Sanan Optoelectronics raised 6.9 billion to increase capital in Hubei Sanan

Sanan Optoelectronics announced that the company reviewed and approved the "Proposal on Using Raised Funds to Increase Capital of Wholly-owned Subsidiaries" at the 28th meeting of the 10th Board of Directors, agreeing that the company will use In 2021, 6.9 billion yuan of the funds raised from the non-public offering of shares will be used to increase the capital of the company's wholly-owned subsidiary Hubei San'an Optoelectronics Co., Ltd. (hereinafter referred to as "Hubei San'an") for the industrialization of Mini / Micro displays project.

The Mini/Micro display industrialization project of Hubei Sanan Optoelectronics Co., Ltd. is implemented by Hubei Sanan, a wholly-owned subsidiary. As of the date of this announcement, Hubei Sanan has a registered capital of RMB 3.000 billion and a paid-in capital of RMB 507 million. In order to promote the smooth implementation of fundraising projects, the company plans to use the raised funds of 6.900 billion yuan to increase capital in Hubei Sanan. After the capital increase, the registered capital of Hubei Sanan will be changed to 3.300 billion yuan, and the remaining capital increase will be included in the capital reserve. After the completion of this capital increase, the registered capital of Hubei Sanan will be RMB 3.300 billion, and it will remain a wholly-owned subsidiary of the company. The use of raised funds to increase capital in Hubei Sanan is only used for the implementation of raised investment projects and not for other purposes.

Sanan Optoelectronics stated that the company used the raised funds of 6.9 billion yuan to increase the capital of its wholly-owned subsidiary Hubei Sanan to invest the funds raised from the company's non-public stock offerings in fundraising projects to ensure the smooth implementation of the fundraising projects and further enhance the company's Mini / Micro LED and other emerging high-end products' production capacity scale and sales ratio, promote the upgrading and transformation of product structure, drive the further implementation of the company's strategy, improve the company's future operating performance and profitability, meet the plan for raising funds, and there is no disguised change in the use of raised funds usage, damage to the interests of the company and its shareholders.

The number of shares in this non-public offering is 509 million shares, raising 7.900 billion yuan. 15 institutions subscribed. Among them, Changsha Fuxin Industrial Investment Partnership received about 1.5 billion yuan in compensation, Industrial Securities Global Fund received 1.426 billion yuan, and Guotai Junan received 929 million yuan in compensation.

Sanan Optoelectronics’ largest source of income is the LED business, including traditional LED products and high-end LED products. According to the financial report, in the first three quarters of this year, affected by factors such as repeated epidemics and shrinking consumer market demand, Sanan Optoelectronics' sales of products in the traditional LED field were weak. Its revenue of 10 billion yuan in the current period only achieved an increase of 5.04%, while the growth rate in the same period last year exceeded 61%; its net profit of 987 million yuan decreased by 23.27% year-on-year.

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