BOE Huacan Optoelectronics disclosed two related transactions, BOE continues to increase support

On July 15, BOE Huacan Optoelectronics disclosed two related transactions with its controlling shareholder Tokyo Oriental, involving private placement subscriptions and patent licensing, further deepening the industrial collaboration between the two parties.

BOE Huacan Optoelectronics: Plans to raise 998 million yuan from BOE

According to BOE Huacan Optoelectronics' 2026 stock issuance plan to specific targets, the company plans to issue no more than 97.9392 million A shares to the controlling shareholder Tokyo Oriental, and the planned funds raised will not exceed 998 million yuan, and BOE will fully subscribe in cash.

After deducting issuance expenses, all net proceeds will be used to supplement working capital. Matters related to this issuance have been reviewed and approved by the company's board of directors and the first extraordinary shareholders' meeting in 2026, and have been approved by state-owned assets supervision agencies. They are still pending review and approval by the Shenzhen Stock Exchange and approval by the China Securities Regulatory Commission for registration. After the completion of this issuance, BOE's shareholding ratio will be further increased. The company's controlling shareholder will still be BOE, the actual controller will still be Beijing Electronic Control, and the control rights will not change.

BOE Huacan Optoelectronics stated that the funds raised through this private placement will effectively alleviate the pressure on working capital and optimize the asset and liability structure. The full subscription by the controlling shareholder also conveys to the market its recognition of the company’s development prospects and confidence in its long-term value.

BOE licenses MLED-related patents to Suzhou Jingxin

Another announcement disclosed on the same day showed that Suzhou BOE Jingxin Technology Co., Ltd., a subsidiary of BOE Huacan Optoelectronics, plans to sign a "Patent License Agreement" with BOE. BOE will grant Suzhou Jingxin the right to implement MLED-related patents in the form of a general license. The license period is 10 years, and the total licensing fee is 52.92 million yuan, paid in 10 years.

It is reported that Suzhou Jingxin is a joint venture established by BOE Huacan Optoelectronics to implement new high-end display projects. In June this year, BOE Huacan Optoelectronics announced that it planned to sign an investment cooperation agreement with the Jiangsu Zhangjiagang Economic and Technological Development Zone Management Committee to invest approximately 970 million yuan in the construction of new high-end display projects, and jointly established Suzhou Jingxin as the project implementation entity with Yuefeng Science and Technology, a state-owned asset platform in the Zhangjiagang Economic and Technological Development Zone. Suzhou Jingxin has a registered capital of 700 million yuan, of which BOE Huacan Optoelectronics invested 490 million yuan, holding 70% of the shares, and Yuefeng Technology invested 210 million yuan, holding 30% of the shares. They are fully responsible for the construction and subsequent operation of new high-end display projects.

BOE Huacan Optoelectronics stated that this patent license will help consolidate the core technical strength of its holding subsidiary and assist its stable and orderly operation and market expansion. According to statistics, in addition to this patent licensing matter, the total amount of various related transactions that have occurred between BOE Huacan Optoelectronics and BOE since the beginning of the year is 109 million yuan.