Elec-Tech give up equity incentive to develop additional fund-raising 3 billion 500 million power LED

Guangdong electric Limited by Share Ltd (Elec-Tech, 002005) May 21st announcement that the company intends to non-public offering of not more than 150 million shares, issue price of not less than 15.61 yuan / share, to raise funds not more than 3 billion 500 million yuan. Among them, 80% of the funds raised will be used in Wuhu LED epitaxial wafer production line project, the other 20% to supplement working capital.

Elec-Tech said the plan by the non-public offering of A shares to raise funds through the capital Wuhu Runda Optoelectronics Technology Co., the implementation of wafer production line, gradually building large LED products manufacturing base and R & D center, perfect company LED industry chain.

Statement Elec-Tech announcement, plans to purchase and install 150 sets of MOCVD and its supporting research and development testing and production equipment, and new production, R & D test and auxiliary workshop of 62560 square meters, for the production of LED epitaxial wafers. Completion of the project, will form an annual output of 1 million 800 thousand pieces of 4 inch LED wafer production capacity.

Elec-Tech said the LED completion of the project, will add an annual operating income of 7 billion 956 million yuan, the annual after tax profit of 1 billion 587 million yuan. Equivalent to 8.1 times last year's net profit of $195 million.

At the same time on the same day, Elec-Tech also announced that the company has put forward 2011 non-public offering plan based on, plus personnel expansion, the company intends to revoke the previously announced equity incentive plan (draft). But before the suspension, Elec-Tech closed at 17.84 yuan / share, compared with the equity incentive exercise price of 1.95 yuan / share (or 9.85%).