600707 What is the use of the 23 billion raised funds from Rainbow Shares?

Caihong Shares plans to non-publicly issue no more than 3.5 billion shares at a base issuance price of 6.74 yuan per share, and the total amount of funds raised will not exceed 23 billion yuan, which is planned to be used to increase capital for Xianyang Electronics to build 8.6-generation thin film transistor liquid crystal display devices (TFT-LCD) project, increased investment in Rainbow LCD to build an 8.5-generation LCD substrate glass production line project, and supplemented working capital.

Project name: 8.6 generation thin film transistor liquid crystal display device (TFT-LCD) project

Implementing unit: Xianyang Rainbow Optoelectronics Technology Co., Ltd. Construction location and construction area: Xianyang High-tech Zone Xinghuo At the intersection of Avenue and Gaoke 1st Road, the newly built area is approximately 871,824 square meters.

Production line overview: array (Array), color filter (CF), box (Cell), assembly (OC) and other production lines, as well as supporting power facilities and purification plants.

Total project investment: The total investment of this project is 28.00 billion yuan.

Source of funds: The company will raise 14 billion yuan through non-public issuance of shares, and the shortfall will be raised by the company itself.

Main economic indicators of the project: It is estimated that the financial internal rate of return of the 8.6-generation thin film transistor liquid crystal display device (TFT-LCD) project after reaching the design and production capacity is 6.98%, and the average annual sales revenue after reaching production is 91.42 billion.

Project construction period: two years.