Use of Raised Funds Plan
The total amount of raised funds for this private placement is expected to not exceed RMB 128,290.64 million (inclusive). After deducting issuance expenses, the net raised funds will be used for the following projects:
| Item | Project Name | Total Investment (RMB million) | Raised Funds to be Used (RMB million) |
|---|---|---|---|
| 1 | High-speed optical module intelligent manufacturing project | 78,776.68 | 78,776.68 |
| 2 | Industrialization project for high-speed optical components and high-end passive components | 25,489.72 | 25,489.72 |
| 3 | High-speed optical chip intelligent manufacturing project | 14,024.24 | 14,024.24 |
| 4 | Supplement working capital | 10,000.00 | 10,000.00 |
| Total | 128,290.64 | 128,290.64 |
If the net raised funds after deducting issuance expenses are less than the total investment in the above projects, the shortfall will be resolved by the company's own funds. Before the raised funds are in place, the company will use its own funds to invest in the raised fund investment projects based on their progress, and will be reimbursed after the raised funds are in place, in accordance with relevant laws and regulations. The board of directors and its authorized personnel will adjust and finally decide on the specific investment projects, priorities, and investment amounts for the use of raised funds based on the actual net raised funds and the urgency of the projects.
Basic Information and Feasibility Analysis of Raised Fund Investment Projects
(1) High-speed optical module intelligent manufacturing project
1. Project Overview
The total investment for this project is RMB 78,776.68 million, with a construction period of 24 months. The project plans to utilize existing factory buildings in Huanggang City, Hubei Province, for renovation and equipment procurement to build a high-speed optical module manufacturing production line. This investment project is an extension of the company's main business, aiming to increase the production scale and capacity of high-speed optical module products, consolidate and enhance the company's market position in the module segment, and further strengthen the company's profitability and sustainable development capabilities.
2. Project Necessity
(1) Assist the company in seizing the development opportunities in the computing power market and opening up new profit growth points
Currently, the iteration of large AI models, the large-scale construction of computing centers, and the rapid development of cloud computing and supercomputing industries are driving exponential growth in global data center traffic. High-speed optical interconnects, as the core transmission foundation of computing power networks, are entering a period of extremely strong market demand. As AI large model training and inference scenarios are increasingly implemented, the demand for east-west data interaction between servers, switches, and computing clusters is exploding. The number of high-speed optical modules carried by each AI server, as well as the requirements for transmission speed and bandwidth, far exceed those of traditional cloud computing servers. High-speed optical modules have become an indispensable core hardware for AI computing power infrastructure.
In terms of industry space, industry forecasts predict that the global market for 800G and 1.6T high-end high-speed digital communication optical modules will exceed US$14 billion in 2026, with a compound annual growth rate of over 30% in the next three years, making it the fastest-growing, most certain, and most sustained segment in the communication hardware sector. Compared with the company's traditional PON access optical components and conventional communication components, 800G/1.6T high-speed optical modules have the advantages of high single-product value, excellent gross profit margin, strong downstream demand, and broad iteration space, which can completely break through the growth bottleneck of traditional communication component businesses. Upon completion of this project, the company can deeply enter the upstream core sector of AI computing power, fully benefit from the expansion of the computing power industry, cultivate a new core profit growth point for the company, and effectively optimize the company's overall revenue structure and profit model.