Hongxin Electronics' controlling shareholder pledges 83.6 million shares for financing

Radar Finance | Written by Yang Yang | Edited by Li Yihui

On March 9, Xiamen Hongxin Electronic Technology Group Co., Ltd. (Stock Code: 300657, Stock Name: Hongxin Electronics) announced that its controlling shareholder, Hongxin Venture Incubator Investment Group Co., Ltd., has pledged part of its shares. The pledged shares amount to 8,360,000 shares, representing 9.93% of its holdings and 1.73% of the company’s total share capital. The purpose of the pledge is for financing, with Chongqing International Trust Co., Ltd. as the pledgee.

Before this pledge, Hongxin Venture held 39,100,000 shares; after the pledge, the total pledged shares are 47,460,000, accounting for 56.38% of its holdings and 9.84% of the company’s total share capital.

The announcement states that Hongxin Venture has good creditworthiness and sufficient repayment ability. The pledged shares currently do not pose a liquidation risk, and the pledge risk is within a controllable range. This share pledge financing is not used to meet operational needs of the listed company and will not have a substantial impact on the company’s operations or governance.

According to Tianyancha, Hongxin Electronics was established on September 8, 2003, with a registered capital of 482.55576 million RMB. The legal representative is Li Qiang, and the registered address is No. 2, Xianghai Road, Xiang’an Industrial Zone, Torch High-tech Zone, Xiamen (3rd Floor, Factory #1). Its main business involves FPC research and development, design, manufacturing, and sales.

Currently, the company’s chairman is Li Qiang, the secretary is Wang Jian, with 5,335 employees, and the actual controller is Li Qiang.

The company has stakes in 30 subsidiaries, including Suzhou Huayang Electronics Co., Ltd., Huayang Electronics (Hong Kong) Co., Ltd., Beijing Anlian Tong Technology Co., Ltd., Xiamen Honghan Optoelectronics Technology Co., Ltd., and Hubei Hongxin Flexible Electronics Technology Co., Ltd.

In terms of performance, the company’s revenue for 2022, 2023, and 2024 was 2.792 billion RMB, 3.478 billion RMB, and 5.875 billion RMB, respectively, with year-over-year growth of -12.81%, 24.56%, and 68.91%. Net profit attributable to shareholders was -308 million RMB, -436 million RMB, and 56.8157 million RMB, with YoY growth of -14.95%, -41.56%, and 113.05%. During the same period, the company’s debt ratio was 58.74%, 72.81%, and 78.70%.

Regarding risks, Tianyancha data shows the company has 953 internal Tianyan risks, 260 surrounding risks, 27 historical risks, and 282 warning risks.