After being sued by China Construction Eighth Engineering Bureau, Yifengtai was terminated from the TFT-LCD panel equipment supply contract by a Korean manufacturer

Recently, Korean equipment manufacturer DMS announced that the company has terminated the 6.2 billion won display equipment supply contract signed with Jiangxi Yifengtai Optoelectronics Technology Co., Ltd. (hereinafter referred to as Yifengtai).

Regarding the reason for the termination of the contract, the company explained that the contract was invalid because the other party was unable to perform the contract (the equipment could not be purchased).

According to multiple reports, several Korean manufacturers had received orders from Yifengtai and had started manufacturing equipment, but the contract expiration date was repeatedly postponed. The delay in moving the equipment in resulted in the manufacturers not being able to receive payment for the equipment.

It is understood that Jiangxi Yifengtai Optoelectronic Technology Co., Ltd. was registered in the Jinggangshan Economic and Technological Development Zone Administration for Industry and Commerce in August 2017 with a registered capital of 10 million yuan. The company decided to invest in a new TFT-LCD and AMOLED panel production project in the Jinggangshan Economic and Technological Development Zone. The total investment of the project is expected to be about 23 billion yuan, and a new quasi-sixth-generation TFT-LCD panel production line and an AMOLED panel production line will be built.

The project is divided into two phases, with an investment of RMB 7.5 billion in the first phase, which started construction in December 2017. After the project is fully completed and reaches full production capacity, it is expected to achieve an annual output of 960,000 panels with an annual output value of more than RMB 20 billion, which can drive the upstream and downstream industries to achieve an annual output value of more than RMB 50 billion. It is worth noting that the project was originally planned to be lit in Q1 2019, but there has been no news and it seems to have been suspended.

In December 2019, Holitech Technology Co., Ltd. (hereinafter referred to as Holitech) and the Management Committee of Jiangxi Jinggangshan Economic and Technological Development Zone signed a "Display Panel Project Cooperation Agreement". The agreement shows that Holitech will invest 6.5 billion to build a quasi-6th generation LCD production line in Jingkai District.

This move by Hilight is considered to be taking over the Yifengtai project, but there has been no progress news on this project so far.

The latest news about Yifongtai is that China Construction Eighth Engineering Bureau sued Yifongtai, Helitai, Wen Kaifu, Wang Tinghua and Zhu Zhixing in the Intermediate People's Court of Ji'an City, Jiangxi Province due to a contract dispute.

It is reported that the plaintiff China Construction Eighth Engineering Bureau and Yifengtai Company signed the "General Contracting Contract for the Civil Engineering of the Main Factory Building of the Jiangxi Yifengtai Optoelectronics Technology Co., Ltd. Annual Production of 600,000 Quasi-6th Generation TFTLCD Panel Project", and China Construction Eighth Engineering Bureau undertook the construction of the factory building of Yifengtai Company. The defendant Yifengtai Company failed to pay as agreed. China Construction Eighth Engineering Bureau requested the court to rule to terminate the contract with Yifengtai Company, and ordered Yifengtai Company to pay the remaining project funds and liquidated damages of 194 million yuan.

At the same time, China Construction Eighth Engineering Bureau claimed that Helitai and Wen Kaifu were the actual controllers of Yifengtai Company, and applied the corporate personality denial, requiring Helitai, Wen Kaifu, Wang Tinghua and Zhu Zhixing to bear joint and several liability for the debts of Yifengtai Company.