Core Viewpoint - Shenzhen Megmeet Electric Co., Ltd. plans to issue shares to specific investors in 2025, with the underwriting by Guojin Securities Co., Ltd. The issuance aims to raise funds for various projects aligned with the company's core business in the power electronics sector. Group 1: Issuance Overview - The issuance will be directed towards specific investors, including the company's controlling shareholder, with a maximum of 35 investors participating [16][17] - The total number of shares to be issued will not exceed 163,694,084 shares, which is 30% of the company's total share capital prior to the issuance [19] - The issuance price will be determined through a bidding process, with the minimum price set at 80% of the average trading price over the previous 20 trading days [16][11] Group 2: Use of Proceeds - The funds raised will be allocated to several projects, including the expansion of the global R&D center, the construction of an intelligent power and control R&D testing center, and the expansion of production bases in Thailand and Zhuzhou [12][13] - The projects are closely related to the company's main business in the electrical automation industry and are not in overcapacity or restricted industries [12][13] Group 3: Compliance and Regulatory Aspects - The issuance has been approved by the company's board and shareholders, complying with the relevant laws and regulations [10][12] - Guojin Securities has conducted necessary due diligence and confirmed that the application documents meet legal requirements without any false statements or omissions [10][6] Group 4: Financial and Operational Context - The company operates in a technology-intensive industry, focusing on power electronics and related control technologies, with a diverse product range including smart appliances, medical devices, and industrial automation [23][24] - The company has experienced fluctuations in gross profit margins, which were 23.57%, 24.54%, 25.07%, and 22.77% over the past years, indicating potential pressure from market competition and raw material costs [24]

Core Viewpoint - Shenzhen Megmeet Electrical Co., Ltd. is responding to the inquiry letter regarding its application for a specific stock issuance, highlighting its revenue growth despite a decline in net profit and non-recurring net profit, and addressing various operational and financial aspects [1][4]. Financial Performance - The company's revenue for the reporting periods was 5,477.76 million, with net profits of 479.39 million, 625.11 million, 458.69 million, and 115.03 million, showing a year-on-year decline of 18.39% in the most recent period [1]. - The non-recurring net profits were 255.72 million, 355.50 million, and 227.70 million, indicating a discrepancy between cash flow from operating activities and net profit due to increased inventory and slow customer payments [1][2]. Sales and Market Position - The company achieved external sales revenues of 1,694.89 million, 1,944.08 million, and 2,000 million, with a significant increase in inventory and ongoing construction projects [2]. - Megmeet ranked 7th in the global power supply vendor list and 3rd in the OEM/embedded power global sales for 2024, indicating enhanced international competitiveness [7]. Product Segments - In the smart home appliance control products sector, the company provides comprehensive system innovation and R&D services, establishing long-term partnerships with leading brands [8]. - The power products segment benefits from three core technology platforms, allowing the company to compete effectively in the global market [8]. - The company has developed a strong presence in the new energy vehicle and rail transit sectors, with products recognized by major clients [9]. - In industrial automation, the company competes with international firms, leveraging local supply chains and rapid service capabilities [10]. - The precision connection products segment enhances the company's vertical integration and service offerings [11]. Client Relationships - The company maintains stable relationships with its top five clients, which account for a significant portion of its revenue, indicating a diversified client base [12]. Industry Environment - The electrical automation industry is supported by government policies promoting high-efficiency, green, and intelligent manufacturing, providing a favorable macro market environment [12][13].

