Raising 1.5 billion yuan, Woge Optoelectronics plans to build a glass-based MiniLED display backlight module project

On the evening of May 30, Woge Optoelectronics announced that it plans to raise no more than 1.5 billion yuan through a non-public offering of A shares, of which more than 70% (1.06 billion yuan) will be invested in the "glass-based MiniLED display backlight module project." At the same time, the company announced the termination of a previous fundraising plan for the "Glass Substrate Mini/Micro LED Substrate Project."

This adjustment of increase and decrease shows changes in the development strategy of Vogel Optoelectronics in the field of new display technology.

Planned construction of glass-based Mini LED display backlight module project

According to the latest announcement, Woge Optoelectronics plans to invest 1.06 billion yuan in raising funds to build a glass-based Mini LED display backlight module project, and invest 440 million yuan to supplement working capital and repay loans.

Among them, the glass-based MiniLED display backlight module project is implemented by Jiangxi Dehong, a wholly-owned subsidiary. The construction period is 24 months. It plans to transform the existing factory and introduce advanced equipment. After completion, it will form an annual production capacity of 6.05 million glass-based MiniLED backlight modules. The remaining raised funds will be used to supplement the company's working capital and repay bank loans.

At the technical level, Vogel Optoelectronics emphasized the performance advantages of glass-based materials. As the requirements for display effects of Mini LED backlight products continue to increase, the number of display partitions will also further increase. The continuously improving light control accuracy requires more precise circuits to support it, and the performance advantages of glass-based in precision circuits will be further highlighted.

In order to comply with the development trend of the industry, Vogel Optoelectronics continues to promote relevant layout. Previously, the application of glass-based circuit boards produced by Woge Optoelectronics in Mini LED backlight was first released in Hisense's Dasheng G9 e-sports display. This display can achieve 2,304 independent light control areas through the technical advantages of extremely small line width and line spacing of high-precision glass-based circuit boards.

Through this fundraising project, Wogo Optoelectronics aims to strengthen its vertical integration capabilities in the industry chain from glass substrates to MiniLED backlight modules, enrich its existing product structure, and thereby better meet the supporting needs of downstream customers and cultivate new performance growth points.

Termination of glass substrate Mini/Micro LED substrate project

It is worth noting that on the same day as the announcement of the new fundraising plan, Vogel Optoelectronics also announced the termination of the issuance of A shares to specific targets in 2023. The original plan planned to raise a total of no more than 1.5 billion yuan, mainly for the "Dehong annual output of 5 million square meters of glass substrate Mini/Micro LED substrate project."

Regarding the termination of the private placement plan in 2023, the explanation given by Vogel Optoelectronics in the announcement is that since the company initiated the issuance of A shares to specific targets, it has been actively promoting various related work. Now, after comprehensive consideration of the external objective environment, market environment, the company's actual situation, development strategy and other factors, and after full communication and prudent analysis by relevant parties, the company has finally decided to terminate this issuance plan.

Focus on Mini LED backlight modules and seize market opportunities

Wogel Optoelectronics’ latest strategic adjustment shows that the company is focusing on Mini LED backlight technology in order to accelerate the commercialization process and meet clear market demand.

The company pointed out in the new announcement that with the continuous development and maturity of Mini LED display technology, the market penetration rate of Mini LED in TV and other application fields is rapidly increasing. Taking the TV field as an example, mainstream TV manufacturers are accelerating the commercial application of Mini LED technology. Huawei, Hisense, Xiaomi, TCL, Skyworth and other companies have successively launched Mini LED TV products.

TrendForce also predicts that Mini LED backlit TV shipments will reach 11.5 million units in 2025, accounting for 6% of the global TV market. Woge Optoelectronics believes that in the future, Mini LED backlight will gradually become the standard feature of mid-to-high-end products of various brands. With its high cost performance, it is expected to accelerate its penetration into more display scenes and usher in a wider range of consumer groups.

In the new display field with "glass-based technology" as the core, Wogo Optoelectronics continues to invest. The glass-based Mini LED flagship product "Dasheng G9" launched by the company in cooperation with Hisense has achieved hot sales. In addition, the first phase of the 1 million square meter production capacity of its wholly-owned subsidiary Jiangxi Dehong's annual 5 million square meter glass substrate project has been put into production in the second half of 2024, which will provide support for future large-size glass substrate applications such as automotive and television.

In addition, Vogel Optoelectronics also mentioned that with the release of the Hisense Monkey King G9 e-sports display product, the excellent performance of glass-based Mini LED backlight in 0OD precise light control from 2,000 partitions to 10,000 partitions and above is expected to accelerate the penetration of Mini LED backlights in medium and large-sized displays such as notebook computers, monitors, TVs, and car displays.

Overall, this strategic adjustment of Woge Optoelectronics aims to optimize resource allocation and seize the opportunities of the rapid development of the Mini LED market, thereby consolidating its market position in the new display field.