There is a big “article” hidden in a change of fund-raising and investment plan.
According to the latest announcement, Lens Technology Co.Ltd(300433) 15 billion yuan of fixed raising investment projects have changed greatly, which also reflects the industrial vision of this A-share consumer electronics leading enterprise on the major consumer electronics industry, smart wear segment track and new energy vehicle vehicle glass related businesses.
Generally speaking, Lens Technology Co.Ltd(300433) reduced the investment in the project of “consumer electronics 3D touch function panel” due to “short-term market demand failed to meet expectations”; On the other hand, Lens Technology Co.Ltd(300433) significantly increased the investment in smart wear track. It is planned to increase the total investment of “Changsha (II) park smart wear and touch function panel construction project” from the original 1.514 billion yuan to 5.4 billion yuan, and the investment amount of raised funds from the original 1.271 billion yuan to 2.291 billion yuan.
The announcement also shows that Lens Technology Co.Ltd(300433) is still optimistic about the prospects of new energy vehicles, vehicle glass and other related businesses.
15 billion yuan fixed raising investment to meet the “change”
According to the announcement in January 2021, Lens Technology Co.Ltd(300433) issued 589 million shares to Changsha Ling Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) investment, China International Capital Corporation Limited(601995) , Singapore Government Investment Co., Ltd., Nord fund, rosefinch fund and other 14 institutions, with a total amount of about 15 billion yuan. After deducting the issuance expenses, the net amount of funds raised was about 14.91 billion yuan. The above new shares were listed on January 27, 2021.
According to the original plan, Changsha (II) park smart wear and touch function panel construction project, Changsha (II) park vehicle glass and large-size function panel construction project, Changsha (II) park 3D touch function panel and production supporting facilities construction project, industrial Internet industry application project and supplementary working capital will raise about 1.271 billion yuan, 4.226 billion yuan, 5.345 billion yuan, 2.078 billion yuan and 1.988 billion yuan respectively.
Among them, the total investment of Changsha (II) park intelligent wearable and touch function panel construction project is 1.514 billion yuan, and the raised fund is planned to be 1.271 billion yuan. The construction period of the project is 24 months. After completion, the project will achieve an annual output of 9 million components of intelligent wearable devices, and the annual sales revenue is expected to be 1.8 billion yuan.
As of March 29, 2022, the project has invested 1.088 billion yuan of raised funds, the investment progress is 85.58%, and the remaining raised funds are 188 million yuan (including interest income).
Now Lens Technology Co.Ltd(300433) has decided to significantly increase the investment in the above projects.
In the latest announcement, Lens Technology Co.Ltd(300433) said that it planned to increase the total investment of “Changsha (II) park intelligent wearable and touch function panel construction project” from the original 1.514 billion yuan to 5.4 billion yuan, and the investment amount of raised funds from the original 1.271 billion yuan to 2.291 billion yuan. At the same time, it also extended the “date when the project reaches the scheduled usable state” from the original December 31, 2022 to December 31, 2024.
The plan of raising and investing has increased and decreased.
It is one of the key production facilities of Changsha touch panel (2) according to the plan. Now, it has ushered in great changes.
It is disclosed that the total investment of the project is about 6.329 billion yuan, and the raised funds to be used are about 5.345 billion yuan. The construction period of the project is 24 months. When it is completed and put into production, it will achieve an annual output of 120.15 million consumer electronics 3D touch function panels. As of March 29 this year, the project has invested 1.12 billion yuan of raised funds, with an investment progress of 21.05%, and the remaining raised funds of 4.266 billion yuan (including interest income).
Lens Technology Co.Ltd(300433) said that it plans to reduce the amount of funds raised for the “construction project of 3D touch function panel and production supporting facilities in Changsha (II) park” from the original 5.345 billion yuan to 2.62 billion yuan, and extend the “date of reaching the scheduled usable state” of the project from December 31, 2022 to December 31, 2024.
