Jufei Optoelectronics Announces Extension of Partially Raised Capital Investment Project

Approved by China Securities Regulatory Commission (CSRC) [2012] No. 240, Jufei Optoelectronics issued an initial public offering of 20.04 million shares of common stock (A shares) on March 9, 2012, with an issue price of RMB 25 per share. The total amount was 511.5 million yuan, after deducting various issuance expenses of 36.84 million yuan, and the net proceeds raised was 474.66 million yuan. On March 14, 2012, Asia Pacific (Group) Certified Public Accountants Co., Ltd. verified the availability of the company's initial public offering of shares, and issued the “2012 Capital Report” [2012] No. 007.

The planned investment of Jufei Optoelectronic Backlight LED Device Expansion Project is RMB 215,275,500, which was originally planned to be completed by September 30, 2013. As of September 30, 2013, the actual use of the project raised 97.742 million yuan, and the investment progress was 45.45%.

Jufei Optoelectronics said that the main reason for the project's failure to reach the scheduled investment schedule is that the investment required for the expansion of the backlight LED device proposed before the company's listing is based on the equipment production capacity at that time. Over time, the efficiency of equipment brought about by technological advancement and the unit price of equipment have decreased, resulting in a reduction in the amount of investment required for the same capacity. After the company's listing in March 2012, the company carefully used the raised funds to introduce equipment and expand production capacity. In the 12 months from October 1, 2012 to September 30, 2013, the backlight production was 3000 KK, compared with the company's backlight year before the listing in 2011. The output is 1214 KK, an increase of 1786 KK, reaching 124% of the newly added capacity of 1440 KK for the expansion of the backlight LED device project. Jufei Optoelectronics extended the project investment plan to September 30, 2014.

In addition, the lighting LED device expansion project plans to invest 10,075,100 yuan, originally planned to complete construction before September 30, 2013. As of September 30, 2013, the actual use of the project raised funds of 45.152 million yuan, and the completed investment progress was 45.07%.

Jufei Optoelectronics said that the main reason for the project's failure to reach the scheduled investment schedule is that the investment required for the expansion of the lighting LED device project before the company's listing is based on the equipment production capacity at that time. Over time, the efficiency of equipment brought about by technological advancement and the unit price of equipment have decreased, resulting in a reduction in the amount of investment required for the same capacity. After the company's listing in March 2012, the company carefully used the raised funds to introduce equipment and expand production capacity. In the 12 months from October 1, 2012 to September 30, 2013, the lighting output was 610KK, compared with the company's lighting output before the listing in 2011. 133KK, an increase of 477KK, reached 72% of the newly added capacity of 660KK for the expansion of lighting LED devices. Jufei Optoelectronics extended the project investment plan to September 30, 2014.

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