A comprehensive overview of LED company listing big data to see how new entrants can take the lead

Before 2010, the number of listed companies with LED business as their main business was zero. It was not until 2010 that the road for LED companies to go public was gradually expanded.

In the domestic lighting industry, the first listed company with lighting business as its main business was Foshan Lighting. In October 1993, with the approval of the China Securities Regulatory Commission, it publicly issued 19.3 million public shares and was listed on the Shenzhen Stock Exchange on November 23, 1993. But you know what? Among the LED companies currently listed on the main board and the small and medium-sized board (statistics as of 2014), the number of companies listed between 2010 and 2014 accounted for 46%. This means that after 2010, it only took 4 years for LED companies to go public and go through the road of the previous 20 years.

Proportion of LED companies going public in each time period

Illustration: From 2011 to 2013, LED companies collectively ushered in the "IPO wave", which has affected today.

Time on the market: 1990-2000

Number of companies: 6

Proportion: 16.2%

Old-established companies “the more they make, the more delicious they become”

According to statistics, from the 37 lighting companies that have been successfully listed on the main board and the small and medium-sized board (statistics as of 2014), there were 6 lighting companies listed in the 10 years from 1990 to 2000, accounting for 16.2%. Among them, Shanghai Feile Audio, Foshan Lighting, Xiamen Xinda, Zhejiang Sunshine Lighting and other lighting companies performed more prominently.

Due to long-term brand development and high market reputation, the sales performance of these listed companies has increased steadily over the past few years. Taking the newly released 2014 annual report as an example, Foshan Lighting's operating income in 2014 was 3.069 billion yuan, and Sunshine Lighting's operating income in 2014 was 3.251 billion yuan...still at the forefront of the lighting industry.

Although they have "innate advantages", these established companies have not relaxed. Taking Foshan Lighting as an example, the "Legend of Buddha Lights Shining on China" continues to be launched vigorously across the country this year, and a number of cost-effective new products have been launched during the period, which are well received by the market. At the same time, Foshan Lighting's newly launched brand "Mingjianghui" has also attracted much attention. Sunshine Lighting is not to be outdone. In addition to launching the "Spring Breeze Action" across the country, it also specially invited Lu Yi to serve as the "Sunshine Ambassador" to further enhance its brand awareness.

Listing time: 2000-2010

Number of companies: 14

Proportion: 37.8%

Capital is pouring into the upstream

From 2000 to 2010, there were 14 LED companies listed on the main board and the small and medium-sized board, accounting for 37.8%. Statistics show that in the past 10 years, most of the listed companies were upstream chip and packaging companies, and most of them were concentrated in lighting production areas such as Shenzhen, Guangdong, and Zhejiang. According to industry insiders, during this period, more and more capital and enterprises poured into the upper and middle reaches of the industrial chain, striving to expand chip, packaging and lighting production capacity and vertically integrate the industrial chain. As a result, more upstream enterprises need to use the power of capital to expand industrial scale and occupy market share.

Among them, the most outstanding performance was in 2010, when LED companies such as Nationstar Optoelectronics, Qianzhao Optoelectronics, Jiangsu Dongshan Precision, and Shenzhen Zhaochi were listed on the market.

Listing time: 2011-2012

Number of companies: 7

Proportion: 19%

Shenzhen companies compete to be listed first

p>

According to statistics, the seven LED companies listed on the main board and the small and medium-sized board in 2011 are Ledman Optoelectronics, Hongli Optoelectronics, Alto Electronics, Unilumin Technology, Ruifeng Electronics, Lianjian Optoelectronics, and Qinshang Optoelectronics. It is worth noting that all 7 listed companies are in the Pearl River Delta region, including 5 companies in Shenzhen, 1 company in Dongguan, and 1 company in Guangzhou.

Industry insiders said that Shenzhen's highly advantageous industrial ecological environment provides a comfortable "hotbed" for the successful listing of lighting companies. In addition, as an important production area in the Pearl River Delta, Shenzhen's advantages in production technology, supporting facilities, and outstanding talents are also unmatched by other production areas. It is not surprising that most LED listed companies are concentrated in Shenzhen.

Listing time: 2012-2013

Number of companies: 8

Proportion: 21.6%

Favorable policies help listings

Industry veterans said that in 2012, the main reason why LED lighting companies were able to be listed together was the strong support of national policies. It is reported that in 2012, the National Development and Reform Commission and other departments announced my country's roadmap for phasing out incandescent lamps, and LED street lamps began public procurement and bidding. In addition, relevant favorable policies such as the "Twelfth Five-Year Plan" for semiconductor lighting were frequently issued, and government subsidies continued to increase. These all helped LED lighting companies to successfully go public to a certain extent.

Or you may be worried that "if you go through this village, there will be no such store." LED companies that were launched in 2012 accounted for the highest proportion, reaching 21.6%, such as Huacan Optoelectronics, Mosuo Power, Changfang Lighting, Jufei Optoelectronics, Leyard, etc., and the performance of these companies is still remarkable today.

Take Changfang Lighting as an example. 2015 coincides with the 10th anniversary of the founding of Changfang Lighting. In order to achieve better development, Changfang Lighting upgraded the past "unified" company to a "diversified" enterprise group. In addition, it has also held dealer meetings with the theme of "Deep Digging, Hand in Hand; Write a New Chapter, Leap with Confidence" in many key cities to join hands with merchants and seek common development.

