The actual controller of this lighting company is out of contact. What is the reason?

On July 21, Guangdong Ouyidi Technology Co., Ltd. (hereinafter referred to as "Ouyidi") announced that the company has recently been unable to contact Mr. Zheng Sheng, its actual controller, chairman, and general manager, who is currently out of contact. As of now, the company has not yet been able to ascertain the specific reasons for Mr. Zheng Sheng's loss of contact.

Ouyidi stated that the company's production, operations, and management activities are currently severely affected.

According to records, Ouyidi was established in Meizhou City, Guangdong Province in 2010. In 2017, it was listed on the National Equities Exchange and Quotations (NEEQ, also known as the "New Third Board"). The actual controller and parties acting in concert is Zheng Sheng, who holds 17,449,000 shares of the company, accounting for 79.3137% of the total share capital. The company's main business is the research, development, production, and sales of decorative lighting products and their accessories. Its main products include LED fan lights, LED T8 lighting fixtures, LED ceiling lights, LED street lights, LED downlights, and other decorative lighting products. It is committed to providing energy-saving, efficient, environmentally friendly, and safe LED lighting products for downstream indoor lighting, the decoration industry, and road engineering projects. Additionally, according to reports, Zheng Sheng has also served as the Executive President of the Meizhou Jiaoling Chamber of Commerce and the President of the Meizhou Entrepreneurs Association.

It is worth mentioning that on July 17, Ouyidi issued an indicative announcement stating that the 2019 annual report was expected not to be disclosed on schedule. The announcement mentioned that due to uncertainties regarding the company's ability to continue as a going concern, it was unable to carry out the annual audit work and expected not to disclose the 2019 annual report on time. According to relevant regulations, the company's shares were suspended from trading on the National Equities Exchange and Quotations (NEEQ) system starting from July 1, 2020.

It is reported that the company's sponsoring broker, Dongguan Securities, repeatedly urged Ouyidi to disclose its annual report by June 30, 2020, and informed it of the risks of trading suspension and delisting due to failure to disclose the annual report on time. To standardize information disclosure and address the risk of delisting, Ouyidi actively arranged personnel to cooperate with the auditing firm. However, due to the significant impact of the epidemic on production and operations, difficulties in obtaining confirmations from customers and suppliers arose, making it unlikely to complete the audit and annual report disclosure by June 30, 2020.

Ouyidi's 2019 semi-annual report shows that in the first half of 2019, the company achieved revenue of RMB 60.1283 million, a year-on-year (YoY) increase of 506.88%; net profit attributable to shareholders of the listed company was RMB 964,400, a year-on-year (YoY) increase of 54.45%; and the gross profit margin was 11.72%.

The semi-annual report mentions that the company's sales revenue comes entirely from the domestic market, with sales conducted through direct sales and dealer/distributor models. A regional agent network and a mature distributor network have been established. However, in the first half of 2019, the company focused on promoting foreign trade, with export trade volume reaching 55.1255 million yuan, resulting in a significant increase in sales for the period.