Major OLED panel manufacturer passes Hong Kong Stock Exchange listing hearing

On March 8, the Hong Kong Stock Exchange disclosed information that Shanghai Hehui Optoelectronics Co., Ltd. passed the listing hearing on the main board of the Hong Kong Stock Exchange.

According to data, Hehui Optoelectronics focuses on the research and development, production and sales of high-resolution AMOLED semiconductor display panels. The company currently has two modern AMOLED production lines, the 4.5th generation and the 6th generation. The 4.5th generation AMOLED production line mainly focuses on the fields of smart wearables and smartphones, while the 6th generation AMOLED production line focuses on the fields of tablets/laptops, car displays and smartphones.

The company's AMOLED semiconductor display panels have been used by consumer electronics brands such as Honor and Transsion, as well as two of China's top five car companies. In addition, the company's products have been adopted and used by one of the world's leading aircraft manufacturers headquartered in Europe.

In terms of finance, in the nine months ending September 30 in 2022, 2023, 2024, and 2025, Hehui Optoelectronics achieved revenue of approximately 4.191 billion yuan and 3.038 billion yuan respectively. , 4.958 billion yuan, and 4.002 billion yuan; during the same period, losses during the year/period and total comprehensive losses were approximately 1.602 billion yuan, 3.244 billion yuan, 2.518 billion yuan, and 1.370 billion yuan respectively.

As for the use of funds raised from the subsequent listing, according to Hehui Optoelectronics' strategy, the net proceeds will mainly be used for the following purposes:

1. Part of the funds will be allocated for the technological upgrade of Hehui Optoelectronics' 6th generation AMOLED production line. The details are as follows:

Purchase new production equipment to increase the production capacity of the array production line of flexible panels and encapsulated touch panels by 7,500 large panels per month, and realize the process capability of encapsulated color filter technology, including installation and commissioning costs and logistics costs related to such equipment;

Purchase new production equipment to expand the production capacity of thin film packaging by 7,500 large panels per month, including installation and commissioning costs and logistics costs related to such equipment;

Purchase new production equipment to strengthen the production capacity of the module process, including increasing the production capacity of the flexible material cutting stage by 7,500 large boards per month, increasing the production capacity of the mixed material cutting stage by 5,000 large boards per month, and increasing the flexible module production capacity by 120,000 pieces per month, including installation and commissioning costs and logistics costs related to such equipment. The equipment used to achieve the above technological upgrades mainly includes dry etching machines, exposure machines, plasma chemical vapor deposition equipment and coating/developing machines.

2. Part of the funds will be allocated for the research and development of new AMOLED display panel products. In order to keep up with the pace of technological development and meet market demand, Hehui Optoelectronics plans to develop approximately 33 to 44 new AMOLED semiconductor display products, including:

approximately 15 to 19 products of different sizes and specifications designed for tablets/laptops;

14 to 19 products of different sizes and specifications designed for smartphones;

approximately 4 to 6 products of different sizes and specifications designed for automotive displays and innovative applications.

Hehui Optoelectronics previously stated that the company’s application for listing on the Hong Kong Stock Exchange is to accelerate the company’s international strategy and overseas business layout, enhance the company’s overseas financing capabilities, and expand financing channels. Through the H-share listing, Hehui Optoelectronics will further increase the production capacity ratio of high-end AMOLED panel products, increase the added value of products, enhance the overall competitiveness of the company, and build the company's international brand influence.