On January 18, Yijing Optoelectronics announced that it plans to raise no more than 1.302 billion yuan to invest in the construction project of annual 5GW high-efficiency solar modules.
In addition to 702 million yuan planned to be invested in Changzhou's annual 5GW high-efficiency solar module construction project, Yijing Optoelectronics will also use 600 million yuan to replenish working capital and repay interest-bearing liabilities, accounting for 46.08 percent of the fund-raising. The explanation given by Yijing Optoelectronics is that at present, the financing of the company is mainly short-term borrowing, and the financing scale of short-term loans does not match the capital demand scale and investment period of the company's long-term business strategy such as new capacity expansion. The company's asset-liability ratio has also improved.
Yijing Optoelectronic's business competition area is mainly in the photovoltaic module market, this increase is actually intended to increase the company's main business. Yijing Optoelectronics reported in the semiannual report in 2021 that the company's 2GW high-efficiency solar module project has reached production, and the 3GW high-efficiency crystal silicon cell project has been debugged and run. At this point, Yijing Optoelectronics has formed the production capacity of 5GW solar modules.
It is worth noting that while adding code to the main industry, in recent years, Yijing Optoelectronics has also made provision for impairment of equipment with high energy consumption in idle operation, high material consumption, and technology and production capacity that are not in line with the development trend of the market. Yijing Optoelectronics hopes to further reduce costs and increase efficiency by eliminating backward production capacity, introducing advanced production capacity, and continuously promoting the conversion of new and old production capacity.
