Megmeet Electrical plans share issuance to raise 2.6bn yuan for strategic growth

Shenzhen Megmeet Electrical Co., Ltd. will issue shares to specific investors, including its controlling shareholder, to raise up to 2.66bn yuan. The funds will be allocated to several key projects: 127.9m yuan for its global R&D center, 794.4m yuan for its Changsha Smart Industrial Center Phase II, 8.04bn Thai baht for its Thailand Production Base Phase II, and 165.8m yuan for its Zhuzhou Base Expansion Phase III. An additional 770m yuan is earmarked for working capital, representing 28.91% of the total raised amount. The private placement is expected to optimize the company's financial health, reduce short-term debt, and support its ongoing expansion in high-growth sectors such as AI servers and new energy vehicles.

The company's audited financial report for 2024 shows total assets of 11.98bn yuan and operating revenue of 8.17bn yuan. For the first half of 2025, operating revenue increased by 16.52% to 4.67bn yuan compared to the same period in 2024. However, net profit attributable to shareholders decreased by 49.97% to 140.9m yuan, primarily due to increased competition, lower gross margins from new energy passenger vehicles, and higher R&D expenses. The company's management views this as a temporary setback that will not alter its industry standing.

The issuance aligns with national industrial policies and aims to strengthen Megmeet Electrical’s market position and technological capabilities. The company is actively expanding its global footprint, with new production bases in Thailand and an R&D center in Changsha. The controlling shareholder will subscribe with cash, maintaining his stake below 30% to ensure control stability. The offering is currently awaiting approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission.