Recently, Shenzhen Netac Technology Co., Ltd. (hereinafter referred to as “Netac Technology”) announced that the company intends to establish a joint venture with Zhengyuan Semiconductor (Shenzhen) Co., Ltd. (hereinafter referred to as “Zhengyuanxin”) to cooperate in the construction of memory chips. The packaging and testing factory is conducive to the company’s deepening of upstream expansion and cooperation in the industrial chain, and meets the needs of the company’s current strategic planning and business development.
The announcement shows that the name of the joint venture company is Shaoguan Langzheng Data Semiconductor Co., Ltd. (tentative), and the registered capital is proposed to be RMB 50 million, of which Netac Technology subscribed for 27.5 million yuan, and the subscribed capital ratio is 55%; The paid-in capital is 22.5 million yuan, and the subscribed capital contribution ratio is 45%, all of which are self-owned funds.
At the same time, Zhengyuanxin has made a performance commitment to Netac Technology, and Shenzhen Yuanwei Innovation Industry Co., Ltd. (hereinafter referred to as “Yuanwei Innovation”) is the Zhengyuanxin guarantor (the “guarantor” here and below refers to the joint liability guarantor) , if Zhengyuanxin fails to fulfill the performance commitment, Yuanwei Innovation promises to make up the payment directly to the designated collection account of the joint venture company in cash.
To sum up, Netac Technology invested 27.5 million and Zhengyuanxin invested 22.5 million to establish a Shaoguan memory chip packaging and testing company.
According to OFweek Electronic Engineering, Netac Technology was established in 1999 and was the first in the world to successfully develop a portable mobile storage device that supports a USB interface – a flash drive, and has obtained patent applications for original basic inventions worldwide. And core patents, filling the 20-year absence of core patents in the field of domestic flash memory applications and mobile storage, the company’s products once occupied 50% of the domestic U disk market share.
Netac Technology was listed on the A-share Growth Enterprise Market in 2010, becoming China’s “first mobile storage stock”. Before the U-disk patent expired, Netac had to pay part of the patent fee for every U-disk sold in the world. But after the patent protection expired on November 14, 2019, Netac Technology can no longer rely on patents to make money.
Netac Technology stated in the announcement that the company’s core basic invention patent “Flash electronic external storage method and device for data processing system” (patent number: ZL99117225.6, hereinafter referred to as “99 patent”) has an application date of November 14, 1999. According to Article 42 of the “Patent Law of the People’s Republic of China”, “The term of the invention patent right is 20 years, and the term of the utility model patent right and the design patent right is 10 years, both calculated from the filing date”, The expiration date of the patent right of the company’s 99 patent is November 14, 2019.
In the announcement, Netac Technology also admitted that the expiration of the patent will have a certain adverse impact on the company’s future operating profits. Even Netac didn’t know what effective measures to take to fundamentally solve the risks to the company’s operations after the patent expired.
OFweek Weike.com·Electronic Engineering also noticed that after the expiration of the patent protection fee, Netac Technology’s profitability in recent years has also been affected to a certain extent. According to the 2022 third quarter report recently released by Netac Technology, the company’s operating income during the reporting period was 486 million yuan, an increase of 6.30% over the same period of the previous year; the net profit attributable to shareholders of listed companies was 17 million yuan , a decrease of 23.70% over the same period of the previous year; the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 11 million yuan, a decrease of 27.83% over the same period of the previous year.
In terms of the full-year performance in 2021, the company’s operating income in 2021 is about 1.913 billion yuan, a year-on-year increase of 28.3%; the net profit attributable to shareholders of listed companies is about 69 million yuan, a year-on-year decrease of 2.55% ; Basic earnings per share were 0.3436 yuan, a year-on-year decrease of 2.55%. It is not difficult to find that although the company’s revenue has increased, its net profit has continued to decline, and its overall profitability is not as good as before.
It is worth mentioning that just on November 15 this year, Netac Technology announced that as of the announcement date, the company’s shareholder Shaoguan City Investment Development Group Co., Ltd. (hereinafter referred to as “Shaoguan City Investment”) holds a voting share ratio of 24.89%, and the voting rights enjoyed by the shares held by it are enough to have a significant impact on the resolutions of the general meeting of shareholders. At the same time, the directors nominated and elected by it in the fifth board of directors accounted for more than half of the board of directors of listed companies. Therefore, Shaoguan City Investment has the control right of the company as the controlling shareholder of the company, and the State-owned Assets Supervision and Administration Commission of the Shaoguan Municipal People’s Government (hereinafter referred to as “SASAC of Shaoguan City”) indirectly holds 90% of the shares of Shaoguan City Investment, which is the actual control of Shaoguan City Investment person, and at the same time the actual controller of the company.
According to public information, Shaoguan City Investment won 49.875 million shares of Netac Technology through an online judicial auction, and completed the transfer registration procedures on June 2, 2022, becoming the company’s largest shareholder with a shareholding ratio of 24.5%. 89%.
For Netac Technology, after becoming a listed company actually controlled by Shaoguan City Investment, it is expected to be able to contribute to the construction of the Shaoguan data center cluster, a national hub node of the national integrated computing power network in the Guangdong-Hong Kong-Macao Greater Bay Area. The further development of Netac Technology has created favorable conditions.