Dongxu Optoelectronics Builds China's Largest OLED Substrate Production Base With A Total Investment Of 7 Billion Yuan

- Oct 16, 2020-

On the evening of September 29, Dongxu Optoelectronics (000413.SZ) issued an announcement saying that in order to make full use of the company’s glass substrate spillover technology, give full play to the economic benefits brought by the company’s industrial agglomeration advantages, and enhance the company’s overall strength, the company will On September 29, the “Project Investment Agreement” was signed with the Tianshui Municipal People’s Government in Tianshui City, Gansu Province. The two parties jointly invested in the construction of the “G6-OLED Carrier Glass Project” and the “Neutral Borosilicate Glass Tube” in Tianshui City. And the bottle-making project" has reached a cooperation intention, with a total investment of 7 billion yuan.

According to the relevant agreement, Hebei Guangyang Electronic Technology Co., Ltd., a subsidiary of Dongxu Optoelectronics, and Tianshui City Government State-owned Assets Investment Platform Tianshui City Industrial State-owned Assets Investment Co., Ltd. jointly funded two project companies. The project company implemented the construction investment scale of 50 The “G6-OLED Carrier Glass Project” with an investment of RMB 2 billion and the “Neutral Borosilicate Glass Tube and Bottle Making Project” with an investment of RMB 2 billion. The establishment of the project company shall be determined by the parties through negotiation. Tianshui Municipal Government actively supports project companies to enjoy preferential industrial policies, and fully assists project companies to obtain policy funds at the national, provincial and municipal levels. They are respectively "G6-OLED carrier glass project", "neutral borosilicate glass tube and "Bottle Making Project" provides 2 billion yuan and 1 billion yuan in financing.

Dongxu Optoelectronics stated in the announcement that in the current economic situation facing multiple challenges, the company relies on its own high-quality industrial technology resources and uses state-owned capital to guide strategic development, promote the integration of industry and finance, expand the scale of investment and establishment, and enrich the company's industrial layout. The signing of this investment agreement represents that the company has officially entered large-scale industrial investment and construction after making a breakthrough in the field of OLED substrate glass flexible display technology, laying the company’s market foundation in the OLED flexible display field, and the company uses the overflow technology of glass substrates The realization of import substitution of medicinal glass will bring more profit growth space for the company. The above-mentioned projects are expected to have a positive effect on the company's future operating performance and cash flow.

It is understood that Tunghsu Optoelectronics is a leading company in the localization and substitution of China's optoelectronic display materials. It has repeatedly broken the international monopoly of core technologies and filled the domestic gap. It is the largest domestic LCD glass substrate manufacturer in China and the world's fourth-ranked LCD glass substrate manufacturer and a global leader. The optoelectronic display material suppliers in China have formed a display material industry cluster with comprehensive competitiveness. Dongxu Optoelectronics LCD glass substrate project and high-end cover project won the first and second prizes of the 2018 National Science and Technology Progress Award.

Since August this year, Tunghsu Optoelectronics has been favored by state-owned assets, and has successively cooperated with state-owned assets such as Mianyang in Sichuan, Anyang in Henan, and Nanning in Guangxi to develop and expand strategic emerging industries such as the optoelectronic display industry. This cooperation with Tianshui State-owned Assets of Gansu Province will achieve complementary advantages and build China's largest OLED substrate production base and high-end medicinal glass project. After the project is put into production, it will break foreign monopoly once again, and grasp the strategic window period of the global display industry iteration. Develop new opportunities to ensure the security of the domestic display supply chain.

Some analysts pointed out that the strong technical strength and the high strategic position of the track are precisely the "hard core" of Tunghsu Optoelectronics that has been blessed by state-owned assets. In the context of China's "accelerating the formation of a new development pattern with domestic and international double cycles as the main body", this time Dongxu Optoelectronics has once again received strong support from the Tianshui government, which is of great significance. Dongxu Optoelectronics continues to expand the company's display industry layout, which is conducive to further enhancing the company's comprehensive competitiveness and adding a strategic fulcrum to the localized supply of the display industry chain; at the same time, it is also one of the key measures for the transformation and upgrading of the old industrial base in Tianshui , Will inject new vitality into the high-quality development of Tianshui, and provide solid industrial support for the implementation of the country's western development and the fight against poverty.

According to the relevant person in charge of Dongxu Optoelectronics, the company seizes the opportunity of new display iteration and is committed to the research and development of OLED substrate related process technology. It has realized a glass formulation with completely independent intellectual property rights, and has achieved high-generation adaptability, light weight, and thinning. , The third generation of flexible display technology has absolute advantages. The construction of China's largest OLED substrate production base is a large-scale industrialization following the success of the first OLED substrate glass experiment line of Wuhu Optoelectronics. It will help the development of my country's OLED display industry and ensure the safety of the domestic display industry chain.

In addition, in order to solve the domestic problem of high-end pharmaceutical packaging materials that are urgently needed in China, Tunghsu Optoelectronics vigorously deploys the field of neutral borosilicate medicinal glass, which will break the foreign monopoly and further break the "stuck neck" problem. Relying on the international advanced high-end glass production technology and years of industrialization experience, the company has successfully developed the key technologies required for the production of this kind of glass.

The person in charge emphasized that protecting the safety of the national industry is the belief that Dongxu Optoelectronics has adhered to for many years. In the context of the current tightening of Sino-US relations and the growing trend of economic anti-globalization, Tunghsu Optoelectronics must further accelerate the implementation of the innovation-driven development strategy, realize the layout and catch-up of core technologies, and increase the intensity of industrialization in order to further develop Its due role in the localization of strategic industries such as new displays.