Strategically withdraw from LCD panel business, Huadong Technology intends to acquire 51% equity of TPV

On the evening of September 4, East China Technology issued an announcement stating that the company will strategically exit the LCD panel industry and intend to sell 57.646% of Nanjing Flat Panel Display and 11.429% of Chengdu Display. The listed price of 57.646% equity of Nanjing Flat Panel Display is 3.987 billion yuan, and the transaction price of 11.429% equity of Chengdu Display is 1.493 billion yuan. At the same time, the company plans to acquire 51% of TPV Technology in cash, and plans to acquire 49% of TPV Technology through the issuance of shares. TPV Technology is the world's leading smart display manufacturer. The company's shares will be suspended from trading on September 7.

Strategic to withdraw from LCD panels and sell shares held by Nanjing CLP Panda and Chengdu CLP Panda

Huadong Technology stated that it intends to sell the company through public listing It holds 57.646% equity of Nanjing CEC Panda Flat Panel Display Technology Co., Ltd., with a listing price of 3,987,488,500; intends to transfer its 11.429% equity of Chengdu CEC Panda Display Technology Co., Ltd. to China Electronics Information Industry Group Co., Ltd. at a transaction price of 149,257.56 Ten thousand yuan. After the completion of these two transactions, Huadong Technology will receive approximately 5.479 billion yuan.

It is reported that Chengdu Display’s main business and main products are large-size, high-resolution LCD panels, which are mainly used in display screens, TVs, etc. field. Chengdu Display G8.6 project achieved 60k full production in the first phase in September 2018, and 120k full production in March 2019. Chengdu Display sold 7.438 million panels of various types in 2019.

According to the transaction documents, it intends to sell its 57.646% equity in Nanjing Flat Panel Display, which corresponds to the initial investment of more than 10 billion and Chengdu shows that 11.429% of the equity corresponds to the initial investment of 1.6 billion. .

The announcement stated that this time the company intends to sell 57.646% of the shares held by Nanjing Flat Panel Display through public listing and transfer on the Shanghai United Property Rights Exchange, and the final transaction counterparty intends to purchase it by cash payment Nanjing Flat Panel Display 57.646% equity.

In addition, the 17.168% equity (corresponding to the capital contribution of RMB 3,04.305,200) and 6.017% equity (corresponding to the capital contribution of RMB 1,053.0 million) held by the company’s related parties, China Power Co., Ltd. and China Power Panda The 57.646% equity of Nanjing Flat Panel Display held by the company is jointly transferred, that is, the company, China Power Co., Ltd. and China Power Panda jointly transfer 80.831% equity of Nanjing Flat Panel Display (corresponding to a capital contribution of RMB 14,145,305,200).

It is reported that in the first half of 2020, Huadong Technology achieved operating income of 2.811 billion yuan, a year-on-year increase of 19.62%; a loss of 778 million yuan, a year-on-year increase of 18.72%.

Cash purchase of 51% equity of TPV

Nanjing Huadong Electronic Information Technology Co., Ltd. (hereinafter referred to as the 'Company') announced that it intends to sell by public listing The company holds 57.646% equity of Nanjing CEC Panda Flat Panel Display Technology Co., Ltd., and plans to transfer its 11.429% equity of Chengdu CEC Panda Display Technology Co., Ltd. to China Electronics Information Industry Group Co., Ltd. At the same time, the company intends to pay in cash. Acquired 51% of TPV Technology's shares from CEIEC (HK) LIMITED and INNOLUX CORPORATION, shareholders of TPVTECHNOLOGY LIMITED.

The announcement pointed out that the audit and evaluation work of the company to be purchased this time has not been completed, and the estimated value and proposed price have not yet been determined.

List of TPV shareholders

The main method of payment in cash this time is to purchase the 51.00% equity of TPV Technology held by Huadian Co., Ltd. and Innolux . Among them, Huadian Corporation plans to transfer 1,105,977,491 shares of TPV Technology held by it, accounting for 47.15% of the total shares of TPV Technology; Innolux plans to transfer 90,300,000 shares of TPV Technology it holds, accounting for 3.85% of the total shares of TPV Technology. .

TPV Technology’s equity and control relationship

Huadong Technology stated that TPV Technology is a world-renowned leader in smart display manufacturing, with production and operations in Asia and Europe , America and many other places in the world, previously listed companies in Hong Kong and Singapore, privatized and delisted in 2019. After the completion of this transaction, the domestic A-share listing will be realized. TPV Technology will seize the development opportunities of national strategic emerging industries, new infrastructure, ultra-high-definition video industry, etc., through the A-share capital market, fully release corporate value, consolidate and deepen intelligence Display the professional capabilities in the field of manufacturing, increase Ru0026D investment and technical reserves, and provide momentum for subsequent development; while continuously expanding the scale of the industry, strengthen the investment layout in the e-sports, medical, smart audio and video markets, and continue to increase the added value of products , Practicing high-quality development and maximizing the interests of shareholders of listed companies.