Leedar's IPO application approved! Overview of IPO progress for over 20 LED lighting companies

CSRC approves IPO approval document for Leedarson

On the evening of June 25, the China Securities Regulatory Commission approved the IPO (Initial Public Offering) documents for Leedar IoT Technology Co., Ltd. (hereinafter referred to as "Leedar").

According to the prospectus, Leedarson will conduct an initial public offering (IPO) of no more than 50 million A-shares and list on the Main Board of the Shanghai Stock Exchange.

Leedarson is a high-tech enterprise focused on Green lighting, Smart Home, and Smart Building in the IoT sector, mainly engaged in the R&D, manufacturing, sales, and services of LED lighting products and IoT solutions for smart homes and buildings. The controlling shareholders and actual controllers are Mr. Li Jianghuai and Ms. Mi Li; shareholders Li Yongchuan, Li Xiaofan, Li Xiaoyu, and Li Chunhua are their concerted action parties.

In addition, Leedarson leverages its deep layout in the Internet of Things (IoT) field to build the IoT segment into a key business area for future development. IoT product revenue increased from RMB 491,071,100 in 2018 to RMB 1,291,191,300 in 2020, and its proportion of main business revenue rose from 10.31% to 23.83%.

Currently, Leedar has formed a business structure primarily based on ODM while also maintaining its own brands, enabling it to provide competitive, safe, and trustworthy products, solutions, and services to global customers. It is reported that Leedar currently owns four proprietary brands: "Leedar", "Hedexin", "Langrui", and "LINKIND".

Export business is an important source of revenue and profit for Leedarson. Its main export destinations are concentrated in the Americas, Europe, and Asia. Countries in the Americas mainly include the United States; European countries include Germany, the United Kingdom, Russia, Italy, etc.; Asian countries and regions mainly include Japan, etc.

In terms of performance, Leedar's Revenue for 2017, 2018, 2019, and the first half of 2020 were RMB 4,629,707,600, RMB 4,764,761,700, RMB 5,040,289,200, and RMB 2,240,601,400 respectively, with Net profit amounting to RMB 131,227,500, RMB 309,413,600, RMB 356,403,500, and RMB 167,996,800 respectively.

All funds raised by Leedarson in this offering will be used for the development of the company's core business, specifically invested in the Changtai Intelligent Manufacturing Base project, the R&D Center construction project, and the domestic marketing and service network construction project.

Summary of IPO Progress for LED Lighting Companies

According to China Light Network, in the first half of the year, apart from Leedarson, many LED-related companies have successively updated their IPO status. For example, on June 4, Longteng Lighting disclosed its prospectus (draft for application). The company plans to issue no more than 40 million shares, accounting for no less than 25% of the total share capital after this issuance. This issuance consists entirely of new shares and does not involve the public sale of shares by existing shareholders. After this stock issuance, the company intends to go public on the Main Board of the Shenzhen Stock Exchange. The raised funds will be used for projects, with the proposed investment amounts as follows:

Longteng Lighting was established in 2001. It is a smart city lighting integration service provider integrating five dimensions: product R&D, manufacturing, lighting design, project implementation, and service operation & maintenance. The company's main business covers urban lighting projects, R&D, production and sales of lighting products, lighting design engineering, and operation and maintenance. The company's products and services are mainly applied in lighting fields such as urban roads, public spaces and buildings, and cultural tourism night tours. The company has obtained 9 invention patents, 9 software copyrights, 76 utility model patents, and 232 design patents. It is a national high-tech enterprise and won the China Famous Trademark in 2015.

In addition, there are Delong Laser, whose IPO application was recently accepted by the Shanghai Stock Exchange; Nuxs, which resumed its issuance and listing review on June 22; and Le De Mei, which terminated its ChiNext IPO on June 7. This year, Roman Co., Ltd. and Songsheng Co., Ltd. have successfully gone public, while Tuya Smart listed on the New York Stock Exchange, becoming the world's first IoT cloud platform stock.

(Incomplete statistics from China Light Network)

Among the companies whose IPO applications have been accepted, the STAR Market and ChiNext have the highest numbers. This clearly shows that lighting companies planning an IPO are particularly interested in listing on ChiNext and the STAR Market. Experts point out that there are two main reasons for the large number of companies aiming for the STAR Market and ChiNext: first, these boards operate under a registration-based system, which accelerates the IPO process; second, regulators encourage technology-innovation enterprises to go public, and most such companies are listed on the STAR Market and ChiNext.

It is reported that as of June 20, 633 companies were in the IPO queue on the Main Board, ChiNext, and the STAR Market. In contrast, more than 100 companies withdrew their IPO applications. Under the registration-based system, whether corporate information disclosure is sufficient and meets quality standards has become one of the key focuses of review.