Upstream and downstream integration of the industry chain
The private placement plan shows that the price of Huacan Optoelectronics’ shares issuance to specific objects is 5.60 yuan/share, and the number of shares issued is The total amount of shares raised is 372 million yuan, and the total amount raised is 2.084 billion yuan. After deducting issuance expenses, 1.75 billion yuan will be used for the construction of Micro LED wafer manufacturing and packaging testing base projects, and 334 million yuan will be used to supplement working capital.
In addition to fully subscribing for Huacan Optoelectronics’ fixed-increase shares, BOE also signed an agreement with New Sure Limited, the third largest shareholder of Huacan Optoelectronics. The latter plans to irrevocably entrust BOE with the voting rights, nomination rights and ancillary rights of all 56.8174 million shares of Huacan Optoelectronics. According to the data, New Sure Limited is a well-known investment. A company owned by IDG.
After the above matters are completed, BOE will hold 23.08% of the shares of Huacan Optoelectronics and control 26.60% of the voting rights; Huashi Holdings will hold 19.13% of the shares of Huacan Optoelectronics and control 19.13% of the voting rights. It also promises not to seek actual control of Huacan Optoelectronics. The controlling shareholder of Huacan Optoelectronics will be changed from Huashi Holdings to BOE, and the actual controller will be changed from Zhuhai State-owned Assets Supervision and Administration Commission to Beijing Electronic Control.
According to data, BOE is a global leader in the field of semiconductor display and a global innovative enterprise in the field of Internet of Things. Its leading position in semiconductor display continues to be consolidated, and its sales and market share of five mainstream products, including smartphone LCD displays, tablet computer displays, laptop displays, monitor displays, and TV displays, continue to rank first in the world. In recent years, BOE has continued to focus on optimizing the LCD product structure in the display device business, accelerating the improvement of OLED technology capabilities, and building a Mini/Micro LED product group.
Huacan Optoelectronics is the world's leading supplier of LED chips and advanced semiconductor solutions. Its products are widely used in display backlights. They are an important part of BOE's display products and are BOE's upstream companies.
After the completion of this issuance, Huacan Optoelectronics will become a holding subsidiary of BOE, which will help both parties strengthen coordination with upstream and downstream resources and industry, enrich product structure, enhance product competitiveness, expand application markets, and jointly expand Mini/Micro LED cutting-edge technologies and products. In addition, Huacan Optoelectronics will make full use of BOE’s capital and resource advantages, effectively integrate resources, and form complementary advantages with BOE to promote long-term sustainable and healthy development.
Strengthen MLED industry collaboration
In May 2021, Huashi Holdings, a subsidiary of Zhuhai's leading state-owned enterprise Huafa Group, became the controlling shareholder of Huacan Optoelectronics, and provided comprehensive empowerment in strategic planning, technology research and development, bank financing, customer resources, policy support, talent recruitment, incentive mechanisms, etc., to promote the quality and efficiency of Huacan Optoelectronics' operation and management.
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ANNA