Qingniao Fire Protection: Plans to Acquire 25.37% Equity Stake in Konka Lighting

On the evening of November 13, Jade Bird Fire announced that, to further enhance the company's industry competitiveness in the fields of fire emergency lighting and intelligent evacuation, it plans to acquire a 25.37% equity stake in Shanghai Kangjia Green Lighting Technology Co., Ltd. for RMB 47.7333 million. Upon completion of the acquisition, the company will hold a 25.37% equity stake in Kangjia Lighting, becoming its second-largest shareholder.

Qingniao Fire Protection stated that Konka Lighting possesses manufacturing capabilities in the luminaire sector and has certain technical reserves in the lighting field. To further meet the growing market demand for emergency evacuation products, the company plans to acquire a 25.37% equity stake in Konka Lighting. This move aims to deepen cooperation with Konka Lighting, further enhance the production capacity and product quality of its emergency lighting and intelligent evacuation systems, and thereby increase its market competitiveness and share in the emergency lighting and intelligent evacuation sectors.

According to available information, Jade Bird Fire focuses on fire safety and the Internet of Things (IoT) sector. Its core business currently involves the R&D, production, and sales of "one-stop" fire safety system products. Building on this foundation, the company is actively expanding into related fields such as security and IoT. Its product portfolio includes automatic fire alarm and linkage control systems, electrical fire monitoring systems, and power supply monitoring systems for fire protection equipment.

It is reported that the intelligent evacuation system mainly consists of three major parts: emergency lighting power supply, intelligent controller, and emergency lighting luminaires. Among them, emergency lighting luminaires account for about 70% of the value. In 2018, the Ministry of Housing and Urban-Rural Development released the new version of the "Technical Standard for Fire Emergency Lighting and Evacuation Indication Systems", requiring places with fire control rooms to install centralized control type emergency evacuation systems. The introduction of this policy means that emergency evacuation systems will be mandatory in places with fire control rooms. It is estimated that by 2024, the market size of intelligent evacuation systems will reach 13.5 billion yuan, with a 5-year CAGR of 18%, of which the market size of emergency lighting luminaires will be 9.5 billion yuan.

Konka Lighting entered the lighting industry in 2009. After more than ten years of development, it has accumulated a solid customer base in the industry. Following this Acquisition, Jade Bird Fire's production capacity and product quality for Emergency lighting and intelligent evacuation products will be further improved, thereby enhancing the company's market competitiveness and share in the fields of Emergency lighting and intelligent evacuation. For Konka Lighting, deep cooperation with Jade Bird Fire is expected to rapidly expand its business scale, and the increase in Production capacity utilization will significantly improve its profitability. Therefore, Jade Bird Fire's equity investment in Konka Lighting is expected to create strong synergies.