Ge Long Hui·2025-06-09 01:47Core Viewpoint - The article discusses the sale of a 10% stake in LG Display (China) by Skyworth Group to LG Display (Guangzhou) for 1.3 billion yuan, marking Skyworth's exit from the investment, which is perceived as a "fire sale" given the significant undervaluation of the asset [1][5][13]. Group 1: Transaction Details - Skyworth's subsidiary signed an agreement to sell a 10% stake in LG Display (China) for 1.3 billion yuan, after which Skyworth will no longer hold any shares in the company [1][5]. - The sale price represents a significant discount, with the book value of the shares being approximately 740 million yuan, indicating a sale at about 55.5% and 62.7% of their book value [13][14]. - Skyworth aims to use the proceeds from the sale to improve liquidity and fund other business operations [14]. Group 2: Industry Context - LG Display's Guangzhou factory is a critical asset in the Chinese panel industry, with a total investment of 4 billion USD and a production capacity of 180K, contributing to 4% of the global TV panel market [10][11]. - The factory's operational challenges, including a drop in utilization rates to around 50%, have led to speculation about its future, with TCL and BOE expressing interest in acquiring the asset [8][10]. - The sale of the factory is seen as a reflection of the broader struggles within the global panel industry, where LG Display is shifting focus towards OLED and MLED technologies [10][11]. Group 3: Company Performance - Skyworth's revenue declined by 6.6% year-on-year to 29.83 billion yuan in the first half of the year, despite a slight increase in gross profit [19][21]. - The company has reduced its workforce by 3,000 employees while simultaneously increasing investment in facilities and equipment by over 60% to 342 million yuan [21]. - Skyworth's reliance on its home appliance segment, particularly TVs, has increased, with this segment accounting for 51.7% of total revenue, while other segments like new energy have seen significant declines [21][22].