Changhong invested 360 million yuan into the OLED industry

Sichuan Changhong (600839.SH, hereinafter referred to as "Changhong") 15 announcement said, plans to invest 360 million yuan to set up a "Sichuan rainbow display technology Co. Ltd. (hereinafter referred to as the" Rainbow "), and the rainbow holding 60% stake in the company, in order to formally enter the OLED industry. This is followed by a huge investment in PDP (plasma) screen, Changhong in the field of flat-panel TVs another radical move.

Changhong said, OLED's Chinese name is "organic light-emitting display", also known as "organic light-emitting diode" or "organic electroluminescent display". OLED is following the CRT (CRT TV, the first generation), LCD (LCD TV), PDP (second generation) after the display of the technology of the third generation, on behalf of the current direction of the development of display technology, the industry as a "dream display".

Therefore, Changhong intends to Chengdu hi tech Investment Group Co., Ltd., jointly invested 600 million yuan to set up the rainbow company, OLED industrial development, Chengdu hi tech investment group holds 40% stake in the joint venture. The company's main business is OLED and its modules, head mounted displays and mobile displays, electronic products research and development, manufacturing, sales and service.

Changhong expects the OLED project in the next 5 years, the average rate of return on investment is expected to be around 8%, but based on the presence of the project's technical and market risk factors, investment returns may be uncertain. As a result of 360 million yuan of its own funds, and therefore no significant impact on the financial situation of Changhong.

However, Changhong's independent director Feng Guanping voted against the bill, on the grounds that: "the lack of detailed market, technology, cost and comparative analysis of domestic and foreign competitors. "

China color TV industry in the era of CRT overall win, but the heteronomy in the flat-panel era, the basic module 100% LCD, PDP imports. Therefore, since last year, Changhong, Hisense, TCL and other Chinese local color TV companies have set foot in the upper plate industry. Among them, the Changhong group is the first step to invest about 6 billion yuan to build China's first PDP screen production line.

However, as foreign brands in flat-panel era with the rise of LCD and PDP, the Chinese enterprises in the CRT era to establish industrial advantages greatly weakened, when Chinese enterprises want to in the LCD, PDP upstream breakthrough, foreign enterprises and has been brewing a new weapon.

SONY has launched the world's first OLED TV at the end of this year, the world's first PDP TV, OLED TV than LCD, lighter, thinner, causing great concern. Another multinational giant Samsung is also developing OLED tv. Some experts called China must track the latest display technology in the world, in order to avoid after gradually establish LCD, PDP upstream industries, and in the next round of competition fall behind.

In fact, some domestic research institutes have been studying OLED technology. College of materials South China University of Technology Institute of Opto electronics professor Wang Jian in the "2007 (Shenzhen) China FPD Manufacturing Forum" has said that the United States DuPont has invested $400 million to the third generation display, is still in the pilot phase, therefore, whether OLED industrialization down in cost can.

Source: First Financial Daily