Panel factory and LED factory supply, cooperation overview

The Board of Directors of Dongbei Optoelectronics will launch a market of 2.234 billion yuan, and the market will be announced. South Korea's LG Group is interested in participating. At the same time, LGIT, a subsidiary of LG Group, which is engaged in the business of light-emitting diodes (LED), is also interested in increasing capital. Dongbei may invest. Form a cross-shareholding. LG borrowed an alliance with Taiwanese factories to fight for Samsung.

Dongbei is the largest supplier of LED TV backlights in independent factories. It is already an important partner of Samsung. In the future, it will be able to “support Samsung and hold LG on the left” to expand the global layout.

Dongbei Company is not willing to disclose the target of strategic partners for the introduction of convertible bonds, emphasizing that the company will strengthen the global layout and stimulate the synergy with the application-side vendors.

The board of directors of Dongbei will pass the cash increase and issue of convertible corporate bonds (ECB) to raise funds totaling 2.234 billion yuan, of which 1.5 billion yuan will be invested by strategic partners; it will also handle cash capital increase, tentatively set at 48.9 yuan per share. Raised 734 million yuan. Dongbei fell 0.65 yuan yesterday, closing at 49.55 yuan, and now the temporary price discount is less than 2%.

Dongbei spokesperson Weng Congzhi said that the cash increase will be subscribed by the original shareholder according to the shareholding ratio; the convertible bond will be introduced by strategic partners.

South Korea's LG Group has a positive attitude towards Taiwanese partners, has become a shareholder, and has strategic alliances with Yiguang and Ruixuan. It is understood that LGD, a subsidiary of LG Group, has jointly invested with Dongbei in the Yuanguang Optoelectronics Co., Ltd., which is a LG Electronics company that has been operating LGIT, which is engaged in LED epitaxial, die and packaging, to invest in Taiwan to find investment partners. The company has signed a Non-Disclosure Agreement (NDA) with Dongbei to prepare for the cross-shareholding between the two parties.

Dongbei is the earliest manufacturer of LED TV backlights in the domestic LED downstream packaging factory, and entered the Samsung LED TV supply chain through Lumens, a Korean packaging factory that has invested in the investment.

In the past, in order to avoid offending big customers Samsung, Dongbei kept a distance from LG, but affected by Samsung’s delayed shipments, Dongbei’s July revenue did not jump as expected by 800 million yuan, triggering market slashes and five consecutive transactions. The three major legal persons sold more than 15,000 copies, and the stock price fell nearly 16% in the short term.

It is understood that as Dongbei's new LG LED TV orders have begun to ship, Samsung's share of revenue in the future is expected to decrease. Dongbei has been evaluating the possibility of investing in LGIT; LG Group may also subscribe to Dongbei's convertible corporate bonds after it has invested in Yuanyuan and the Yiguang Strategic Alliance; at the same time, many upstream and downstream factories are interested in participating in the subscription.

Weng Congzhi said that after Dongbei stood firm in the position of the backlight market leader, it once again prepared a silver bullet to attack the dual-axis development strategy of backlight and lighting. About the backlight market is more than 100 times the general lighting application market.