(Yicai) Aug. 30 -- Shares of Visionox Technology surged by the exchange-imposed daily trading limit after the Chinese company disclosed more details about the 8.6-generation active-matrix organic light-emitting diode display plant it will build in Hefei with two local government-owned firms.

Visionox [SHE: 002387] closed up 10 percent at CNY6.58 (93 US cents) in Shenzhen today.

Visionox will sign an agreement with two investment companies under the government of Hefei, the capital of China’s Anhui province, to establish a joint venture responsible for the investment, construction, and operation of the new plant, the Beijing-based firm said yesterday. Construction will start by the end of the year.

The JV’s initial registered capital will be CNY2 billion (USD282 million), with the three partners expected to increase the amount based on their shareholding ratios, Visionox noted, adding that it will hold only 20 percent of the JV, while the two investment companies will own the remaining 80 percent.

At the end of May, Visionox announced that it was planning to invest CNY55 billion (USD7.8 billion) to build a new 8.6-gen AMOLED display factory in the Hefei National High-Tech Industry Development Zone with the support of the local government.

The new plant will use glass substrates of 2,290 x 2,620 millimeters to make about 32,000 pieces of 8.6-gen AMOLED display per month, according to Visionox’s May statement. The production capacity is enough to meet the growing demand for high-end displays, including those for automobiles, the firm pointed out yesterday.

Shipments of AMOLED displays for information technology products and car displays will have an average annual compound growth rate of 56 percent and 49 percent, respectively, between 2023 and 2028, Visionox said, citing data from UK market research firm Omdia.

The partners made a similar investment in 2022, when they set up a JV that spent CNY11 billion to build a sixth-generation AMOLED project in Hefei. Visionox has an almost 45.5 percent stake in that JV, while two investment firms own the rest. Construction started in 2022, and the plant was completed and put into operation at the end of last year.

Yesterday, Visionox also released its semiannual earnings report. Revenue soared 46 percent to CNY3.9 billion in the six months ended June 30 from a year earlier, thanks to increased shipments. Net loss shrank 29 percent to CNY1.2 billion.

Visionox’s share of the global smartphone AMOLED panel market rose to 11.3 percent in the first half.

Editor: Futura Costaglione