LED maker Changelight Co Ltd of Xiamen, China plans to issue 6.07 million stocks to raise a total of RMB800m ($130.39m) in financing in order to expand its production of indium gallium nitride (InGaN) LED epitaxial wafers, according to LEDinside (a division of market research firm TrendForce). One of the firm's stockholders in particular, Wang Weiyong, will be purchasing RMB80m worth of stocks.
Changelight's InGaN LED epiwafer expansion project, which involves establishing a new factory, is expected to cost a total of RMB1.34bn. The new factory's production capabilities will span all GaN LED model products, and increase the firm's InGaN LED chip production to 5.239 billion unitsper month (62.87 billion units per year). Retail revenue from the project is expected to reach RMB1.21bn. The firm also expects that, during the factory's period of operation, net profit will be RMB123m, gross profit margin will be 29.23% and net profit margin will be 11.6%.
InGaN LED epiwafers tend to have the classical features of a capital-intensive and technology-intensive industry, according to sources cited by LEDinside. The recent financing would support Changelight's advances in the LED chip manufacturing industry, it adds.
