Ledman Optoelectronics passed the approval for fixed-term increase, and the 540 million COB production expansion project continues to advance

On August 2, Ledman Optoelectronics announced that the company’s application for issuance of stocks to specific objects and listing on the GEM has been reviewed and approved by the Shenzhen Stock Exchange. Subsequently, the Shenzhen Stock Exchange will report to the China Securities Regulatory Commission to perform relevant registration procedures in accordance with regulations. With the approval of the fixed increase review, Ledman Optoelectronics' COB expansion project continues to advance steadily.

Data show that Ledman Optoelectronics’ main business is the research and development, manufacturing, sales and service of LED application products. Its main products are LED display products and LED lighting products.

In recent years, Ledman Optoelectronics has been optimistic about and actively deployed COB packaging technology to create a wealth of LED small-pitch and Micro LED display products, expanding the application of LED display products in various market fields such as business, education, and consumer levels.

At present, display panel products based on COB technology have become one of Ledman Optoelectronics' core main businesses. In 2022, Ledman Optoelectronics achieved a total revenue of 260 million yuan in the COB ultra-high-definition display business, ranking first in the market share in the COB segment.

The proportion of COB product sales in Ledman Optoelectronics’ LED display panel business revenue is increasing year by year, and market demand is strong. The company's existing COB display panel production capacity can no longer meet the continuously growing market demand. Therefore, Ledman Optoelectronics seeks to further expand COB production capacity.

According to the latest fundraising prospectus, the total amount of funds raised by Ledman Optoelectronics from this issuance of stocks to specific targets does not exceed 689 million yuan (inclusive), after deducting issuance expenses.The net proceeds raised are planned to be invested in Ledman Optoelectronics' COB ultra-high-definition display reconstruction and expansion project and to supplement working capital.

Among them, the COB ultra-high-definition display reconstruction and expansion project has a total investment of 540 million yuan, and plans to use 539 million yuan of raised funds. The project is located in Huizhou Dongjiang Technology Lehman Optoelectronics Industrial Park. It will build a new production plant, supporting engineering facilities, and purchase production equipment. The project has a designed annual production capacity of 72,000 square meters (converted for 1.5mm pitch products).

Ledman Optoelectronics stated that the production capacity of this fundraising project will be used to produce small-pitch or Micro LED display panel products based on COB technology. The company hopes to build a world-class Micro LED ultra-high-definition display product production base through this project to better meet market demand, solve the contradiction between strong market demand and the company's insufficient production capacity, and further increase the company's sales scale and profitability.