Visionox boosts AMOLED project, secures control and loan guarantees

Visionox Technology has announced the second phase of capital contributions for its Hefei 8.6th generation AMOLED production line, with a total investment of 9.443 bn yuan. Visionox will contribute 3.918 bn yuan, raising its stake in Hefei Visionox Technology Co., Ltd. to 37.73%. Concurrently, Visionox is solidifying its control over Hefei Visionox Electronics Co., Ltd., a subsidiary related to its 6th generation AMOLED module production line, by signing a "Concerted Action Agreement" with Hefei Xinzhan Technology Industrial Development Group Co., Ltd. This move will bring Hefei Visionox Electronics within Visionox's consolidated financial statements, expected to increase total assets by approximately 7 bn yuan and net assets by approximately 1.3 bn yuan.

Separately, Visionox is providing a joint and several liability guarantee for a long-term syndicated loan of up to 2 bn yuan for its holding subsidiary, Suzhou Visionox Innovation Technology Co., Ltd. The loan, with a term of 120 months, is intended to support new display technology development projects. Following this guarantee, Visionox's total external guarantees, including those for consolidated subsidiaries, will amount to 18,832,076.30 yuan, representing 339.36% of its net assets as of the end of 2024.