San'an Optoelectronics' 7.9 billion private placement has been completed, and the 3.75 billion capital increase received by the controlling shareholder has been completed

Yesterday (6) evening, Sanan Optoelectronics issued several announcements one after another, two of which were: the implementation of a 7.9 billion yuan private placement project, and the 5 billion capital increase received by the controlling shareholder Xiamen Sanan Electronics was changed to 3.75 billion.

The 7.9 billion private placement project has been completed

At the end of September 2021, Sanan Optoelectronics announced that it planned to raise 7.9 billion yuan through a non-public issuance of shares. The funds will be used to build Hubei Sanan Mini/Micro display industrialization project and supplement working capital. The private placement project was approved by the China Securities Regulatory Commission in March this year and was officially launched recently. The net amount raised was 7,869,589,200.99 yuan. 15 investors including Changsha Fuxin, Industrial Securities Global Fund, and Guotai Junan participated in the investment.

It is worth noting that the executive partner of Changsha Fuxin is Changsha Pioneer Industrial Investment Co., Ltd., and in 2019, the executive partner of Changsha Pioneer High-Tech (holding more than 5% of Sanan Optoelectronics), which subscribed for 5 billion yuan for the 7 billion yuan project in Quanzhou Sanan Optoelectronics, is also Changsha Pioneer Industrial Investment Co., Ltd.

After this issuance, the details of the top ten shareholders of Sanan Optoelectronics are as follows:

Of the raised funds, 6.9 billion yuan will be used to increase the capital of Hubei Sanan, a wholly-owned subsidiary of Sanan Optoelectronics, for the purpose of building the Mini/Micro display industrialization project of Hubei Sanan Optoelectronics Co., Ltd. After the capital increase is completed, the registered capital of Hubei SananThis change will be 3.3 billion yuan, and all remaining capital increases will be included in capital reserves.

The construction of this project will help Sanan Optoelectronics increase the production capacity and sales proportion of high-end products such as Mini/Micro LED, and accelerate the upgrading of its product structure. Sanan Optoelectronics expects that after the project is put into production, the company's sales revenue and net profit will further increase, and profitability will also be further enhanced. At the same time, Sanan Optoelectronics also expects that the company's asset scale will further expand and its financial structure will become more reasonable, which will help enhance the stability of the company's asset structure and its ability to resist risks.

At present, Sanan Optoelectronics' MiniLED chip shipments are growing steadily and are increasing with the growth of product shipments from international customers such as Samsung. At the same time, its notebook MiniLED backlight products for domestic customers have also entered small batch production. In the first three quarters of this year, Hubei Sanan’s Mini/Micro LED business achieved revenue of 592 million yuan and profit of 9.38 million yuan.

The 5 billion yuan capital increase was changed to 3.75 billion yuan

In July this year, Sanan Optoelectronics issued an announcement announcing that the company’s controlling shareholder Xiamen Sanan Electronics had received a 5 billion yuan capital increase from Changsha Jixin, and the latter will become the fourth largest shareholder of Sanan Electronics. Yesterday, Sanan Optoelectronics updated the progress of this capital increase: the capital increase amount of 5 billion yuan was finally changed to 3.75 billion yuan.

The announcement shows that according to Changsha Jixin’s overallRegarding capital arrangements, Changsha Jixin signed a supplementary "Capital Increase Agreement on Xiamen San'an Electronics Co., Ltd." with San'an Group on December 5. It is planned to change the amount of Changsha Jixin's capital increase to San'an Electronics to 3.75 billion yuan, of which 36.982723 million yuan will be included in the registered capital and the remaining 3.713017277 yuan will be included in the capital reserve fund.

At present, Sanan Electronics has received the above-mentioned 3.75 billion yuan capital increase. After the capital increase is completed, Changsha Jixin holds 8.5815% of Sanan Electronics' equity. Before and after this capital increase, the equity changes of Sanan Electronics are as follows. Among them, Changsha Jixin and Changsha Jianxin are both state-owned assets. After the change in the equity structure of Sanan Electronics, the actual controller of Sanan Optoelectronics has not changed and is still Lin Xiucheng (indirectly controlling 32.54% of the shares).

The capital increase obtained by the controlling shareholder this time will help Sanan Optoelectronics develop the compound semiconductor market with more sufficient funds and more advantageous resources. Since the beginning of this year, in addition to the Mini/Micro LED business, Sanan Optoelectronics’ third-generation semiconductor SiC business development has also achieved results. Its subsidiary Hunan Sanan signed a SiC chip procurement contract worth 3.8 billion yuan last month, and its product market share is gradually increasing. In the first three quarters of this year, Sanan Optoelectronics’ revenue has exceeded 10 billion yuan, a year-on-year increase of 5.04%. (Compiled by LEDinside Janice)