Mulinsen raises 2.3 billion to increase investment in LED industry

Mulinsen (002745) released a plan for a non-public issuance of shares on the evening of August 10. The company plans to non-publicly issue no more than 61.5 million shares at a price of no less than 38.11 yuan per share, and the net raised funds will not exceed 2,315.7394 million yuan, which will be used to implement the "Xiaolan SMD LED Packaging Technical Transformation Project", "Ji'an SMD LED Packaging Phase I Construction Project", and "Xinyu LED Application Lighting Phase I Construction Project".

Detailed use of raised funds

The company stated that the implementation of the above-mentioned investment projects will further consolidate the company's leading position in the LED packaging business, accelerate the company's extension in the downstream LED application lighting field, improve the layout of the company's LED industry chain, and further strengthen core competitiveness.

Mu Linsen said that in the past three years, the company's SMD LED capacity utilization rates have reached 91%, 93% and 94% respectively, and the LED indoor and outdoor lighting capacity utilization rates have been 91%, 97% and 92% respectively. The production equipment is basically close to full production throughout the year, especially during the annual production peak period. Although the company has successively purchased new production equipment in recent years, it still faces the constraints of production bottlenecks. Through this fundraising project, the company's production capacity will be significantly increased, which will alleviate the pressure on production capacity, which will help the company further expand its production and sales scale, expand its market share, and increase its market share.

In addition, in the past three years, the company's SMD LED product revenue was 600 million yuan, 1.298 billion yuan, and 2.079 billion yuan respectively, and the LED application product revenue was 168 million yuan, 279 million yuan, and 591 million yuan respectively, all showing a rapid upward trend. The cost advantage brought by standardized and large-scale production is the company's core competitiveness. After the completion of the project, the company's production capacity of LED packaging products and LED application lighting will be further increased, and its bargaining power with upstream suppliers will be further enhanced. At the same time, the company's product unit R&D and production costs will be reduced, thereby further strengthening the company's scale production advantages, reducing the unit comprehensive cost of products, and enhancing the company's market competitiveness and profitability.