu0026A investment fund management company jointly initiated and established by Yuanzhi Investment, a wholly-owned company of Shenzhen State-owned Assets Supervision and Administration Commission, in conjunction with the central enterprise Cinda Jianxin and the well-known domestic venture capital institution Oriental Fuhai.

For more than 5 years since its establishment, Farreach has managed more than 20 funds. The current fund management scale has reached more than 10 billion yuan. In 2017, Yuanzhifuhai was awarded the TOP10 Best Mu0026A Fund of China Investment Group. Yuanzhifuhai has become a well-known brand in the field of national Mu0026A funds.

Yuanzhi Fuhai directly controls Maijie Technology. After Guoxian Technology, Changxin Technology, and Heli Thai Hybrid have improved the state-owned background enterprises and become state-owned holding module companies, another LCM liquid crystal display module privately listed The company was acquired by a state-owned enterprise. So far, in addition to the above-mentioned private listed LCM LCD module companies, among the major private LCM LCD module companies in the last round of LCD cycle, the remaining Yushun Electronics has almost withdrawn from the display module business. Dijing Optoelectronics also reorganized Jinjiang powder magnetic materials, and then reorganized with Lingyizhi Manufacturing. The actual controller of the enterprise has also long been changed.

In other words, in addition to panel companies, the four major private listed companies of small and medium-sized LCM liquid crystal display modules for the mobile phone business are Yushun Electronics, Helitai, Changxin Technology, Dijing Optoelectronics, and In the flat panel business, the two giants of medium and large-size LCM liquid crystal display modules, Guoxian Technology and Xingyuan Electronics, only Yushun Electronics and Dijing Optoelectronics have not yet fallen into the hands of the State-owned Assets Supervision and Administration Commission.

Megatech stated that the 'Framework Agreement on Equity Transfer' is only a preliminary agreement of the intention of the parties to the cooperation. The transaction needs to be further demonstrated and communicated and negotiated. The number of shares and the price of the shares need to be transferred from the relevant parties. There is a consensus on various specific arrangements. If the transaction is implemented, it may lead to changes in the control of the listed company. The transferee will conduct a comprehensive due diligence investigation on the listed company. The transfer of shares also requires the transferee's internal approval and the approval of the relevant regulatory authorities.

Mactech Technology was established in 2001 and listed on the Shenzhen Stock Exchange in 2012. In 2015, it acquired Xingyuan Electronics and 51% equity of Changxing Electronics. In 2016, we invested in SAW filter and MPIM small-size inductor projects in a non-public offering. In 2017, it acquired 67.5% of Jinzhichuan's equity and participated in Chongqing Shengpu Electronics (a holding subsidiary of Chongqing Sound Optoelectronics Company) in 2018.

The main business of Maijie Technology is the research and development, production and sales of chip power inductors, radio frequency components and other new electronic components and LCM display module devices, as well as providing technical support services and The overall solution of components, products are widely used in mobile communications, consumer electronics, military electronics, computers, Internet application products, LED lighting, automotive electronics, industrial equipment and other fields. According to the content of its semi-annual report, the operating income of LCM liquid crystal display module is 413 million yuan, which exceeds the total of other electronic components business of 396 million yuan. LCM liquid crystal display module is still the core main business of Microtech. .