SVA stripped traditional display business specializing in LCD market

Newspaper news (reporter Zhang Yan) yesterday, Shanghai Guangdian electronic Limited by Share Ltd (referred to as SVA) announcement, decided to transfer the subsidiary of Shanghai Yongxin color picture tube company (referred to as Yongxin CPT) 45% stake and SVA electrical branch, branch management of all assets to the major shareholder of Shanghai radio and television group, thus stripping traditional display business, focus resources on the development of flat-panel business.

It is reported that Yongxin is the main business of CPT SVA company, its main business of color kinescope production and sales revenue accounted for the main business income of the 8 SVA all around. However, the first half of 2005, due to Yongxin CPT losses, resulting in a loss of 130 million yuan of SVA, earnings fell 259.22%, the main reason is the domestic color TV market focus from CRT TV shift to flat-panel TV market overall downturn, cpt.

According to the announcement, all the sale of assets owned subsidiary of Yongxin CPT 45% to the major shareholder of Shanghai broadcasting group equity and SVA electrical branch, branch management, the transfer price is based on the Yongxin CPT net assets of 1 billion 771 million 520 thousand yuan and two companies net assets of 90 million 250 thousand yuan, and the valuation date to the date of change of property right of profit or loss to determine.

In this regard, SVA board said that the reorganization of assets in favor of SVA from traditional display business to the new flat-panel display business transformation. At present, SVA and BOE is Chinese mainland has only two LCD panel production line of business.