On February 28, Shenzhen Mtc Co.Ltd(002429) ( Shenzhen Mtc Co.Ltd(002429) ) announced that the controlling shareholder of the company, Nanchang Zhaotou and its acting in concert, Gu Wei, signed the share transfer framework agreement with Shenzhen capital operation group Co., Ltd. and its wholly-owned subsidiary, Shenzhen Yixin Investment Co., Ltd. Nanchang Zhaotou and Gu Wei plan to transfer 19.73% of the shares, with a total transfer price of 4.368 billion yuan. The company will apply to Shenzhen stock exchange for resumption of trading from Tuesday, 2023.
On the same day, Shenzhen Mtc Co.Ltd(002429) also disclosed the performance forecast for 2021. In 2021, the company’s pre profit was 230 million yuan to 330 million yuan, a year-on-year decrease of 87% to 81%, mainly due to the provision for impairment of receivables of Evergrande group and its member enterprises. The company also disclosed a plan to reduce the risk of debt default of Evergrande group and its member enterprises. After the implementation of the plan, the company’s commercial acceptance bills and accounts receivable of Evergrande group and its member enterprises have been reduced to 5.9916 million yuan.
the offeror is Shenzhen state owned assets
According to the data, Shenzhen Mtc Co.Ltd(002429) was founded in 2005, started with ODM manufacturing, and is mainly engaged in the R & D, manufacturing, sales and service of family audio-visual and electronic products Shenzhen Mtc Co.Ltd(002429) first engaged in DVD business, then extended the business to TV set-top box, and the sales volume of set-top box reached the first in the world in 2009. Public data show that in 2020 Shenzhen Mtc Co.Ltd(002429) the TV ODM ranked second in the world.
Shenzhen capital operation group Co., Ltd., the recipient of this offer, is a state-owned assets auxiliary performance platform and a professional state-owned capital operation platform specially established by Shenzhen SASAC to promote the transformation of state-owned assets management from asset management to capital management and promote the overall capital operation strategy of Shenzhen state-owned assets.
Public information shows that Shenzhen capital operation group Co., Ltd. is the management subject of the task of “establishing a stable development fund for private enterprises with a total scale of 100 billion yuan”, one of the “four hundred billion” plans to support the development of private economy in Shenzhen. It is also the market-oriented implementation subject of the special fund support policy for emerging industries in Shenzhen. Through the combination of industry and finance, the docking of capital markets, the promotion of mixed ownership and other ways, Shenzhen capital effectively supports the mutually beneficial and win-win growth of various ownership economies, and serves the steady and healthy development of the urban real economy. Holding and participating enterprises cover green buildings, intelligent manufacturing, new energy, securities, insurance, funds, guarantees and many other fields, and have formed an industrial layout dominated by emerging industries and financial finance.
divested assets involving Evergrande risk
In June 2018, Shenzhen Mtc Co.Ltd(002429) announced that it planned to form a strategic partnership with Evergrande Real Estate Group Co., Ltd. and its affiliates in the fields of real estate projects and strategic centralized purchase business. Since then, Evergrande has become an important partner of Shenzhen Mtc Co.Ltd(002429) company. In the second half of 2021, Evergrande, a real estate giant, fell into a liquidity crisis. The company was implicated by holding large commercial acceptance bills and accounts receivable of Evergrande group and its member enterprises.
According to Shenzhen Mtc Co.Ltd(002429) today’s disclosure of the plan to reduce the risk of debt default of Evergrande group and its member enterprises, the company used the methods of stripping zhaochi supply chain and purchasing 446154% equity of Kunming Fengtai.
The assets of zhaochi supply chain include about 2.827 billion yuan of commercial acceptance bills issued by Evergrande group and its member enterprises. As of December 3, 2021, zhaochi supply chain has received 3 billion yuan of capital increase and completed the industrial and commercial change procedures of registered capital for capital increase and share expansion. The shareholding ratio of the company has changed from 100% to 147727%. Zhaochi supply chain has become a joint-stock subsidiary and is no longer included in the scope of the company’s consolidated statements. Zhaochi supply chain has repaid all the debts of the company after receiving the capital increase, and the company has no creditor’s right and debt relationship with zhaochi supply chain.
