HYC(SZ:000586) Tai Mei Ti A P P·2025-11-19 14:49Core Viewpoint - Huiyuan Communication (000586.SZ) has resumed trading and announced a plan for a change of control, with the company intending to issue shares to a company controlled by Chairman Li Hongxing, raising no more than 600 million yuan to supplement liquidity [2][3]. Group 1: Change of Control - After nearly ten years of maneuvering, Li Hongxing has finally gained actual control of Huiyuan Communication, ending a long-standing power struggle among major shareholders [3][4]. - The plan involves a private placement of 53,649,956 shares to Dingyun Industry, controlled by Li Hongxing, which will hold 21.71% of the shares post-issue, allowing for a combined holding of 32.75% with another major shareholder [6][10]. - The second-largest shareholder, Huifu Qiji Investment, lost its controlling stake due to judicial auction of some shares, creating an opportunity for Li Hongxing's faction [6][7]. Group 2: Capital Operations - Li Hongxing's capital operations have been ongoing for nearly a decade, with significant moves made in 2021 when he brought in major investors to support his control ambitions [4][7]. - The recent capital infusion from Dingyun Industry is crucial, as it will provide the necessary cash to complete the share issuance and strengthen Li's control over the company [6][11]. - The structure of Dingyun Industry's ownership allows Li Hongxing to maintain effective control, as he holds 100% of the controlling entity [10][13]. Group 3: Business Strategy and Future Outlook - Huiyuan Communication has a history of restructuring and has been involved in the power cable and online monitoring sectors, with plans to expand into new business areas such as automotive LED technology [14][15]. - The establishment of a wholly-owned subsidiary in Hefei is part of a strategic move to enhance competitiveness and align with local industrial strengths [14][15]. - The new subsidiary will focus on manufacturing LED chips and modules for automotive lighting, indicating a shift towards high-tech applications [15].