Jingwei Hui to Carry Out Major Asset Reorganization! Divest Electronic Information Segment Business

Wanguo Huikai announced on the evening of March 13 that the company plans to transfer the assets of its electronic information sector, mainly including Xinhuikai Technology (Shenzhen) Co., Ltd. and its consolidated subsidiaries, Hunan Wanguo Huikai Technology Co., Ltd., Zhuzhou Xinhuikai Technology Co., Ltd., and Wanguo Huikai Technology (Shenzhen) Co., Ltd., to Shenzhen Fuje Technology Co., Ltd. (referred to as “Fuje Technology”). The transferred assets do not include non-electronic information sector assets held by the aforementioned subsidiaries or equity investments outside the scope of Wanguo Huikai’s consolidation.

This transaction is expected to constitute a major asset restructuring and will not result in a change of the company’s controlling shareholder or actual controller. The transaction will be conducted in cash and does not involve issuing shares.

Image source: Company announcement

According to Wind data, on March 13, Wanguo Huikai’s stock closed at 8.43 yuan per share, with a total market value of 4.84 billion yuan.

Divestment of the Electronic Information Sector

Wanguo Huikai announced that its main business includes the research, development, production, and sales of LCD display and touch display modules, electromagnetic wires, and information technology solutions. Through this transaction, the company will divest its electronic information sector, focusing on the development of the power sector and information technology solutions.

The transaction is still in planning stages, and the scheme requires further verification and communication. Necessary internal decision-making and approval procedures are still to be completed. Currently, the company has signed a framework agreement on equity transfer with the transaction counterpart.

In recent years, Wanguo Huikai has been actively promoting a technological transformation and upgrading strategy. The divestment of the electronic information business will help accelerate the company’s shift toward developing new quality productivity businesses. After the transaction is completed, the company expects to recover significant funds, which will support ongoing investment in new quality productivity projects, focus on advantageous resources, increase layout in cutting-edge technology fields, and accelerate industrial transformation and upgrading.

The announcement states that this transaction will further strengthen the company’s financial capacity, reduce its asset-liability ratio, optimize its asset structure, and unlock business potential.

Performance Forecast for 2025: From Profit to Loss

Wanguo Huikai’s performance forecast indicates that in 2025, the company expects a net loss attributable to shareholders of the listed company between 350 million and 450 million yuan, compared to a profit of 21.45 million yuan in the same period last year. After excluding non-recurring gains and losses, the net profit is expected to be a loss of 339 million to 439 million yuan, compared to a profit of 15.76 million yuan last year.

The main reasons for the performance change, as stated in the announcement, are: first, impairment of goodwill related to the company’s acquired subsidiary Shenzhen Xinhuikai; second, the company’s touch display panel sector has experienced a decline in operating results due to international environment factors and intensified industry competition. The company will conduct goodwill impairment testing in its 2025 annual report, with the final impairment amount to be determined after evaluation and audit by qualified securities and futures appraisal agencies and auditing firms. It is estimated that non-recurring gains and losses will impact the company’s net profit by approximately 11 million yuan in 2025.

On the evening of March 10, Wanguo Huikai announced that the company received a written resignation letter from Chairman Chen Jianbo, who, due to work arrangements, has formally resigned from his position as Chairman of the sixth Board of Directors. Chen Jianbo will no longer serve as Chairman but will continue to serve as a director and member of relevant committees of the sixth Board. On March 10, the company held the 18th meeting of the sixth Board of Directors, during which the proposal for electing the sixth Chairman was approved, and Zhou Fazhan was elected as the Chairman of the sixth Board, with a term from the date of approval until the end of the sixth Board’s term.