The controlling shareholder and actual controller of MTC Co., Ltd. are proposed to be changed to Shenzhen Capital Group! The transaction price is nearly 4.4 billion.

There is new progress in the matter of Shenzhen SASAC taking control of MTC, which has attracted much attention!

On the evening of May 27, MTC announced that its controlling shareholder and actual controller are proposed to be changed to Shenzhen Capital Group.

According to the announcement, MTC's controlling shareholder, Nanchang MTC Investment Partnership (Limited Partnership) (hereinafter referred to as "Nanchang MTC Investment"), its parties acting in concert, and the actual controller, Mr. Gu Wei, signed a share transfer agreement on May 26, 2022 with Shenzhen Capital Operation Group Co., Ltd. (hereinafter referred to as "Shenzhen Capital Group") and its wholly-owned subsidiary, Shenzhen Yixin Investment Co., Ltd. (hereinafter referred to as "Yixin Investment"). Nanchang MTC Investment intends to transfer a total of 893,165,400 unrestricted circulating shares it holds in the company to the acquirer. The number of shares proposed for transfer accounts for 19.73% of the company's total shares.

Upon completion of the transfer, Shenzhen Capital Group and Yixin Investment will collectively hold 893,165,400 shares of the company, accounting for 19.73% of the total number of shares, with a voting rights share of 19.73%; Nanchang Zhaotou and Mr. Gu Wei will collectively hold 892,559,513 shares of the company, accounting for 19.72% of the total number of shares, with a combined voting rights share of only 5%. The controlling shareholder and actual controller of the company will change to Shenzhen Capital Group.

After negotiation, the transfer price per share of the target shares in this transaction is RMB 4.89, i.e., the total transfer price is RMB 4.368 billion.

The announcement shows that the Shenzhen State-owned Assets Supervision and Administration Commission holds 100% equity in Shenzhen Capital Group. Shenzhen Capital Group is an important entity for the Shenzhen SASAC to expand the supply chain, with its controlled and invested enterprises covering many fields such as intelligent manufacturing, new energy, securities, and insurance, forming an industrial layout mainly focused on emerging industries, finance, and quasi-finance.

As of the end of 2020, Shenzhen Capital Group had total assets of RMB 65.715 billion, net assets of RMB 32.650 billion, and an asset-liability ratio of 50.32%; revenue for 2020 was RMB 4.175 billion; net profit was RMB 1.979 billion, with a return on equity of 6.33%.

MTC stated that the introduction of state-owned capital as a controlling shareholder is beneficial for optimizing the company's equity structure and governance framework, enhancing financial creditworthiness and capital strength, providing comprehensive support for the company's long-term strategic development layout, helping to further stimulate vitality, and promoting the synergistic development of the company's and shareholders' advantageous resources. This share transfer will not have a significant adverse impact on the company's daily production and business operations. After the change in the company's controlling shareholder and actual controller, Gu Wei will continue to serve as Chairman , and will work together with the controlling shareholder to maintain the stability of the company's existing management team.

MTC also stated that the company will continue to focus on the development of its three major business segments: smart display, smart home networking, and the LED full industry chain . It will maintain the continuity and stability of its development strategy, accelerate the integration of industry and capital, achieve a new round of performance growth, and fully safeguard the core interests of the company and all shareholders.

Not long ago, when discussing the 2022 business plan, MTC stated that the company would rely on technological upgrades to lead industry upgrades, further consolidate its market share in the core home display business, and promote development in office displays, commercial displays, education displays, and other fields; solidly develop communication and IoT hardware and software products, seizing the development opportunities brought by hardware updates and service value-added services in the era of the Internet of Everything. At the same time, it fully supports the development of the LED supply chain. On one hand, it continuously strengthens the technical level of LED chips and LED packaging, actively layouts high value-added products, steadily expands production, and gradually increases market share; on the other hand, the company introduces professional technical teams to create Mini COB display products, launches new large-screen display solutions, maximizes the synergistic advantages of the entire LED supply chain, and helps the company rapidly develop into a leading enterprise in the industry.

It is reported that on March 17, 2022, the 29th meeting of the fifth Board of Directors of the company approved the "Proposal on Signing an Investment Agreement with the Management Committee of Nanchang High-tech Industrial Development Zone". The company plans to invest RMB 5 billion in the Nanchang High-tech Industrial Development Zone to build a Mini LED chip and RGB small-pitch LED display module project. To expand its share in the field of new Mini/Micro LED displays, based on the existing monthly GaN production capacity of 650,000 4-inch wafers, the company will add a 52-cavity GaN Mini LED production line in 2022, bringing the total monthly GaN production capacity to 1.1 million 4-inch wafers after expansion. Meanwhile, the company will add 300-500 production lines for RGB small-pitch LED display modules using COB packaging technology, implementing the strategic layout of the full LED industry chain "from chip to screen".

Intraday news on May 30: At 9:32, MTC (002429) hit the limit-up. The current price is 3.91, up 10.14%.