How has OPPLE Lighting developed recently? Check out the latest research findings.

OPPLE Lighting announced on March 10 that the company plans to use its own funds to repurchase some of its A-shares at a price not exceeding RMB 23 per share. The total amount for the share repurchase will be no less than RMB 86.7343 million and no more than RMB 173.4685 million. The company stated that the repurchased shares will be held as treasury stock and used as the source of shares for equity incentives and employee stock ownership plans.

The latest announcement shows that as of March 14, 2022, the company has cumulatively repurchased 431,700 shares through centralized bidding transactions, accounting for approximately 0.06% of the company's total share capital. The total amount paid was approximately RMB 7.84 million, with the lowest transaction price at RMB 17.86 per share and the highest transaction price at RMB 18.2 per share.

In addition, OPPLE Lighting recently hosted research visits from more than ten institutions, discussing topics such as the latest collaborations, current market share, and future development strategies.

1. What is the latest status of the company's cooperation with Kujiale?

A: The company has partnered with Kujiale, a globally leading cloud-based design software platform, to develop "OPPLE Designer," a professional digital design cloud platform. This integration streamlines the entire workflow from design and marketing to delivery and after-sales service, providing designers and users with a more convenient and intelligent lighting design experience.

At the end of last year, as a strategic partner, the company participated in the "30 UNDER 30 China Design Rising Stars" initiative jointly launched by Kujiale and Guangzhou Design Week, empowering the growth of young designers and further enhancing the company's influence in the field of interior design.

2. What is the company's leading advantage in optics?

A: In recent years, the company has invested over 300 million yuan annually in R&D. It currently holds more than 3,000 Patents and has accumulated numerous research achievements in optical technology and Spectrum research.

In the field of optical technology, the company has established an advanced technology management platform over many years. This enables a deep understanding of fundamental lighting needs from the customer's perspective while improving internal development efficiency. For example, last year the company iterated and upgraded its micro-prism optical reflection technology for R&D, further achieving excellent Luminous efficacy performance and significantly reducing costs. In Spectrum research, the company continuously focuses on Human centric lighting (HCL), launching patents such as True Daylight, Focus Light, and Water Lily Color tailored to different user characteristics, leading the industry.

3. Which new clients were signed for the commercial lighting business last year?

A: The company's commercial lighting business maintains high growth, with new benchmark projects signed each year. Last year, we collaborated with Sinopec on a nationwide centralized procurement project involving multi-scenario lighting solutions, including offices, industrial facilities, convenience store chains, and emergency lighting. In the commercial lighting sector, the company continues to expand, signing contracts with leading key accounts such as McDonald's and Wanda.

4. The company's market share in recent years and how to improve it in the future?

A: The company's market share has been increasing in recent years, currently standing at 3%-5%. In the future, the company will continue to focus on customer needs, enhance channel service capabilities and the competitiveness of its products and solutions, achieving steady growth in sales volume and market share.

In terms of (Sales) channels, the company's commercial lighting channel will intensify investment in key industries, including industrial and commercial chains, to continuously secure high-quality projects and further increase market share. In the home furnishing channel, the transformation last year achieved some phased results, including over 500 retail stores, with a year-on-year growth of more than 30% through renovation upgrades and proactive marketing campaigns, as well as the development of over 2,000 plumbing, electrical, and lighting supermarkets in lower-tier markets. In the future, we will actively promote transformation to further consolidate the company's channel competitiveness. In addition, the company continues to carry out platform-based development internally, reducing costs and increasing efficiency while further enhancing product competitiveness.

5. Will the company raise prices if raw material costs increase?

A: The company's pricing is determined based on fluctuations in raw material prices and market conditions. Meanwhile, the company also mitigates the impact of rising raw material costs to a certain extent through raw material reserves and continuous internal cost reduction.

6. How did the company's overseas business perform last year, and what are its future development strategies?

A: As of the third quarter report of 2021, overseas business revenue maintained strong positive growth, while various operational indicators were further optimized.

The company's overseas business adopts differentiated development strategies for different regions. In Europe, the focus is primarily on large-scale smart projects, with smart lighting revenue currently accounting for double-digit percentages of the region's total revenue. The company will continue to expand benchmark projects to further drive business growth. Meanwhile, in regions such as India and Bangladesh, the company is actively building localized supply chain systems to further enhance its overall competitiveness.