[Funding] iWinPlus, Cash Dried Up Due to Profitability Decline

Allocation of 1.006 New Shares per 1 Old Share in Guju... Plan to Raise 42.1 Billion KRW
Investment to Expand Packaging Products for Automotive Image Sensors

[Asia Economy Reporter Hyungsoo Park] iWINPLUS is raising funds from shareholders to expand its image sensor packaging production facilities. This investment is to respond to the order volume of automotive image sensor packaging products (NeoPAC EnCap).

According to the Financial Supervisory Service's electronic disclosure system on the 30th, iWINPLUS is planning a rights offering followed by a general public offering of forfeited shares, allocating 1.006 new shares for every 1 existing share. The planned issue price per new share is 713 KRW, and a total of 59 million shares will be issued to raise 42.1 billion KRW.

Among the raised funds, 30.1 billion KRW will be used as facility capital. The company explained that the current production capacity is insufficient to produce the volume ordered by customers this year and next year. It can produce about 12 million automotive image sensor packaging products annually. iWINPLUS emphasized that if orders are received as planned, it should be able to produce more than about 27 million units annually.

iWINPLUS is also planning facility investments for automotive air conditioning parts with its largest shareholder, iWIN. Since December 2019, iWIN has been developing the CNT heater, a heater utilizing infrared and interior radiant heat. The CNT heater is a printed printing type high-temperature radiant heat FPCB film heater. iWINPLUS is responsible for facility investments for the FPCB cleaning manufacturing process. To secure cleanroom facility space for the FPCB cleaning manufacturing process, 17.5 billion KRW will be used to expand cleanroom facilities. Additionally, 7.5 billion KRW will be spent on purchasing equipment for the FPCB cleaning manufacturing process, including marking printing, electrical performance testing, attachment and lamination, stamping, and plasma inspection.

The remaining funds raised through the capital increase will be used to repay debt and purchase raw materials. As of the end of the first quarter, iWINPLUS's debt ratio was 70.41%, up 5.89 percentage points from 64.52% at the end of last year. Net borrowings excluding cash and cash equivalents increased from 1.3 billion KRW in 2020 to 6 billion KRW last year and 10.1 billion KRW in the first quarter this year. As of the end of the first quarter, cash and cash equivalents amounted to only 900 million KRW.

iWINPLUS has recorded continuous operating losses from the end of 2015 through the first quarter of this year. Although sales increased over the past three years?5.4 billion KRW in 2019, 8.1 billion KRW in 2020, and 9.1 billion KRW last year?the cost of goods sold ratio exceeded 100%.

The largest shareholder, iWIN, acquired management rights of iWINPLUS through a stock and management rights transfer agreement in April. It will participate in the capital increase for 100% of the allocated new shares. After the capital increase, its shareholding ratio is expected to rise by 0.229 percentage points from the existing 23.09% to 23.32%.

This content was produced with the assistance of AI translation services.