Boe Technology To Build Production Line In Ordos

Date:2011-08-31     Source:xuxinlile  Text Size:

August 30 -- BOE Technology Group  plans to invest 22 billion yuan to build a production line for 5.5-generation active matrix organic light emitting diodes (AM-OLED) in Ordos city, Inner Mongolia, with construction period of 29 months, reports Shanghai Securities News, citing the company’s announcement.

The production line of 5.5-generation AM-OLED includes film, cells and module production processes which will produce small, low temperature poly-silicon LCD (LTPS LCD) and AM-OLED, with monthly capacity of 54,000 units. The new production facility is expected to contribute net profit of 2.89 billion yuan annually, with an internal rate of return of 15.05 percent and an investment return period of 8.76 years.

BOE has signed the investment agreement with the Ordos municipal government and Beijing Haohua Energy Resource (601101), and it may receive exploration rights of over one billion tons of coal. BOE expressed that it plans to set up two energy subsidiaries to cooperate with Haohua energy to explore coal resources.

According to the announcement, BOE plans to invest six million yuan and its subsidiary, BOE Photo Electricity, invest 24 million yuan to set up BOE Energy Investment in Ordos. In addition, BOE will combine Hefei BOE Technology and BOE Indicator to invest 30 million yuan to set up Haosheng Energy Investment in Ordos. BOE will sell its stakes in BOE Energy Investment and Haosheng Energy Investment to Haohua Energy after receiving the official documents of the aforementioned exploration rights.

Haohua Energy also announced today that it plans to explore coal at the Bayannao coal mine in Hujirt to support BOE’s production of 5.5-generation AM-OLED.

BOE reported it incurred a loss of 1.215 billion yuan in the first half of 2011 despite an 18 percent increase in revenue to 4.94 billion yuan, with earnings per share of negative 0.09 yuan.

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