Shenzhen Textile A (000045): Subsidiary Intends To Cooperate With Chi Mei In Kunshan To Continue Its Purchase And Sale Of Optical Film Products.

Shenzhen textile A (000045.SZ) announced that in order to further integrate resources, give full play to the scale advantages of the joint production capacity and coordinate the capacity and order resources of the two sides, the company's controlling subsidiary, Shenzhen Shengbo Photoelectric Technology Co., Ltd. ("Sheng Bo optoelectronics") intends to continue to cooperate with Kunshan's Chi Mei Mstar Technology Ltd ("Chi Mei" of Kunshan) in the purchase and sale of optical film products, which is expected to be held in 2020. The total amount of C is not more than 417 million yuan, which is related to Kunshan's Chi Mei.

The 40% stake of Shengbo photoelectric company, a subsidiary of the company, is shareholder of Hangzhou Jinhang equity investment fund partnership (limited partnership) ("Jinhang investment"), and Hangzhou Jinjiang Group Co., Ltd. (Jinjiang group) is the actual controller of Jinhang investment. Jinjiang group's wholly owned subsidiary, Zhejiang Heng Jie Industrial Co., Ltd. ("Zhejiang Heng Jie") is the largest limited partner of Kunshan's Chi Mei shareholding shareholder, ting Lin (Kunshan) intelligent manufacturing industry investment partnership (limited partnership), which has great influence. Huang Yuan, director of Zhejiang Heng Jie, is the chairman and legal representative of Chi Mei, Kunshan.

It is estimated that the total amount of these related transactions will not exceed 417 million yuan in 2019. From the beginning of 2020 to the date of disclosure, the trade volume between Sheng Bo and related parties was 51 million 312 thousand and 500 yuan (including the estimated transaction amount of 417 million yuan in 2020). In 2020, Sheng Bo optoelectronics may adjust the bilateral purchase and sale cooperation matters in accordance with the market changes and according to its own favorable principles.

Although the related transactions are optical film products and related materials, but the size is different, Sheng Bo photoelectric sales are mainly 31.5 inch polarizer products, the procurement is mainly 55 inch polarizer products, mainly because in the medium and large size, Kunshan's Chi Mei has a higher production efficiency, and its product through rate is higher, so as soon as possible to develop new customers to seize the market, Sheng Bo photoelectric. Purchase 55 inch Polaroid products from Chi Mei, Kunshan.

To sum up, it is estimated that the sum of related transactions between Sheng Bo and Kunshan's Chi Mei in 2020 will not exceed 417 million yuan.

The main purpose of Sheng Bo optoelectronic cooperation with Kunshan's Chi Mei is to further integrate resources and bring into play the scale advantage of the joint capacity of the two sides. The transaction is conducive to coordinating production capacity, increasing capacity utilization, maintaining customer relationship and apportionment of fixed costs, improving the existing production and operation status of the subsidiary company, and enhancing the company's strength and market competitive advantage.