In recent days, there has been a continuous stream of news regarding the asset transfer event between Wuhan University of Posts and Telecommunications (WUPT) and its subsidiary companies and Fenghuo Technology. This involves multiple enterprises, and some readers have reported confusion. Here, I will clarify everything. First, Wuhan Fenghuo Technology Co., Ltd. was officially established on September 6, 2011, and has recently received a series of high-quality asset injections from WUPT's subsidiaries, including Guangxun Technology, Fenghuo Communication, Wuhan Telecom Devices Co., Ltd. (WTD), and Wuhan Hongxin Communication Technology Co., Ltd.
WUPT's subsidiaries: Guangxun Technology, Fenghuo Communication, WTD, Wuhan Hongxin — Fenghuo Technology
Fenghuo Technology was established on September 6, 2011, with a registered capital of 100 million RMB. WUPT contributed 100 million RMB in cash to Fenghuo Technology, holding 100% of the registered capital. The legal representative is Tong Guohua (President of WUPT). WUPT is the controlling shareholder and actual controller of Fenghuo Technology.
This transfer of equity in the listed company does not result in any substantial change in the actual controlling entity.
Currently, Fenghuo Technology has not yet commenced actual operations. The business scope of Fenghuo Technology includes communications, electronic information, optical fiber preforms, optical fiber cables, electric new energy, batteries, power supplies, cables, and special cables.
As for WUPT, although it is a state-owned enterprise, due to historical reasons, it does not have a corporate structure. Therefore, certain corporate actions, such as mergers and acquisitions, are subject to more restrictions.
Now, WUPT has transferred all its high-quality companies (assets) under the corporate entity Fenghuo Technology, which will lead to more standardized and effective management in the future.
Additionally, in the future, the major shareholder Fenghuo Technology will find it easier to introduce strategic investors, secure bank loans, engage in mergers and acquisitions, and inject assets.
Fenghuo Communication — Fenghuo Technology
On the evening of September 20, Fenghuo Communication announced that its controlling shareholder, WUPT, intends to transfer 244 million shares it holds in the company to Fenghuo Technology without compensation, accounting for 55.12% of Fenghuo Communication's total share capital. After the transfer is completed, Fenghuo Technology will directly hold shares in Fenghuo Communication.
Wuhan University of Posts and Telecommunications stated that Fenghuo Technology, as a wholly-owned subsidiary of Wuhan University of Posts and Telecommunications, will further promote internal adjustments, optimize its main business structure, and enhance corporate competitiveness through this acquisition of Fenghuo Communication's equity. After the completion of this equity transfer, Fenghuo Technology will hold more than 30% of Fenghuo Communication's shares, which will trigger the obligation for a tender offer.
Fenghuo Technology Company stated that the transfer of equity is pending approval from the China Securities Regulatory Commission to exempt Fenghuo Technology from the obligation to make a tender offer triggered by this equity transfer, after obtaining approval from the State-owned Assets Supervision and Administration Commission of the State Council.