In addition, Lens Technology Co.Ltd(300433) plans to increase the investment amount of the raised funds of the “supplementary working capital project” from the original 1.988 billion yuan to 3.688 billion yuan; Slightly adjust the details of the raised investment project of “industrial Internet industrial application project”.
smart wear track “hot”
With regard to the reasons for reducing the “construction project of Changsha (II) park 3D touch function panel and production supporting facilities”, Lens Technology Co.Ltd(300433) said that the long-term market demand for consumer electronics 3D products increased steadily, but the short-term market demand did not meet expectations due to changes in the external environment.
For the smart wear track, Lens Technology Co.Ltd(300433) shows strong confidence and ambition.
Lens Technology Co.Ltd(300433) said that in the field of intelligent wearable devices, the company was the first in the industry to develop optical, structural and functional component modules
It is one of the enterprises with abundant resources for R & D and mass production, and has rich resources for high-quality products.
With the further growth of market demand, the company expects that the existing production capacity will not meet the needs of customers. Therefore, the total investment and raised capital investment of “Changsha (II) park intelligent wearable and touch function panel construction project” will be increased to support the intelligent wearable business to become an important business growth point of the company in the future.
According to the latest statistics of market research agency IDC, the global shipments of wearable devices (smart watches, smart wristbands, wireless headphones, etc.) reached 534 million in 2021, an increase of 20% over 445 million in 2020, of which smart watches accounted for 23.97%. It is expected that the global shipments of smart wearable devices will reach 632 million in 2024.
The data also shows that the emergence and rapid development of virtual reality (VR), augmented reality (AR) and other technologies have spawned new market demand and market share. In 2021, the global AR / VR head display market increased by 92.1% year-on-year, and the shipment reached 11.2 million units. It is expected that the shipment will increase by 46.9% year-on-year in 2022 and 35.1% compound annual growth in 2026.
Lens Technology Co.Ltd(300433) it is estimated that the total investment after the change of Changsha (II) park intelligent wearable and touch function panel construction project is 5.4 billion yuan, which will be completed and reach production capacity on December 31, 2024, and will achieve an annual output of 81.39 million intelligent wearable device components, with a normal annual production and sales revenue of about 6.545 billion yuan and a net profit of about 896 million yuan.
smart wear and new energy vehicle business
is expected to usher in “higher growth”
It is worth noting that Lens Technology Co.Ltd(300433) the construction project of vehicle mounted glass and large-size functional panel in Changsha (II) park, another key project in the fixed raising investment of RMB 15 billion, has not been adjusted.
At present, Lens Technology Co.Ltd(300433) business scope has formed three major tracks: consumer electronics, new energy vehicles and photovoltaic. According to the record of investor relations activities disclosed in February this year, Lens Technology Co.Ltd(300433) is particularly optimistic about the new energy vehicle business and smart wearable business.
Lens Technology Co.Ltd(300433) said that the company is confident in the growth of new energy vehicle business and strives to achieve higher growth in 2022. At present, the main products include central control assembly, B-pillar, instrument panel, charging pile, etc. at the same time, other components will be developed. The vehicle equity investment project in Huanghua park will be completed this year. During the Spring Festival, the commissioning of large glass equipment will be carried out intensively, Shanghai Lingang Holdings Co.Ltd(600848) the automobile project will also be actively promoted. The internal layout planning is being made, and the company will also plan the global layout.
Lens Technology Co.Ltd(300433) also said that the company continued to participate in various customers’ smart watches and AR / VR projects, and the sales volume of customers’ smart wearable products is expected to increase significantly in 2022. The company’s main products are ceramics, sapphire, glass structural parts and optical parts, metal, plastic and other material structural parts. In terms of AR business, glass lenses are very difficult and challenging, and have higher value. The demand for smart watches will increase. The company needs to expand production capacity in advance and strive to achieve higher growth in smart wear business in 2022 than in 2021.
