Visionox received 2 billion yuan in service fees just for technical services

At the end of last year, Visionox's 6th generation flexible AMOLED production line in Hefei officially started construction. The project is jointly invested by Visionox, Hefei Xinping Industrial Investment Fund (Limited Partnership), Hefei Heping Investment Co., Ltd. and Hefei Xingrong Investment Co., Ltd., with a total investment of 44 billion yuan, of which Visionox self-raised 4 billion yuan, accounting for 18.18% of the registered capital of the project company.

The project company is Hefei Visionox Technology Co., Ltd., with a registered capital of 22 billion yuan.

On June 16, Visionox issued an announcement stating that in order to smoothly promote the 6th generation AMOLED panel production project in Hefei, Visionox plans to sign a "Technology Licensing, Consulting and Management Services Contract" (hereinafter referred to as the "Technology Licensing Contract") with its shareholding subsidiary Hefei Visionox Technology Co., Ltd. (hereinafter referred to as "Hefei Visionox").

According to the disclosure, Visionox provides Hefei Visionox with intellectual property support, technical support, management services and other business consulting and support services related to the 6th generation AMOLED technology, and Hefei Visionox pays the corresponding technical service fees according to the terms of the contract. Both parties have entrusted Tongzhi Xinde (Beijing) Asset Appraisal Co., Ltd. to evaluate the technology under this contract, and the evaluation amount is RMB 2,032,960,300. According to the evaluation results, both parties agreed through consultation that the technical service fee under this contract is RMB 2 billion.

It should be noted that Visionox only invested 4 billion yuan in the project, but it "recovered" 2 billion yuan through technical services. However, according to the relevant provisions of the "Shenzhen Stock Exchange Listing Rules", Hefei Visionox is a related legal person of the company. The "Technology License Contract" to be signed between Visionox and Hefei Visionox constitutes a related transaction.

Visionox emphasized that the signing of the "Technology License Contract" between Hefei Visionox and the company can fully draw on the company's mature project construction experience and advanced product technology and services, simultaneously improve the construction and construction progress of the Hefei Visionox project, shorten the project equipment procurement and commissioning cycle, speed up the improvement of product yield after the project is put into production, and further improve Hefei Visionox's technical management capabilities and company operation level. It will help the company to improve its business layout, seize industry and market opportunities, further enhance the company's influence, and have a positive impact on the realization of the company's strategy.

At present, domestic panel manufacturers have successively invested in the construction of the 6th generation AMOLED production line in various places. BOE has already invested in Chengdu and Mianyang, and the first phase of Chengdu has been fully produced; Huaxing Optoelectronics and Shenzhen Tianma have also invested in the construction of the 6th generation flexible AMOLED production line in Wuhan. However, it is rare for a company like Visionox to require the participating project companies to pay huge technical service fees.

It is worth noting that Visionox's own performance is not good, and its cash flow is negative. In the first quarter of this year, Visionox achieved revenue of 207 million yuan; net profit attributable to shareholders of the listed company was -388 million yuan, a year-on-year decline of 101.68%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -394 million yuan, a year-on-year decline of 99.18%; the company's earnings per share was -0.28 yuan; in addition, during the reporting period, Visionox's net cash flow from operating activities was -499 million yuan, a year-on-year decline of 337.33%.