Foshan Lighting discloses latest progress of 1.095 billion yuan fundraising project

In August last year, Foshan Lighting’s 1.095 billion yuan private placement was approved by the China Securities Regulatory Commission for registration. The funds were used for the construction of production projects and accelerated the development of lighting subdivisions such as intelligent lighting, health lighting, marine lighting, and animal and plant lighting.
On June 20, Foshan Lighting issued an announcement, revealing the latest use of raised funds, and announced changes in the implementation entities and construction deadlines of some raised investment projects.

Add Chanchang Optoelectronics as the project implementation entity

The 1.095 billion yuan raised by Foshan Lighting is mainly invested in the "Foshan Lighting Automation Transformation and Digital Transformation Construction Project", "Foshan Lighting Hainan Industrial Park Phase I", "Smart Street Light Construction Project", "Car Light Module Production and Construction Project", and "R&D Center Construction Project".

The total investment amount of each project is 364 million yuan, 334 million yuan, 92 million yuan, 240 million yuan, and 145 million yuan respectively. It is planned to use raised funds of 364 million yuan, 253 million yuan, 92 million yuan, and 240 million yuan. Currently, the use of raised funds by each project is as follows:

In order to ensure the smooth implementation of the investment project, Foshan Lighting's board of directors recently reviewed and approved the addition of the company's wholly-owned subsidiary Chanchang Optoelectronics as one of the implementation entities of the "Foshan Lighting Automation Transformation and Digital Transformation Construction Project". After adding the implementation entities, the project implementation entities include Foshan Lighting and Chanchang Optoelectronics. The purpose of the raised funds and the project construction content remain unchanged.

After adding the project implementation entity, Foshan Lighting plans to use the raised funds to provide loans of no more than 135 million yuan to Chanchang Optoelectronics to promote the implementation of the raised investment projects. This loan is limited to the implementation of the raised investment projects.

In addition, Foshan Lighting will open a special account for raised funds for Chanchang Optoelectronics according to the requirements for raised fund management. At the same time, the company will sign a "Four-Party Supervision Agreement on Raised Funds" with Chanchang Optoelectronics, the sponsor agency, and the bank where the raised funds are deposited to supervise the storage and use of the raised funds.

Information shows that Chanchang Optoelectronics was established in 2005 and is a 100%-owned subsidiary of Foshan Lighting. Its business scope includes research and development, production, and sales of lamps, electric light source products and accessories; computer software and hardware development, sales, and maintenance (including mall sales systems and smart home systems); photovoltaic equipment and component manufacturing; other battery manufacturing; lighting fixture manufacturing, etc.

The "Foshan Lighting Automation Transformation and Digital Transformation Construction Project" is mainly to carry out technical transformation of the LED product production line, update equipment, improve the level of workshop automation production, and use Internet of Things technology to create Build a highly automated and information-based intelligent manufacturing system to carry out digital transformation.

Regarding the addition of Chanchang Optoelectronics as the subject of the project, Foshan Lighting said that this will help improve the efficiency of the use of raised funds and ensure the implementation progress of the raised investment project.

R&D center construction project postponed to 2026

On the same day, Foshan Lighting issued an announcement announcing that based on the construction status and implementation progress of the investment project, and after careful study by the company, it plans to extend the construction period of the R&D center construction project while maintaining the total project investment and construction scale unchanged. After the adjustment, the date when the R&D center project reaches the scheduled usable status is changed from May 2024 to May 2026.

Foshan Lighting said that based on the demand for products in the downstream market, the relevant R&D projects planned by the company's R&D center are currently progressing steadily. Relevant R&D equipment and R&D-related software have been purchased one after another. However, because some experimental equipment needs to be customized, and the R&D equipment has the characteristics of small batches and multiple varieties, all equipment has not yet been purchased, installed and debugged. In view of the above reasons, Foshan Lighting plans to extend the construction period of the "R&D Center Construction Project" by 2 years.

Information shows that the R&D center project mainly researches and upgrades Foshan Lighting's existing LED lighting products. The project will focus on the five major directions of "health lighting", "intelligent lighting", "agricultural lighting", "ocean lighting" and "automotive lighting", develop a series of LED lighting products, and continue to enrich the product system in the field. Judging from the above capital investment table, 10.2284 million yuan of raised funds has been put into use for the current R&D center project. (Compiled by LEDinside Irving)

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