Electronics

Under the background of strong industry demand, the electronic components company Hongda Electronics plans to raise 1 billion yuan to increase the main business of electronic components and circuit modules.

On the evening of June 6, Hongda Electronics released a fixed increase plan showing that the company plans to raise funds not to exceed 1 billion yuan, of which 620 million yuan will be used for the construction of microwave electronic components production base, and 180 million yuan will be used for the construction of the R&D center. , And another 200 million yuan will be used to supplement working capital.

Hongda Electronics is a high-tech enterprise focusing on high-reliability electronic components and circuit modules for R&D, production, sales and related services. Its products cover tantalum capacitors, ceramic capacitors, microcircuit modules and other electronic components, among which high-energy tantalum Products such as hybrid capacitors and polymer tantalum capacitors are in a leading position in China, and downstream customers cover the fields of system engineering and equipment such as vehicles, aircraft, ships, radars, and electronic countermeasures.

The company stated that the fund-raising investment project is centered on the company's development strategy and is closely related to the company's current main business. After the completion of this issuance, the company's main business scope will not undergo major changes.

Not long ago, Hongda Electronics disclosed in the latest "Investor Relations Activity Record" that the company's performance in 2020 has achieved rapid growth, and the order situation in January 2021 is also relatively optimistic. However, due to the particularity of the industry, it is currently temporarily It is impossible to predict the trend of orders throughout the year.

According to Hongda Electronics, starting from the second quarter of 2020, the company's customer demand is strong and orders are full. Among the orders for the whole year of 2020, the tantalum capacitor business will continue to maintain its dominant position in the industry and grow steadily, with an increase of approximately 35%-40%. , Non-tantalum capacitor products are in a period of rapid development, and overall orders have shown a doubling growth trend. Among them, the larger-scale MLCC products have increased by more than 70%, and the power module products have nearly doubled. From the perspective of downstream customer types, due to strong industry demand and finalized batch production for high-reliability products, the annual growth rate of high-reliability products is close to 60%. However, due to the increase in localized substitution demand and the increase in product prices, the annual performance of high-reliability products is also close to turning over. Times.

The company also stated in this fixed increase plan that the construction of 5G base stations will increase the demand for electronic components and circuit modules. 5G commercialization will drive the acceleration of smart phones and the popularization of smart Internet of Things devices, which will drive the growth of demand for electronic components and circuit modules. The popularity of new energy vehicles drives the demand for automotive electronics. In addition, the production and operation of foreign electronic component manufacturers have been greatly affected by the epidemic, which has accelerated the rise of domestic high-end electronic components.

Hongda Electronics believes that the implementation of this fundraising project is the company's grasp of national policy support, conforming to the implementation of informatization and intelligent transformation trends in my country's manufacturing sector, 5G communications and new energy vehicle development trends and market demand changes, and upgrading the company's products The important diversification measures are in line with the company's development strategy of deepening the horizontal layout. The implementation of the investment project with funds raised from the issuance to specific targets will have a positive impact on the company's business operations, which will help improve the company's sustained profitability, risk resistance and comprehensive competitiveness, and consolidate the company's leading position in the industry.

Prior to the issuance, Hongda Electronics’ controlling shareholders and actual controllers were Zeng Chen, Zhong Ruonong and Zeng Jijiang. The three were acting in concert and directly held 288 million shares of the company, with a shareholding ratio of 71.98%. According to the calculation of the issuance limit of 4,001 million shares, assuming that the company’s controlling shareholder and actual controller do not participate in the subscription, after the completion of this issuance, the company’s controlling shareholder and actual controller directly hold 65.44% of the company’s shares, which is still the company’s controlling shareholder. Shareholders and actual controllers. Therefore, this issuance will not lead to changes in the company's control rights.