China's largest LCD panel maker BOE Technology Group has sold shares worth 12 billion yuan (1.76 billion U.S. dollars) to fund a new liquid crystal display panel production line, the most advanced on the Chinese mainland, reported Friday's China Daily.

The Shenzhen-listed firm is likely to turn into the world's third largest LCD panel provider once the new assembly line becomes fully operational, the newspaper said.

The company sold 5 billion shares at 2.4 yuan each to 10 investors, including Haitong Securities Co, Southwest Securities Co and Xiamen Hengxing Industrial Co's Chairman Ke Xiping, it saidin a statement to the Shenzhen Stock Exchange.

The new investment by BOE Technology, whose major shareholders are state-owned enterprises in Beijing, Hefei and Chengdu, is expected to give a shot in the arm to the local economy.

However, many experts are still cautious about BOE's new investment as supply of LCD panels far outpaced current demand. And, with more overseas LCD panel makers, mainly the Taiwan firms, moving their factories to the Chinese mainland, the LCD market in China is expected to get more crowded.

BOE recorded a net loss of 807.5 million yuan last year due to flat sales amid the financial crisis. The company said in a statement on Thursday that the company was likely to post a net loss of between 700 and 800 million yuan in the first half of this year due to the low prices of LCD panels.

A company spokesman said BOE was likely to make a profit only in the third quarter, but analysts said it was highly unlikely the company would make a profit this year.

Source:Xinhua