Feikai Materials (300398.SZ) subsidiary plans to purchase 100% of JNC Suzhou shares and all JNC Group patents related to LCD displays

Zhitong Finance App News, Feikai Materials (300398.SZ) announced that Jiangsu Hecheng Display Technology Co., Ltd. (“Hecheng Display”), a wholly-owned subsidiary of the company, plans to purchase JNC Liquid Crystal Materials (Suzhou) Co., Ltd. (hereinafter referred to as “JNCP”), a wholly-owned subsidiary of the Japanese company JNC Co., Ltd. (“JNCP”), and Jienzhi New Material Technology (Suzhou) Co., Ltd. (hereinafter referred to as “JNCNC”) for RMB 170 million (tax included) 100% equity (JNCLC and JNCNM are collectively referred to as “JNC Suzhou”, and JNCP hereinafter collectively referred to as “JNC Group”), and plans to purchase all of the JNC Group's patents related to LCD displays at RMB 212 million (tax included); at the same time, JNC will invest RMB 170 million (tax included) in currency to purchase Hecheng Display's additional registered capital and obtain 5.10% of Hecheng Display's shares. The company relinquishes the priority purchase rights for this capital increase.

After the transaction is completed, Hecheng Display will change from a wholly-owned subsidiary of the company to a holding subsidiary. Hecheng Display holds 100% of JNC Suzhou's shares, and JNC Suzhou will be included in the scope of the company's consolidated statements.

The purpose of this subsidiary asset acquisition and capital increase and stock expansion is to optimize the industrial structure, strengthen resource integration, focus on the LCD business field, and further consolidate and enhance the company's core competitiveness, which is in line with the company's long-term development plan and the interests of all shareholders. This transaction will not have a significant adverse impact on the company's operating results and financial situation, and there will be no harm to the interests of the company and all shareholders, especially small and medium shareholders.