Rainbow Display Devices (600707.SH) announced that its wholly-owned subsidiary, Hongyang Display (Xianyang) Technology Co., Ltd. (referred to as "Hongyang Display"), plans to introduce Xianyang Jincai Equity Investment Partnership Enterprise (Limited Partnership) (referred to as "Xianyang Jincai") by way of a non-public agreement for capital increase and expansion. Xianyang Jincai will increase the capital of Hongyang Display by RMB 650 million in cash. The company will waive its preemptive right to subscribe for the capital increase. After the increase, the proportion of the company's equity holdings in Hongyang Display will change from 100% to 64.74%, and Xianyang Jincai's shareholding in Hongyang Display will be 35.26%. Hongyang Display will remain a wholly-owned subsidiary of the company.

It is reported that this matter aims to accelerate the construction of the G8.5+ substrate glass production line project of the company's Xianyang base and expand the scale of the high-generation substrate glass industry.