Nanjing CLP Panda And Chengdu Show Signed 600 Million Technical Service Contract

- Dec 10, 2018-

On December 7, Huadong Science and Technology announced that in view of the company's holding subsidiary Nanjing CLP Panda Tablet Display Technology Co., Ltd. has LCD construction and production technology experience, the company's shareholding company Chengdu CLP Panda Display Technology Co., Ltd. (referred to as "Chengdu" Display ") and the tablet display the technical support related documents to be signed.


According to the data, the company holds a 57.65% stake in the flat panel and holds 11.43% stake in Chengdu. According to the contract agreement, the company provided technical support for improving product quality, production line operation efficiency, product yield, etc. to Chengdu, and charged Chengdu with a cost of 600 million yuan. The contract period is one year.


It is learned that Chengdu is a state-owned enterprise. It was established in December 2015 with a registered capital of 14 billion yuan. Its main business is thin film transistor liquid crystal display (TFT-LCD) panels and modules, liquid crystal displays, televisions, instruments and meters. R & D, production, sales and technical services of machinery and equipment; import and export of goods and technology import and export foreign trade.


According to financial data, its audited operating income in 2017 was 0 yuan, net profit was -764.78 million yuan, net assets were 13.992 billion yuan on December 31, 2017, and operating income was 289 million yuan in January-October 2018. Net profit - 102 million yuan, net assets of 31.88 billion yuan on October 31, 2018. From the beginning of this year to the disclosure date of this announcement, the company and its holding subsidiaries have accumulated a total of 19,194,900 yuan of various transactions.


According to the company, in view of the continuous expansion of the domestic panel industry, through the experience and technology provided by the flat panel display, Chengdu Display products can realize new product technology updates and import applications as soon as possible based on the original technical specifications, so as to quickly occupy the market share of new technology products. Conducive to the company's investment projects to achieve investment benefits as soon as possible. The transaction will generate technical service income, and the company's finance will be included in other business income, increasing the company's current income.