Ored Optoelectronics is mainly engaged in the research and development, production and sales of sapphire crystal materials and single crystal furnace equipment. Previously, Southwest Pharmaceutical, a subsidiary of Taiji Group, released a major asset reorganization plan stating that Oride Optoelectronics plans to achieve a backdoor listing of Southwest Pharmaceutical through a series of transactions such as major asset replacement, issuance of shares to purchase assets, share transfers and non-public issuance of shares to raise supporting funds.
After the reorganization is completed, Southwest Pharmaceutical plans to raise no more than 1.03 billion yuan in non-public issuance of shares from specific investors, which will be used for the "large-size sapphire material industry base expansion project" of Oridian Optoelectronics and the "sapphire window base project" of Qiuguan Optoelectronics. The relevant person in charge of OLED Optoelectronics once said that the purpose of backdoor listing is to make full use of the financing function of the capital market. In the opinion of industry insiders, based on the mortgage situation of Oride Optoelectronics' equity, equipment, land, etc. and the situation of raised funds, Southwest Pharmaceutical may be facing a dilemma in the tight capital chain.
This major asset reorganization aims to achieve the transformation of the listed company's main business through asset replacement and issuance of shares to purchase assets, improve the company's operating conditions, enhance the company's sustainable profitability and development potential, and enhance the company's value and shareholder returns.
After the completion of this transaction, the listed company's existing assets, liabilities, businesses, etc. will be divested and instead hold 100% of the equity of Orred. Orred's sapphire operating business with strong profitability and broad development prospects will be injected into the listed company, and the profitability of the listed company will be significantly enhanced. After the transaction is completed, Orred will be able to connect with the A-share capital market, further promote Orred's business development, and help enhance the company's comprehensive competitiveness, brand influence and industry status, and help maximize the interests of shareholders of listed companies.
It is understood that the major asset restructuring plan of Southwest Pharmaceutical still needs to be reviewed and approved by the Southwest Pharmaceutical Shareholders Meeting and the China Securities Regulatory Commission’s Merger and Reorganization Review Committee, and must be approved by the China Securities Regulatory Commission. The shareholders’ meeting will be held on the afternoon of September 23.
ANNA