Shangda Electronics plans to increase 100 million yuan to expand production capacity and technology research and development
Shangda Electronics, a leading manufacturer of flexible circuit boards in China, has announced plans to raise up to 100 million yuan through a new round of fixed-income financing. The funds will be allocated toward expanding production capacity and investing in advanced technology research and development. Recently, the company has exited the New Third Board and is now preparing for a potential listing on the main board, signaling its ambition to scale up further.
According to the company's leadership, Shangda has experienced significant growth over the past two years, driven by strategic capital support. This has led to consistent increases in both customer base and order volume. To meet rising demand, the company needs additional funding to boost production and expand its market reach.
In addition, the company is currently in a crucial phase of strategic expansion, aiming to enter the mid-to-high-end market. Alongside increasing production capacity, Shangda is accelerating its investment in core technologies. Several key projects are entering critical stages, and the new capital will help drive technological innovation and project development.
Founded in 2016, Shangda Electronics made its debut on the New Third Board and quickly grew into a major player in the flexible circuit board industry. In 2016, it generated revenue of 836 million yuan and has since continued to grow. It is expected that the company’s performance in 2017 will surpass 1 billion yuan, solidifying its position as an industry leader.
Although the company has left the New Third Board, its capital operations remain active, with more major financial moves planned in the future. This fundraising round aims to sustain the company’s strong momentum, continue supporting production and R&D efforts, and enable rapid progress this year.
Since the start of last year, Shangda has been actively expanding both its production capabilities and technological innovation. A major milestone was the completion of the first phase of the Optoelectronic New Material Industrial Park in Huangshi, Hubei, which cost 2.5 billion yuan. The facility uses intelligent equipment and has an annual production capacity of over 800,000 square meters. Meanwhile, the company’s soft-hard board technology for high-end markets has also begun mass production, with new capacity expected to come online this year.
This year, Shangda plans to further expand its production capacity while focusing on improving product yield to meet the demands of new, high-standard customers.
On the R&D front, the company continues to invest in flexible circuit board and soft-hard bonded board technologies. Additionally, Shangda will launch its first domestic COF (Chip on Film) production line in Xuzhou, Jiangsu. Once operational, this project will fill a critical gap in the market, break the monopoly held by Korean companies, and support the development of China’s mobile phone displays, OLED flexible screens, and related technologies.
Li Xiaohua, Chairman of Shangda Electronics, emphasized that 2018 will be a pivotal year for the company’s strategic transformation. He stated that the company aims to achieve breakthroughs in both product quality and production capacity. The next focus will be on the mid-to-high-end and international markets. Leveraging government support for high-end manufacturing, Shangda has made significant progress, and through continuous expansion of production and investment in R&D, it aims to lead the industry and drive overall industrial growth.
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