The debt restructuring plan of Dongxu Group was approved by the creditors
September 30, 2022
Core tip: According to statistics, Dongxu Group has introduced LTPS glass substrate for high-end LCD display, OLED carrier plate for flexible screen production, and "King Panda" (second generation) cover plate glass for high-end mobile phones and vehicle mounted displays in the field of new displays in recent three years, further stabilizing its position in the industry. In addition, according to the data of Dongxu Group, the compound annual growth rate of patent applications of the company in the past three years exceeded 110%. By the end of March, about 3300 patents had been granted.
On September 29, Dongxu Group made important progress in debt resolution. The second meeting of the creditor committee of Dongxu Group held on the same day voted to approve the Financial Debt Restructuring Plan of Dongxu Group. The plan stipulates that Dongxu Group will not discount or evade all financial debts, and the risks will not spill over.
According to the relevant announcement, in order to implement the guidelines and policies of the CPC Central Committee and the State Council on preventing and resolving financial risks and supporting the construction of the real economy, Dongxu Group, under the guidance of the Hebei Provincial Party Committee and Government, the Party Committee and Government of Tibet Autonomous Region, and the Shijiazhuang Municipal Party Committee and Government, has taken comprehensive measures to exchange time for space, implement financial debt restructuring, and resolve financial risks.
It is understood that Dongxu Group, founded in Shijiazhuang in 1997, is an important enterprise in the upstream of China's new display industry chain. In 2010, the company took the lead in realizing the localization of G5 liquid crystal glass substrate in the industry. Since then, it has broken through the "choke" problem in basic raw materials and equipment for many times, realized the simultaneous mastery and industrialization of electronic glass overflow method and float forming process, helped the independent control of core materials in the display industry from the source, and won the first and second prizes of the National Science and Technology Progress Award and the China Patent Gold Award. At present, Dongxu Group has production bases in Hebei, Anhui, Sichuan, Fujian and other provinces and cities, with more than 20000 employees.
According to the analysis of insiders, the adoption of the plan has ensured the safety of creditors' principal, safeguarded the legitimate rights and interests of financial institutions and avoided financial risks; At the same time, it will also ease the debt pressure of Dongxu Group, and win precious time for the stable operation of enterprises and the recovery of "blood production". As the largest manufacturer of LCD glass substrate and high-end cover glass in China, the orderly operation of Dongxu Group will play a positive role in ensuring the safety of the national strategic industrial supply chain. In addition, the ideas and experience of debt resolution this time are also of reference significance for large private entity enterprises with high liquidity debt pressure.
According to endless statistics, Dongxu Group has introduced LTPS glass substrate for high-end LCD display, OLED carrier plate for flexible screen production, and "King Panda" (second generation) cover glass for high-end mobile phones and vehicle displays in the field of new displays in the past three years, further stabilizing its position in the industry. In addition, according to the data of Dongxu Group, the compound annual growth rate of patent applications of the company in the past three years exceeded 110%. By the end of March, about 3300 patents had been granted.
In recent years, Dongxu Group has adhered to the strategy of "one screen and one core" and developed six core businesses, including optoelectronic display materials, high-end equipment manufacturing, semiconductor silicon carbon materials, new energy power generation and components, new energy vehicles, and high-end medical medicine glass packaging materials. The adoption of this plan also represents the creditor's recognition of Dongxu Group's industrial reengineering ability.