Listing time: 2013-2014

Number of companies: 2

Proportion: 5.4%

Main Board listings are becoming more rational

According to statistics, there were two companies successfully listed on the main board and the small and medium-sized board from 2013 to 2014, namely Shenzhen Absen Optoelectronics and Ocean King. According to observations, in 2014, competition in the lighting industry became increasingly fierce, coupled with the sluggish industry environment and other reasons, which made it more difficult for lighting companies to go public. More and more LED lighting companies began to think: What can listing bring to the development of the company? Therefore, in terms of quantity, the number of companies successfully listed on the main board has dropped sharply compared with the previous two years.

Newly listed company: Mulinsen Shares

Listing time: February 17, 2015

Listed on: Shenzhen Stock Exchange Small and Medium-sized Board

Mulinsen: Going public "on the road" and heading for a "new journey"

On February 17, 2015, Sun Qinghuan, chairman of Mulinsen Co., Ltd., rang the bell of the Shenzhen Stock Exchange and announced that Mulinsen Co., Ltd. was officially listed on the small and medium-sized board of the Shenzhen Stock Exchange. Along the way, Mulinsen's road to listing has attracted widespread attention in the industry. After being listed in 2015, Mulinsen has lived up to expectations. While its sales performance has steadily increased, its market share, brand awareness, and terminal reputation have also increased simultaneously.

It is worth noting that since this year, Mulinsen Lighting has held dozens of dealer meetings with the theme of "Going to the Main Road and a New Journey" across the country, covering Heilongjiang, Guangxi, Xinjiang, Sichuan, Fujian, Anhui and other provinces. During the peak period, there were 10 meetings a day. It is also understood that MLS Lighting is expected to hold 1,305 meetings across the country in 2015.

Before the listing, the performance of Mulinsen Lighting cannot be ignored. According to the published sales performance, Mulinsen's operating performance has shown rapid growth in recent years. Operating income increased from 1.274 billion yuan in 2011 to 2.874 billion yuan in 2013, with a compound annual growth rate of 50.21%; net profit increased from 111 million yuan in 2011 to 436 million yuan in 2013, with a compound annual growth rate of 98.22%. In 2014, Mulinsen achieved a net profit of 434 million yuan, a year-on-year increase of 0.25%.

It is also reported that in 2014, Mulinsen’s achievements in brand publicity and channel promotion were also impressive. According to statistics, in 2014, Mulinsen held 400 dealer meetings throughout the year; set up 3,250 outdoor billboards across the country and established 25,587 effective sales outlets.

Companies say going public

Going public is a "double-edged sword". For lighting companies, going public is only an option, but it is not the only option. Therefore, you must not blindly follow the trend.

Relying on capital help? Just one aspect

Xu Zhenfeng, General Manager of Nationstar Optoelectronic Lighting Division

In my opinion, the advantages of lighting companies going public are: after listing, first of all, the company can be enriched in terms of funds; secondly, it can form standards in management; thirdly, it can obtain advertising effects in the market. The most important thing is that after going public, companies will be more open and standardized, and they can gain more development opportunities through financing.

Although the base of domestic lighting companies is huge, there are only a few listed companies, and more companies are mainly "family-owned" operations. In the stage of rapid development of LED lighting, if you want to develop and grow and have a long-lasting business, relying on capital support is one thing. You should also increase your efforts in product innovation, otherwise you may still be eliminated by the market.

The size of the flower pot determines the growth limit of the flower

Sun Rijiang, Marketing Director of Magland Lighting

The listing of a company is like "carp leaping over the dragon's gate". The high exposure and generous capital returns brought by the listing allow the company to create a legend of wealth and achieve a status in the world in a short period of time. However, listing is a "double-edged sword". If used improperly, it will bring huge risks to the company. Once there is a large fluctuation in the capital market, it will "influence the whole body" and even "the country changes hands."

At present, the craze for lighting companies to go public is intensifying, trying to break through the development bottlenecks in products, brands, technologies and channels through capital operations. However, "the size of the flower pot determines the growth limit of the flower." If the business model of the company is flawed, the capital operation after listing will bring hidden dangers to the company's continued operation.

The right one is the best

Luo Quanxing, Executive Vice President of Shanghai Luyuan

The listing of enterprises aims to use the capital market to achieve better financing and widely absorb idle funds from society. To a certain extent, it will help to rapidly expand the scale of enterprises and enhance the competitiveness and market share of products.

When a company is listed, because it needs to regularly disclose the company's assets, transactions, annual reports and other related information to the public, it must use funds to find suitable projects and realize the withdrawal of funds, so as to avoid the huge backlog of funds from becoming a burden on the company.

Lighting companies need to consider whether and when to go public based on their own strategies. You must know that listing is a "double-edged sword". If done properly, it can quickly raise funds and expand its influence. Otherwise, it will affect the confidence of shareholders, suppliers, and dealers. For lighting companies, the most important thing is a business strategy suitable for their own development.

Not every company is suitable for listing

Zhang Shangwei, Vice President of Jiangsu Tianyingzhiguang Optoelectronics Technology

In recent years, more and more lighting companies have launched listing plans. It is undeniable that listing can indeed bring more benefits to the development of lighting companies, but not every company is suitable for listing. I believe that every company should have its own positioning and direction. Whether to go public or not should be determined by the development direction, goals, operating status and financing needs of each company. It should not be listed for the sake of pursuing listing. While being listed will bring development funds and financing channels to enterprises, it will also bring more competitive pressure due to the regulatory requirements and information transparency of listed companies.

In addition, whether a company goes public mainly depends on whether the company has the need to go public, and more importantly, whether the impetus for the healthy development of the company after going public is large enough? The trend of companies going public has become more and more intense recently. Most companies seek to go public because of lack of funds. This is not the most rational choice for the development of companies. To develop an enterprise, it should stick to what it should stick to. It would rather fall down in persistence than get lost in drifting with the crowd.