Absen plans to raise 820 million yuan to increase global display manufacturing

On April 22, Absen issued an announcement that the company plans to issue convertible corporate bonds to unspecified objects to raise a total of no more than 820 million yuan.

According to the announcement, after deducting the issuance fees, the funds raised this time will be used for "global headquarters base and product R&D upgrading and construction projects", "LED intelligent manufacturing production workshop technology upgrading and transformation projects", "global brand and service network construction projects", "digitization and informatization upgrade projects" and "supplementary working capital projects".

Absen stated that if the actual funds raised in this issuance (after deducting issuance expenses) are less than the total amount of funds to be invested, the board of directors will arrange the specific use of the raised funds based on the importance and urgency of the purpose of the raised funds, and the shortfall will be solved through self-raising.

The specific overview of each project is as follows:

■ Global headquarters base and product R&D upgrade construction project

The total investment of the project is 915.9602 million yuan, and the planned investment amount of raised funds is 361.9175 million yuan; the construction subject is Shenzhen Absen Optoelectronics Co., Ltd., located in the KD01-02 plot of Jinyuan Area, Gangtou Community, Bantian Street, Longgang District, Shenzhen City, with a construction period of three years.

According to reports, the construction of the global headquarters base is the core content of this project. At present, Absen has accumulated rich experience in global operations relying on its existing overseas subsidiary network and global channel layout. This project will achieve a comprehensive upgrade of the operating system on this basis.

At the same time, product research and development upgrades will focus on four major directions: mechanical design and simulation, electronic technology and control systems, AI algorithm research and application innovation, materials and optoelectronics; and relying on the supporting office operations, experimental testing and other hardware facilities at the headquarters base, it will provide professional carrier support for full-service operations and technological innovation, and create a comprehensive headquarters platform.

■ LED intelligent manufacturing production workshop technology upgrading project

The total investment of the project is 275.2843 million yuan, and the planned investment amount of raised funds is 275.2843 million yuan. The after-tax internal rate of return of the investment is 17.08%.

Its implementation entity is Huizhou Absen Optoelectronics Co., Ltd., a wholly-owned subsidiary, with a construction period of one year. In addition, the project is located in Huizhou Zhongkai High-tech Zone and is planned to be implemented in the original factory area. Through technological transformation and upgrading of the original production line, the purchase of advanced production equipment required for the project products, iterative upgrades and intelligent deployment of the original equipment, in order to consolidate the leading advantages in various application scenarios and continue to expand emerging application scenarios.

According to the announcement, after the project reaches production, it will significantly enrich the company's high-end LED display product portfolio, further improve the product echelon construction, and establish differentiated competitive advantages.

■ Global Brand and Service Network Construction Project

The total investment of this project is 161.1033 million yuan, and the planned investment amount is 67.6082 million yuan using raised funds; the implementation entity is Shenzhen Absen Optoelectronics Co., Ltd., and the construction period is three years.

Absen said that this project is an important layout for the company to implement its global development strategy, strengthen its market competitiveness, and support its continued business growth. Through the implementation of this project, the company will further expand global market coverage, improve customer service quality and response efficiency, enhance high-end product promotion capabilities and channel control, and effectively support the company's high-end production capacity release and continued expansion of business scale.

■ Digitalization and informatization upgrade project

The total investment of this project is 74.5013 million yuan, and the planned investment amount of raised funds is 65.190 million yuan. The implementation entity is Shenzhen Absen Optoelectronics Co., Ltd., and the implementation location is Tianan Cloud Valley, Huawei Base in Bantian, Shenzhen. The construction period is 36 months.

According to reports, this project is a comprehensive upgrade and systematic expansion of the company's existing digital and information system. It aims to build an efficient collaborative digital operation system covering the entire value chain of "supply, R&D, production, sales, finance, and management" through deep integration of cutting-edge technological means and mature software products.

In terms of performance, Absen will achieve operating income of approximately 4.158 billion yuan in 2025, a year-on-year increase of 13.53%. Net profit attributable to the parent company will be 252 million yuan, a year-on-year increase of 115.47%; non-net profit after deducting is 230 million yuan, a year-on-year increase of 202.90%. Among them, operating income from overseas markets was approximately 3.178 billion yuan, a year-on-year increase of approximately 8.41%. Domestic market operating income was 981 million yuan, a year-on-year increase of 34.02%.

Taken together, the growth of Absen's revenue and profit in 2025 is mainly due to the deepening of global operations and the structural strategic adjustment of the domestic market, which has led to the continuous increase in overseas market share, the breakthrough of the domestic market against the trend, and the rapid growth of the order delivery volume of core large single product matrix products. On this basis, after the 820 million yuan convertible bond fund-raising is completed in the future, it will further strengthen research and development innovation, global operation system, global network channels, digitalization, intelligent construction, etc., to achieve higher quality development.