Two LED companies terminate IPO; three OTC-listed lighting companies face delisting risk

Two LED companies terminate IPO

Termination of Registration for Ziguang Lighting's STAR Market Issuance

According to a CSRC announcement on January 11, Shenzhen Ziguang Lighting Technology Co., Ltd. (hereinafter referred to as "Ziguang Lighting") voluntarily requested the withdrawal of its registration application documents. In accordance with Article 31 of the Measures for the Administration of Registration of Initial Public Offerings on the STAR Market (Trial), the CSRC has decided to terminate the registration process for its issuance.

The full text of the notice is as follows:

Notice of Termination of the Registration Procedure for Stock Issuance on the STAR Market by the China Securities Regulatory Commission (Shenzhen Ziguang Lighting Technology Co., Ltd.)

Shenzhen Ziguang Lighting Technology Co., Ltd.:

On December 31, 2021, your company and the sponsoring institution, Huaan Securities Co., Ltd., submitted the "Application of Shenzhen Ziguang Lighting Technology Co., Ltd. for Withdrawing the Application Documents for the Initial Public Offering and Listing on the STAR Market" (Ziguang Lighting [2021] No. 6) and the "Application of Huaan Securities Co., Ltd. for Withdrawing the Application Documents for the Initial Public Offering and Listing of Shenzhen Ziguang Lighting Technology Co., Ltd. on the STAR Market" (Hua Zheng Tou Hang [2021] No. 43), voluntarily requesting the withdrawal of the registration application documents.

In accordance with Article 31 of the Measures for the Administration of Registration of Initial Public Offerings on the Science and Technology Innovation Board (Trial), we have decided to terminate the registration process for your company's issuance.

As one of the pioneers in the industrial LED lighting sector, Shenzhen Ziguang Lighting Technology Co., Ltd. (hereinafter referred to as "Ziguang Lighting") states in its prospectus that its main business includes the R&D, production, and sales of industrial lighting equipment and smart lighting systems, as well as providing energy performance contracting (EPC / EMC) services in the industrial lighting field. It is reported that in June 2020, Ziguang Lighting's IPO application for the STAR Market was accepted.

Data shows that industrial LED lighting equipment produced by Ziguang Lighting is widely used in petrochemical, coal, metallurgy, electric power and other fields. According to its disclosed financial data, the main business revenue for 2018, 2019 and 2020 was RMB 201 million, RMB 348 million and RMB 357 million respectively, mainly benefiting from the stable development of the industry, as the company has undertaken a large number of new engineering projects both domestically and internationally.

In addition, statistics show that industrial lighting accounts for about 14% of the total electricity consumption of the entire industrial system, making it one of the most important areas for industrial carbon reduction. According to the prospectus, Ziguang Lighting uses relatively advanced energy saving lighting technology. Through primary energy saving achieved by intelligent LED equipment and secondary energy saving realized by intelligent joint control, it can reduce the average energy consumption in the industrial lighting sector by more than 70%, which is equivalent to a significant reduction in carbon dioxide emissions. Therefore, it has played an important role in promoting the implementation of the national "Dual Carbon Goals" strategy in the industrial sector.

Zhongtu Semiconductor Terminates IPO

On January 4, Zhongtu Semiconductor terminated its IPO application for the STAR Market. It is reported that the Shanghai Stock Exchange accepted Zhongtu Technology's application documents for the initial public offering and listing on the STAR Market on March 25, 2020, in accordance with the law, and conducted reviews as required.

On December 30, 2021, Zhongtu Technology and its sponsor, Shenwan Hongyuan Securities Underwriting & Sponsorship Co., Ltd., separately submitted to the Shanghai Stock Exchange the "Application by Guangdong Zhongtu Semiconductor Technology Co., Ltd. for Withdrawal of Application Documents for Initial Public Offering and Listing on the STAR Market" (Zhongtu Wen Zi Fa [2021] No. 47) and the "Application by Shenwan Hongyuan Securities Underwriting & Sponsorship Co., Ltd. for Withdrawal of Application Documents for the Initial Public Offering and Listing of Guangdong Zhongtu Semiconductor Technology Co., Ltd. on the STAR Market" (Shenwan Hongyuan Underwriting & Sponsorship Letter [2021] No. 183), applying to withdraw the application documents for listing on the STAR Market.

In accordance with the relevant provisions of the "Rules for Review of Stock Issuance and Listing on the STAR Market of the Shanghai Stock Exchange", the SSE has decided to terminate the review of Zhongtu Technology's initial public offering (IPO) and listing on the STAR Market.

Zhongtu Semiconductor is a professional substrate material supplier focused on GaN-on-Sapphire semiconductor technology. We develop tailored substrate materials based on different LED chip application areas and their epitaxy technical characteristics. Through patterned structure design, diverse material combinations, and process implementation, we provide comprehensive substrate material solutions for GaN LED chips.

Currently, Zhongtu Semiconductor's main products include 2- to 6-inch Patterned Sapphire Substrates (PSS) and Patterned Composite Material Substrates (MMS), mainly applied in fields such as deep UV LED and Mini/Micro LED. Zhongtu Semiconductor had planned to raise RMB 1 billion, of which RMB 645 million was allocated to the industrialization project for patterned substrates for Mini/Micro LED, and RMB 358 million to the construction project of the Engineering Research Center for third-generation semiconductor substrate materials.

Three NEEQ-listed lighting companies face delisting

ST Zhongwei

Recently, Liaoning Zhongwei High-Tech Co., Ltd. (hereinafter referred to as "ST Zhongwei") issued a risk warning announcement regarding the possible termination of its stock listing.

