Southern Light's plan to raise no more than 740 million yuan was approved by the Shenzhen Stock Exchange to develop Mini/Micro-LED

Last night, Nanjiguang (300940.SZ) announced that the company received the "Notification of the Review Center Opinions on Shenzhen Nanjiguang Electronic Technology Co., Ltd.'s application for issuance of stocks to specific objects" issued by the Shenzhen Stock Exchange Listing Review Center on September 7, 2022 (hereinafter referred to as the "Notification Letter").

The issuance and listing review agency of the Shenzhen Stock Exchange has reviewed the company's application documents for issuance of shares to specific objects and believes that the company meets the issuance conditions, listing conditions and information disclosure requirements. Subsequently, the Shenzhen Stock Exchange will report to the China Securities Regulatory Commission to perform relevant registration procedures in accordance with regulations. At the same time, the company is required to make timely information disclosures in the form of temporary announcements after receiving the "Notification Letter". Submit the prospectus (registration draft) and related documents within five working days, submit the integrity record verification form, and summarize and supplement the sponsorship work papers related to the review inquiry responses within ten working days.

The company’s issuance of shares to specific targets still needs to obtain the China Securities Regulatory Commission’s decision to approve the registration before it can be implemented. There is still uncertainty about whether the China Securities Regulatory Commission can finally obtain the decision to approve the registration and the time it will take. The company will fulfill its information disclosure obligations in a timely manner based on the progress of the matter. Investors are advised to pay attention to investment risks.

On September 2, 2022, the prospectus for the issuance of A shares to specific targets published by Nanjiguang showed that the company issued shares to specific targets this time.The total amount of funds raised is expected to not exceed (inclusive) 740.08 million yuan. The net amount of raised funds after deducting issuance expenses will be used for the following projects: Mini/Micro-LED display module production project, medium-sized LCD module production project, new display technology research and development center project, and supplementary working capital.

The type of stocks issued to specific targets this time are domestically listed RMB ordinary shares (A shares), with a face value of RMB 1.00 per share. There are no more than 35 issuers in this issuance, and they are legal persons, natural persons or other legal investment organizations that meet the conditions stipulated by the China Securities Regulatory Commission; securities investment fund management companies, securities companies, qualified foreign institutional investors, and RMB qualified foreign institutional investors who subscribe for more than two products managed by them are regarded as one issuance target; trust companies, as issuance targets, can only subscribe with their own funds. The final issuance target of this issuance will be determined by the company's board of directors and the sponsor (lead underwriter) through negotiation after the issuance application is approved by the China Securities Regulatory Commission and based on the subscription quotations of the issuance target. All issuance targets subscribed for the shares issued this time with cash.

The pricing base date for this issuance of stocks to specific objects is the first day of the issuance period. The issuance price shall not be lower than 80% of the average price of the company's stock in the twenty trading days before the first day of the issuance period. The average stock trading price in the twenty trading days before the pricing base date = the total stock trading volume in the twenty trading days before the pricing base day ÷ the twenty trading days before the pricing base dayTotal stock trading volume on E-day. After the issuance application is approved by the China Securities Regulatory Commission, the final issuance price will be determined by the board of directors in accordance with the authorization of the shareholders' meeting, in accordance with the relevant rules of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, and in consultation with the sponsor (lead underwriter) based on the bidding results.

The number of shares issued to specific targets this time is determined based on the total amount of funds raised divided by the issuance price, and shall not exceed 30% of the company's total share capital before this issuance. The final issuance quantity will be determined by the company's board of directors in accordance with the authorization of the shareholders' meeting and in consultation with the sponsor (lead underwriter) based on the actual subscription situation after the issuance is registered by the China Securities Regulatory Commission. If between the pricing base date of this issuance and the issuance date, the company undergoes ex-rights events such as bonus shares or capitalization, the number of shares issued to specific objects this time will also be adjusted accordingly.

Nanjingguang stated that there is no confirmed target for this issuance. Whether there will ultimately be a related transaction due to related parties subscribing for the shares in this issuance will be disclosed in the issuance report announced after the issuance is completed.

As of the date of issuance of the prospectus, the company's shareholder Jiang Fafa holds a total of 29.18% of the company's equity through direct and indirect holdings, and the company's shareholder Pan Lianxing holds a total of 29.18% of the company's equity through direct and indirect holdings. Pan Lianxing is Jiang Fafa's niece-in-law. Calculated based on the upper limit of the number of shares issued this time being 30% of the total share capital before issuance, after the completion of this issuance, the actual controllers Jiang Fafa and Pan Lianxing hold a total of 44.90% of the company's shares and remain the company's actual controllers. Accordingly, this offering will not result in a change of control of the company.

Regarding the purpose of this issuance of shares to specific targets, Nanjiguang stated that it is to comply with industry technology development trends and actively deploy future markets; to enrich the company's product line and seize development opportunities in downstream markets; to enhance the company's R&D capabilities and consolidate its industry position; to enhance the company's financial strength and provide financial support for the long-term development of the company's business.