Sichuan Changhong Electric Co Ltd plans to set up a joint venture to produce display components and spare parts for plasma televisions in a bid to raise its manufacturing competence and boost its bottom line.

The Sichuan TV maker will invest US$90 million for a 40 percent stake in the JV. Century Shuanghong Display Devices Co.,  Ltd, an 80-20 joint venture between Changhong and China's largest color TV tube maker, Irico Group, will pay US$95 million for a 42.22-percent stake, while overseas investor MatlinPatterson Global Opportunities Partners II LP will pay US$40 million for 17.78 percent.

The new JV will produce and sell plasma display panels for flat-screen TV sets. "The move will enable Changhong to master the core technology of PDP television, hence improving profitability and competence in the domestic TV market," the Sichuan maker said.

Changhong Electric, the listed unit of TV giant Changhong Group, is restructuring its assets to boost its bottom line.The company earlier this month announced an assets swap with its parent, Changhong Group.

The unit has agreed to unload 400 million yuan (US$51 million) in debt, owed by Apex Digital Inc, plus 1.18 billion yuan worth of inventory to the group. In return, the parent will give it Changhong's 1.38-billion-yuan trademark, 194.4 million yuan in land use rights and 4.37 million yuan in cash.

Meanwhile, the listed company has paid 270.3 million yuan to transform five obsolete factory plots at a business center in downtown Mianyang into a commercial land development project. The land parcels, which total 276,967 square meters, will be transformed into a complex of retail stores, office buildings and apartments.

Changhong Electric's net profit in the first nine months fell 16.48 percent year on year to 221.33 million yuan, and revenue advanced 19.6 percent to 12.2 billion yuan.

Source:未知