Core reminder: On the evening of last Friday, Holitech (002217.SZ) released the “Announcement on the Increase in Shareholding Plan of the Controlling Shareholders”. The controlling shareholder Fujian Electronic Information (Group) Co., Ltd. plans to increase the company’s shares through centralized bidding More than 36 million shares, not more than 1.16% of Holitech’s total share capital, and an increase in holdings of not less than 18 million shares. Today, the A-share market opened, and the capital market responded quickly. The company’s stock price opened higher with the collective decline of the electronics sector.

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. Today, the A-share market opened, and the capital market responded quickly. The company’s stock price opened higher with the collective decline of the electronics sector.

The consistent funding of Fujian state-owned assets

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.

Since joining the Electronic Information Group, the company’s internal supply ratio of panel resource procurement in touch display products has further increased, and the proportion of internal sales of supporting modules has further increased. Considering that the Electronic Information Group also has related business segments such as Mantix Display (panel display) and Zhongnuo (mobile ODM), there is still plenty of room for cooperation with the company as a whole and complementary industries in the future, which will help further improve Holitech Industry status.

Controlling shareholder promotes Holitech’s investment in Fujian

Promoted by Electronic Information Group, Holitech and Hanjiang District People’s Government of Putian City signed a “Cooperation Agreement” to invest in a high-end TFT display module project, a COF full-screen display module project, and a flexible OLED display in Hanjiang District, Putian City. Module projects and touch display integrated modules.

On June 6, 2019, the Holitech Putian project started in Xinhan Industrial Park, Hanjiang District, Putian City. Provincial Electronic Information Group general manager Zhong Jun, chief accountant Huang Xuhui, and board chairman Wen Kaifu participated in the project. Holitech will use its advantages in the field of display devices and its peripheral derivatives to invest in high-end displays in Hanjiang District, Putian City.

The total investment of the plan is 2.5 billion yuan. After the project is completed, it will have an annual production capacity of 120 million display modules. With the implementation of the project, Holitech will help to open up the upstream and downstream industrial chain of the Provincial Electronic Information Group, improve the layout of the new display industry, and accelerate the development of upstream Mantix Display and downstream Sino-Norway communication terminal product manufacturing industries to further expand Excellent and strong electronic information industry cluster in Fujian Province.

Befriend with the time

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 the Electronic Information Group to form a linkage between the upstream, midstream and downstream industries. Holitech will further improve the industrial chain layout. In the future economic situation, we look forward to the healthy development of Holitech!

Source: 21 Finance Search