Ganzhao Optoelectronics will increase the fundraising of 800 million LED blue green optical epitaxial chip industrialization project

On the evening of September 3, Ganzhao Optoelectronics (300102) announced the non-public offering of A shares. The company intends to issue no more than approximately 60,744,100 shares to no more than five specific targets, including company shareholder Wang Weiyong. The total amount of funds raised during the issuance will not exceed RMB 80 million. Among them, Wang Weiyong, the company's shareholder, subscribes for 80 million yuan, and the proportion of subscribed shares is not less than 10%.

After the proceeds of the fund are deducted from the issuance costs, they will all be invested in the LED blue-green optical epitaxial chip industrialization construction project. The project is located in the industrial zone of Xiamen Torch High-tech Zone (Xiang'an) with a total investment of RMB 1,342.6 million and the proposed use of raised funds of RMB 800,000. The project has 1,091 sets of main equipment and facilities, as well as fire, environmental protection, safety and energy saving facilities required by the state, local and industry.

LED blue-green optical epitaxial chip industrialization construction project planning capacity for each model GaNLED blue-green optical chip 5,239 KK / month, 62.668 billion / year. The project's first production and sales income was 1,120.4 million yuan, the average pre-tax profit during the operation period was 145.1 million yuan, the net profit was 123.33 million yuan, the gross profit rate was 29.23%, and the net profit rate was 11.60%. The post-tax internal rate of return is 13.73%, and the investment payback period (including the construction period of 1.5 years) is 7.35 years.

According to Ganzhao Optoelectronics, if the company can make an industrial layout in the early stage of the development of the blue-green LED industry, it will firstly expand its scale and quickly enter the first-class echelon of domestic blue-green LED epitaxial chip manufacturers, and comprehensively upgrade the company's LEDs. The competitiveness of the full range of epitaxial chips can lay a leading position in the domestic industry and shorten the gap with internationally renowned companies. In addition, it is the need for the company to further optimize its product and business structure to create new profit growth points.

The company's stock will resume trading on September 4, 2014.

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