The company issued an announcement of "confirmation of transfer of ownership" on December 24, 2020. Zhao Hanxin, the company's controlling shareholder, and its concerted actors Zhao Minhai and Shen Hua, the company's shareholders Gao Yanmin and du Jianping transferred a total of 1816.88 shares of the company (accounting for 12.26% of the company's total share capital) to Wuxi Guosheng Asset Management Co., Ltd. ("Wuxi Guosheng"). At present, the registration procedures have been completed.
Comments:
In recent years, the business performance is relatively stable, and the prosperity of the main business is under pressure. The company's main business is the R & D, production and sales of molded insulation products, key components of circuit breakers, low-voltage circuit breakers and knife-melting switches, the main products include BMC/SMC molded insulation products for circuit breakers, motors and electric operators, low-voltage circuit breakers, knife-melting switches. The company is in a relatively mature industry with a high degree of marketization, and the prosperity of the industry is closely related to downstream electric power, industrial investment, real estate construction and so on. In this context, the company's operating level has been relatively stable in recent years. According to the third quarter report of 2020, the company's operating income in the first three quarters was 329.6 million yuan, a decrease of 0.64% over the same period last year. The net profit belonging to shareholders of listed companies was 47.1728 million yuan, an increase of 1.24% over the same period last year.
Local state-owned assets have been increased again to help the company transform its new economy. After this equity transfer, Wuxi Guosheng controlling shareholder Wuxi Industrial Development Group holds a total of 41353750 shares of the listed company, accounting for 27.91% of the total share capital of the listed company, making it the largest shareholder of the listed company. However, Zhao Hanxin, Zhao Minhai and Shen Hua, the actual controllers of the listed company, together hold 32.84% of the shares, which are still the actual controllers of the listed company. In fact, as early as December 17, 2019, Mr. Zhao Hanxin, the company's controlling shareholder, Mr. Zhao Minhai and Ms. Shen Hua, the company's controlling shareholders, Ms. Gao Yanmin and Mr. du Jianping, shareholders of the company, signed a "share transfer agreement" with Wuxi Industrial Development Group Co., Ltd., transferring 23185000 of the company's shares (accounting for 15.65% of the company's total share capital) to the industrial group. According to public information, the company has been actively promoting the diversified development strategy of traditional business and emerging business, laying out the new economic field, and has proposed to acquire a 100% stake in Haigao Telecom for 1.8 billion yuan. However, the major asset restructuring was terminated because the parties to the transaction failed to reach an agreement. For this equity transfer, we believe that this is a strategic move for the company to actively introduce strategic investment and industrial resources to seek the business transformation of the new economy. It is suggested that we should actively pay attention to the progress of follow-up cooperation between listed companies and Wuxi state-owned assets.
Risk hint: traditional business competition is fierce, new economy business transformation is not as expected