Rainbow shares 6 billion expansion to build Foshan glass substrate production line

On April 6, Rainbow shares (600707) issued its plan for non-public offering of shares. The company plans to issue non-public shares of no more than 430 million shares and raise funds totaling no more than 6.08 billion yuan (about 6 billion after issuing expenses). As the first domestic company with glass panel production capacity, the main purpose of this renewal application of Rainbow shares is to build 8.5-generation LCD glass panel production line projects and 4.5-generation AMOLED production line projects. After the two projects landed, Rainbow shares quickly advanced the layout of the panel. It is worth noting that the targeted placement of private placements in Foshan, Guangdong, Guangdong, as one of the domestic panel industry clusters, industrial chain matching and upstream and downstream adsorption capacity is increasing.

Capital increase two major projects in Foshan in July 2010, Lottery Rainbow issued a private placement, raised 3.5 billion funds, all invested in the construction of glass panel projects. Nine months later, Rainbow issued another issuance and plans to raise 6 billion yuan, of which 4.4 billion will increase capital Rainbow (Foshan) Flat Panel Display Glass Co., Ltd. to build a 8.5-generation LCD glass panel production line project. After the production capacity reaches 2.2 million pieces, the estimated sales revenue is 2.518 billion yuan, and the average annual profit after tax is 947 million yuan. It is understood that the capital requirement for the 8.5-generation LCD glass panel production line project is 6.435 billion yuan.

The remaining 1.6 billion was invested in Rainbow (Foshan) Flat Panel Display Co., Ltd. 4 . 5th generation AMOLED production line project. Northeast Securities analyst Wu Na analysis, after the implementation of the project, the company's market position in the field of glass substrates will be further improved, which will help its rapid advance to the senior generation line, seize the market opportunities, and actively promote the domestic production and supply of domestic glass substrates After the implementation of project two, AMOLED assets will gradually be injected into listed companies. In the future, AMOLED assets will continue to use the capital market financing platform to conduct research, development, production and sales of higher generation products, becoming one of the important aspects of the company’s future performance growth.

However, Lu Jiebo (microblogging), deputy secretary-general of the China Electronic Chamber of Commerce, said in an interview with a Southern Metropolis reporter that he is not very optimistic about Rainbow shares, and the other two domestic related manufacturers, BOE and SVA, are at a loss. He said that the panel industry has a large investment and a long cycle, but it changes too quickly. Sharp has already invested in the 10th generation line in Japan, and the current 8.5 generation line of Rainbow's shares has fallen behind. After the completion of the two-year construction period, it may no longer be able to meet the needs of the market.

Yu Liangxing of Aowei Consulting believes that as long as the Chinese manufacturers can solve technical problems, they are still optimistic about the market prospects.

Guangdong flat industry cluster outline shows rainbow This directional additional investment option settled in Foshan, Guangdong, in addition to the company's actual controller and controlling shareholder Rainbow Group and Rainbow Electronics' subscription, it also introduced a strategic investor in Shunde District of Foshan City, Shun Shing Asset Management Co., Ltd., Chengshun company plans to invest no less than 600 million yuan in cash subscription. Wu Na analyzed that this move is conducive to the local government’s policies and financial support during the follow-up implementation of the Rainbow Shares Project.

At present, Beijing, the Yangtze River Delta, and Guangdong have formed the three pillars of the Chinese LCD panel industry. In particular, Guangdong Province has made a series of breakthroughs in the field of flat panel display industry, especially in the area of ​​panel production. Shenzhen, Foshan, and Guangzhou have introduced companies such as Groupcom, Chunghwa Picture Tubes, Chi Mei, and LGD. Yang Xue, director of Electronic Information Department of Guangdong Province Economic and Information Commission, once said that with the LG8.5 generation LCD panel production line settled in Guangzhou Development Zone approved, Shenzhen China Star Optoelectronics is building 8.5 generation line and Shunde Rainbow Group AMOLED 4.5 generation. With the construction of the line, the flat panel display industry in Guangdong has achieved considerable development and is one of the leading companies in the country.

Rainbow's glass substrate layout is 8.5 generation line products, the project landed in Foshan, which industry speculation, this will be with Shenzhen and Guangzhou two high-generation panel line form a complete set. Lu edge wave said that the formation of industrial clusters in the Guangdong region, industrial chain supporting and upstream and downstream adsorption capacity is increasing.