On November 7, Hanbo High-Tech issued a progress announcement on its capital increase to its holding subsidiary.
According to the relevant capital increase agreement, the shareholders of Bojing Technology intend to increase the registered capital from RMB 408 million to RMB 800 million. Specifically, RMB 245 million of the registered capital will be subscribed by Hanbo High-Tech in cash; RMB 117 million will be subscribed by the new shareholder Chuzhou Chuxin Equity Investment Fund Partnership (Limited Partnership) in cash; and RMB 30 million will be subscribed by the new shareholder Xiamen TCL Technology Industry Investment Co., Ltd. in cash. The original shareholders, Xizheng Fund and Nandi Fund, will not contribute capital in this increase.
All capital increases were made in cash. The equity structure of Bojing Technology before and after the capital increase is as follows:
Bojing Technology is a subsidiary of Hanbo High-Tech Holdings Limited. Bojing Technology is the implementing entity for Hanbo High-Tech's Bojing Display Technology project, invested and constructed in the Chuzhou Nandi Economic Development Zone. The project plans to invest a total of RMB 5 billion in projects including Mini LED backplanes, LCMs, backlight modules, and PCB/FPC.
As a new investor in this project, Xiamen TCL Technology Industry Investment Co., Ltd. was established in 2021 with a registered capital of RMB 100,000, and is 100% owned by TCL Technology Group Co., Ltd.
According to public information, TCL Technology focuses on the upstream semiconductor industry, including the production and distribution of display panels and photovoltaic materials. Its subsidiary, TCL CSOT, is a globally renowned display panel manufacturer, with products covering large, medium, and small display sizes.
In the first three quarters of 2024, TCL Technology achieved revenue of RMB 123.028 billion and net profit attributable to the parent company of RMB 1.525 billion. Among them, the semiconductor display business achieved revenue of RMB 76.956 billion, an increase of 25.74% year-on-year, and net profit of RMB 4.443 billion, an increase of RMB 6.067 billion year-on-year; and net cash flow of RMB 19.838 billion.
Regarding the capital increase of its subsidiary, Hanbo High-Tech stated that Bojing Technology was established as the project implementation entity based on the company's development plan and operational needs for investing in and constructing the Bojing Display Technology project. The capital increase of the company and related investors in Bojing Technology will help promote the project construction, further enhance the company's overall profitability and market competitiveness, and lay the foundation for future development.
The funds for this capital increase are from the company's own funds. After the capital increase is completed, it will not cause any change in the scope of the company's consolidated financial statements, nor will it have an adverse impact on the company's financial and operating conditions. This capital increase does not harm the interests of the company and all shareholders.
