Spend 7.278 billion yuan! BOE acquires 28.33% stake in Hefei BOE

Core Tip: On the evening of July 19, BOE A announced that in order to optimize the equity structure of Hefei BOE Display, improve management efficiency, and meet the company's development strategy requirements, the company plans to spend 7.278 billion yuan to acquire Hefei Xingrong Investment Co., Ltd. (hereinafter referred to as "" Hefei Xingrong”) holds a 28.33% stake in Hefei BOE Display.
As one of BOE's subsidiaries, Hefei BOE Display Technology Co., Ltd. (hereinafter referred to as "Hefei BOE Display") owns the world's first 10.5th generation high-generation TFT-LCD production line invested and constructed by BOE. One of the main production lines of LCD display panels.

On the evening of July 19, BOE A announced that in order to optimize the equity structure of Hefei BOE Display, improve management efficiency, and meet the company's development strategy requirements, the company plans to spend 7.278 billion yuan to transfer Hefei Xingrong Investment Co., Ltd. (hereinafter referred to as "Hefei Xingrong"). ”) holds a 28.33% stake in Hefei BOE Display.
After the transfer is completed, BOE A's shareholding in Hefei BOE Display will increase from 8.33% to 36.67%.
The business scope of Hefei BOE Display includes investment, construction, research and development, production and sales of TFT-LCD related products and their supporting products.

On April 19, 2015, BOE A reviewed and approved relevant proposals. The company plans to invest in a new 10.5-generation TFT-LCD production line in Hefei City. The registered capital of the project company is 22 billion yuan.

In April 2015, Hefei BOE Display was established with an initial registered capital of 20 million yuan. After several equity transfers, in March 2018, the registered capital of Hefei BOE Display was fully paid, with a registered capital of 24 billion yuan, of which BOE held 8.33%, Hefei Jiantou held 28.33%, and Xinping Fund held 63.33%; 2018 In December of this year, Hefei Jiantou transferred its 6.8 billion shares of Hefei BOE Display (accounting for 28.33%) to Hefei Xingrong; after the transfer was completed, BOE held 8.33% of the shares, Hefei Xingrong held 28.33%, and the core Screen Fund holds 63.33% of the shares.

According to reports, Hefei BOE shows that its operating income in 2020 will be 15.153 billion yuan, with a net profit of 3.928 million yuan and a net operating cash flow of 3.82 billion yuan. By 2021, the company will achieve an operating income of 19.854 billion yuan, a net profit of 3.315 billion yuan, and a net operating cash flow of 9.133 billion yuan. However, from January to March 2022, the relevant financial data will decline, the operating income will be 3.898 billion yuan, the loss will be 316 million yuan, and the net operating cash flow will also become -59.6727 million yuan.
However, BOE A continues to be optimistic about the market prospects of large-size TFT-LCD display panels.

BOE A recently announced that since the second half of 2021, panel prices have undergone structural adjustments, and the prices of TV and IT LCD products have fallen to varying degrees; since 2022, due to uncertainties such as global inflation, geopolitics and local epidemics Due to the influence of factors, the current terminal demand is declining in stages, and product prices are under pressure. In the weak industry environment, the trend of large-size panels continues to appear, and the demand area still has a certain growth. In terms of technology categories, the demand for ultra-high-definition, high refresh rate, and high-resolution products that apply high-end technology continues to increase; in terms of product categories, the penetration rate of products such as e-sports, folding, and Miniled backlighting has gradually increased. With the arrival of the peak season in the second half of the year, the promotion of promotions, and the release of new products, demand is expected to improve.

Regarding the transfer of the shares of the subsidiary, BOE A said that this move will further improve the management efficiency of Hefei BOE Display, which is conducive to the healthy and stable development of the company's business. At the same time, this equity transfer reduces the scope of Hefei BOE Display's confidential information, which can ensure the confidentiality of the TFT-LCD display technology and meet the company's future development needs.