Foreign shareholders speak out: Nanzi Electric: No penalty for Hushi Electric or privatization plan

Xu Hanzhong, chairman of Nanzi Electric. (Photo by reporter Zhuo Yijun)

PCB factory Nanzi Electric (2316) has seen a turn for the better this year. Recently, it invested in Hushi Electric and its stock price has skyrocketed. It is preparing to list its H shares, which has aroused concern among Nanzidian's foreign shareholders. Foreign shareholder Palliser Capital sent a letter to Nanzidian's board of directors, hoping that Nanzidian would increase shareholder value, including evaluating the possibility of privatization or disposing of Hushi Electric's shares. It also described Nanzidian's Hushi Electric holdings as a "hidden gem" and estimated its value to be more than three times the current overall market value of Nanzidian.

In this regard, Nanzidian emphasized that it is willing to communicate with foreign shareholders. The company currently holds 11.26% of Hushi Electric and has a long-term cooperative relationship with Hushi Electric. There will be no short-term interest in Hushi Electric's equity plan, and Nanzidian will not privatize it.

Nanzidian held a shareholders' meeting last Friday. Shareholders at the scene believed that Nanzidian's market value had been underestimated. They asked whether Nanzidian would dispose of Hushi Electric's equity again, and hoped that the company would not dispose of Hushi Electric again. Nanzidian responded that there is currently no plan to dispose of Hushi Electric. The company continues to improve its technical capabilities and focus on its own business. industry, optimistic about the development potential of AI (artificial intelligence), customers are actively booking production capacity, and have expanded capital expenditures since last year, striving for better profits in the industry. AI-related orders have high visibility. This year, the proportion of AI-related revenue has reached a new high, reaching more than 40%. The company continues to optimize its product mix and boost operating performance.