China Display Optoelectronics Technology Holdings Limited
TCL Display Entered into MOU with Wuhan CSOT – Formation of Joint Venture
[Immediate Release] TCL Display Entered into MOU with Wuhan CSOT (13 June 2016, Hong Kong) – TCL Display Technology Holdings Limited (“TCL Display” or the “Group”; HKSE stock code: 334), the leading provider of small-to-medium-sized display modules in China, announced that the Group entered into the MOU with Wuhan CSOT, with regard to the formation of Joint Venture to engage in production of LTPS LCD module products. It is currently contemplated that the total investment amount of the Joint Venture will be RMB900 million, and that TCL Display will own not less than 50% of the registered capital of the Joint Venture, whereas Wuhan COST will own not more than 50% of the registered capital of the Joint Venture. Wuhan COST was jointly established by Shenzhen CSOT (a subsidiary of TCL Corporation) and Hubei Science & Technology Investment Group Co., Ltd. (a company invested by the Wuhan City Government), with China Development Fund Co., Ltd. as one of the major shareholders. The production plant of the Joint Venture will be located at the Optics Valley Smart Industrial Park of the Wuhan East Lake High-tech Development Zone, next to Wuhan CSOT’s LCD panel production plant. It is contemplated that the Joint Venture will operate 10 fully automated production lines of LTPS LCD module for mobile phones and with an average annual productivity of approximately 50 million laminated display modules for mobile phones. Installation of related production lines will be completed at the end of 2016 while mass production is expected to commence officially in October 2017. The Group intends to use the HK$150 million net proceeds from the placing previously to form a Joint Venture with Wuhan CSOT, not only can the Group leverage on the resources and expertise of Wuhan CSOT in LTPS LCD panel production to manufacture better quality products, it also enables the Group to further expand its existing high-end LTPS LCD module production scale, in order to grasp the growing demand for LTPS LCD module products. Mr. LI Jian, Chief Executive Officer of TCL Display, stated, “Along with the success of Shenzhen CSOT in large-sized display panel production, Wuhan CSOT will be able to maintain its leading position in product yield efficiency as well as production ramp-up in the industry. The establishment of Joint Venture between TCL Display and Wuhan CSOT not only benefits the Group from the efficiency brought by economies of scale, but also reduces expenses in areas including logistic and agent fees (accounting for approximately 5% of the LCD panel costs). The Joint Venture can also provide the Group with a new supplier to stabilise the upstream supply of LCD panels, allowing us to strengthen our leading position amongst display modules providers. We believe the Joint Venture will allow the Group to increase its market share and create higher returns to shareholders.” / For more information, please visit its website at www.tcldisplay.com.
About Wuhan China Star Optoelectronics Technology Company Limited Issued by Cornerstones Communications Ltd. on behalf of TCL Display Technology Holdings Limited. For further information, please contact: Cornerstones Communications Limited Document: http://n.eqs.com/c/fncls.ssp?u=QEJLQMEXMP Document title: Eng Version
13/06/2016 Dissemination of a Press Release, transmitted by EQS TodayIR – a company of EQS Group AG. |