Xiamen Xinda’s private placement plan was approved by Xiamen State-owned Assets Supervision and Administration Commission, with 750 million used for LED projects

Xiamen Xinda announced on the evening of June 17 that the company received notification from its indirect controlling shareholder Xiamen International Trade Holdings Co., Ltd. that China International Trade Holdings had received the "Reply on Matters Related to Xiamen Xinda Co., Ltd.'s Proposed Non-Public Issuance of A Shares" issued by the Xiamen Municipal State-owned Assets Supervision and Administration Commission, and approved the issues related to the management of state-owned equity involved in the company's non-public issuance of shares.

The total amount of funds raised by Xiamen Cinda's non-public issuance is planned to not exceed 1.3 billion yuan. After deducting the issuance expenses, 160 million yuan will be used for the Cinda IoT security technology service platform project; 640 million yuan will be used for the Cinda Optoelectronics LED packaging and application product expansion project; 110 million yuan will be used for the Cinda Optoelectronics LED display packaging product expansion project; 390 million yuan will be used to supplement working capital.

The approval document stated that Xiamen State-owned Assets Supervision and Administration Commission agreed that China World Trade Holdings and its wholly-owned subsidiary Xiamen Information-Cinda Corporation would self-raise cash to subscribe for 30% of the total number of shares in this non-public offering, ensuring that the total shareholding ratio of China World Trade Holdings and its wholly-owned subsidiaries in the company after the company's non-public issuance of shares is not less than the original 30%. This non-public issuance still needs to be reviewed and approved by the shareholders’ meeting and must be approved by the China Securities Regulatory Commission [Weibo] before it can be implemented.

Xiamen Xinda is engaged in the electronic information industry, supply chain business, and real estate business. In 2014, the company achieved operating income of 26.359 billion yuan, a year-on-year increase of 2.76%; it achieved a net profit of 161 million yuan attributable to shareholders of listed companies. The company stated that this non-public issuance will help enhance the company's capital strength and promote the company's all-round development.