Visionox Trading Suspended
Chinese panel producer Visionox (002387.CH) was suspended from trading on the Shenzhen Stock Exchange for up to 5 days, as the company was notified by its largest shareholder, Tibet Zhihe Capital Management (pvt) that it would be transferring its shares to Visionox’s 2nd largest shareholder, the Kunshan Economic & Technological Development Zone, a city run management company that administers the special economic zone in Kunshan that is responsible for much of the economic prosperity of the region. The zone generates50% of the city’s GDP, 80% of the total import/export value, and takes up only 1/9 of the city’s land area. CE companies in the zone are AU Optronics (AUOTY), Asahi Glass (5201.JP), Visionox, Pegatron (4938.TT), and Compal (2324.TT), among others.
While we cannot be sure as to the reason for the transfer, which will shift Visionox’s largest shareholder from Tibet Zhihe Capital Management (20.43% post) to Kunshan E&TDZ (21.33% post), a change in ownership, which triggered the trading hold. Tibet Zhihe Capital is indirectly owned by Chinese billionaire Wang Wenxue, who purchased a 10.85% stake in what was then Chinese soybean and cereal producer Black Cattle Food Co (002387.CH) that had decided to branch out and become a producer of OLED displays (See our note 09/15/16), and through a series of transactions changed its name to Visionox in 2018 after forming a JV with was a Visionox holding company.
Visionox currently runs a Gen 5.5 LTPS OLED fb in Kunshan and a Gen 6 LTPS OLED fab in Hebei, and is building a larger Gen 6 OLED fab in Hefei, but without counting subsidies, the company has yet to show a net profit, which is likely the underlying cause of the share sale. That said, we await full details.
While we cannot be sure as to the reason for the transfer, which will shift Visionox’s largest shareholder from Tibet Zhihe Capital Management (20.43% post) to Kunshan E&TDZ (21.33% post), a change in ownership, which triggered the trading hold. Tibet Zhihe Capital is indirectly owned by Chinese billionaire Wang Wenxue, who purchased a 10.85% stake in what was then Chinese soybean and cereal producer Black Cattle Food Co (002387.CH) that had decided to branch out and become a producer of OLED displays (See our note 09/15/16), and through a series of transactions changed its name to Visionox in 2018 after forming a JV with was a Visionox holding company.
Visionox currently runs a Gen 5.5 LTPS OLED fb in Kunshan and a Gen 6 LTPS OLED fab in Hebei, and is building a larger Gen 6 OLED fab in Hefei, but without counting subsidies, the company has yet to show a net profit, which is likely the underlying cause of the share sale. That said, we await full details.
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