Silan Micro Zengfa expands LED chip production capacity

Silan Micro (600460) plans to issue an additional 20-60 million shares for the expansion of high-brightness LED chip production line projects and supplement liquidity at a price of not less than 8.82 yuan per share. The company plans to raise funds of no more than 600 million yuan, of which 499,860,300 yuan is used for project expansion.

The construction scale of the fundraising project is about 312 sets/sets of newly purchased process equipment, which is used to expand the LED chip production line, adding 570,000 pieces/years of epitaxial wafers, and adding 7.2 billion pieces/year of chips. After the implementation of the project, Silan Mingxin can realize the production capacity of 600 million pieces/month of high-brightness light-emitting diode (LED) chips and 47,500 pieces/month of epitaxial wafers.

As the main body of the fundraising project, the existing production scale of Shilan Micro's wholly-owned subsidiary Hangzhou Silan Mingxin Technology Co., Ltd. is 500 million monthly LED chips, and 125,000 pieces of epitaxial wafers per month (other parts) Epitaxial wafers are purchased out). After the implementation of the fundraising project, part of the production capacity will be replaced by the existing outsourced epitaxial film in the newly added capacity of 47,500 pieces/month.

According to the company's calculation, after the project is put into production (full production), the annual sales income will be 352.28 million yuan, and the income after income tax will be 121.23 million yuan; the sales profit rate will be 31.72%; the pre-tax internal rate of return will be 24.67%. The yield is 21.41%; the post-tax static investment payback period is 4.62 years, and the post-tax dynamic investment payback period is 5.34 years.

The company said that the fundraising project will further increase the production capacity of the company's superior products, increase market share, and consolidate and expand its leading position in the high-end fields such as LED indoor and outdoor full color screens.

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