China power rainbow 1.6 billion takes over rainbow shares follow-on assets integration

Although the Rainbow shares the right to control the owners, but this does not seem to be recognized by the market.

On the evening of February 6, the Rainbow shares suspended for several days have disclosed the specific transfer of shares: Rainbow Electronics, Rainbow Group, respectively, and the Rainbow completed the signing of the Rainbow Shares in the transfer agreement, the transfer price of 9.02 yuan/share. After the transfer is completed, Rainbow Electronics will hold 36.44 million shares of Rainbow shares, 4.95% of the total shares of the company, Rainbow group no longer hold the rainbow shares, and the Rainbow is a rainbow shares holding shareholders, 181.26 million shares of shares, 24.6% of the total shares, the actual control of rainbow shares unchanged, China Electronic Information Industry Group Co., Ltd.

Due to the suspension of the issue, only the shareholder level of the listed company equity transfer, not related to the assets of listed companies, so the market has not been interpreted as beneficial to the company. February 9, the Rainbow shares flop 7.71%.

A noteworthy point is that the Rainbow Group and its controlling shares have been integrated into China's electronic information group since 2013. Over the past two years, the changes in the Rainbow's shareholders have meant to clear up the barriers to subsequent asset consolidation.

The Rainbow is a joint venture formed by China Electronics and Rainbow Group. Ping An securities researcher Shen Shaojie published the paper that the future in the CLP Rainbow in the internal main cooperation object for the CLP Panda Group, will shoulder the panel industry material supporting the responsibility. This could also be inferred from last December's shares in the CLP Panda LCD material company.

December 2014, Sino-Electric Rainbow Group Holdings Limited and Nanjing China Electric Panda Information Industry Group Co., Ltd., Nanjing CLP Panda LCD Technology Co., Ltd. jointly signed the transfer of equity agreement. China Electric Rainbow invested 780 million yuan in the acquisition of CLP Panda, LCD companies held in Nanjing Panda LCD Materials Technology Co., Ltd. 33.3%, 18.7% of the equity, and the LCD company to jointly invest in the construction of the sixth-generation color filter project.

Data show that the sixth generation of color filter project is located in Nanjing Liquid Crystal Valley, mainly for the sixth generation of China Electric panda LCD panel production line to provide supporting, the project total investment of 3.5 billion yuan, the sixth generation of color filter 90K, Annual sales revenue of 1.716 billion yuan, the total profit of 181 million yuan.

With the LCD panel supporting manufacturers of the Rainbow Shares, the main production of glass substrates, has mastered 5, 6 generation line of a full range of technology, products have been Beijing Oriental, Group Chong and other first-class panel customer recognition.

In 3 months, the rainbow in the continuous acquisition of filters, glass substrates, such as LCD panels supporting assets, is a cause for concern, its electronic information industry group in China's positioning is increasingly clear. Ping An securities analysts believe that the fall into the rainbow under the umbrella, will be with the liquid crystal materials company to form an industrial force, and the CLP Panda group formed synergies, complete the CLP Group panel industry chain overall layout.

Rainbow shares in the past two years have stripped off the glass substrate business. The Rainbow Shares in 2010 raised $3.55 billion for three glass substrate projects and 12 lines, which have not yet been fully commissioned. In 2012, 2013 annual report, the company said, with the user's continuous improvement in product quality, the company's process technology adjustment, in addition to the changes in the market demand, the product upgrades, the project to reach the intended use of the state time than planned to postpone.

This shows that the rainbow shares in the glass substrate technology breakthrough, has not reached the previous market optimistic expectations.

On the other hand, with the domestic 8.5 generation of line panels in the centralized production, the new supporting demand followed. 2015 China will form 8 lines of 8.5 generation line capacity scale, the monthly projection volume reached 780,000, corresponding to 8.5 generations of glass base plate annual demand 19 million, the market size of about 18 billion yuan. Do or not?

Rainbow Shares in April 2011 announced plans to raise a new eight 8.5-generation LCD glass substrate production line, to 2.2 million pieces of annual production capacity. However, due to the technical running-in problem, the company in October 2013 terminated the fund-raising program. Since then, the Rainbow Shares in the regular announcement that "is actively promoting the 8.5-generation LCD glass substrate research and development, timely investment and construction."

A private equity researcher told reporters that Rainbow shares in the equity relationship after the straighten out, can rely on the group's financial support, technical support, integrated panel industry development.