BOE OKed to Issue up to 5.5bn A Shares

BOE Technology Group Co., Ltd. (SZSE: 000725) was permitted to issue up to 5.5 billion renminbi-denominated A shares via a private placement, the Chinese LCD panel maker said in a statement on May 7, 2009.

Earlier, the Shenzhen-listed company said that it would issue the shares to five strategic investors and not more than five other investors. Proceeds from the proposed share sale will total up to CNY 12 billion. Of the money, CNY 9 billion will be used for the construction of the company's sixth-generation TFT-LCD production line in Hefei, Anhui Province.

BOE reaped operating revenues of CNY 721 million for the first quarter of 2009, sliding 75.45% from CNY 2.937 billion in the same period of 2008. Net profit was negative CNY 411 million, plunging 234.49% compared with CNY 305 million in Q1 2008.

Shares of the company slipped 2.52% on May 7, 2009, closing at CNY 4.64.