Tesla’s raw material supplier BOE Technology Group Co., Ltd. has issued an agreement to Chengdu China Electronics Panda Display Technology Co., Ltd. in accordance with the Capital Increase Agreement. Chengdu Display subscribed for a capital increase of 7.55 billion yuan (Approx. 1.15 billion USD) and injected 3.02 billion yuan into Chengdu Display in currency.
According to Techweb.cn, Chengdu China Electric Panda Display Technology Co., Ltd. has recently undergone industrial and commercial changes, and the investor has added BOE Technology Group Co., Ltd. with a shareholding ratio of 35.03%, becoming the largest shareholder of Chengdu Display. At the same time, Chengdu Display’s registered capital increased from RMB 14 billion to RMB 21.55 billion, an increase of 53.93%.
BOE Technology Group Co., Ltd. (BOE) was founded in April 1993. It is an Internet of Things company that provides smart port products and professional services for information interaction and human health. It is reported that the company is a supplier of raw materials for the central control screen module of Tesla Model 3.
The latest announcement shows that BOE Technology Group Co., Ltd. held the nineteenth meeting of the Ninth Board of Directors on November 30, 2020, and reviewed and passed the “Proposal on Capital Increase to Chengdu CEC Panda Display Technology Co., Ltd.”. It is planned to increase capital through a non-disclosure agreement to show Chengdu an increase of RMB 7.55 billion.
On December 17, 2020, the company signed the “Capital Increase Agreement” and the “Concert Persons Agreement” with shareholders of Chengdu Display. As of December 24, 2020, the company has subscribed for a capital increase of RMB 7.55 billion in accordance with the Capital Increase Agreement and injected RMB 3.02 billion in currency to Chengdu Display. Chengdu Display has completed the relevant procedures for the capital increase in accordance with the agreement.
Previously, BOE issued an announcement stating that through this transaction, the company will further strengthen its VA and Oxide technology and manufacturing capabilities at the same time, it will supplement products with different sizes, enrich its product portfolio, further deepen cooperation with high-end customers, and expand high-end products. Product market, enhance customer stickiness, increase overall shipment volume and value, strengthen competitive advantages, and further consolidate industry-leading advantages.