Recently, Aucksun released non-public issue plan that it intends to issue not more than 100 million shares at not less than 5.12 Yuan / share, it will raise funds not more than 512 million Yuan to construct LED epitaxial wafers and chips Industrialization Project (the first phase) and supplement working capital. If this additional issuance is completed, Aucksun will gradually establish its double main businesses development model of the LED business coupled with metal logistics distribution. Aucksun estimates that the additional LED project can make net profit of 168 million Yuan when it is fully put into production, equivalent to establishing another Aucksun.
So far, the civil engineering and infrastructure of Aucksun's LED project have been completed; five units of MOCVD equipment have been delivered, and the two pre-arrival MOCVD devices have been put into use for mass production after installation and commissioning; an LED chip production line has been set up and put into operation, the epitaxial wafer and chip production lines have been completed, the performance and quality of product have met the design requirements. Meanwhile, the other three MOCVD equipments are still in the installation and commissioning phase and expected to be gradually put into operation in July of 2013.
After two years of preparation and construction, Aucksun has adequate reserves in the talent, technology, processes, information management systems, and many other aspects for LED project. Now, its process and technology has been verified; the newly produced products have gained market acceptance with customers. The overall operation of the project is satisfying, except that the capacity is limited. LED lighting is also expected to enter the phase of rapid development; also the opportunity for Aucksun to further expand production capacity has been more mature.
Wenhua Lin, Secretary to president of Aucksun, said that the capacity bottleneck becomes the biggest obstacle, this non-public offering of shares, 400 million Yuan to be invested LED business, can quickly expand production capacity to achieve economies of scale and fully share the upcoming feast of LED lighting industry.
