Tianma 6th generation flexible AMOLED signing Xiamen

On the evening of August 12, Shen Tianma announced that according to the development strategy plan of Tianma Microelectronics Co., Ltd. (hereinafter referred to as “Company” and “Party B”), the company intends to designate a wholly-owned subsidiary Xiamen Tianma Microelectronics Co., Ltd. (hereinafter referred to as “Xiamen Tianma” and “C-Party” and the Xiamen Municipal Government’s designated funder (currently not yet determined, hereinafter referred to as “Xiamen designated funder”) jointly invested to establish a joint venture project company, and the joint venture project company invested in Xiamen “6th Generation of flexible AMOLED production line project" (hereinafter referred to as "this project"). On August 12, 2019, the company and the Xiamen Torch High-tech Industrial Development Zone Management Committee (hereinafter referred to as “Xiamen Torch High-tech Zone Management Committee”, “Party A”) and Xiamen Tianma jointly signed the “6th Generation Flexible AMOLED Production Line Project”. Investment Cooperation Framework Agreement.
The project will build a 6th generation flexible AMOLED production line (substrate size 1500mm*1850mm) in Xiamen, with a designed capacity of 48 thousand flexible display substrates per month; the construction period is expected to be 30 months; the total investment is not to exceed RMB 48 billion or so. Value foreign currency.
The full text of the announcement is as follows:
Tianma Microelectronics Co., Ltd. Announcement on Signing Investment Cooperation Framework Agreement

I. Signing of the investment cooperation framework agreement

According to the development strategy of Tianma Microelectronics Co., Ltd. (hereinafter referred to as “Company” and “Party B”), the company intends to designate its wholly-owned subsidiary Xiamen Tianma Microelectronics Co., Ltd. (hereinafter referred to as “Xiamen Tianma” and “Party C”) and Xiamen. The capital contribution party designated by the municipal government (currently not yet determined, hereinafter referred to as “Xiamen designated funder”) jointly invested to establish a joint venture project company, and the joint venture project company invested in the “6th generation flexible AMOLED production line project” in Xiamen (hereinafter referred to as “the project” "). On August 12, 2019, the company and the Xiamen Torch High-tech Industrial Development Zone Management Committee (hereinafter referred to as “Xiamen Torch High-tech Zone Management Committee”, “Party A”) and Xiamen Tianma jointly signed the “6th Generation Flexible AMOLED Production Line Project”. Investment Cooperation Framework Agreement.

This investment does not constitute a major asset restructuring as stipulated in the Measures for the Administration of Major Asset Restructuring of Listed Companies, and does not constitute a restructuring listing.

As of the disclosure date of this announcement, as the designated investor of Xiamen is not yet clear, whether this investment event constitutes a related party transaction cannot be judged temporarily. If the subsequent progress of this investment event triggers the conditions of the connected transaction, the company will perform the corresponding timely in accordance with the regulations. Review process. According to the information currently known, this investment must be effective after being reviewed and approved by the company's board of directors and shareholders' meeting.