Songsheng, Sanan Optoelectronics, MLS, Debang, OSRAM... Beyond GILE, many other things happened this week!

01 A Powerful Alliance!

Songsheng Shares and Zhongke Sanan in the field of horticultural lighting

Expand Comprehensive Cooperation

On August 4, Songsheng signed a strategic cooperation agreement for horticultural lighting with Fujian Zhongke Bio-Technology Co., Ltd. (hereinafter referred to as "Sanan"), a leading domestic plant factory enterprise. Aiming to integrate the advantageous resources of both parties, they will promote the development of the horticultural lighting industry and establish a long-term, stable strategic partnership by achieving comprehensive in-depth cooperation in products, technology, market, and brand within the field of LED driver / power supply for horticultural lighting.

Zhongke Sanan is a joint venture co-founded by the Institute of Botany, Chinese Academy of Sciences and Sanan Group. Headquartered in Anxi County, Fujian Province, it hosts a Plant Factory Research Institute and an industrialization base for plant factories, with a total investment of RMB 7 billion.

Zhongke Sanan leverages the research achievements of the Institute of Botany, Chinese Academy of Sciences in plant science, combined with the leading LED light source technology of Sanan Optoelectronics, a core enterprise under the Sanan Group, to industrialize photobiotechnology for applications in modern facility agriculture and biopharmaceuticals. The Plant Factory Research Institute has two branches in Fujian and Beijing, as well as engineering technology centers in the United States and Xiamen, conducting applied research on photobiotechnology to provide technical support for industrialization. The first industrialization base is located in the Hutou Optoelectronic Industrial Park in Anxi County. It utilizes LED spectrum technology, automated environmental control, and intelligent equipment to carry out plant factory cultivation in a Class 100,000 cleanroom facility, mainly producing high-quality safe vegetables and intermediate materials for pharmaceuticals treating major diseases such as cancer. This base will be developed into an industrialization demonstration base integrating functions such as scientific research, production, demonstration, and incubation.

Songsheng Co., Ltd. is a national high-tech enterprise integrating R&D, production, sales, and service of LED drivers. It focuses on the R&D, production, and sales of medium- and high-power LED driver products with high competitive barriers. Its products are applied in multiple fields including outdoor lighting, horticultural lighting, industrial lighting, landscape illumination, and smart lighting.

In the field of horticultural lighting, Songsheng leveraged its first-mover advantage and a complete portfolio of LED drivers for horticultural lighting, paired with intelligent control modules, to rapidly capture market share during the golden wave of explosive growth in 2020. It has become one of the leading high-quality suppliers of LED drivers for horticultural lighting in China, currently offering a comprehensive range of star product series including the VP series, M series, VA series, and LV series.

As early as 2020, Sanan Optoelectronics selected Sosen's dedicated power supplies for horticultural lighting for its plant grow lights. "Sosen power supplies generate very low heat, which is beneficial for rapid plant growth. The dimming is highly precise and supports complete shut-off, making them suitable for the growth rhythms of different plant species to increase yield. Their slim form factor, combined with luminaire structure, improves the utilization of planting space. We are very satisfied." This is the evaluation from Sanan Optoelectronics technicians after using Sosen's dedicated power supplies for horticultural lighting.

Songsheng stated that the signing of this strategic cooperation agreement is an important manifestation of the company's strategic layout. Cooperating with Sanan Optoelectronics in fields such as horticultural lighting helps to fully utilize the resource advantages of each party, achieve resource sharing and complementary strengths, promote the strategic layout of the company's LED driver business, and further enhance the company's comprehensive competitiveness.

02 Tospo Lighting Subsidiary Receives Project Nomination Letter

Involving an amount exceeding 1.2 billion yuan

Tospo Lighting announced on the evening of August 5 that its wholly-owned subsidiary, Tospo Automotive Lighting, recently received a project nomination letter. Tospo Automotive Lighting will serve as a supplier for certain projects of Wanxiang A123 Systems Co., Ltd., custom-developing and supplying Battery Management System (BMS) controller products according to the requirements of end OEM customers.

The aforementioned products will be applied in certain Porsche and Audi models. The project cycle for 12PPN001 is from 2021 to 2024, with the estimated value of the Battery Management System (BMS) controller products provided by the company during this period being approximately RMB 70 million; the project cycle for 48PAU001 is from 2023 to 2033, with the estimated value of the Battery Management System (BMS) controller products provided by the company during this period being approximately RMB 1.2 billion.

Tospo Lighting stated that Tospo Automotive Lighting is a wholly-owned subsidiary established in September 2018 to meet strategic needs and business expansion, primarily engaged in the R&D, manufacturing, and sales of automotive products. Tospo Automotive Lighting has successfully mass-produced vehicle headlight controllers (LDM), which are installed in certain Japanese car models.

Tospo Automotive Lighting has received the above-mentioned project nomination letter, which is conducive to establishing business relationships with globally renowned automobile manufacturers or their suppliers. This is of significant importance for the company's layout in automotive business and its sustained rapid development.

Subsequently, Bang Lighting for Automotive will complete the development and production of the aforementioned project products within the specified timeframe in accordance with customer requirements. It is expected that the impact of these projects on the company's performance this year will be minimal; however, they will help increase the company's business revenue in future years and have a positive impact on the company's future operating performance.

However, the project nomination letter only recognizes the qualification for development and supply of a single designated product. Changes, suspension, or termination of the project may occur during the development process due to various reasons. Tospo Lighting stated that the project nomination letter does not constitute an order or sales contract; the actual supply volume shall be subject to formal orders or sales contracts, and there is uncertainty regarding the future quantity and amount of actual supply by the company. Moreover, factors such as automotive industry policies and the overall situation of the automotive market may affect customers' production and demand plans, thereby bringing uncertainty to the supply volume.

