The planned private placement will not exceed 1.38 billion yuan to expand production. Luwei Optoelectronics: The capacity utilization rate of flat panel display mask plates has already approached full capacity.

Each Daily Reporter｜Huang Hai    Each Daily Editor｜Zhang Yiming

The consumer electronics industry is developing in full swing, and the digitization and intelligentization of display panels and semiconductor chips continues to accelerate. From the perspective of upstream companies, these trends bring new opportunities to the photomask plate industry, and will drive the industry to develop in the directions of high precision, multi-layered structure, localization, and diversified applications.

In January of this year, Luvei Optoelectronics (SH688401, share price 46.32 yuan, market cap 8.956 billion yuan) disclosed a private placement plan. It plans to raise no more than 1.38 billion yuan, to be used for the “Xiamen Luvei Optoelectronics high-generation high-precision photomask plate production base project (Phase I).” It is understood that the project’s main construction content includes building five new high-precision flat-panel display photomask plate production lines, focusing on the research and development and production of various high-precision optical photomask plates of G8.6 and below. The project is expected to have a construction period of 33 months. After completion and reaching full production, it will add 1,813 pieces of high-precision photomask plate production capacity for the company.

After the market closed on March 24, Luvei Optoelectronics further disclosed the reply to the letter of inquiry, in which it provided detailed explanations regarding the reasonableness of the use of the funds raised and the reasons for changes in performance, among other matters.

The company’s main fund-raising projects in this round are mainly intended to increase capacity for flat-panel display photomask plates to meet demand in downstream markets.

In response to this large-scale fund-raising, the Shanghai Stock Exchange, in its letter of inquiry, required the company to explain the necessity of implementing the fund-raising projects and the reasonableness of capacity absorption by taking into account factors such as the market demand for the products of this fund-raising, the competitive landscape, the company’s existing and新增 capacity, and the utilization rate of flat-panel display photomask plate capacity.

Regarding existing capacity, according to Luvei Optoelectronics’ disclosure, in 2022, 2023, 2024, and the first three quarters of 2025, the utilization rates of the company’s flat-panel display photomask plate capacity were 73.58%, 77.07%, 87.49%, and 92.10%, respectively; the equipment utilization rates for flat-panel display photomask plates were 82.07%, 85.95%, 93.26%, and 94.45%, respectively.

“Because photomask plate products are customized products, production processes and equipment parameter settings must be frequently adjusted based on different clients’ order requirements, and production lines need to be commissioned and debugged. Considering that setup and testing for equipment and production shift work consume a certain amount of time, from January to September 2025, the utilization rate of the company’s flat-panel display photomask plate capacity has already approached near full-load levels.” Luvei Optoelectronics said.

At the same time, the company believes that the overall industry demand is still in an upward phase and has room for growth.

Luvei Optoelectronics said that in the field of flat-panel display photomask plates, in recent years the global market scale has been steadily increasing, and production capacity has continued to shift to domestic locations; product precision is trending toward finer granularity with more layers, and OLED products are developing toward larger sizes. These trends are driving demand upgrades and market growth.

“Against the backdrop of products trending toward larger sizes and higher precision, the difficulty of packaging and transporting photomask plates increases, and transportation distance has become a key factor affecting delivery lead times and service quality. Compared with international competing counterparts, domestic photomask plate manufacturers have advantages in product delivery cycles and service response. The progress of photomask plate localization is worth期待.” Luvei Optoelectronics noted.

The company also said that with the rapid development of the next generation of information technology industries, many emerging demands have emerged in fields such as new-type flat-panel displays and semiconductor chips, and all of them need to be supported by photomask plate products that match corresponding technical specifications.

In the first three quarters of 2022, 2023, 2024, and 2025, Luvei Optoelectronics achieved revenue of 640 million yuan, 672 million yuan, 876 million yuan, and 827 million yuan, respectively; net profit attributable to the parent company was 120 million yuan, 149 million yuan, 191 million yuan, and 172 million yuan, respectively.

The Shanghai Stock Exchange required the company to explain, by taking into account industry development trends, the market demand for its main products, changes in production and sales volume and gross margin, the situation of comparable companies in the same industry, and the coverage of outstanding orders, among other factors, the main reasons for performance growth during the reporting period and its sustainability.

Luvei Optoelectronics said that as the photomask plate industry develops toward high precision, multi-layered structure, large sizes, localization, and diversified applications, the market scale will continue to expand, and demand for the company’s main flat-panel display photomask plates and semiconductor photomask plates will also grow accordingly.

According to the disclosure, the company’s photomask plates are highly customized products. After receiving customer orders, production is arranged immediately, and both the production cycle and the delivery cycle are short. From 2022 to the first three quarters of 2025, the production and sales rates of the company’s main products—quartz photomask plates and soda photomask plates—were both close to 100%.

For outstanding orders, the announcement shows that as of the end of 2025, the total order amount for Luvei Optoelectronics’ flat-panel display photomask plate orders was 47.0368 million yuan; in the same period, the total order amount for semiconductor and other photomask plates was 11.504 million yuan.

In response, the company explained that: since the order cycle and production cycle are short, the amount of outstanding orders in the current period is relatively small compared with the scale of operating revenue. Also, the order size at a particular point in time is related to the number of new project cases initiated by downstream customers, so there is a certain degree of fluctuation. Outstanding orders only reflect the company’s short-term expected sales.

Cover image source: Each Daily Media Resource Library

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