Core Viewpoint - The company, Shenzhen Megmeet Electric Co., Ltd., is planning to issue shares to specific investors in 2025 to raise funds for various projects, aiming to enhance its production capacity and market presence in the electrical automation industry. Group 1: Company Overview - Company Name: Shenzhen Megmeet Electric Co., Ltd. [3] - Stock Code: 002851.SZ [3] - Established: March 6, 2017 [3] - Registered Capital: 545.69 million RMB [5] Group 2: Business Operations - The company specializes in power electronics and related control technologies, focusing on energy conversion, automation control, and applications [6][8]. - Main products include intelligent home appliance controls, power supply products, new energy components, and industrial automation solutions [8][10]. - The company aims to become a global leader in electrical control and energy-saving solutions, with products used across various sectors including home appliances, medical devices, and renewable energy [8][10]. Group 3: Financial Data - Total Assets as of March 31, 2025: 1,190.10 million RMB [4] - Operating Revenue for 2025: 231.63 million RMB [4] - Net Profit for 2025: 11.50 million RMB [4] - Gross Margin for the reporting period: 23.57% [10] Group 4: Fundraising and Investment Projects - The company plans to use the funds raised for projects including the construction of a new intelligent industrial center and expansion of production bases [19][20]. - Expected annual revenue from new projects upon completion is estimated at 603.33 million RMB [19]. - The company anticipates a compound annual growth rate of 11.74% in production capacity by 2030 [19]. Group 5: Risks and Challenges - The company faces risks related to macroeconomic fluctuations, competition in the electrical automation industry, and potential supply chain disruptions [6][10]. - There is a risk of declining gross margins due to increased competition and rising raw material costs [10][12]. - The company must manage its inventory and accounts receivable effectively to mitigate financial risks [11][12].

Company Overview - Shenzhen Magmeter Electric Co., Ltd. was established on September 9, 2010, based on Shenzhen Magmeter Electric Technology Co., Ltd. [1] - The company is registered in Nanshan District, Shenzhen, with a registered capital of RMB 545.625 million and a total share capital of 545.625 million shares, each with a par value of RMB 1 [1]. - The company completed its initial public offering of 44.5 million shares in February 2017, increasing its total share capital to 177.725 million shares [1]. Share Capital Changes - In September 2017, the company implemented a restricted stock incentive plan, increasing its share capital by 2.941 million shares, bringing the total to 180.666 million shares [2]. - In September 2018, the company issued 41.972884 million shares, raising the total share capital to 312.972104 million shares [3]. - By November 2022, the company had completed a series of capital adjustments, resulting in a total share capital of 497.571674 million shares by the end of 2023 [4]. Corporate Structure - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and management team, along with several specialized committees [5]. - The main business scope includes research, development, design, production, and sales of electrical and electronic products, as well as providing necessary engineering services and technical consulting [5]. Financial Reporting - The financial statements are prepared based on the going concern assumption and comply with the relevant accounting standards and regulations [6][7]. - The company has established specific accounting policies and estimates for revenue recognition, financial instrument impairment, fixed asset depreciation, and other financial matters [7]. Accounting Policies - The company follows the enterprise accounting standards for the preparation of financial statements, ensuring that they reflect the true financial position and performance [7]. - The accounting period is from January 1 to December 31, and the company uses RMB as its functional currency for domestic operations [7]. Financial Instruments - Financial instruments are classified into categories based on the company's business model and cash flow characteristics, including those measured at amortized cost and those measured at fair value [20][23]. - The company recognizes financial assets and liabilities at fair value upon initial recognition, with subsequent measurement based on their classification [20][24].

Core Viewpoint - Shenzhen Megmeet Electric Co., Ltd. plans to issue shares to specific investors in 2025, with the underwriting by Guojin Securities, ensuring compliance with relevant laws and regulations [1][10]. Group 1: Issuance Details - The issuance will be a private placement of shares, targeting up to 35 specific investors, including the controlling shareholder, Tong Yongsheng [16][17]. - The maximum number of shares to be issued is 163,694,084, not exceeding 30% of the total share capital before the issuance [19]. - The issuance price will be no less than 80% of the average trading price over the 20 trading days prior to the pricing date [16][11]. Group 2: Use of Proceeds - The funds raised will be allocated to projects closely related to the company's main business, including the expansion of the global R&D center, construction of an intelligent power and control R&D testing center, and the expansion of production bases [12][13][21]. - The total planned investment for these projects is approximately 280 million yuan, with a significant portion allocated to capital expenditures [22]. Group 3: Compliance and Internal Review - Guojin Securities has conducted necessary due diligence and internal reviews, confirming that the application documents meet legal requirements and do not contain false statements or omissions [6][10]. - The internal review process involved multiple departments to ensure the accuracy and completeness of the application materials [5][6]. Group 4: Risk Management - The company operates in a technology-intensive industry, which requires continuous adaptation to technological advancements and market conditions to maintain its competitive edge [23][24]. - The company has implemented measures to retain core technical personnel and ensure stable management, which are critical for its future development [25].