Megmeet plans significant expansion with private placement

Shenzhen Megmeet Electrical Co., Ltd. (Megmeet) plans a private placement of shares, not exceeding RMB 266,301.06 million, to bolster its core businesses. Funds will be allocated to several key projects: the global R&D center expansion (RMB 12,794.04 million), the Changsha intelligent industrial center (RMB 79,444.60 million), the second phase of the Thailand production base (RMB 80,476.60 million), and the third phase of the Zhuzhou production base expansion (RMB 16,585.82 million), with the remaining RMB 77,000.00 million for working capital.

Megmeet's controlling shareholder, Tong Yongsheng, will participate in the private placement, committing between RMB 3,000 million and RMB 10,000 million. Tong has pledged not to reduce his shareholding for six months after the offering and will maintain control of the company. The company emphasizes its strong market position and extensive customer resources, including a top-three global ranking in OEM/embedded power supplies, will ensure successful absorption of new production capacity.

The strategic investments align with favorable industry policies, including those promoting new energy vehicles, smart grids, and industrial automation. These projects are designed to enhance Megmeet's R&D capabilities, expand production capacity for products like network power supplies, medical devices, and smart welding machines, and strengthen its global supply chain.