The company signed the equity transfer agreement with beirongxin on December 8, 2021. According to the agreement of both parties, the company paid the equity transfer in the form of commercial acceptance bill and accounts receivable transfer + cash payment issued by Evergrande group and its member enterprises, totaling 2.9 billion yuan. On February 28, 2022, the company received the letter of commitment issued by the controlling shareholder Nanchang zhaochi investment partnership (limited partnership) (hereinafter referred to as “Nanchang Zhaotou”). If Shenzhen Mtc Co.Ltd(002429) purchase of 446154% equity of Kunming Fengtai failed to be completed, in order to minimize the impact on the company, Nanchang Zhaotou promises to accept the creditor’s rights (including commercial acceptance bills and accounts receivable) between Shenzhen Mtc Co.Ltd(002429) and Evergrande group and its member enterprises at a price not lower than the assessed value.
In addition, the company made provision for impairment of receivables of Evergrande group and its member enterprises in 2021. Up to now, the company has held 5.9916 million yuan of commercial acceptance bills and accounts receivable of Evergrande group and its member enterprises, and the risk may have been cleared.
TV ODM has a solid position
In fact, before stepping on thunder Evergrande, the operating performance of Shenzhen Mtc Co.Ltd(002429) was significantly better in recent years. It has maintained a leading position in the field of TV ODM for a long time. In the first three quarters of 2021, the company achieved a net profit of 1.577 billion yuan, a year-on-year increase of 41.83%. In recent three years, the net profit excluding non recurring profit and loss realized by the company is basically the same as the change trend of net profit.
Public information shows that Shenzhen Mtc Co.Ltd(002429) has been deeply engaged in LCD TV ODM business. In 2011, it began to expand the LED industry chain upstream and vertically integrated layout. At present, it has formed three major businesses: smart display business (LCD TV design and manufacturing + Internet operation), smart home networking business (network communication, lot intelligent terminal) and led whole industry chain business (LED chip, LED packaging and LED application).
In the field of smart display, with home display as the core, it extends to diversified scenes such as office, business, education and medical treatment. Specific products include LCD TV, computer display and all-in-one learning machine. The company is the leader of LCD TV ODM. In 2020, LCD TV ODM accounted for 9.41% of the global market share, ranking the second in the industry. In recent years, by continuously improving the proportion of intelligent LCD TV, it accounted for more than 90% of overseas TV in 2020.
Smart home networking is mainly 5g communication and IOT (Internet of things). The company’s sub-6 distributed 5g micro base station has successfully entered the trial production stage, actively expanded the market of 10gpon and wi-fi6 related products, and the form of core product digital set-top box has evolved to intelligent terminal, aiming to build an ecological chain of “5g + IOT”. In 2020, the business revenue will reach 1.98 billion yuan,
In addition, Shenzhen Mtc Co.Ltd(002429) led whole industry chain is also ready to go. At present, Shenzhen Mtc Co.Ltd(002429) has entered the field of high-end products such as miniled backlight and minirgb direct display. Among them, miniled chips have the capacity of small batch mass production. At present, the red and yellow light project is actively developing forward flip RGB products and has entered the trial production stage.
It is reported that Shenzhen Mtc Co.Ltd(002429) has set up R & D centers in Shenzhen, Nanchang, Beijing, Wuhan and other places, mastered and reserved a number of technologies in 4K / 8K, regional dimming, full spectrum health lighting, ultra-high luminous efficiency, quantum dot on chip packaging, mini / microled and other core fields, and won the national high-tech enterprise and Guangdong engineering technology research and development center, Shenzhen enterprise technology center and other qualification certification. In the first three quarters of 2021, the growth rate of the company’s R & D expenses reached 39.49%.
