Hengtai Lighting established a joint venture company, mainly engaged in the sales of lighting appliances, etc.

On August 4, Hengtai Lighting issued an announcement announcing that the company had signed an external investment framework agreement with Chen Fengfeng and Zhao Xiaoquan to jointly invest in the establishment of Jiangsu Hengtai Electric Co., Ltd., which is mainly engaged in the sales of lighting appliances, sales and installation of special electronic equipment.

According to the announcement, the new company is registered in Suxitong Science and Technology Industrial Park, Nantong City, Jiangsu Province, with a registered capital of 20 million yuan, of which Hengtai Lighting contributed 6 million yuan, accounting for 30% of the registered capital; Chen Fengfeng contributed 12 million yuan, accounting for 60% of the registered capital; and Zhao Xiaoquan contributed 2 million yuan, accounting for 10% of the registered capital.

Regarding the purpose of this foreign investment, Hengtai Lighting stated that in order to cope with the current complex international market situation and reduce dependence on a single market; secondly, it is to actively respond to the domestic and foreign dual cycle policies proposed by the country, especially the observation of the huge market potential of domestic industrial, mining and commercial lighting from fluorescent lamps to LED lighting.

In order to seize industry development opportunities and promote the company's strategic transformation, Hengtai Lighting leverages years of R&D and production experience accumulated in the LED industrial and commercial lighting segment in the North American market, and actively participates in the cycle of the domestic LED lighting market through foreign investment and the establishment of joint-stock subsidiaries.

Hengtai Lighting stated that this external investment will help improve the company's industrial layout, promote the progress of domestic and international dual-circulation strategic development planning, and will promote the company's comprehensive competitiveness and profitability.

Information shows that Hengtai Lighting was established in 2018 and is mainly engaged in the research and development, manufacturing, sales and service of industrial lighting and commercial lighting products. The products are mainly used in office lighting, industrial lighting and commercial lighting. The company will be listed on the Beijing Stock Exchange on November 17, 2022.

Since its establishment, Hengtai Lighting has mainly adopted a direct sales model with ODM as the mainstay and OEM as the supplement. Its customers are mainly lighting brands, sellers, and engineers. Among them, export customers are mainly concentrated in the United States, and most of the main export customers are large and medium-sized enterprises that have been in existence for more than 30 years and have strong sustainable operating capabilities.

The financial report shows that in its first year of listing in 2022, Hengtai Lighting achieved revenue of 649 million yuan, a year-on-year decrease of 15.28%; and net profit of 132 million yuan, a year-on-year increase of 64.94%. In the first quarter of this year, Hengtai Lighting achieved revenue of 95.8623 million yuan, a year-on-year decrease of 56.92%; net profit was 8.8565 million yuan, a year-on-year decrease of 78.01%.