Taiwan Packaging Factory Lianying Closes LED Backlight Production Line Sale Equipment Repayment of Debt

Taiwan LED packaging factory held a press conference on March 4th. Spokesperson Zheng Yiqing pointed out that in line with operational needs, the company will close the LED backlight production line. The board of directors resolved to dispose of the main machinery and equipment and other equipment to Anhui Core Ruida, the total transaction amount is about 27.5 million yuan (NTD, the same below), the estimated sale profit is 446,000 yuan, the amount will be used to repay the debt and strengthen the financial structure.

Zheng Yiqing pointed out that the book value of the equipment sold accounted for 57.29% of the fixed assets, accounting for 15.4% of the total assets. The amount of the disposal will be used to repay the liabilities and strengthen the financial structure, and after the response measures The company will consolidate existing lighting customers and strengthen its supply chain relationship with foundries to compensate for the impact of reduced backlight market operations.

Lian Ying’s total consolidated revenue last year was 212 million yuan, with an annual decline of 34.88%, and the net loss after tax was 46,819,900 yuan. If the current capital is 330 million yuan, the loss per share is about 1.4 yuan.

According to Zheng Yiqing, according to last year's revenue, backlights accounted for about 70% of revenue and 30% of lighting. The former is self-produced and the latter is subcontracted. The company closed the backlight line and the machine this year. After that, the company's operating model will be changed to design products and orders, and then outsourced processing and production, the proportion of revenue in the next two major businesses will be more dynamic, but the actual proportion can not be determined.

In addition, the company's board of directors on the 3rd will pass the private cash increase, the price per share is tentatively set at 1.8 yuan, the estimated number of shares issued is up to 14 million shares, the denomination of 10 yuan per share. Zheng Yiqing responded that the current increase in fundraising targets has not yet been negotiated.

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