1. According to Luwei Optoelectronics, with the continuous advancement of display technology, new display products such as AMOLED, LTPO, OLEDoS, Mini-LED, etc., are more extensively used in terminal consumer products, which brings significant demand for masking film. 2. A person in charge of the secretary office of Luwei Optoelectronics stated that the company's fundraising this time will focus on the core business and belongs to investment in the field of technological innovation.
The Science and Technology Innovation Board Daily reported on August 22nd (Reporter Wu Xuguang) that on August 21st, Luwei Optoelectronics updated its convertible bonds refinancing plan.
According to the latest plan, Luwei Optoelectronics plans to adjust the total fundraising amount from 0.751 billion yuan to 0.739 billion yuan. Among them, the investment in the "Semiconductor and High-Precision Flat Panel Display Mask Expansion Project" is proposed to be adjusted from 0.407 billion yuan to 0.419 billion yuan; the total planned investment and proposed use of funds for the "Acquisition of Minority Shareholder Equity in Chengdu Luwei" project are proposed to be adjusted from 0.23 billion yuan to 0.218 billion yuan, etc.
Regarding the increased investment in the "Semiconductor and High-Precision Flat Panel Display Mask Expansion Project", a person in charge of the secretary office of Luwei Optoelectronics stated to the Science and Technology Innovation Board Daily reporter today (August 22nd) that the project will add 2 semiconductor masking film production lines and 2 high-precision flat panel display masking film production lines, with the main products covering 250nm-130nm semiconductor masking film and G8.6 generation flat panel display masking film products.
The secretary office representative added that in the field of display, the market trend in the entire panel display industry is that AMOLED is gradually replacing the market share of LCD, and the gross margin of masking film products used in the AMOLED field is generally higher than that of masking film products used in the LCD field; in the semiconductor field, the 2 semiconductor masking film production lines prepared for expansion are located in Suzhou, positioned as 130nm-28nm process semiconductor masking film production lines, which belong to the mainstream mature process in the domestic semiconductor product market demand.
The Science and Technology Innovation Board Daily reporter noted that in Luwei Optoelectronics' first issue and fundraising project, it also involves the construction of semiconductor and flat panel display masking film production lines.
When Luwei Optoelectronics went public in August 2022, the net proceeds from the fundraising after deducting the issuance expenses amounted to 0.761 billion yuan, with 34.4695 million yuan allocated to the "Luwei Optoelectronics R&D Center Construction Project" and 0.105 billion yuan for supplementary funds, leaving the remaining 0.266 billion yuan raised, all of which are used for the "High-Precision Semiconductor Masking Film and Large-size Flat Panel Masking Film Expansion Project".
According to the announcement, the main construction content of the "High-Precision Semiconductor Masking Film and Large-size Flat Panel Display Masking Film Expansion Project" includes the construction of 3 new high-precision semiconductor masking film production lines and one large-size flat panel (G8.5) display masking film production line, which is similar to the construction content of the proposed 0.739 billion yuan convertible bonds fundraising project "Semiconductor and High-Precision Flat Panel Display Mask Expansion Project".
However, from the perspective of the construction progress of the above-mentioned first issuance and investment projects, they have not been completed yet, and there are delays.
As of May 31st this year, Lumi Optoelectronics has cumulatively used 0.589 billion yuan of the raised funds (including the portion of the over-raised funds), leaving 0.172 billion yuan unused. Among them, the "High-precision Semiconductor Mask Plate and Large-size Flat Panel Display Mask Plate Expansion Project" and the "Lumi Optoelectronics Research and Development Center Construction Project" have not been completed, with investment progress of 78.5% and 25% respectively. In April this year, Lumi Optoelectronics extended the scheduled usable date of the two projects from May 2024 to December 2024.
Regarding the delay of the fundraising project, the company stated that it was based on a cautious approach, taking into account the construction progress of the fundraising project and the use of funds, and decided to delay the two projects by 7 months.
"The company's business performance is normal. The industry has performed well, and the shortage of flat panel displays and semiconductor mask plates continues." Regarding the continuous expansion of mask plate production and the market expectations for downstream panels and the semiconductor industry, a representative from Lumi Optoelectronics stated today (August 22nd) that the development and demand in emerging fields such as new energy, AI, autonomous driving, and near-eye displays have brought new opportunities for the semiconductor and display industries.
"Taking new flat panel displays as an example, with the continuous upgrading of display technology, new types of displays such as AMOLED, LTPO, OLEDoS, and Mini-LED are more widely applied in consumer products, which has greatly stimulated the demand for mask plates." A representative from Lumi Optoelectronics stated today (August 22nd).
It is worth noting that the current changes in the capital market environment have led to a tightening pace of A-share refinancing this year. Since May of this year, except for Yu'An New Materials, several STAR Market-listed companies including Yunzong Technology, Shenzhen Neoway Technology, Kaili New Materials, and Lingyun Optoelectronics have announced the termination of their private placement.
Whether Lumi Optoelectronics' refinancing can proceed smoothly and whether the scale of subsequent refinancing will face reduction are questions of concern to investors.
In response to this, a representative from Lumi Optoelectronics stated that, first, the company's fundraising this time focuses on its core business and belongs to the field of technological innovation investment; second, with the changes in the global economic situation and the adjustment of domestic policies, the pace of private placements and other financings has slowed down. Recent market funds, considering factors such as risk aversion, have turned to the relatively lower-risk bond market, reflecting an adaptation to changes in the market environment.
