Lucky Film (600135.SH) subsidiary LeKai Optoelectronics plans to increase capital and expand by 450 million yuan to bring in investors and promote the localization replacement of TAC film.

Lucky Film (600135.SH) announced that, in order to accelerate the construction of the production line for TFT optical TAC film and TAC functional film for polarizing films, and to expand production capacity, its subsidiary, Lucky Electronic Materials Co., Ltd. (referred to as "Lucky Electronic" or the "Target Company"), plans to increase capital and expand shares based on the valuation value of all equity of Lucky Electronic as of the evaluation benchmark date approved by the competent state-owned assets supervision department, which is 5.83 billion yuan, and based on the results of the public listing on the Beijing Property Rights Exchange from October 12, 2024, to November 7, 2024. Recently, Lucky Electronic signed the "Lucky Electronic Materials Co., Ltd. Capital Increase Agreement" and the "Shareholder Agreement of Lucky Electronic Materials Co., Ltd." with the China Development Manufacturing Transformation and Upgrade Fund (Limited Partnership), Beijing Jianyuan Beigong Emerging Industry Equity Investment Fund Partnership Enterprise (Limited Partnership), Suqian Industry Development Fund (Limited Partnership), and Suqian Sucity Talent Entrepreneurship Investment Partnership Enterprise (Limited Partnership), agreeing to increase capital to Lucky Electronic by a total of 4.5 billion yuan in cash, and subscribing to 77.180914 million yuan of new registered capital of Lucky Electronic (referred to as "This Transaction"), (the Investment Parties being collectively or individually referred to as the "Investors"). This transaction is in line with the company's development strategy, realizes the localization substitution of TAC film, and promotes the healthy development of China's new display industry chain. The implementation of the transaction will help Lucky Electronic improve external resources, leverage synergistic effects among shareholders, rapidly build up scale capabilities, and achieve high-quality development.