ST Zhongwei announced that the company disclosed its 2020 annual report on June 30, 2021, and Zhongxingcai Guanghua Certified Public Accountants issued an audit report with a disclaimer of opinion. According to relevant regulations, if a listed company has its financial reports for the last two fiscal years issued with adverse opinions or disclaimers of opinion by auditors, the National Equities Exchange and Quotations (NEEQ) will terminate the listing of its shares.

Therefore, ST Zhongwei faces the risk of compulsory delisting.

It is understood that ST Zhongwei is mainly engaged in the construction of urban and road green lighting energy saving projects, as well as related lighting design, and the research and development, production, and sales of LED lighting products. It is a comprehensive enterprise integrating planning and design, construction and maintenance of urban and road lighting projects, and creative LED luminaire R&D. In 2020, the company achieved revenue of 3.8523 million yuan, a year-on-year decrease of 39.49%, mainly due to the slow market recovery after the pandemic leading to lower annual revenue; the net profit attributable to shareholders of the listed company was -3.2491 million yuan.

In addition, on the same day, the company also issued its latest personnel appointment announcement. Due to the resignation of former directors Mr. Gao Zhijun and Mr. Dong Daining, Mr. Xu Yingjie and Mr. Liu Tao have been appointed as company directors.

ST Quantum Flower

Shanghai Quantum Flower Light Art Technology Co., Ltd. (hereinafter referred to as "ST Quantum Flower") issued a notice of stock trading suspension, effective from December 8, 2021. The reason is that the lead securities firm unilaterally terminated its continuous supervision duties, and no other lead securities firm has taken over these responsibilities.

According to the announcement, on December 7, 2021, the Company received the "Letter of No Objection to the Termination of the Continuous Supervision Agreement between Industrial Securities and ST Quantum Flower" issued by the National Equities Exchange and Quotations (NEEQ). The continuous supervision agreement signed between Industrial Securities and ST Quantum Flower was terminated effective December 7, 2021. To ensure fair information disclosure, protect investors' interests, and avoid abnormal fluctuations in the Company's stock price, an application for suspension of the Company's stock trading has been submitted in accordance with relevant regulations such as the "Detailed Rules for the Implementation of Stock Suspension and Resumption Business of Listed Companies on the National Equities Exchange and Quotations" and the "Guidelines for Continuous Supervision Work of Host Brokerages on the National Equities Exchange and Quotations".

It is reported that, in accordance with Article 48 of the Guidelines for Continuous Supervision by Lead Brokerages on the National Equities Exchange and Quotations (NEEQ) System, if three months have passed since a lead brokerage unilaterally terminated the continuous supervision agreement and no other lead brokerage has taken over the company’s continuous supervision duties, the NEEQ will terminate the listing of the company’s shares in accordance with relevant regulations.

According to the information, ST Quantum Flower operates in the night scene lighting industry, dedicated to creating and crafting light art works with artistic merit and strong visual effects in the field of night scene lighting. After the light art works are successfully created, it also provides content services to customers.

The company's core business is the creation of light art works. Its business models include: "Lead Creator + Co-Creator," where the company independently completes the entire creation of light art works; "Lead Creator Business," where the company collaborates with partners to create light art works for clients; and TO C sales of smart home lighting. In 2020, the company achieved Revenue of RMB 37.0676 million, with a Net profit attributable to shareholders of the listed company of -RMB 5.5628 million.

ST Zhubangneng

Beijing Shiji Zhubang Energy Technology Co., Ltd. (hereinafter referred to as “ST Zhubang Energy”) recently announced that on December 31, 2021, the company received the “Decision on Terminating the Listing of Shares of Beijing Shiji Zhubang Energy Technology Co., Ltd.” (No. [2021] 1513 of the National Equities Exchange and Quotations System) issued by the National Equities Exchange and Quotations Co., Ltd. (hereinafter referred to as “NEEQ”).

It is reported that the continuous supervision agreement signed between Shanghai Securities and ST Zhubangneng was terminated effective May 25, 2021. Similar to the case of ST Liangzihua, according to the notice from the National Equities Exchange and Quotations (NEEQ), ST Zhubangneng failed to sign a continuous supervision agreement with another lead securities firm within three months after the termination of the previous agreement. Therefore, it has been decided to terminate the listing of the company's shares.

ST Zhubangneng may submit an application for review. If ST Zhubangneng fails to submit the review application within the specified period, its shares will resume trading on January 18, 2022, and be delisted on February 8. During the resumption of trading, the National Equities Exchange and Quotations (NEEQ) will apply a special designation to the company's shares, and the stock abbreviation will be changed to "Delisted Zhubang".

It is reported that Beijing Shiji Zhubang Energy Technology Co., Ltd. focuses on the major trends of "Energy saving, emission reduction, and Environmental protection" to provide energy performance contracting (EPC / EMC) based retrofitting services, energy audit consulting, and energy custody services for civil aviation airports, municipal projects, schools, and other sectors. The company's lighting energy saving projects, energy peak-shaving projects, and airport energy station construction projects have all achieved environmental success and operational gains.

In terms of energy-saving retrofit benefits, the company adopts the benefit-sharing model under Energy performance contracting (EPC / EMC) to help customers save energy and reduce consumption. Through optimized design, monitoring and control via an energy system management platform, replacement with energy-saving products such as LED, and full-process operation and maintenance services during the contract period, it achieves a reduction in customers' energy costs. In 2020, the company generated Revenue of RMB 3.9098 million, and the Net profit attributable to shareholders of the listed company was RMB -17.2128 million.