Views: 0 Author: Site Editor Publish Time: 2025-02-27 Origin: Site
It is difficult for lighting manufacturing enterprises to achieve success
In the first year of the post pandemic era in 2023, the successful listing of three lighting manufacturing companies, Minpao Optoelectronics, Lianyu Shares, and Sunny Precision, has shown the lighting industry the full capital vitality of downstream enterprises in the industry chain. In 2024, compared to the strong performance of 9 successful IPOs of LED/lighting companies in the upper and middle reaches, the lighting manufacturing companies are somewhat overshadowed this year.
In 2024, there were 10 lighting companies that made progress in IPO, but none of them were successfully listed. The reason behind this is that the bleak market environment has brought performance pressure, making it difficult for it to proceed with its IPO.
On December 27, 2024, Red 100, a manufacturer of home lighting, commodity lighting, landscape lighting, and industrial lighting fixtures, issued a risk warning announcement regarding the uncertainty of its listing plan on the Beijing Stock Exchange. It stated that due to a decline in its operating performance in the first half of 2024, it is expected that its annual performance in 2024 will not meet the listing review standards of the Beijing Stock Exchange and will not submit listing application documents to the exchange within 18 months after listing.
It is reported that in the first half of 2024, the operating revenue of Red One Hundred was 176 million yuan, a decrease of 30.60% compared to the same period last year; The net profit attributable to the owners of the parent company was 4.8553 million yuan, a decrease of 80.29% compared to the same period last year; The gross profit margin was 22.13%, a decrease of 2.42% compared to the same period last year. Trapped in the 'performance quagmire', the company's IPO journey on the Beijing Stock Exchange will be forced to be extended.
Shilin Lighting, a manufacturer of indoor lighting fixtures, was also forced to terminate its IPO on the Beijing Stock Exchange for the same reason. In the first half of 2024, the company's revenue was 399 million yuan, a year-on-year decrease of 10.01%, and its net profit was 30.588 million yuan, a year-on-year decrease of 27.15%. In the absence of an upward trend in performance, the company's decision to terminate its IPO coaching on July 16, 2024 was also a wise choice.
IPO 'board transfer' may achieve ideal results
In recent years, the establishment of the Beijing Stock Exchange has opened up direct financing channels for innovative small and medium-sized enterprises, not only driving a group of LED/lighting companies with weaker capital strength to compete for IPOs, but also giving hope to many LED/lighting companies that are struggling to move forward in IPOs on the A-share, ChiNext, and Science and Technology Innovation Board.
In the first half of 2024, LED display material company Shaanxi Ruike plans to turn to the Beijing Stock Exchange for listing after suffering a setback on the Shenzhen Stock Exchange's Growth Enterprise Market for three days, hoping to find a new IPO path through the stock exchange. LED exposure equipment company Keshi Optics also announced in December 2024 that it would apply to change its coaching and filing section, shifting its IPO target from the Shenzhen Stock Exchange's ChiNext board to the Beijing Stock Exchange, in order to obtain a more convenient new path for listing.
Except for the Beijing Stock Exchange, with the announcement of the "Nine Measures of the People's Republic of China" in April 2024, the "1+N" policy system for the mainland capital market is accelerating its implementation, and "strict control over listing access" has become a "difficult IPO problem" for LED/lighting companies in mainland China. On the contrary, the Hong Kong Stock Exchange and the Hong Kong Stock Exchange have lower listing thresholds, higher success rates, and less implicit cost investment, gradually becoming an important choice for mainland LED/lighting companies seeking overseas financing.
In 2024, three mainland LED/lighting companies, Jinko Electronics, Innolux, and Hongying City Services, which had their IPOs impact on the two major stock exchanges in Hong Kong, successfully went public, demonstrating the low threshold of Hong Kong stocks and their attraction to mainland LED/lighting companies. Among them, Jinko Electronics is a model of successfully listing on the Hong Kong stock market after failing in its IPO in mainland China.
It is reported that Jinko Electronics submitted an application for listing on the Shanghai Stock Exchange's Science and Technology Innovation Board in December 2019 and was accepted. In May 2020, just six months later, Jinko Electronics voluntarily withdrew its listing application. In response to this move, Jinko Electronics stated that the public health incident had a negative impact on its operations at the time, and considering that its high-end lighting and automotive intelligent lighting businesses were in a relatively early stage, the market fluctuations at that time, and the need for strategic concentration of group business development, it voluntarily withdrew its application for the Science and Technology Innovation Board.
After gaining sufficient capital momentum in the new field of automotive lighting, Jinko Electronics submitted its listing application to the main board of the Hong Kong Stock Exchange on February 1, 2024. Although the company experienced a "small episode" of its prospectus becoming invalid at the beginning of August that year, after resubmitting its listing application at the end of that month, it finally achieved its long-awaited "listing dream" on the "Pearl of the Orient" at the turn of autumn and winter 2024.
It can be seen that with the rapid changes in the capital market, LED/lighting companies may achieve unexpected IPO results by changing their "struggle mindset" based on their objective situation.
Looking ahead to the year 2025, the national lighting industry is expecting more LED/lighting companies to make breakthroughs on the IPO path, and is more willing to see more LED/lighting companies achieve success on the IPO path, further strengthening the scale and strength of the national LED/lighting capital market.
