Feikai Materials announced on the evening of the 25th that the company plans to issue 10.713 million shares at a price of 56.75 yuan per share, and pay a cash of 456 million yuan to purchase 100% of Jiangsu Hecheng Display Technology Co., Ltd. for a price of 1.064 billion. At the same time, the company plans to raise a total of 472.5 million yuan to cover the cash consideration and related issuance costs of the transaction.

According to the assessment report, Hecheng showed that the estimated value of 100% equity was 1.035 billion yuan. Compared with Hecheng, the audited net assets attributable to the parent company increased by 816 million yuan, and the appreciation rate was 374.26%.

The transferor promises and shows that the net profit after deducting non-recurring gains and losses realized in 2016, 2017 and 2018 is not less than RMB 65 million, RMB 80 million and RMB 95 million; if the performance commitment period is postponed, The counterparty promised and showed that the audited deducted net profit realized in 2019 was not less than RMB 11,000.

According to the announcement, Hecheng Display is a professional enterprise engaged in the research, development, production and sales of liquid crystal display materials. The products mainly include TN, STN and TFT type hybrid liquid crystals. It is one of the few companies in China that can provide TFT mixed crystal materials. One of them has obvious advantages in the development and production of mixed crystals. In recent years, the company has developed rapidly in the production of TFT mixed crystal materials, and gradually cooperated with the most competitive panel companies in China, such as BOE, CLP Panda, and Huaxing Optoelectronics. The sales volume is growing rapidly, and the products have high-end market. Strong competitiveness, it is now one of the most important producers of mixed crystal materials in China.

The company said that through this transaction, the company will further improve its business system, enrich the company's new materials products, further promote the implementation of the comprehensive material platform layout, and continue to strengthen the strategic layout in the field of new materials in the electronic information industry.