Core Viewpoint - The news highlights the unusual situation in the A-share market where the actual controller of Xinhenghui Electronics Co., Ltd. disclosed plans to reduce holdings to repay debts, raising concerns about corporate governance and financial stability [2][3]. Company Overview - Xinhenghui was established with the controlling shareholder being Henghui Electronics, originally controlled by Chen Tongsheng. After a debt crisis in 2017, the control shifted to Yu Renrong and Ren Zhijun through a restructuring process [3][4]. - Yu Renrong holds 31.94% of the shares, making him the largest shareholder, while Ren Zhijun holds 19.31%, serving as the chairman [4]. Financial Maneuvering - Ren Zhijun acquired control through a loan from Yu Renrong, with a current debt balance of 116 million yuan, due by January 25, 2029. The loan has an annual interest rate of 12% [6][7]. - Ren plans to use dividends from Xinhenghui's IPO to repay the loan and may transfer shares back to Yu Renrong to settle remaining debts, potentially altering their shareholding proportions [7]. Business Performance - The traditional smart card business has shown stable but limited growth, with sales revenues of 561.81 million yuan, 583.29 million yuan, and 562.29 million yuan for 2022, 2023, and 2024, respectively [8]. - The etched lead frame products, a newer segment, have seen increasing sales from 77.41 million yuan in 2022 to 193.80 million yuan in 2024, although production quality issues were previously encountered [8]. Market Competition - In the flexible lead frame market, Xinhenghui holds a 32.32% market share as of 2023, competing against major players like France's Linxens, which has a 63.23% share [9]. - Price competition has intensified due to aggressive pricing strategies from competitors, leading to a decline in market prices for flexible lead frames [9]. Raw Material Costs - The company faces rising costs for key raw materials, including cyanide potassium and gold wire, which accounted for 27.61%, 27.41%, and 23.84% of total procurement costs in the respective years [10]. - The average procurement prices for these precious metals have increased significantly, with year-on-year rises of 14.23% and 29.10% expected in 2023 and 2024 [10].
新恒汇今日上市:传统业务增长乏力,原材料价格持续上涨