Jucan Optoelectronics (hereinafter referred to as "the company") has announced the decision to change the use of raised funds and to increase capital for its wholly-owned subsidiary. This move aims to enhance the efficiency of fund utilization, aligning with the company's business strategy and project development requirements. Specifically, the original fundraising project, titled "LED Chip Production and R&D Project" by Jucan Optoelectronics Technology Co., Ltd., will be restructured into "LED Epitaxial Wafer and Chip Production R&D Project (Phase I)" under Jucan Optoelectronic Technology (Suqian) Co., Ltd.
The original LED chip production project was scheduled to start on May 8, 2015, with the main implementation carried out by Jucan Optoelectronics Technology Co., Ltd. The total planned investment was approximately 352.071 million yuan, with 149.5456 million yuan allocated for the project. It was expected to produce 1.8 million high-end LED chips annually. However, as of now, the construction of the project has not been fully completed, and the raised funds have not yet been utilized.
In contrast, the new project, "LED Epitaxial Wafer and Chip Production R&D Project (Phase I)" by Jucan Optoelectronic Technology (Suqian) Co., Ltd., was established on January 5, 2018. The implementation is led by Jucan Suqian. The total investment for this phase is 615.931 million yuan, which includes 61.835 million yuan in construction costs, 8.57 million yuan in construction period interest, and 34.503 million yuan in working capital. For Phase I, the company plans to allocate 145.5808 million yuan from the raised funds (including derivative interest), while the remaining amount will be covered through bank loans.
All necessary approvals have been obtained for the proposed changes. The shift in the project focus—from LED chip production to epitaxial wafer and chip production—does not alter the core investment direction or the overall project content. It remains closely aligned with the company’s main business operations. There is no indication that the change was made in a disguised manner that could harm shareholder interests.
Furthermore, the company emphasized that all raised funds, including any accrued interest, along with some internal funds, will be invested in Jucan Suqian. This move is expected to strengthen the subsidiary's financial position, reduce financial risks, optimize resource allocation, and improve operational efficiency, thereby supporting the company's long-term strategic goals.
In addition to the project change, Jucan Optoelectronics also announced plans to raise an additional 150 million yuan in capital. This capital increase will be funded entirely by the raised funds (including interest) and part of the company’s own capital. Following the capital injection, Jucan Suqian’s registered capital will be increased to 200 million yuan, with the company retaining full ownership. Out of the 150 million yuan, 127.9 million is intended to replace previously purchased equipment, while the remainder will be used to acquire new equipment for Jucan Suqian.
This strategic adjustment reflects the company’s commitment to optimizing its capital structure and ensuring sustainable growth. By reallocating resources more effectively, Jucan Optoelectronics aims to enhance both its operational performance and long-term value for shareholders.
Aspheric Lens,Standard Aspheric Lens,Positive Meniscus Lenses,High Precision Aspheric Lens
Danyang Horse Optical Co., Ltd , https://www.dyhorseoptical.com