Investing in UV disinfection equipment, involving live-streaming sales: Jiugang Shares plans to issue convertible bonds to raise no more than 500 million yuan

On the evening of July 7, Jiugang Shares announced that it plans to issue convertible bonds to unspecified targets with a total fundraising amount not exceeding 500 million yuan (including issuance costs). After deducting issuance costs, the funds will be invested in small appliance industrialization projects, intelligent UV disinfection equipment industrialization projects, brand new retail network operation construction projects, as well as repaying bank loans and supplementing working capital.

公开资料显示，久量股份多年从事LED照明产品和移动家居小电器产品的设计、研发、生产和销售，公司于2019年11月29日在深圳证券交易所创业板挂牌上市。公司围绕“DP久量”核心品牌开发了众多产品品类。截至2019年底，公司已经形成了以LED移动照明与LED家居照明为主的产品系列，涵盖LED应急灯、LED手电筒、LED露营灯、头灯与探照灯、LED台灯、LED球泡灯、日光灯、射灯等各类照明产品，在移动家居小电器方面形成了电蚊拍、电风扇、充电宝等产品。

The company stated that the funds raised in this round will leverage the company's existing supply chain management experience and brand advantages to build a small appliance production base and a UV light disinfection product line, used for producing small appliance products and household UV light disinfection products, to achieve the company's in-depth development in the small appliance industry and its market expansion layout in the household UV light product market.

In addition, based on the high proportion of online channel sales in the current small appliance industry, the company has decided to build a new retail network model to integrate the enterprise's offline channels and online e-commerce resources, and focus on expanding content e-commerce such as online influencer live streaming, as well as social e-commerce models like Weibo, WeChat, Xiaohongshu, etc., so that the enterprise's brands and products can be closer to consumers' lives, achieving an improvement in the enterprise's comprehensive competitive strength and overall brand value.

Among them, regarding the industrialization project of intelligent ultraviolet disinfection equipment, according to the announcement, the company plans to leverage its accumulated core technologies in the early stage to build and create an intelligent ultraviolet disinfection production line, open up the consumer market for household ultraviolet products, and achieve the enterprise's business layout in the field of UV lamps. The construction period of the project is 2 years. Calculated, the project's after-tax internal rate of return is 15.45%, and the after-tax investment payback period is 7.20 years (including the construction period).

公司表示，随着2020年新型冠状病毒的蔓延，抗疫工作呈现出持续性特点，长期消毒习惯的形成极大促进了紫外线消毒市场的发展。

Currently, the company possesses manufacturing technology for ultraviolet disinfection mercury lamps and UVC LED disinfection lamps, and can control disinfection equipment via the Internet. At the same time, the products are equipped with infrared sensing and radar sensing technologies, enabling intelligent feedback to the external environment, giving them a technical competitive advantage over traditional ultraviolet disinfection equipment.

However, at the current stage, the company lacks the corresponding production lines and has insufficient production capacity, making it impossible to carry out large-scale mass production to quickly capture the market. The construction of this project will upgrade the company's existing production lines, purchase more large-scale precision automated production equipment, strictly control product quality, and rapidly increase the production capacity of intelligent UV disinfection products. On one hand, it will help the company consolidate its current position in the UV disinfection market through mercury lamp products; on the other hand, by making a forward-looking layout in the UVC LED disinfection lamp field, it will provide a certain guarantee for the company's long-term development in the UV disinfection market.

Jiuliang Shares stated that the current fundraising investment project complies with national industrial policy, industry development trends, and the company's strategic development layout, and has good market development prospects and economic benefits. The small appliance industrialization project, smart UV disinfection equipment industrialization project, and brand new retail network operation construction project funded by this round of fundraising will help the company achieve in-depth layout in the fields of small appliances and household violet light disinfection, expand and perfect the enterprise's full-channel marketing network, thereby greatly enhancing the enterprise's comprehensive competitive strength and overall brand value.

After the completion of this issuance, the company's total asset scale will increase accordingly, financial strength will be further enhanced, providing strong support for subsequent development. In addition, after the investment projects funded by this round of fundraising are put into production, they will significantly improve the company's operating scale and profitability, further enhance the company's comprehensive strength, and promote the company's continuous and healthy development.