Dongang Technology and Techuang Technology are moving forward, Huimang is retreating slightly, and LED companies are busy with IPOs

IPO is an important hurdle for enterprises to embark on the road to another level of capital market, but it is very difficult to "clear the customs". Recently, three LED-related companies have gone in two directions before this level.

Dongang Technology’s IPO application has been accepted

On January 8, Xiamen Dongang Technology Co., Ltd. (hereinafter referred to as: Dongang Technology) updated the listing application review status on the Beijing Stock Exchange. The company’s IPO application has been accepted.

It is reported that Dongang Technology is mainly engaged in the research and development, production and sales of professional mobile lighting tools. The products include folding lights, floodlights, pocket lights, pen lights, long lights, headlights and other series. They are mainly used in special scenarios such as professional maintenance (vehicles, ships, aircraft and construction machinery and equipment maintenance), construction, outdoor operations and emergency disaster prevention. The main customers are internationally renowned tool companies such as Snap-on, Bainex and Würth.

In this application to be listed on the Beijing Stock Exchange, Dongang Technology plans to raise 260 million to invest in the following projects:

PCB manufacturer Techuang Technology restarts IPO

Huizhou Techuang Electronic Technology Co., Ltd. (hereinafter referred to as Techuang Technology) submitted an IPO application to the GEM in June 2022. It plans to issue no more than 14,394,880 ordinary shares and raise 549.5 million yuan, all of which will be used for the annual output of 1.2 million square meters of precision printed circuit board projects.

In April 2023, the Shenzhen Stock Exchange Listing Committee held the 28th review meeting in 2023. The review results showed that Tetron Technology did not meet the issuance conditions, listing conditions or information disclosure requirements, and Tetron Technology failed to pass the IPO.

On January 4, 2024, Techuang Technology went through the filing and registration process with the Guangdong Securities Regulatory Bureau, and planned to issue shares to the public for the first time and go public. The guiding securities company is Guotai Junan.

It is reported that Techuang Technology was established in 2010. Its main business is the R&D, production and sales of printed circuit boards. Its products include single/double-sided panels and multi-layer boards. The product types cover LCD photovoltaic panels/Mini LED backlight panels, thick copper plates, metal substrates, HDI boards, high-frequency high-speed boards and other special substrates and special process types. Products are widely used in industrial control new energy, LCD displays, consumer electronics, LED lighting, communications and other fields.

In terms of customers, Techuang Technology's LCD photovoltaic panels and LED/Mini LED backlight panels are used in photoelectric conversion modules and backlight modules. Its representative customers are well-known domestic and foreign display module manufacturers such as Guangyu Technology, Skyworth Optics, Nationstar Optoelectronics, and Lumens. The products are directly used in the world's leading LCD panel manufacturers such as China Star Optoelectronics and Samsung Electronics.

Currently, the company has three major production bases in Huidong, Huai'an and Anqing. The main products and application fields of each factory are as follows:

Image source: Techuang Technology Prospectus

It is understood that Techuang Technology has a wholly-owned subsidiary Anqing Techuang in Anqing. The company plans to build a Techuang Technology intelligent production base in Anqing and plans to form an annual production capacity of 8 million square meters of rigid circuit board and flexible circuit board projects. The first phase of the project has an annual production capacity of 3 million square meters.

Among them, the original raised investment project "Precision Printed Circuit Board Project with an annual output of 1.2 million square meters" is the first phase of Anqing Techuang's "High-density Rigid Circuit Board and Flexible Circuit Board Project with an Annual Production of 8 million square meters". The planned annual production capacity is 1.2 million square meters of high-density rigid circuit boards and HDI boards.

Huimang Micro's IPO was withdrawn again

On the evening of January 5, the Shenzhen Stock Exchange updated information that Huimang Microelectronics (Shenzhen) Co., Ltd. (hereinafter referred to as: Huimang Micro) terminated its IPO journey by withdrawing.

It is reported that Huimangwei applied for listing on the GEM of the Shenzhen Stock Exchange in May 2023, and actively applied to withdraw the issuance and listing application documents after responding to two rounds of inquiries.

This is the second time Huimangwei has failed to "rush to A". It is understood that in December 2021, Huimangwei applied for listing on the Science and Technology Innovation Board, but the IPO trip lasted only one month and was terminated on January 24, 2022.

Regarding the first impact on A-shares but the "light speed" withdrawal of the order, Huimang Micro said in the inquiry stage of its second application for listing that it was affected by the cyclical economic downturn and the unstable supply of the global semiconductor industry chain. The company planned to slow down the pace of listing at that time, devote more time and energy to daily business operations, and make every effort to ensure the stability of the supply chain and market. At the same time, Huimangwei happens to be among the first batch of companies to be randomly inspected for the quality of corporate information disclosure in 2022. Huimangwei also admitted that on-site inspections have brought pressure to the company.

It is understood that Huimang Micro is a Fabless model IC design company, mainly engaged in the research and development, design and sales of high-performance analog signals and digital-analog mixed-signal integrated circuits. It has three major product lines: MCU (microcontroller), EEPROM (power-erasable programmable read-only memory) and PMIC (power management chip). Among them, PMIC chips are mainly used in chargers, power adapters, LED power supplies and other fields for various digital products.

LED-related companies are vying to go public

According to incomplete statistics from LEDinside, currently, there are LED-related companies on the IPO track:

It is worth mentioning that many of these companies are "repeat students" on the IPO track.

Xuyu Optoelectronics is mainly engaged in the research and development, production and sales of LED packaging devices. In 2021, Xuyu Optoelectronics failed to hit the Science and Technology Innovation Board. It has now restarted its IPO and plans to transfer to the Beijing Stock Exchange to promote listing and issuance; Tongbao Optoelectronics announced in December 2022 that it planned to "transfer" to the Beijing Stock Exchange from the New Third Board and terminated in November 2023. Listing counseling, and in December of the same year announced that it would once again enter the Beijing Stock Exchange listing counseling stage; Hua Zhijie gave up its IPO on the Science and Technology Innovation Board twice and then switched to the Shanghai Main Board; Huhe Technology gave up listing on the GEM and then switched to the Beijing Stock Exchange... The twists and turns of the road to IPO can be seen.

In addition, many companies currently in the "terminated" state still regard IPO as the focus of future development.

BYD Semiconductor submitted a prospectus in June 2021, and then terminated the IPO process in November 2022. The news pointed out that it will re-apply for GEM listing in 2024; Huike's listing application was accepted by the Shenzhen Stock Exchange on June 24, 2022 and terminated in August 2023. It is reported that Huike Co., Ltd. is considering resubmitting its listing application at the end of the first quarter of 2024.

Of course, regardless of whether the IPO is launched or not, the company's priority should be healthy development and steady growth. Companies that are making a comeback need to learn from previous failures to avoid "cancellation" again.