300 million yuan increase in shareholding company to develop Jingmu Linsen to further lock upstream chip supply

The 30th meeting of the second board of directors of Mulinsen Co., Ltd. (hereinafter referred to as “the company”) was held on June 28, 2016 by on-site plus communication in the conference room on the fifth floor of the company.

The meeting reviewed and approved the “Proposal on the Development of Additional Investment in Jingguang Lighting (Xiamen) Co., Ltd.” to further increase the company’s upstream extension to the LED industry chain. The company plans to develop its own (Xiamen) limited shares with its own shares. The company (hereinafter referred to as "Development Jing") increased its capital by 300 million yuan.

This investment can accelerate the implementation of the company's strategic layout, in line with the company's development direction, and has a positive role in promoting the company's brand effect. At the same time, it can promote the company's product sales, effectively improve the company's revenue, and have a positive impact on the company's core competitiveness.

With the gradual transparency of technology, the LED lighting packaging industry has gradually entered the era of fighting for capital and scaling up, and it is imperative to increase industrial concentration.

In October last year, Mu Linsen released a non-public offering plan, and the net amount of funds to be raised did not exceed 2.316 billion yuan, which was used for “Siu Lam SMD LED packaging technology reform project”, “Ji’an SMDLED packaging phase I construction project” and “Xinyu LED”. Application of the first phase of the construction project.

Not only the capacity expansion of domestic production bases, but also the internationalization strategy. In addition to accelerating the layout of overseas markets, Mu Linsen is bidding for the bid for Osram . Once this is confirmed, Mulinsen will be a new round of capacity expansion and market share.

In recent years, Mulinsen's actions in the field of LED chips have frequently confirmed the planning of capacity expansion. For the protection of upstream chip supply, the control of future packaging and lighting costs will be greatly guaranteed.

In April this year, Mulinsen and Huacan Optoelectronics signed the "Strategic Cooperation Agreement." Mulinsen will preferentially purchase Huacan Optoelectronics products under the same conditions. In the next three years, the value of LED chip products purchased from Huacan Optoelectronics will be no less than RMB 1.5 billion. The price and quantity of products will be adjusted periodically according to market demand on a quarterly basis. .

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