Nan Fang Du Shi Bao·2025-07-30 10:18Core Viewpoint - Recently, Xi'an Rainbow Optoelectronics Technology Co., Ltd. has undergone significant changes, including the addition of BOE Technology Group as a shareholder and a major overhaul of its senior management team [1][4][7]. Company Overview - Xi'an Rainbow Optoelectronics, established in November 2015, operates an 8.6-generation TFT-LCD production line and has a registered capital of approximately 14.25 billion RMB. Its product range includes TFT-LCD panels, modules, and various display-related equipment [4]. - The company serves a diverse customer base, including major brands such as Hisense, TCL, Xiaomi, Haier, and Samsung [4]. Shareholder Changes - As of July 23, 2023, BOE Technology Group acquired a 30% stake in Xi'an Rainbow Optoelectronics for approximately 4.85 billion RMB, making it the second-largest shareholder, while Rainbow Display Device Co., Ltd. retains a 69.79% stake [7][10]. - The transaction is structured as a minority stake acquisition, allowing Rainbow Display to maintain operational control [7]. Management Changes - The recent changes in senior management include the exit of several key figures such as the chairman and general manager, with new appointments including Chen Jianguo as a director and Wu Yongliang as the new general manager [5][6]. Financial Performance - In 2024, Rainbow Display reported revenues of 11.664 billion RMB, a year-on-year increase of 1.73%, with a net profit of 1.24 billion RMB, reflecting a significant growth of 87.55% [10]. - Xi'an Rainbow Optoelectronics alone contributed 10.291 billion RMB in revenue and 1.339 billion RMB in net profit [10]. - The company anticipates a decrease in net profit for the first half of 2025, projecting between 410 million to 480 million RMB, a decline of 47.59% to 55.23% year-on-year [10]. Industry Insights - Industry experts note that Xi'an Rainbow Optoelectronics has a strong 8.6-generation LCD production line and foundational patents in printed OLED technology, which could help BOE overcome its technological shortcomings [11]. - The acquisition is expected to enhance BOE's competitive edge, diversify its product line, and improve its market share in the panel industry [11].