Hongguang Semiconductor Plus Mini Led

It is reported that up to 26.755 million placing shares account for about 4.87% of the issued share capital of Hongguang semiconductors; It accounts for about 4.64% of the issued share capital of Hongguang semiconductor after the allotment and issuance of 26.755 million allotment shares. The maximum total proceeds from this placement (after deducting the placement Commission and other related expenses) will be HK $166 million. The maximum net proceeds from the placement will be approximately HK $161 million.

The proceeds from the placement are used for the following purposes:

(1) About HK $120 million is used to strengthen the R & D capacity of LED, mini led, fast battery charging products, Gan devices and related semiconductor products, including setting up R & D centers, recruiting R & D personnel, and purchasing equipment and materials to develop and / or obtain patents and technologies;

(2) About HK $41 million was used to provide general working capital and improve the company's financial position.

It is understood that Hongguang semiconductor is mainly engaged in the design, development, manufacturing, subcontracting service and sales of semiconductor products (including LED beads, LED lighting products and fast charging products).

The company believes that the placement is a good opportunity for the company to raise additional funds for the operation and business development of the group. It is expected that the proceeds from the placement will be used to strengthen the R & D capacity of the group, especially Gan (gallium nitride) technology, and ensure the normal operation of the group.