Shenzhen Absen Optoelectronic Co., Ltd.
Feasibility Analysis Report on the Use of Raised Funds for Issuing Convertible Bonds to Unspecified Targets (Revised Draft)
August 2026
I. Plan for the Use of Raised Funds
The total amount of funds to be raised from the issuance of convertible corporate bonds to unspecified targets shall not exceed RMB 810,000,000 (inclusive). After deducting issuance expenses, the funds will be invested in the following projects:
| No. | Project Name | Total Investment (RMB 10,000) | Raised Funds Investment (RMB 10,000) |
|---|---|---|---|
| 1 | Global Headquarters Base and Product R&D Upgrade Project | 91,596.02 | 36,191.75 |
| 2 | LED Intelligent Manufacturing Production Line Technology Upgrade Project | 27,528.43 | 27,528.43 |
| 3 | Global Brand and Service Network Construction Project | 16,110.33 | 6,760.82 |
| 4 | Digitalization and Informatization Upgrade Project | 7,450.13 | 6,519.00 |
| 5 | Supplementary Working Capital | 4,000.00 | 4,000.00 |
| Total | 146,684.91 | 81,000.00 |
If the actual raised funds (after deducting issuance expenses) are less than the total planned investment, the Board of Directors will arrange the specific use of the raised funds based on the importance and urgency of the fund's purposes. Any shortfall will be resolved through self-financing. Before the convertible corporate bonds are issued and the raised funds are in place, if the company uses its own funds to invest in the aforementioned projects, the company will reimburse these funds with the raised capital according to relevant laws and regulations. Within the scope of the confirmed investment projects (subject to relevant government department filings), the Board of Directors may adjust the order and amount of investment in these projects based on the actual needs of the projects. These investment projects comply with national industrial policies and do not involve increasing excess capacity or investing in restricted or obsolete projects.
II. Details of the Raised Funds Investment Projects
(I) Global Headquarters Base and Product R&D Upgrade Project
1. Project Overview
(1) Project Construction Content
This project is a systematic strategic investment project that deeply integrates the construction of the global headquarters base with product R&D upgrades. The global headquarters base will serve as the core carrier for the company to coordinate global operations management, brand marketing, technology R&D, and customer service, as well as integrate industry chain resources. It will undertake the core functions of hardware support and functional assurance for the entire business chain. The product R&D upgrade will focus on tackling core and cutting-edge technologies in the LED display industry, which is a key initiative for the company to strengthen its technological capabilities and expand its presence in high-end markets.
The product R&D upgrade will focus on research and development tasks in four major areas: mechanical design and simulation, electronic technology and control systems, AI algorithm research and application innovation, and materials and optoelectronics. Simultaneously, it will leverage the office operations, testing, and other hardware facilities of the headquarters base to provide a professional carrier for all business operations and technological innovation, thereby building a comprehensive headquarters platform, forming proprietary intellectual property rights, and consolidating and enhancing the company's overall global competitiveness.