(Yicai) April 24 -- Shares in Visionox advanced today, before being dragged down by the broader market, after the Chinese display manufacturer said that it plans to invest CNY5 billion (USD690 million) to construct a global research and development center for active-matrix organic light-emitting diodes display technology in the Kunshan, eastern Jiangsu province to expand the application of AMOLED screens across more scenarios.

Visionox’s stock price [SHE:002387] closed down 1 percent at CNY8.47 (USD1.16) today. Earlier in the day it surged as much as 4.7 percent to CNY8.97. The Shenzhen Component Index finished the day down 0.5 percent.

Visionox is linking arms with the Kunshan Economic and Technological Development Zone to build a cutting-edge flexible AMOLED technology development platform, Visionox, which is based in the zone, said yesterday. The project will focus on breakthroughs in display materials, equipment and core foundational tech for advanced displays.

The R&D center will also explore new applications for AMOLED screens, including Extended Reality devices and X-ray products, while also supporting research into new raw materials and next-generation technologies.

The goal of the project is to accelerate innovation in display tech and expand the use of AMOLED screens in areas like consumer electronics, automotive displays, virtual reality, medical imaging and other fields, Visionox said.

The Kunshan Economic and Technological Development Zone will help Visionox to secure local government-backed investment partners for the project and provide public utilities such as water, electricity and gas.

The investment is a related-party transaction as a unit of the Kunshan development zone is the third-largest shareholder of Visionox with 9.4 percent equity. 

Visionox was the third biggest supplier of AMOLED smartphone displays in the world last year, with shipments soaring 44.3 percent year on year, according to CINNO Research. As one of China’s top AMOLED suppliers, Visionox has factories in several cities including Kunshan. 

Visionox’s AMOLED display shipments surged 45 percent in 2024 from the previous year to 81.5 million units. The company, which has been operating at a loss since 2021, reported that its losses had contracted 32.8 percent over the period to CNY2.5 billion (USD342.7 million). 

Editor: Kim Taylor