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Company News >> Dongshan Precision plans to sell large-size display business and touch panel business 14th,July,2018

In order to focus on the business strategy of focusing on the main business, Suzhou Dongshan Precision Manufacturing Co., Ltd. (hereinafter referred to as “the company”) intends to further optimize the industrial layout and integration by selling non-core business-related assets such as large-size display business and touch panel business. Company resources to improve the efficiency of the company's operations.

It is understood that the underlying assets of the transaction include the company's large-size display business and touch panel business-related assets. The operating entities of the above-mentioned businesses are 100% directly or indirectly controlled subsidiaries of the company. The company will determine the scope and form of the specific sale of assets based on the overall arrangement of the trading plan, and complete the internal integration of the relevant assets before the sale.

1, large size display business

As part of the LED and display device business, the company has formed a large-size display business system through continuous investment of its own funds, including large-size backlight modules, large-size complete machines, computer displays and related upstream sheet metal services.

At the beginning of the market development, the market demand for large-size display business is relatively high and the growth is rapid. However, the strategic direction of the company's LED business is to become a core device supplier, and the business model of operating large-size display business and other LED devices is different. The selection, process and customer management are also relatively independent. Therefore, the company plans to divest large-size display business and dispose of related assets such as inventory, equipment and credits of large-size display business.

2, touch panel business

In order to deepen the integration of vertical industry chain and improve the overall supply capacity of display and touch products, the company added a touch panel business in February 2014 through mergers and acquisitions.

After the acquisition, with the technical strength and sales resources of Mudong Optoelectronics in the field of touch panels, the company continued to explore and tap customer needs, realizing the rapid growth of the touch panel business and contributing to the company's stable performance. However, the technology update of the touch panel industry is iterative and the demand for fixed assets is high. In order to realize the business strategy of focusing on the main business, the company plans to allocate the core resources in the field of printed circuit boards that have developed rapidly in recent years. Touch panel business, disposal of related assets.

Dongshan Precision said that if the asset sales can be successfully completed, it will further increase the proportion of the company's core business, and through the effective integration of assets, business and personnel, promote the efficiency of the company's operation and management and reduce the cost level, and improve the company's profitability. . In addition, through the sale of assets to withdraw funds, this transaction will further improve the liquidity of the company's assets, enhance the competitiveness of the company's core business through the reconfiguration of resources and assets, and help promote the development of the company's core business system, the improvement of profitability and Increase in return on assets. In summary, this transaction will have a positive impact on the company's financial status and operating results, which will help optimize the company's resource allocation and financial structure, in line with the company's development strategy focusing on the main business.