LED lighting company Lianyu Optoelectronics IPO accepted

+On February 22, Shenzhen Lianyu Optoelectronics Co., Ltd. updated the Shenzhen Stock Exchange’s listing application review status. The company’s IPO application has been accepted.

+The prospectus shows that Lianyu Optoelectronics was established in 2012 and is mainly engaged in the research and development, production and sales of medium and high-power +LED+ lighting products. The products are mainly used in outdoor and industrial lighting fields, and continue to expand into special lighting fields such as plant lighting, sports lighting, and explosion-proof lighting. The company mainly provides differentiated and customized LED lighting products to international brands or regional brands through the ODM model.

+With this listing, Lianyu Optoelectronics plans to publicly issue no less than +18.3 million+ ordinary shares in RMB, raising 659 million yuan to invest in intelligent lighting production headquarters base projects, R&D center construction projects, and supplement working capital.

+ Among them, the total investment in the smart lighting production headquarters base project is 445 million yuan. The project plans to build a new production headquarters, purchase advanced production equipment, and establish an efficient and automated production base. It is expected that after the project reaches full capacity, it will have an annual output of +3.37 million lighting fixtures and an operating income of +1.199 billion yuan.

The R&D center project has a total investment of 114 million yuan. It plans to carry out research on cutting-edge technological directions in the industry such as intelligent control systems, wireless networking technology and high-power thermal storage materials, and conduct research and development and intelligent upgrades of new special lighting products.

Lianyu Optoelectronics stated that this fundraising project is based on the company's existing business to expand production capacity, technology improvements and automation upgrades. After the project is implemented, it will further enhance the energy-saving and intelligent level of products and enhance the company's core competitiveness.

It is reported that Lianyu Optoelectronics is mainly engaged in overseas markets. In 2021, its North American business accounted for 86.69%, and in the first half of 2022, it reached 90.14%. In recent years, due to factors such as the epidemic, demand for high-power LED lighting fixtures such as outdoor and industrial lighting has increased in overseas markets, and Lianyu Optoelectronics' performance has continued to grow.

From January to June in 2019, 2020, 2021, and 2022, Lianyu Optoelectronics achieved operating income of 524 million yuan, 632 million yuan, 1.225 billion yuan, and 622 million yuan respectively; its net profits attributable to the parent company were 35.7951 million yuan, 59.046 million yuan, 106 million yuan, and 69.8079 million yuan respectively.

However, on the other hand, the gross profit margin of Lianyu Optoelectronics' main business continues to decline. From January to June 2019, 2020, 2021 and 2022, the gross profit margin of Lianyu Optoelectronics' main business was 26.50%, 23.93%, 19.88% and 21.69% respectively.

Lianyu Optoelectronics said that its gross profit margin will decline sharply in 2021, mainly due to factors such as exchange rate fluctuations and rising raw material prices. In the first half of 2022, due to the increase in procurement costs, the company increased the prices of some products, and the gross profit margin of the products rebounded compared with the same period in 2021.

In terms of customers, Lianyu Optoelectronics’ customers mainly come from overseas markets, including KEYSTONE TECHNOLOGIES, LLC, LEDVANCE Group, RAB LIGHTING INC., SATCO PRODUCTS, INC., ACAVATI, LLC and other companies. In terms of suppliers, the main suppliers of Lianyu Optoelectronics include Songsheng Electronics, Lailide Optoelectronics, Lyford Technology and other companies.

Looking forward to the future, Lianyu Optoelectronics stated that the company will continue to consolidate its first-mover advantage in the North American market, and rely on product competitiveness to establish an international sales network, conduct global layout, provide customers with a full range of high-quality products, and is committed to becoming an internationally leading LED outdoor, industrial and special lighting manufacturing company.