Shenzhen Megmeet Electrical plans 2.66 bn yuan capital raise

Shenzhen Megmeet Electrical announced a non-public issuance of shares to specific investors, including its controlling shareholder, Mr. Tong Yongsheng, to raise up to 2,663,010,600 yuan. The funds will be allocated to key projects, with 127,940,400 yuan for the global R&D center expansion, 794,446,000 yuan for the Changsha Smart Industry Center Phase II, 804,766,000 yuan for the Thailand production base Phase II, 165,858,200 yuan for the Zhuzhou base expansion, and 770,000,000 yuan for working capital. The company’s revenue for 2024 was 8,172,486,420.33 yuan, with a net profit of 458,690,651.56 yuan, but its net profit for January-September 2025 was 240,332,500 yuan.

The private placement includes Mr. Tong Yongsheng, who plans to subscribe for 30,000,000 yuan to 100,000,000 yuan. Post-issuance, Mr. Tong and his associates' stake will not exceed 30%. The company has received necessary approvals for the issuance from its board and shareholders, but it still requires regulatory clearance from the Shenzhen Stock Exchange and the China Securities Regulatory Commission. The new projects are expected to expand production capacity, strengthen R&D, and enhance global market presence, with the company’s current production lines operating at near full capacity.