The Ostin Technology Group is a holding company that specializes in supplying polarizers and display modules. The company serves China, Hong Kong, and Taiwan, operating also throughout the Southeast regions of Asia. Its headquarters is in Nanjing, China. The products serve the automotive industry with components for making LCD screens and other related products across multiple industries. The company's announcement of its IPO made business news across the world. If you're not yet familiar with this company, here are twenty things you probably didn't know about Ostin Technology Group to bring you up to speed.
1. Ostin Technology Group is a holding company
IPO Scoop reports that Ostin Technology Group does not maintain material operations. Its operations are conducted through various entities the enterprise established in the PRC. The primary business of the holding company is Jiangsu Austin Optronics Technology Co., Ltd, and other subsidiaries that it owns. In short, it owns majority shares of stock in companies that provide technology products. The subsidiaries of Ostin Technology Group fall under its umbrella of majority-owned businesses.
2. Ostin Technology Group incorporated in the Cayman Islands
Ostin Technology Group is a Chinese holding company, but it was incorporated in the Cayman Islands. The company was formed by a group of experts in the technology industry. The founders chose to incorporate their company in the Cayman Islands to take advantage of the tax efficiencies. It's common for companies to do this because of the lower costs involved with tax structuring. it's also more efficient for creating IPOs and merging with other companies in the Cayman Islands for wealth management.
3. Ostin Technology provides components for consumer electronics
Ostin Technology works through its subsidiaries to design and manufacture display modules, specifically, TFT-LCD modules. They're made in a range of sizes and styles. The displays are customized to customer specifications for use in automotive applications, outdoor LCDs, and various consumer electronics applications, such as the screens you use in your electronic devices. The company also manufactures the polarizers for the TFT-LCD displays. They're working on the development of polarizers for OLED display panels. Ostin Technology Group's products are also used in the education industry.
4. Ostin Technology operates through four manufacturing plants
The Jiangsu Austin plant is the largest and primary manufacturing operation for Ostin Technology Group. The enterprise has two plants in Jiangsu Province, one in Chengdu, Sichuan Province, and another in Luzhou, Sichuan Province. The massive operations own properties that encompass 54,665 square meters for its operations when you combine the occupied space of them all. It's a massive enterprise.
5. Ostin Technology is building its market through collaboration
Ostin Technology Group works with its customers through close collaborations. The companies build new products of high-end quality using new technologies and materials to suit the needs and preferences of each customer. The products are top-of-the-line and created to fit in with specific customer products. For example, the size of the displays may be customized according to the specifications of an automotive manufacturer, to fit the design of a new vehicle model.
6. Ostin Technology Group has seen recent revenue growth
Ostin Technology Group maintains a strong research and development division within its operations. In 2019, the company developed a line of polarizers. It introduced the products to many companies throughout China and saw significant revenue growth as the polarizers received a warm welcome from manufacturers. The addition of the new product line increased the volume of orders from Ostin Technology Group's product lines.
7. Ostin Technology Group has received numerous accolades for its R&D
The research and development operations of Ostin Technology Group have done a spectacular job of developing products that fill many needs of its customers. The efforts of its R&D segment have not gone unnoticed. The enterprise has received numerous recognitions including the high new-tech enterprise designation in Jiangsu Province, China. It has earned a preferential tax rate of 15%. Ostin Technology Group is also endorsed by Jiangsu Provincial Credit Enterprise, and Key Optoelectronic Product Laboratory. The research and development capabilities of Ostin Technology Group are highly respected.
8. Ostin Technology Group priced its IPO in April 2022
Ostin Technology Group priced its IPO on April 26, 2022. The goal of the enterprise was to raise $13.5 million at the IPO. It offered 3,375,000 shares of its common stock, priced at $4 per share. Ostin Technology Group stock is listed on the Nasdaq Stock Exchange under the ticker symbol OST.
9. Tao Ling is the Chairman and CEO of Ostin Technology Group
Seeking Alpha confirms that Mr. Tao Ling is the chairman and chief executive officer of Ostin Technology Group. Lin brings years of experience on the job. He has been with the company since it first started. he previously worked at Hitachi, Ericsson, Harris, and Uniden. He brings years of experience leading electronics manufacturing companies to the job.
10. Ostin Technology Group stock is available to investors
Investors in the general public can now purchase shares of Ostin Technology Group stock. Previous investors put over $10.5 million into funding the company before it went public. Some of the pre-IPO investors include Renown Investment Management, JQZY Investment Management, and SHYD Investment Management. Before its IPO, Seeking Alpha recommended that investors consider adding the stock to their portfolios during the IPO.
11. Ostin Technology uses a direct marketing approach
Ostin Technology group acquires customers through a direct marketing approach. It goes directly to automotive manufacturers and other target industries to gain exposure to its products. The company has also received support in the form of government subsidies to support aspects of its business. It's good for the economy in China, and the government likes that.
