ICC News On May 31, Chengdu Xinyisheng Communication Technology Co., Ltd. (hereinafter referred to as "Xinyisheng" or "the Company", 300502) released a feasibility analysis report on the use of funds raised by issuing convertible corporate bonds to unspecified objects, and intends to issue convertible corporate bonds (hereinafter referred to as "convertible bonds") to unspecified objects The total amount of funds raised will not exceed 1.88 billion yuan (including this amount), and the net funds raised after deducting the issuance expenses will be used for high-speed optical module expansion projects in Chengdu and Thailand.

The announcement pointed out that if the actual net amount of funds raised this time is less than the amount of funds to be raised, the insufficient part of the company will be solved by itself.

Before the raised funds are in place, the company will invest in advance with self-raised funds according to the actual situation of the project progress, and replace them after the raised funds are in place.

Within the scope of the above-mentioned raised funds investment project, the board of directors of the company can make appropriate adjustments to the specific amount of the corresponding raised funds investment project according to the progress of the project, capital demand and other actual conditions.

Chengdu high-speed optical module expansion project

The total investment is 133,765.88 million yuan, and 96,000.00 yuan is planned to be invested with raised funds. Project planning construction period 3 years, the purchase and installation of equipment and the recruitment of personnel will be completed during the construction period. Through the construction of this project, the company will increase the annual production capacity of 1.85 million high-speed optical modules.

In artificial intelligence (Artificial Intelligence, AI), optical modules have become a link with strong certainty in the global computing power industry chain. From the demand side, the growth of hardware equipment demand and technological upgrading in the data communication market and the telecommunications market continue to promote the development of the optical module market The rapid development of AI has further boosted the demand for computing power, and optical communication networks are an important foundation and solid foundation for computing power networks. According to IDC The global AI computing market size is predicted to grow from $19.50 billion in 2022 to $34.66 billion by 2026. Among them, the generative AI computing market size is expected to grow from 2022 $820 million in 2026 to $10.99 billion in 2026, growing at a compound growth rate of 91%. In this context, the company needs to seize the industry opportunity to expand product production capacity to meet the demand of the downstream market

This project will focus on AI The new demand for data transmission brought about by the development of the industry, the introduction of advanced automation equipment and management system, to build a high-speed optical module production line. After the implementation of the project, the company will greatly increase its production capacity, meet the urgent needs of downstream customers for lower power consumption, higher speed, and stronger reliability optical modules, and ensure product quality and delivery efficiency The AI field has high requirements for the continuity of big data processing.

As of the first quarter of 2024, the capacity utilization rate of the company's existing production lines has been exceeded 80%, therefore, the company needs to add new production equipment, expand product production capacity, and improve delivery capacity to ensure that the company can continue to meet market demand stably. After the implementation of this project, the company will fully grasp the development trend of multiple downstream market segments, seize the overall development opportunities of the industry, and actively expand the production capacity of optical modules. Through the introduction of advanced production equipment and technology, the company will optimize and upgrade the product manufacturing process, greatly improve production efficiency, and expand the production capacity of all categories of optical modules. In the future, the company will fully meet the market demand with stronger production capacity and richer product lines to achieve sustainable and steady development. At the same time, the company will use advanced production technology and management mode to ensure product quality and delivery efficiency, and greatly improve the delivery capacity of all types of optical module products.

Having a diverse portfolio of transceiver products to meet different needs is essential to meet the broad needs of the global market. With the company's silicon photonic module, coherent optical module, LPO The continuous improvement of the product matrix of high-speed optical modules such as optical modules, the establishment of production lines that can achieve "balanced production and standardized operations", and the supply of high-speed optical module products to meet the needs of different customers are the key to seize market development opportunities and continuously enhance the company's core competitiveness.

Through the construction of this project, the company will continue to promote process optimization and upgrading and refined management, and continue to improve the internal operation efficiency through the purchase of information systems and the improvement of automation utilization rate. At the same time, the company will expand the production capacity of multi-category products, so that the company can flexibly respond to the needs of different customers for "multi-variety, short delivery", improve product delivery, and improve the company's core competitiveness.

The estimated investment for the construction of the project is as follows:

New construction project of high-speed optical module in Thailand

The total investment is 108,259.84 million yuan, and it is planned to use the raised funds to invest 92,000.00 yuan. Project planning construction period 3 years, the construction of the project will be completed during the construction period, the purchase and installation of related supporting facilities, software and hardware equipment, and personnel recruitment. Through the construction of this project, the company will increase the annual production capacity of 1.1 million high-speed optical modules.

After the implementation of the project, the company will use advanced production technology and management mode to build a high-speed optical module production line, realize the optimization and upgrading of product manufacturing process, greatly improve production efficiency, expand the production capacity of all types of optical modules, ensure product quality and delivery efficiency, and seize market opportunities with an efficient and professional attitude. In the future, the company will fully meet the market demand with stronger production capacity and richer product lines, achieve sustainable and steady development, and improve product delivery capabilities in overseas markets.

The company has been deeply engaged in global business for a long time, and has accumulated rich experience in overseas markets and has a wealth of customer resource reserves. In order to ensure the stability of the supply chain, strengthen the company's global market product supply capacity, and meet the needs of global customers, the company must accelerate the construction of overseas production bases.

Through the construction of this project, the company will build a high-speed optical module production base in Thailand, improve the company's global layout, and stabilize the supply chain system. After the implementation of the project, the company will ensure product quality and delivery speed by optimizing the allocation of global resources. Ensure the company's global market supply capacity, enhance the company's core competitiveness, and promote the company's sustainable development.

The estimated investment for the construction of the project is as follows:

The announcement also pointed out that the funds raised this time will be used for the expansion project of high-speed optical modules in Chengdu and the new project of high-speed optical modules in Thailand.

The fundraising project focuses on the company's main business, which is in line with the relevant national industrial policies, industry technology trends and the company's overall strategic development direction, which is conducive to the company to grasp industry opportunities, expand business scale, optimize product performance and structure, further enhance the company's core competitiveness and sustainable development ability, and have good market development prospects and economic benefits. Through the implementation of the investment project of the raised funds, the company's comprehensive competitiveness will be further enhanced, which is in line with the company's long-term development needs and the interests of all shareholders.