Shanghai Hehui Optoelectronics' AMOLED Project Update

TapTechNews September 20th news, according to CINNO reports, the Sixth Generation AMOLED Production Line Capacity Expansion Project of Shanghai Hehui Optoelectronics Co., Ltd.'s initial public offering investment project has passed the acceptance.

Hehui Optoelectronics previously planned to invest 8 billion to add a monthly capacity of 15,000 wafers. With the commissioning of the expansion project, the capacity of Hehui Optoelectronics' sixth-generation AMOLED will be increased from 30,000 large wafers per month to 45,000 large wafers.

The expansion project adds 2 production lines, one is a rigid production line and the other is a rigid-flexible combined production line. This expansion project is a major project in Shanghai from 2022 to 2024.

The sixth-generation AMOLED production line project of Hehui Optoelectronics was established in 2016, with a planned investment of 27.2 billion and a designed capacity of 30K/M. The production line started production in 2019, and by the end of the first half of 2024, it has all achieved full-scale production.

TapTechNews noticed that since AMOLED is a capital-intensive industry and the capacity is still in the process of gradual release, Hehui Optoelectronics has been in a net loss state in recent years. The financial report for the first half of 2024 shows that the operating income is 2.395 billion yuan, increasing significantly by 74% year-on-year. Among them, the export income is 889 million yuan, accounting for 37.13% of the operating income in the reporting period. The net profit attributable to the parent company is a loss of 1.279 billion yuan, which is generally similar to the loss scale of last year.