Jiangsu Nata Opto reports strong FY24 growth, shifts subsidiary strategy

Jiangsu Nata Opto-electronic Material (SZSE:300346) announced a robust FY24, highlighted by a 38.08% revenue increase and a 28.15% rise in net profit attributable to shareholders. This performance has driven significant changes in the company's subsidiary management and capital allocation strategies. Specifically, Jiangsu Nata will acquire the remaining 16.5398% equity interest of subsidiary Quanjiao Nata Opto from Suzhou Nansheng for CNY 22.98 million. This will give Jiangsu Nata full ownership of the subsidiary. In connection with this transaction, director Feng Jiansong and other key personnel have issued non-compete agreements. Additionally, Jiangsu Nata has received a report from the asset evaluation board showing its estimate for the 6.2-billion-yuan 308,000-m2 integrated circuit project. The firm will also grant new stock options. Concurrent with the positive news, the board moved to terminate its 2022 restricted stock incentive plan and repurchase outstanding shares, citing changes in the company's operations and strategic focus. Due to the shifting strategy, the firm decided against a follow-up offering. Jiangsu Nata's financial statements show it will shift resources to new plans that are more focused on building key product competitiveness.