Rainbow Optoelectronics intends to invest 2.265 billion yuan to expand the 8.6-generation TFT-LCD production line

Rainbow Co., Ltd. (600707) announced on the evening of the 13th that the company's holding subsidiary, Rainbow Optoelectronics, intends to invest in the 8.6th generation thin film transistor liquid crystal display device (TFT-LCD) 170K capacity expansion technological transformation project, with a total investment of 2.265 billion yuan.

The project includes new plant and power supporting facilities, and the addition of some process equipment. On the basis of the original 132K/month production capacity, the goal of expanding the production capacity to 170K/month will be completed. The cycle is 22 months. The total investment of the project is 2.265 billion yuan, including engineering construction investment of 144 million yuan, process equipment investment of 1.792 billion yuan, power equipment installation investment of 214 million yuan, and other investment of 115 million yuan. The funds required for the project will be solved by Rainbow Optoelectronics with its own funds or through other financing methods. The annual operating income of the project at full production is 2093.5184 million yuan, and the internal rate of return of the project is 11.63%.

The company said that the flat panel display industry is a key industry supported by the country and has a huge market space. TFT-LCD technology is currently the mainstream display technology for flat panel display devices. According to statistics, from 2014 to 2019, the shipment area of u200bu200bTFT-LCD panels has increased from 162 million square meters to 214 million square meters, with an average annual compound growth rate of 5.73%, exceeding the overall growth level of the flat panel display industry. As of the end of 2019, the TFT-LCD panel shipment area accounted for 96% of the overall scale of the flat panel display industry. It is estimated that by 2024, the global TFT-LCD panel shipment area will further increase to 255 million square meters, which has a huge market space. .

Rainbow Optoelectronics 8.6 generation thin film transistor liquid crystal display device (TFT-LCD) production line project was put into production on December 25, 2017. The production capacity in January 2020 has reached 132K/month, and it has production expansion experience. This project has good social and economic benefits. After the successful implementation of the project, the company's business scale will be expanded, which is conducive to the continuous growth of the company's future operating income and profit level. (Public Securities News)