Another one! Ten-billion-dollar auto lighting leader goes public in Hong Kong! Is the sea wave coming?

Following Igor’s announcement not long ago that he plans to issue H shares and list them on the Hong Kong Stock Exchange, another A-share LED listed company has also begun planning for an H-share listing, targeting the international stage.

On the evening of December 3, Xingyu Shares (601799) announced that the company is planning to issue overseas shares (H shares) and list them on the Stock Exchange of Hong Kong Limited, and is currently discussing specific advancement work with relevant intermediaries.

Xingyu Shares stated that this planning of H-share listing aims to deepen the international strategic layout, expand diversified financing channels with the help of the international capital market, and help the company develop high-quality development.

The company said that relevant details have not yet been determined and that this H-share listing will not lead to changes in the company's controlling shareholders and actual controllers.

Xingyu Co., Ltd. is mainly engaged in the design, development, manufacturing and sales of automobile lamps. It has integrated production capabilities from design, molds, tooling, electronics, injection molding, surface treatment, and assembly. Its products mainly include automobile front lamps, rear lamps, and interior and exterior lamps, etc. It has currently entered the supply chain of many independent brand vehicle companies in Europe, Japan, the United States, and China. The automotive lamps produced by the company are mainly used in new car accessories.

Customers include Volkswagen, FAW-Volkswagen, SAIC Volkswagen, Daimler, Beijing Benz, BMW of Germany, BMW Brilliance, General Motors, SAIC-GM, Toyota of Japan, FAW Toyota, GAC Toyota, Nissan of Japan, Dongfeng Nissan, Guangzhou Honda, Dongfeng Honda, FAW Hongqi, Chery Automobile, Geely Automobile, Li Auto, NIO, Xpeng Motors, Thalys, Jianghuai Automobile, BAIC New Energy and an internationally renowned new energy vehicle company and many other domestic and foreign vehicle manufacturing companies.

(Picture source: Xingyu)

Under the restructuring of the global automobile industry and the wave of intelligent driving and new energy, behind this capital move is not only Xingyu’s strategic determination to deepen internationalization, but also the epitome of Chinese lighting companies’ collective “going overseas to break the situation”.

The current lighting market is shifting from incremental competition to stock game, and the involution trend is intensifying. However, many products are in the stock market at home, and they will become incremental markets when they go out. For example, the export data of the "three new items" of exports - new energy vehicles, photovoltaics, and power batteries are very conspicuous. Therefore, many companies have broken the situation through globalization and other practices, walking on two legs at home and abroad.

In terms of new energy vehicles, as the penetration rate of new energy vehicles increases, the concentration of the domestic automotive lighting market continues to increase, while there are still a large number of gaps in overseas markets. Taking Xingyu as an example, although its revenue in 2024 has reached 13.253 billion yuan, 96% of its revenue still relies on the domestic market, and overseas business only accounts for 4%. Compared with the size of the global market, the growth potential is huge. At the same time, peers such as Foshan Lighting are also accelerating their overseas layout, and the industry's overseas expansion wave has already taken shape.

In recent years, Xingyu Co., Ltd. has increased its efforts to develop overseas markets and set up factories in Serbia. With the release of production capacity, the company's overseas revenue has shown a rising trend. In 2024, overseas revenue will be approximately 500 million yuan. Although the proportion is not high, the year-on-year increase is 49%. In addition, the company has also registered subsidiaries in Mexico and the United States to further improve its overseas layout.

(Source: 2024 Annual Report)

In terms of new product research and development, the company and industry chain partners jointly developed iVISION headlights, which integrate the technical advantages of their respective fields, and have carried out industrialization-related verification and client technology promotion. At the same time, the company has formed advantages in the field of smart car lights such as HD-ADB headlights and DLP projection interaction. Related technologies have been simultaneously applied to overseas supporting projects. These technical reserves exactly meet the rigid demand for smart car lights in overseas markets and have become the "golden key" for them to open up the international high-end market.

In terms of performance, Xingyu Shares has maintained a steady growth trend in recent years, achieving operating income of 13.253 billion yuan in 2024, a year-on-year increase of 29.32%, and net profit attributable to shareholders of listed companies of 1.408 billion yuan, a year-on-year increase of 27.78%.

In the first three quarters of this year, revenue reached 10.71 billion yuan, a year-on-year increase of 16.09%; net profit was 1.141 billion yuan, a year-on-year increase of 16.76%. Currently, the company has abundant orders on hand. As of the end of the third quarter of this year, the company has undertaken new product research and development projects for more than 70 models from multiple customers. The dual guarantee of production capacity and orders makes the road to overseas more confident.

It is worth mentioning that while promoting overseas expansion and listing on the Hong Kong stock market, Xingyu is quietly laying out another track and turning on the "lighting + robot" driving mode.

In October this year, Xingyu Co., Ltd. established Changzhou Xingyu Intelligent Robot Co., Ltd. with a registered capital of 100 million yuan to get involved in the field of robots. On October 16, Xingyu Co., Ltd. signed a strategic cooperation agreement with Jieka Robot Co., Ltd. without stopping. The two parties will carry out in-depth cooperation in the three major areas of embodied intelligent robot innovation, intelligent manufacturing upgrades, and industrial chain collaboration to promote the integrated development of artificial intelligence, the automotive industry, and the robotics industry.

According to the agreement, the two parties will mainly cooperate in three core directions: first, joint innovation in the field of embodied intelligence, research and development and manufacturing of "perception-lighting-display-projection-interaction" integrated intelligent terminals to promote the implementation of intelligent robot interaction scenarios; second, through the integration of robots and AI algorithms, promote innovative applications of embodied intelligent products in intelligent manufacturing fields such as auto parts; third, share technical standards and scene data to promote the localization of upstream core components of intelligent robots and the innovation of downstream application scenarios.

From sprinting to the Hong Kong stock market to open up overseas financing channels, to deploying global production bases, to exploring new growth poles with cross-border robots, Xingyu Co., Ltd. is using the two-wheel drive of "internationalization + intelligence" to comprehensively transform into an "intelligent manufacturing solution provider". Can this dual cross-border and overseas battle allow Xingyu to replicate its success in the automotive lighting field in the global market? What kind of imagination will the intelligent robot business bring? Welcome to leave your opinions in the comment area.