Explosion-proof lighting company Xinliming landed on the Shanghai Stock Exchange and raised 558 million yuan

On June 2, the IPO of New Dawn Technology Co., Ltd. (hereinafter referred to as "New Dawn"), an explosion-proof lighting company, successfully passed the meeting and successfully landed on the main board of the Shanghai Stock Exchange.

Raise 558 million yuan to build new explosion-proof electrical appliances, explosion-proof lamps and other projects

For this IPO, New Dawn plans to raise 558 million yuan, of which 291 million yuan will be used to build new explosion-proof electrical appliances, explosion-proof lamps and other products and R&D and testing center projects, 100 million yuan will be used to build new intelligent explosion-proof electrical appliances, intelligent explosion-proof lamps R&D and industrialization center projects, and 166 million yuan will be used to supplement working capital.

Among them, the construction of new explosion-proof electrical appliances, explosion-proof lamps and other products and the construction of R&D and testing center projects occupy 44.70 acres of land. Based on the company's future product market demand, the company's existing production capacity will be expanded through new factory buildings, equipment purchases, etc., further improving product performance and quality, and upgrading the company's existing product testing capabilities.

The new R&D and industrialization center project for intelligent explosion-proof electrical appliances and intelligent explosion-proof lamps integrates the company's existing R&D resources and R&D technical strength by purchasing advanced R&D equipment, R&D management software, and introducing high-quality talents to conduct research on intelligent explosion-proof software and hardware technology and the systematic development of intelligent explosion-proof products.

This project will be based on big data, Internet of Things, smart hardware, wireless/wired communications, sensors and other technologies, focusing on applications such as smart lighting in explosion-proof scenes, smart lighting distribution, smart evacuation, etc., and optimize and adjust product technology solutions based on experimental test results.

In addition, New Dawn plans to raise funds to supplement working capital to meet the capital needs brought about by the continued growth of its business scale, ensure the healthy development of the company's business, and improve its financial structure.

Specializes in explosion-proof lamps, etc., with revenue of 835 million yuan in 2022

According to data, New Dawn is mainly engaged in the research and development, production and sales of explosion-proof electrical appliances for factory use. Its main products include explosion-proof electrical appliances, explosion-proof lamps, explosion-proof pipe fittings, three-proof products and intelligent explosion-proof equipment. The products are widely used in petrochemicals, new energy/new materials, grain brewing, biomedicine and other industries and fields.

In terms of customers, New Dawn has become a qualified supplier of Sinopec, PetroChina, and CNOOC, and has established long-term, stable and good cooperative relationships with large enterprise groups such as Wanhua Chemical, China National Chemical, Shenghong Group, Rongsheng Group, and many Engineering Design Institute Companies (EPC).

In terms of performance, from 2020 to 2022, New Dawn achieved operating income of 637 million yuan, 719 million yuan, and 835 million yuan respectively, and net profits of 80.4813 million yuan, 93.7005 million yuan, and 116 million yuan respectively.

During the reporting period, New Dawn's main products include explosion-proof electrical appliances, explosion-proof lamps, explosion-proof pipe fittings, three-proof products and intelligent explosion-proof equipment. The total revenue accounted for 95.43%, 95.52% and 95.24% of the main business revenue respectively.

Among them, the operating income of explosion-proof lighting products was 149 million yuan, 157 million yuan, and 175 million yuan respectively, accounting for 23.43%, 21.94%, and 21.04% respectively. It is reported that the main products of New Dawn explosion-proof lamps include explosion-proof LED lighting, explosion-proof fluorescent lamps, explosion-proof LED pipe gallery lighting, explosion-proof emergency lighting, etc.

During the reporting period, the unit prices of New Dawn explosion-proof lamps were 538.55 yuan, 541.04 yuan, and 576.06 yuan respectively, and the sales volume were 276,100 pieces (sets), 289,500 pieces (sets), and 303,000 pieces (sets) respectively.

New Dawn stated that in 2022, the revenue growth of explosion-proof lamps will mainly come from the increase in the average unit price. On the one hand, the increase in raw material prices has led to rising costs and corresponding increases in unit prices; on the other hand, it is due to changes in product structure. The sales and proportion of large products such as explosion-proof street lamps and high pole lamps with higher unit prices have increased, resulting in an increase in the average unit price of explosion-proof lamps.

In addition, it is reported that New Dawn's product sales model is mainly based on sales assisted by business developers. During the reporting period, the company's sales revenue assisted by business developers were 528.557 million yuan, 598.9626 million yuan, and 723.6824 million yuan respectively, accounting for 83.29%, 83.88%, and 87.22% of the main business revenue respectively, which is relatively high.

It is reported that business developer-assisted sales refers to a business model in which the company selects a specific entity as a business developer by paying business fees to carry out market expansion, business development, customer maintenance, and form a formal, long-term cooperative development relationship with the company.

Xin Liming stated that this sales model is due to product characteristics and customer requirements. It has historical origins, is an industry practice, and is necessary and commercially reasonable.

It is worth noting that in recent years, with the continuous growth of downstream market demand, the expansion of production capacity in the explosion-proof electrical appliance industry, the growth of original enterprises and the entry of emerging enterprises, the explosion-proof electrical appliance market is facing the risk of intensified competition. From 2020 to 2022, affected by intensified market competition, the gross profit margins of New Dawn's main business were 54.48%, 53.41%, and 49.90% respectively, which declined.

In the first quarter of 2023, New Dawn achieved operating income of 151 million yuan, a year-on-year increase of 16.65%; net profit attributable to shareholders of the parent company was 16.9028 million yuan, a year-on-year increase of 30.47%.

Talking about the reasons for the performance growth, Xin Liming said that on the one hand, the company's operating income continued to grow, and the product gross profit margin rebounded, resulting in greater gross profit growth; on the other hand, expenses during some periods were relatively rigid, and the growth rate was lower than the operating income growth rate, resulting in greater profit growth.

In terms of future planning, Xin Liming said that the company will continue to be committed to the research and development, production and sales of major types of products such as explosion-proof electrical appliances, explosion-proof lamps, explosion-proof pipe fittings, three-proof products, and intelligent explosion-proof equipment.