On November 18, Homking Optoelectronics made an announcement stating that the company had reviewed and approved the 'Proposal on Altering the Implementation Location and Method, Adjusting the Investment Amount, Extending the Timeline, and Utilizing Excess Raised Funds for Additional Investment in the Fundraising Investment Project, namely the "Optical Lenses and Modules Capacity Expansion Project."'

The project's total investment has surged from 289 million yuan to 866 million yuan, and the construction period has been extended from the initial 2 years to 3 years. Additionally, the company has opted to invest an extra 106 million yuan of excess raised funds.

This adjustment is far from a mere plan alteration; rather, it is the outcome of Homking Optoelectronics' in - depth consideration of its overall strategic development layout and market prospects. The goal is to allocate funds and resources more effectively to high - growth, high - potential areas, thereby enhancing the company's future core competitiveness.

The company's currently leased factory space is inadequate, which will pose a constraint on future capacity expansion. Continuing to lease will drive up production management costs and bring about risks such as the inability to renew the lease on time or rent fluctuations. By purchasing land and constructing a new R&D and manufacturing headquarters base, the company can effectively tackle the current situation of long - term production site leasing, improve operational stability, and break free from the limitations of physical space. This will create room for subsequent capacity expansion and further bolster core competitiveness and profitability.

At the same time, favorable policies have been frequently rolled out for industries like intelligent driving and AR/VR, and the demand for optical lenses and camera modules is projected to keep growing. For instance, in the intelligent driving sector, the State Council issued the 'Made in China 2025' plan in 2015, proposing an overall layout and promotion of the R&D and industrialization of intelligent transportation products. It continues to support information and intelligent core technologies and aims to form a complete industrial and innovation system from key components to complete vehicles. In the AR/VR field, since the '13th Five - Year Plan' first proposed vigorously promoting the virtual reality industry in 2016, China has gradually started to support technological breakthroughs and innovations in virtual reality.

Moreover, the company has been deeply involved in the precision optical lens industry for over a decade. It boasts mature production capabilities, a comprehensive quality control system, and abundant customer resources. It has forged stable cooperative relationships with automakers and Tier 1 suppliers such as Chery, Geely, Great Wall, and XPeng, as well as mid - to - high - end smart home camera brands like Ring, Blink, and Anker, and companies like Insta360. With a sufficient number of orders on hand, the company has the market capacity to absorb the additional capacity generated by the project.

Reviewing the basic situation of the raised funds, Homking Optoelectronics obtained approval from the China Securities Regulatory Commission to initially issue 15,886,667 A - shares at an issue price of 41.9 yuan per share, raising a total of 665.6513 million yuan. After deducting issuance expenses, the actual net amount of raised funds was 593.7258 million yuan.

As of June 30, 2025, in the original fundraising investment project, the 'Optical Lenses and Modules Capacity Expansion Project' had cumulatively invested 100.7213 million yuan of the raised funds, with an investment progress of 34.82%. The 'R&D Center Construction Project' had cumulatively invested 39.4609 million yuan, with an investment progress of 53.75%. The 'Supplementary Working Capital' had been fully invested at 125 million yuan.

The adjusted fundraising investment project will still be jointly carried out by Homking Optoelectronics and its wholly - owned subsidiary, Homking Optoelectronics (Xiantao) Technology Co., Ltd. The implementation location (No. 29 Xianhong Road, Duhu Street, Xiantao City, Hubei Province) and implementation method (own factory construction) of the capacity expansion project at the Xiantao production base remain unchanged.

Upon completion of the project, the Zhongshan headquarters base is expected to add approximately 38.94 million units of optical lenses and camera modules in capacity. Meanwhile, the Xiantao production base will add approximately 7.2 million units of optical lenses in capacity and an annual capacity of 12 million glass aspherical lenses. The project's scheduled available status date has been pushed back to March 31, 2028.

Currently, the project has been filed with the relevant departments in Zhongshan City and will subsequently go through procedures such as environmental impact assessment approval in line with regulations.

Homking Optoelectronics' series of adjustments to the 'Optical Lenses and Modules Capacity Expansion Project' clearly show that the company is transitioning from solely pursuing capacity scale to striving for a balanced development of technological leadership, market adaptability, and financial health. With the project progressing steadily after the adjustment, we anticipate a more dynamic and resilient new Homking Optoelectronics emerging in the market.