Luwei Optoelectronics plans to raise no more than 1.38 billion yuan to increase its production capacity of high-generation photomasks.
After deducting issuance expenses, the funds raised will be mainly used for two purposes: first, to invest RMB 1.07 billion in the construction of the Xiamen Luwei Optoelectronics high-generation high-precision photomask production base project (Phase I); and second, to allocate RMB 310 million to supplement working capital and repay bank loans.
As the only domestic company capable of mass-producing G11 photomasks, Luwei Optoelectronics has accumulated profound technical expertise and high-quality customer resources in the field of high-generation, high-precision photomasks. Currently, the downstream market is accelerating its upgrade to next-generation display technologies such as AMOLED and LTPO. Demand for high refresh rate, low-power panels is growing rapidly in applications such as smartphones, automotive displays, and high-end IT, and the company's existing production capacity is nearing saturation. Upon completion of this fundraising project, the company will significantly enhance its large-scale production capacity for G8.6 and below high-precision photomasks, effectively meeting the incremental demand from downstream industries, while reducing downstream panel manufacturers' reliance on imported materials and contributing to the self-reliance and controllability of the industry chain.
Furthermore, the photomask industry is both capital- and technology-intensive, requiring long-term and stable investment in process upgrades, capacity expansion, and technological research and development. This equity financing will effectively broaden the company's financing channels, optimize its capital structure, alleviate the capital pressure brought about by business expansion, and enhance the company's risk resistance and sustainable operating level.
