Chinese LED manufacturer Changelight announced plans of issuing 6.07 million stocks to raise a total of RMB 800 million (US $130.39 million) financing to expand production of InGaN LED EPI-wafers on Sept. 3, 2014.

One of the company’s stockholder Wang Weiyong will be purchasing RMB 80 million worth of stocks.

The company’s InGaN LED EPI-wafer expansion project, which involves establishing a new factory, is expected to cost a total of RMB 1.34 billion. Under the company’s production plans, the new factory production capabilities will cover all GaN LED model products, and bring InGaN LED chip production to 5,239 KK per month or 62.87 billion PCS per year. Retail revenue from the project is expected to reach RMB 1.21 billion, and net profit during the factory’s operation period is expected to reach RMB 123 million, and gross profit margin to 29.23 percent, while net profit margin will be 11.60 percent.

InGaN LED EPI-wafers tend to have the classical features of a capital-intensive and technology-intensive industry, according to sources. The recent financing would support Changelight’s advancements in the LED chip manufacturing industry.