Breaking News! QunChuang Sells Its Nanjing Factory for 450 Million Yuan

On October 31st, it was reported that Innolux is accelerating the disposal of idle assets. After selling its Nanke Plant 4 to TSMC, today (October 31st), it announced that the board of directors has resolved to sell its Nanjing plant to the Management Committee of Nanjing Jiangning Economic and Technological Development Zone. The total transaction amount is 450 million RMB, approximately NT$2 billion. It is estimated that the disposal gain is 320 million RMB, approximately NT$1.4 billion. It is understood that since the beginning of this year, Innolux has laid off and arranged transfers for the 2,400 employees of the plant, and moved the production line to Ningbo.

According to Innolux's announcement, it will dispose of the land - use right assets, factory buildings and ancillary facilities of Nanjing Chimei Innolux Optoelectronics Co., Ltd. located at No. 93 and No. 103, Focheng West Road, Moling Street, Jiangning District, Nanjing. Among them, the area of the land - use right assets is 313,134.20 square meters (equivalent to 94,723.10 ping), and the building area is 154,865.67 square meters (equivalent to 46,846.87 ping).

Innolux stated that the total transaction amount is 450 million RMB, approximately NT$2 billion. It is estimated that the disposal gain is 320 million RMB, approximately NT$1.4 billion (the actual disposal gain is subject to the completion of the transaction and after deducting relevant expenses before being recorded). The purpose of the disposal is mainly to support the group's operations and future development momentum and to replenish working capital.

Innolux's Nanjing plant (Nanjing Chimei Innolux Optoelectronics Co., Ltd.) was established in 2001 and is located in the Jiangning Economic and Technological Development Zone. The plant was once the world's largest manufacturing base for small and medium - sized TFT panels. Since the beginning of this year, Innolux has laid off and arranged transfers for nearly 2,400 employees of the plant and moved the production line to Ningbo.

Recently, in addition to actively transforming, Innolux has also vigorously streamlined its operations, including reducing capital, activating and disposing of idle assets. Not long ago, it announced the sale of its Nanke Plant 4 to TSMC. The disposal amount is NT$17.1 billion, and the estimated disposal gain is NT$14.7 billion. However, the third - quarter financial report has not yet recognized this disposal gain. Coupled with the estimated disposal gain of NT$1.4 billion this time, if all are recognized at the end of the year, it will contribute NT$16.1 billion in profits.