SVA won the huge capital fifth generation LCD production line

January 10th news, Shanghai SVA (Group) Co., Ltd. will be the largest shareholder of SAIC and other state-owned capital capital. Analysts pointed out that the SVA Group has been involved in thin film transistor liquid crystal display (TFT-LCD) industry, the industry of great demand for funds in the short term, the group itself has no proper capital market financing channels, so the government funding is also reasonable. SVA Group official said, the photoelectron industry including TFT-LCD industry, Shanghai municipal government for future development of the industry, the change in equity capital and fully support the government's attitude. But he declined to give more details.

Haitong Securities analyst believes that the LCD industry is at a low stage, just put the SVA TFT-LCD production line need to have a certain strength, can survive the current most critical moment. Shanghai Guangdian electronic Limited by Share Ltd on Saturday at the Shanghai Securities newspaper announcement said, Shanghai SASAC will Shanghai Yidian Holdings (Group) company holds 19.43% stake in SVA Group transferred to Shanghai automotive industry (Group) Corporation, and the Shanghai SASAC and SAIC will increase, which will promote the structural adjustment of SVA Group to speed up the development of Shanghai optoelectronic industry.

Another listed company SVA Group under the Shanghai radio and television Chengdu Westone Information Industry Inc also published the same announcement. SVA Group and Japan NEC joint venture construction Chinese first fifth generation TFT-LCD production line has been put into operation at the end of last year, a total investment of US $1 billion, China accounted for 75% of the shares. SVA Group and radio and television broadcasting electronics and information group, an investment company, as the investment subject, accounting for investment company holding the position of sva.

Currently Chinese two fifth generation TFT-LCD production line has been put into operation, namely by SVA NEC and BOE responsible, but the financing has chosen a different path, BOE chose the road of the market, is the use of government power up. The BOE itself is a listed company, owned by AOC technology also listed in Hongkong, more financing channels, but the SVA TFT-LCD line depends on the strength of the group, the listed company not participate in. According to the analysis of the current situation, the market is generally more efficient financing, the company to reduce costs and improve efficiency more pressure.

Haitong Securities analyst believes that the market financing can better allocation of resources, but also to distinguish the different stages of development. Now that the trough, it needs the government's strong support of Everfount transportation funds to survive the present predicament, and to promote the SVA second line construction.

According to plan, 2005-2006 will be a new generation of SVA fifth or higher level of the production line, investment of more than $1 billion 500 million; 2007-2010 years will build more than seventh generation 1-2 production line. The higher the algebra of TFT-LCD production line is, the more advanced the technology is, the lower the production cost will be. At present, SHARP, Japan has built sixth generation production line, South Korea, Samsung and other manufacturers are building the production line of the seventh generation.

And industry insiders said, as the leading state-owned SVA Group, if taken to attract foreign investment or listed market financing channels, may take a long time, missed a good time to inject. Taking advantage of the opportunity to take advantage of the current state of the capital, once the TFT-LCD industry to improve the path of the market, state-owned capital can sell a good price.

SVA Group currently registered capital of 2 billion 90 million yuan, the SAIC Group holds a 48.61% stake in the first major shareholders. After the transfer, SAIC will be holding up.

SVA Group website, group 2010 vision is based on TFT-LCD liquid crystal display project as a new growth point, to develop a new type of flat panel display and terminal products, to build a world-class flat display industry manufacturing base. Group operating income of $10 billion in 2010.

SVA Group mainly produces televisions, refrigerators and other appliances, also provide CRT, LCD, plasma display to other manufacturers, the 2003 merger of various subsidiaries after the sales revenue reached 38 billion 180 million yuan.