Innolux sells Nanke No. 2 factory for 190 million yuan

On March 10, Innolux announced that the board of directors decided to dispose of the factory and ancillary factory facilities in Nanke. The company's Nanke Factory 2 was sold to packaging and testing factory Nanmao Technology. The transaction amount was approximately NT$880 million (approximately RMB 190 million), and the disposal proceeds were approximately NT$659 million (approximately RMB 143 million). The sale of Innolux Factory 5 has not yet been announced.

It is understood that the second factory of Innolux Nanke was mainly used to produce small and medium-sized panels or related processes in the early days. In recent years, it has been mainly used by RayShine, a subsidiary of Innolux, focusing on the production of digital X-ray flat panel sensors (digital X-ray flat panel detectors) and related medical X-ray sensing panels, which are used in medical imaging equipment (such as X-ray machines), industrial inspection and other fields.

It was previously reported that Ruisheng Optoelectronics’ X-ray sensors and some medical panel products will be transferred to Nanke No. 3 Factory for production. According to industry interpretation, by gradually closing inefficient production lines and selling factories, Innolux can release capital and reduce fixed costs, while making room for new business layout.

Innolux pointed out that the subject of this disposal is the factory building and ancillary facilities located at No. 6, Section 2, Huandong Road, Xinshi District, Tainan City. The building area is 34,316.15 square meters, equivalent to approximately 10,380.64 square meters. The transaction is conducted through negotiation, and the price refers to professional valuation reports and market information, and is approved by the board of directors.

Innolux stated that this disposal case is expected to recognize approximately NT$659 million in disposal benefits, but the actual amount must still be recorded after the transaction is completed and relevant expenses are deducted.

Today, Innolux's board of directors also authorized Chairman Hong Jinyang to dispose of Nanke Factory No. 2 and Factory No. 5. Factory No. 2 requires that the lowest transaction price be no less than 90% of the average of the two appraisal reports.

The board of directors also approved that the lowest transaction price of Innolux Nanke Factory No. 5 should not be less than 90% of the value of the "currently issued" appraisal report. If the difference in the second appraisal amount reaches more than 10%, the accountant's opinion will be consulted and the board of directors will discuss whether to adjust the scope of authorization; until the board of directors makes a separate resolution, the original authorization remains valid.

Innolux added that relevant delivery and payment terms will be handled in accordance with the contract between the two parties.