In addition, Tospo Lighting rose more than 4%, closing at 18.1 yuan with a high of 18.69 yuan, reaching a new high in over four years, with a total market capitalization of 8.6 billion yuan.

03 ams OSRAM releases latest financial report,

Q2 Revenue approximately RMB 9.639 billion

In late July, ams OSRAM disclosed its financial results for the second quarter and the first half of the year, with performance exceeding expectations. ams OSRAM stated that the operating situation in the second quarter aligned with the typical seasonal characteristics of the group's end markets, and operating free cash flow was strong.

In the second quarter, ams OSRAM achieved revenue of US$1.491 billion (approximately RMB 9.639 billion), a slight decrease of 3% quarter-on-quarter; adjusted gross margin was 33%, down 2% quarter-on-quarter; adjusted operating profit was US$131 million, with an EBIT margin of 9%; net profit was US$84 million, a slight decrease of 5.6% quarter-on-quarter; adjusted diluted earnings per share were US$0.32.

Cumulative revenue for the first half of the year reached US$3.035 billion (approximately RMB 19.621 billion), with an adjusted gross margin of 34%; adjusted operating profit was US$303 million, and EBIT margin was 10%; net profit was US$174 million; adjusted diluted earnings per share were US$0.63.

From the perspective of business structure, the revenue composition in the second quarter shows that the sales proportions of the Semiconductor (Semi) and Luminaire & Systems (L&S) businesses were 64% and 36%, respectively.

The semiconductor business achieved an adjusted operating gross margin of 13%. Among these, the automotive market maintained a strong demand trend, and the total backlog further increased. Due to seasonal effects, the consumer market performed steadily, driven by growth in sales of optical sensing solutions. In addition, the industrial and medical markets achieved good results as macroeconomic growth momentum continued to increase. Demand in the industrial lighting application market recovered strongly, while demand for horticultural lighting is continuing to expand.

In the luminaire and systems business, automotive product sales achieved significant growth, including in traditional markets, thanks to the sustained recovery in demand, making a substantial contribution to the Group's total revenue. In other businesses, industrial lighting demand for building-related end applications has improved markedly; however, market performance in some industrial-grade medical applications remains mixed.

Looking ahead to the third quarter, based on the continued rise in automotive market demand but with supply chains still constrained, and given the year-on-year (YoY) decline in consumer market revenue, ams OSRAM expects Q3 revenue of USD 1.45–1.55 billion (excluding the sold North American Digital Systems business DS), representing a quarter-on-quarter increase. (Source: LEDinside)

04 Academician Zhong Nanshan Attends

"Kongjing Shijie" Global Launch

From July 31 to August 2, 2021, the 2021 China (Guangzhou) Environmental Air Purification Industry Exhibition and High-Level Forum was held at the Pazhou Poly World Trade Center in Guangzhou.

Zhong Nanshan, Academician of the Chinese Academy of Engineering, recipient of the Medal of the Republic, and Chairman of the China Indoor Air Purification Brand Cluster; Liu Pingjun, Chairman of the China Brand Construction Promotion Association, Chairman of the International Advantageous Cluster Brand Alliance, and former Deputy Director of the General Administration of Quality Supervision, Inspection and Quarantine; Ma Lincong, Vice Chairman of the China Brand Construction Promotion Association and former President of the China National Institute of Standardization; Lin Ling, Dean of the Resources and Environment Branch of the China National Institute of Standardization, and Secretary-General of the National Technical Committee on Energy Basics and Management Standardization and the National Technical Committee on Carbon Emission Management Standardization; Wu Wei, President of China National Brand Network; Gu Shiming, Executive Vice Chairman of the China Indoor Air Purification Brand Cluster and Founding President of the Guangdong Indoor Environmental Hygiene Industry Association; and other leaders attended.

At the event, witnessed by all distinguished guests, the opening ceremony of MLS Co., Ltd. Air Purification Vision and the Global Strategic Partners Summit were officially launched.

The summit officially launched five core solutions for public space air quality safety, including: Public Space Situational Awareness System; Healthy and Safe Fresh Air Series; Kangyang Prevention and Control Series; Public Space Healthy Air Disinfection Series; UVC Deep UV Surface Disinfection Series.

Kongjing Shijie is committed to becoming a service provider for air quality safety prevention and control in public spaces. Through real-time dynamic sensing, data collection, and intelligent analysis of public spaces, it achieves risk assessment and early warning for overall public spaces; it provides products and solutions targeting the difficulties and pain points of air quality in various segmented application scenarios, such as hospitals, hotels, schools, subways, commercial venues, and other public spaces.

It is reported that Air Purification Vision Intelligent Technology Co., Ltd. (abbreviated as "Air Purification Vision") is registered in Guangzhou and was jointly established by MLS, the Guangdong Zhong Nanshan Medical Foundation, Green Era Information Consulting Center, and Yuewei Association Environmental Technology Co., Ltd. It will focus on providing solutions for safe air quality in public spaces. Air Purification Vision and its subsidiary MLS Good Air are fully responsible for operation and management by MLS Co., Ltd.

Sun Qinghuan stated that MLS will complete the transition from a product brand to a platform brand in the future. By fully leveraging China's manufacturing advantages and establishing a foothold in the LED industry, MLS will extend into the "air purification" sector through deep ultraviolet UVC disinfection technology. By applying LED full-spectrum lighting solutions to create artificial climates adapted to plant growth, it will expand into the "plant factory" sector, addressing livestock farming and food safety. Leveraging its advantage as the world's largest LED packaging scale, MLS will extend into the mini-LED display and IC packaging sectors. Actively developing independent brands and building the MLS brand ecosystem, it will achieve the upgrade and iteration from a product brand to a platform brand through sales networks in over 140 countries worldwide.