Who Owns What?
Chinese panel producers are a complex lot. Transactions between various controlling and non-controlling entities can make understanding ownership a difficult task especially given that fabs under a common company name may be owned by different parties. That said, we are always on a constant search to isolate current ownership of Chinese panel producers to give us a better understanding of how much support these companies are given by government entities, as opposed to panel producers outside of China where governmental influence and financing is less or non-existent.
Tianma (000050.CH) is one such Chinese panel producer and while we cannot be sure that every fab, executive office, sales office and support center falls under the corporate umbrella noted below, the company does give a look at current ownership as part of its 2021 annual report. Here’s what it looks like:
Total number of ordinary shareholders: 96,674
Total number of shareholders in Previous Month: 93,422
Tianma (000050.CH) is one such Chinese panel producer and while we cannot be sure that every fab, executive office, sales office and support center falls under the corporate umbrella noted below, the company does give a look at current ownership as part of its 2021 annual report. Here’s what it looks like:
Total number of ordinary shareholders: 96,674
Total number of shareholders in Previous Month: 93,422
To summarize, state owned entities are 8 of the top 10 shareholders in Tianma, with a total of 58.87% of the outstanding common shares. All of the entities marked in red have interlocking ownership or cross-entity holdings and while holder #7 is listed as a corporation, it has a ‘concerted action agreement’ with AVIC International Holdings to continue to invest in the company, essentially a source of funds when needed. We assume Hong Kong Clearing is a broker holding shares in street name for individual investors, however we could find little on the only top 10 individual investor listed above. He or she has 3 holdings with Tianma being over 85% of the portfolio but little else is known about affiliations with the company or the Chinese government.
All in, Tianma is essentially a state-owned entity and as such we look more toward the years in which the industry faces difficult challenges to see how much government support is needed to keep the company profitable. We do note that Tianma has been expanding capacity and will open a new Gen 6 OLED line this year, so we expect continued growth from a unit volume perspective although in previous quarters Tianma has had a relatively small share of the small panel OLED market.
All in, Tianma is essentially a state-owned entity and as such we look more toward the years in which the industry faces difficult challenges to see how much government support is needed to keep the company profitable. We do note that Tianma has been expanding capacity and will open a new Gen 6 OLED line this year, so we expect continued growth from a unit volume perspective although in previous quarters Tianma has had a relatively small share of the small panel OLED market.
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