On February 5, San'an Optoelectronics announced that the Company's wholly-owned subsidiary Xiamen Sanan Optoelectronics Co., Ltd. signed a contract with Samsung Electronics Co., Ltd. ("Samsung Electronics") on February 5, 2018, Agreement on Advance Payment ", the contract stipulates: In order to establish long-term business cooperation, Samsung Electronics will pay a prepayments of USD 1.683 million to Xiamen Sanan in exchange for a certain amount of production for Xiamen Sanan Production Line Display product ( 'display Screen ') LED chip If Samsung Electronics monthly orders may exceed the maximum amount agreed upon agreement, the two sides will discuss conditions for expansion in advance.
Samsung Electronics and Samsung Electronics of Xiamen will continue to discuss the strategic cooperation of MicroLED. When Xiamen Sanan reaches large-scale production capacity, Samsung Electronics will consider Xiamen Sanan as the primary supplier and negotiate a supply agreement acceptable to both parties. The strategic cooperation, Samsung Electronics hopes to ensure that the strategic, stable supplier, Xiamen Sanan expected to lead the Micro LED market.
Sanan Optoelectronics said that this wholly-owned subsidiary of Xiamen San and Samsung Electronics cooperation is the company to transform technology into practical application of another embodiment, in line with the company's development strategy, and further open up the international market space is conducive to continue to enhance the company Market share, the company laid the foundation for development goals.
