MTC led revenue rose 89% to become the second growth pole, attracting Nanchang state-owned assets of 1.1 billion yuan to become the third largest shareholder

Yangtze River Business Daily news ● Yangtze River Business Daily reporter Cai Jia

Mega Chi Co., Ltd. (002429.sz) introduced Nanchang state-owned assets into the shares, deepening the equity binding.

On the evening of November 2, MTC disclosed that Nanchang Zhaotou, the company's controlling shareholder, intends to transfer about 5% of its shares in the listed company to Nanchang Industrial Control Investment Fund Management Co., Ltd. (hereinafter referred to as "Nanchang Industrial Control Investment Fund") for a price of 1.107 billion yuan. After the completion of the transfer, Nanchang Industrial Control Investment Fund became the third largest shareholder of MTC shares.

The reporter of Changjiang Business Daily noted that although it is a buyer of state-owned assets from other places, MTC shares have a business layout in Nanchang as early as possible. Among the company's four major production bases, the two major production bases of LED packaging and LED chips are located in Nanchang.

And LED is also the key sector of MTC in recent years. In the first half of this year, MTC's LED business achieved operating income of 2.589 billion yuan, an increase of 89.51% year-on-year, accounting for 23% of the current revenue, becoming an important second growth curve. Zhaochi Guangyuan, a subsidiary of its LED packaging sector, is currently promoting the GEM IPO.

Nanchang Industrial Control Investment Fund received 5% of the shares

On the evening of November 2, MTC disclosed that the company's controlling shareholder, Nanchang Zhaotou, signed an agreement with Nanchang Industrial Control Investment Fund, and Nanchang Zhaotou intends to transfer 226 million shares of the listed company to Nanchang Industrial Control Investment Fund by way of agreement transfer, accounting for about 5% of the company's total share capital.

In this transaction, the subject share price was the closing price of MTC shares on the trading day before the signing of the agreement was 4.89 yuan per share, and the total transfer price was about 1.107 billion yuan.

After the completion of the transaction, Nanchang Zhaotou directly held 47.77% of the company's shares, and Gu Wei, a consistent actor, held 0.07% of the shares, holding a total of 47.85%, and remained the controlling shareholder and actual controller of the listed company. Nanchang Industrial Control Investment Fund directly holds 5% of the company's shares, and the shareholding ratio will be second only to Nanchang Zhaotou and Oriental Pearl (600637.sh).

The reporter of Changjiang Business Daily combed and found that the Nanchang Industrial Control Investment Fund was established for only more than a year and is a wholly-owned subsidiary of Nanchang Financial Holdings, and Nanchang Financial Holdings is a wholly-owned subsidiary of Nanchang Industrial Holding Group.

According to the data, Nanchang Industrial Holding Group is a large-scale state-owned capital investment and operation platform authorized by the Nanchang Municipal People's Government to perform the duties of the Nanchang Municipal State-owned Assets Supervision and Administration Commission to perform the duties of investors. In recent years, the company has focused on a new round of development, and gradually formed a diversified business format system covering industrial investment, industrial park construction and operation, financial services, modern agriculture, modern service industry, cultural education and real estate, etc., to achieve double increase in asset quantity and quality, development acceleration and transformation and upgrading.

For the ownership of MTC shares, Nanchang Industrial Control Investment Fund said that mainly based on the recognition of the future development prospects and investment value of MTC shares, in order to support the high-quality development of the private economy, the shares of MTC shares were transferred by agreement to support the long-term, healthy and stable development of listed companies.

It should be noted that in addition to the transfer of shares to Nanchang State-owned Assets, Nanchang Zhaotou, the controlling shareholder of MTC shares, is also reducing its holdings in the company's shares. From October 8 to 11 this year, Nanchang Zhaotou reduced its holding of a total of 70 million shares of the company's shares through block transactions, accounting for 1.55% of the company's total share capital.

It has two led production bases in Nanchang

According to the data, MTC was established in 2005, starting with odm manufacturing, mainly engaged in the research and development, manufacturing, sales and service of home audio-visual and electronic products.

In recent years, MTC has vertically laid out the industrial chain on the basis of the original business, extending from TV manufacturing to basic component LED packaging, from LED packaging to upstream LED epitaxial and chip, downstream application lighting. At the same time, it acquired the controlling stake of Fengxing Online, extended from TV manufacturing to content operation, and operated its own "Fengxing Internet TV" and "JVC Smart TV", gradually forming a business layout of smart display, smart home networking and LED industry chain "three-legged Standing".

According to the data, from 2018 to 2020, MTC achieved operating income of 12.871 billion yuan, 13.302 billion yuan and 20.186 billion yuan respectively, an increase of 25.83%, 3.35% and 51.75% year-on-year; net profit was 444 million yuan, 1.12 billion yuan and 1.763 billion yuan, with a year-on-year change of -25.57%, 152.05% and 57.44%.

In the first three quarters of this year, MTC achieved operating income of 18.183 billion yuan, an increase of 29.69% year-on-year, and net profit of 1.577 billion yuan, an increase of 41.83% year-on-year.

Especially benefiting from the strong demand for LED markets, the LED sector has become an important second growth curve of MTC shares. According to the report, in the first half of this year, the LED business of MTC achieved operating income of 2.589 billion yuan, an increase of 89.51% year-on-year, accounting for 23% of the current revenue.

According to reports, the company's LED chip sector is dominated by MTC Semiconductor. In 2020, chip production capacity gradually climbed, and the fourth quarter has fully reached production and achieved a turnaround. In the first half of this year, through process improvement and process technology innovation, MTC Semiconductor continued to improve production efficiency and reduce operating costs, achieving operating income of 934 million yuan, net profit attributable to the mother of 170 million yuan and net profit margin of 18.20% during the reporting period.

The LED packaging sector of MTC is dominated by MTC Optical Element. In the first half of the year, Zhaochi Guangyuan achieved operating income of 1.482 billion yuan, an increase of 65.18% year-on-year, net profit of 123 million yuan, an increase of 305.46% year-on-year, and its GEM IPO application materials submitted to the Shenzhen Stock Exchange have been accepted.

The Yangtze River Business Daily reporter noted that although the headquarters is located in Shenzhen, the main production base of the LED plate of MTC shares is located in Nanchang, which is also the main reason for the introduction of Nanchang state-owned assets.

At present, MTC has four major production bases, of which the MTC Guangyuan Industrial Park located in The Qingshan Lake District of Nanchang has a construction area of 190,000 square meters for the production of LED packaging; the MTC Semiconductor Industrial Park located in Nanchang High-tech Zone has a construction area of 310,000 square meters for the production of LED chips.

Editor-in-charge: zb

This article originated from the Yangtze River Business Daily