Jingfeng Mingyuan used 120 million yuan of raised funds to temporarily supplement working capital

On September 12, Jingfeng Mingyuan announced that the board of directors reviewed and approved the "Proposal on the Use of Idle Raised Funds to Temporarily Supplement Working Capital", agreeing that the company would use idle raised funds of RMB 120 million to temporarily supplement working capital, which would only be used for the company's business expansion, daily operations, and other production and operation activities related to its main business.

Jiwei.com learned that the funds raised by Jingfeng Mingyuan this time were the funds raised from its initial public offering of shares. A total of 15.4 million RMB common shares (A shares) were issued to the public at an issue price of 56.68 yuan per share. The total amount of funds raised was 873 million yuan. After deducting the issuance expenses totaling 85.1296 million yuan (excluding value-added tax), the actual net amount of funds raised was 788 million yuan. The above funds were in place on October 9, 2019.

Public information shows that the funds raised will be mainly used for general LED lighting driver chip development and industrialization projects, intelligent LED lighting chip development and industrialization projects, and product research and development and process upgrade funds.

Jingfeng Mingyuan stated that the company intends to use no more than RMB 120 million of idle raised funds to temporarily supplement working capital, on the premise of ensuring that the construction progress of the investment projects with the raised funds is not affected, in order to improve the efficiency of the use of the raised funds, reduce the company's financial costs, and solve the company's funding needs for operation and development. The use period shall not exceed 12 months from the date of approval by the company's board of directors, and the company will promptly return the funds to the special account for the raised funds at any time according to the progress and demand of the investment projects.

"The use of idle raised funds to temporarily supplement working capital will only be used for the company's business expansion, daily operations and other production and operations related to the main business. It will not be used for new share allotment, subscription, or for stock and its derivative products, convertible bonds and other transactions through direct or indirect arrangements. It will not change the purpose of the raised funds in disguise, nor will it affect the normal implementation of the raised funds investment plan."