Core Viewpoint - Recently, Hongyang Display (Xianyang) Technology Co., Ltd., a subsidiary of Rainbow Holdings, increased its registered capital to approximately 4.78 billion yuan [1][2]. Group 1: Company Information - Hongyang Display was established on September 16, 2021, and its business scope includes glass manufacturing, non-metallic mineral and product sales, and intelligent basic manufacturing equipment manufacturing [2]. - The company is jointly held by Rainbow Holdings, Jianxin Financial Asset Investment Co., Ltd., Xianyang Jincai Equity Investment Partnership (Limited Partnership), and Bank of China Financial Asset Investment Co., Ltd. [2]. Group 2: Investment and Project Development - In August of this year, Rainbow Holdings announced an investment of approximately 1.05 billion yuan into Hongyang Display, increasing its shareholding from 52.94% to 62.40% [3]. - The investment aims to accelerate the construction of the G8.5+ substrate glass production line project at the Xianyang base, which has a total planned investment of 20 billion yuan [3]. - The project includes the construction of 20 G8.5+ substrate glass furnaces and 10 cold-end production lines, with the first phase involving an investment of 9.1 billion yuan for 8 hot-end furnaces and 4 cold-end production lines, expected to produce 5.82 million substrate glass sheets annually upon reaching full capacity [3]. Group 3: Production Status - As of the end of 2024, 4 production lines of the project have been put into operation, with the remaining lines under accelerated construction [4].

Core Viewpoint - The company, Rainbow Co., has announced a capital increase of approximately RMB 10.50 billion to its subsidiary, Hongyang Display, to accelerate the construction of the G8.5+ substrate glass production line project in Xianyang, aligning with its long-term strategic development plan [1][3]. Financial Performance - For the first half of 2025, Rainbow Co. reported a revenue of RMB 5.67 billion, a decrease of 6.72% year-on-year [4]. - The net profit attributable to shareholders was RMB 451.63 million, down 50.69% compared to the same period last year [4]. - The total profit for the period was RMB 446.84 million, reflecting a decline of 50.93% year-on-year [4]. - The net cash flow from operating activities was RMB 2.02 billion, a decrease of 7.52% from the previous year [4]. - As of the end of the reporting period, the net assets attributable to shareholders were RMB 21.97 billion, an increase of 2.10% from the end of the previous year [4]. Project Development - Following the capital increase, the registered capital of Hongyang Display will rise from approximately RMB 38.19 billion to RMB 47.81 billion, with Rainbow Co.'s ownership increasing from 52.94% to 62.40% [3]. - The G8.5+ substrate glass production line project has a total planned investment of RMB 200 billion, with the first phase costing RMB 91 billion to build 8 hot-end furnaces and 4 cold-end production lines, aiming for an annual output of 5.82 million substrate glass pieces [3]. - The first production line is set to commence operations in October 2023, with plans to have 4 lines operational by the end of 2024 [3]. Strategic Focus - The company plans to implement a demand-driven production strategy in its LCD panel business, enhance product quality control, and deepen cooperation with key brand clients [4]. - In the substrate glass business, the company will continue to develop the Xianyang project and focus on high-generation and high-precision substrate glass production technologies [5].