12. Revenues are up and marketing expenses are down
Ostin Technology Group is experiencing massive growth in its revenue. As revenue grows, the marketing expenses have gone down. The products it offers are becoming popular and established with manufacturers in various industries. Ostin Technology Group has made a name for itself and it is a brand that is in favor of its customers. The need for marketing efforts has decreased sharply because of the solid reputation the company has established.
13. Forecasts for Ostin Technology Group are favorable
Business analysts are predicting a sunny future for Ostin Technology Group. Expert Market Research issued a 2021 market research report for the global market of FTF-LCD displays with more than $167 billion for 2020 and the forecast for that number to jump to $221.6 billion by the year 2026. Ostin Technology Group is quickly becoming a leader in the industry and it is forecast to gain a significant slice of the market pie.
14. Demand for Ostin Technologies products is exploding
Further support for the sunny outlook for Ostin Technology's continued success is the forecast for the growing demand for display-based devices and electronics. These include vehicle displays, gaming industry applications, tablet computers, smartphones, and flat-panel televisions. These are all segments of the industry that use the products supplied by Ostin Technology.
15. Ostin Technology Group has stiff competition
Ostin Technology Group is one of many enterprises that engage in the supply of display screens and polarizers. Many other companies provide similar products, creating competition in the industry. The chief competitors of Ostin Technology group are Radiant Optoelectronics Corporation, Quanta Computer, HannStar Display, and TPK Corporation. Ostin Technology Group is far from being the only game in town. Some of its largest competitors have been in business for years and they're thriving due to the increasing demand for display technologies. All of these companies serve emerging markets in various countries throughout Southeast Asia. Although these companies are competing for business, there is plenty of room for all of them to secure a healthy customer base and continue to grow within their niches of the industry. The demand is high and the supply has not been steady enough to meet the growing demand. There's room for everybody to get in on the action.
16. Ostin Technology has plans for IPO proceeds
Ostin Technology entered into its initial public offering to take the enterprise public with a defined goal. They've already established a budget to put the money to work on behalf of the company. Ostin Technologies plans to direct a quarter of the net proceeds from the IPO to constructing more facilities at the Chengdu plant and to buy equipment to produce OLED polarizers, its next product line designed by its research and development branch. A quarter of the proceeds will go toward acquisitions of new subsidiary companies. Ostin Technology Group plans to invest in more businesses that are engaged in the development and manufacture of new display materials and advanced technologies. They plan to direct thirty percent of the proceeds for working capital and to fund operating and other general-purpose expenses of the corporation. Finally, twenty percent of the net profits from the IPO are designated to enhance the research and development segment of the company to expedite the development of new materials. Some of the plans they have in place include developing LCP, which are liquid crystal polymer polarizers, as well as AMOLED and OLED polarizers. It also plans to improve its manufacturing processes.
17. Ostin Technology Group is in a solid financial position
Ostin Technology Group has arrived at a solid place in its financial posturing. The company's research and development department has created products that are popular with its customers and more new and advanced products are currently in the pipeline. The company is experiencing a sharp growth in topline revenue with increased gross profit. It also increased operating profit and net income. It's seen massive growth in cash flow from its operations. The company's most recent registration statement shows that the free cash flow for the year that ended September 30, 2020, was $4 million. The company had $5.4 million in cash and $51.7 million in liabilities. The recent influx of cash from the successful IPO that tripled its bottom line helped to offset the company's liabilities. Ostin Technology Group is in a good place from a financial perspective.
18. Ostin Technology Group stock rose sharply
Benzinga confirms that since Ostin Technology Group went public, the stock shares have risen to levels that make investors happy. As of April 28, 2022, stocks were up by 292.67 percent, which is good news for investors. The company's first day of trading opened at $10.01 per share. The stock shares closed at $39.66 per share.
19. Ostin Technology Group was wise in its IPO contract
Ostin Technology Group set the terms of its IPO agreement for insiders to include a clause protecting the company from having its stock shares oversupplied. OST included a caveat of its IPO contract that created an insider lock-up for 180 days for the select group of shareholders unable to sell their shares for the period that ends October 24, 2022. It's hard to tell what will happen when the agreement expires, but for now, investors are enjoying a massive rise in the value of their shares.
20. Ostin Technology Group is a company to keep your eye on
Investors looking for new ways to diversify their investment portfolios may wish to consider ostin Technology Group's stock. While any investment in the stock market is a risk, we've seen the OTG stock perform well during its first month as an investment option for investors. Although Ostin Technology Group is new to the public stock exchange, it's been in operation for more than a decade. It's here to stay. All indications give the company a sunny outlook for continued growth and success as one of the major suppliers of products that will continue to see rising demands.
Written by Allen Lee
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