On the evening of last Friday, Holitech (002217.SZ) issued the “Announcement on the Shareholding Increase Plan of the Controlling Shareholders”. The controlling shareholder Fujian Electronic Information (Group) Co., Ltd. plans to increase the company’s shares through centralized bidding to not exceed 36 million Shares, not more than 1.16% of the total share capital of Holitech, and the increase in holdings is not less than 18 million shares. On November 25, 2019, the A-share market opened, and the capital market responded quickly. The company’s stock price opened up with a gap in the electronic sector. Since the completion of the joint-stock transfer agreement between Holitech and Fujian Electronic Information Group in October 2018, with the help and support of Electronic Information Group, Holitech’s financial improvement and non-profit business slimming have been proceeding in an orderly manner. The advance payment given by Fujian Electronic Information Group to the company was very timely, which improved the company’s financial situation, solved the problem of shareholder pledges, and also solved the capital requirements of some businesses. Compared with the equity transfer of other companies in the same industry, Fujian Electronic Information’s support and integration of Holitech is obviously more decisive and powerful. On April 24, 2019, the annual shareholders meeting reviewed the proposal to authorize the chairman to handle the company or the company’s holding company to borrow and affiliate transactions from the company’s shareholders’ electronic information group to meet the capital requirements of the company and the company’s holding company. The company’s holding company borrowed no more than 3 billion yuan from the company’s controlling shareholder, Fujian Electronic Information (Group) Co., Ltd. It is understood that Fujian Electronic Information Group has formed a more mature business layout in the areas of integrated circuits, new displays, smart terminals, optical lenses, etc., and the display modules, touch screens, cameras, fingerprint modules, etc. owned by Holitech The superior products will become an important part of Fujian Electronic Information Group in opening up the upstream and downstream industrial chain layout, filling its gaps in touch display modules, 5G materials, and smart terminals. In addition, Holitech’s leading FPC process capability and industrial planning capabilities, and the gradual mass production of 5G materials and high-frequency material products will all have a positive impact on the overall business layout of Fujian Electronic Information Group. As the major shareholder of Fujian Electronic Information Group, the continuous support of Holitech has hidden several major logics. First, as one of the domestic leading companies in the core component industry of smart terminals, the introduction of state-owned assets as the actual controller of listed companies will maximize the synergy between enterprises and policies. Secondly, large shareholders with strong industrial resources and financial background will also give Holitech full power and become a powerful weapon for listed companies to accelerate their strategic landing and seize market opportunities. Thirdly, the cooperation between Holitech and Fujian Electronic Information Group will realize and complement each other in the production elements and application scenarios of the industrial chain, make up for the company’s needs in the product series, and rapidly enhance the company’s products and industry status. The increase in shareholding of Fujian Holitech Information Group, Fujian Electronic Information Group, further strengthened its confidence as a “friend of time”. Join hands with Electronic Information Group to form a linkage between the upstream, midstream and downstream industries, and the company will further improve the industrial chain layout. In the future economic situation, we look forward to the healthy development of Holitech!

Source: China Business Network