Guangzhou Fangbang Electronics Co.Ltd(688020) 5 announced on May 20 that the company decided to terminate the issuance of A-Shares to Su Zhi, one of the actual controllers of the company. Previously, the company planned to issue no more than 4444400 A shares (including this number) to Su Zhi in a non-public manner, raising no more than 300 million yuan (including this number) to invest in the construction of resistance films and supplement working capital.
The reason why the company terminated the issuance is that due to the environmental protection approval involved in the resistance film project, the approval process is relatively complex, coupled with the current round of epidemic in Guangzhou and other factors, some matters are still in the process of administrative approval, and the issuance of A-Shares to specific objects does not meet the reporting conditions. At the same time, since 2022, the conflict between Russia and Ukraine, the Fed’s interest rate hike and the repeated epidemic in China have continued to ferment; At the same time, the growth of the consumer electronics industry is passivated and the uncertainty increases. Taking the smartphone, the most important product in this field, as an example, according to the relevant market data, due to the periodic bottleneck of product innovation, “lack of core” and the inhibition of consumer psychology caused by the continuous and repeated epidemic, the global shipment of smartphones decreased significantly year-on-year in the first quarter of 2022.
The company decided to terminate the issue of A-Shares to specific objects, strategically shrink the investment plan, temporarily suspend the construction of new heavy asset projects, adopt a more stable business strategy, and focus more on the mass production of existing new products such as flexible copper clad laminate and strippable ultra-thin copper foil with carrier, so as to promote the early realization of the inflection point of the company’s performance release.
