LED lighting company Greer plans to set up two subsidiaries in Vietnam and Germany

On October 17, Greer issued an announcement on foreign investment, announcing that it planned to establish new production bases in Vietnam and Germany through the establishment of a wholly-owned subsidiary in Singapore, thereby further opening up the Southeast Asian and European business markets.

Plans to set up two subsidiaries in Vietnam and Germany

According to the announcement, Greer plans to set up a wholly-owned subsidiary in Singapore. The company name is tentatively named GLORIA TECH SINGAPORE PTE LTD. The final company name will be subject to local industrial and commercial registration. The investment amount is expected to be no more than US$1 million, which is approximately RMB 7.3 million.

The above funds will be used to establish two wholly-owned subsidiary companies in Vietnam and Germany, which are expected to be named Gloria Tech (Vietnam) Ltd. and Gloria Tech (Germany) GmBH. The specific names are still to be confirmed by local industrial and commercial registration.

Greer said that in order to mitigate the adverse impact of the Sino-US trade conflict, the company urgently needs to accelerate its business in the Southeast Asian and European markets. The company plans to establish a wholly-owned subsidiary in Vietnam through the establishment of a new wholly-owned subsidiary in Singapore to build a new "LED lighting product and magnetic device product manufacturing project", that is, a new production base in Vietnam, which can effectively alleviate the pressure on the company's overseas business. At the same time, it plans to set up a sales company in Germany to further explore the European market.

Greer believes that investment in Vietnam and Germany is in line with the company's strategic development plan and is an important measure for the company's global industrial layout. It will help the company meet the order needs of overseas customers; it will help the company make use of local manpower, preferential tax policies and the location advantages of the investment location, reduce production costs, enhance the company's profitability and competitiveness; it will help the company consolidate and enhance its industry market position, and provide support for the company's sustainable and healthy development.

In addition, Greer can obtain better economic benefits by taking advantage of the strong international business radiation capabilities and good investment environment of Vietnam, Germany, and Singapore.

Successfully landed on the Beijing Stock Exchange in December last year

According to data, Greer was founded in 2006. With the support of magnetic device technology, it has widely expanded application scenarios in lighting, new energy, communications, industrial control, electroacoustic devices and other fields. At the same time, it has delved into lighting scenarios, mastered lighting industry-related technologies from power supplies to LED lamps, and extended the industrial chain to terminal lighting solutions.

Currently, Greer has become one of the core suppliers of emergency lighting, health lighting and other brand products for internationally renowned companies such as Cooper Lighting. At the same time, Greer is committed to becoming a smart lighting system solution provider, and now has the planning and design, solution implementation and operation and maintenance service capabilities for smart street lighting systems, landscape lighting projects and other solutions.

On December 2, 2022, Greer was listed on the Beijing Stock Exchange. For this listing, Greer's issuance price was 9.6 yuan per share, with an issuance price-to-earnings ratio of 23.32 times. The number of shares issued was 10.5 million, and the total amount of funds raised was approximately 100 million yuan, which was used for intelligent manufacturing base construction projects, R&D center construction projects, and supplementary working capital.

Among them, the intelligent manufacturing base construction project covers an area of approximately 24 acres, with an additional construction area of approximately 9,000 square meters, approximately 50 new sets of major production equipment, and an annual output of approximately 20,000 sets of smart street lighting products, approximately 110,000 sets of industrial and special lighting products, approximately 50,000 sets of health lighting products, and approximately 720,000 sets of inductance transformer products.

The R&D center construction project will build office buildings, product display centers, R&D centers and supporting facilities to conduct research and development of overall smart lighting solutions, integrated automotive laser headlights, distributed energy storage DC lighting systems, micro photovoltaic inverter integrated transformers, power module precision current sensors and other products.

In terms of performance, from 2020 to 2022, Greer achieved revenue of 372 million yuan, 504 million yuan and 721 million yuan; net profits of 31.4276 million yuan, 36.4391 million yuan and 63.2189 million yuan. In the first half of 2023, Greer achieved revenue of 294 million yuan, a year-on-year decrease of 9.36%; net profit was 25.6898 million yuan, a year-on-year decrease of 31.32%.

In this regard, Greer said that in the fiercely competitive market environment of the industry as a whole, the company has focused on sales and strictly controlled costs, and the magnetic device business has continued to grow. However, affected by the continued weak demand in overseas markets, the lighting business has experienced a certain decline.