Another lighting company successfully passes the review!

On September 19, the Beijing Stock Exchange Listing Committee held its 43rd review meeting of 2022. Jiangsu Hengtai Lighting Co., Ltd. (hereinafter referred to as “Hengtai Lighting”, stock code: 873339) successfully passed the IPO review.

According to the announcement from the Beijing Stock Exchange, Hengtai Lighting's review result is "meets the issuance conditions, listing conditions, and information disclosure requirements".

Hengtai Lighting is a high-tech enterprise focused on environmental protection and smart lighting luminaires, mainly engaged in the R&D, manufacturing, sales, and service of industrial lighting and commercial lightingproducts, committed to becoming a first-class provider of comprehensive lighting solutions for industrial and commercial spaces. Industrial lighting mainly consists of high-bay light products, while commercial lighting includes linear lights and panel lights. Public information shows that Hengtai Lighting was listed on the NEEQ on August 1, 2019.

Data shows that Hengtai Lighting possesses several key technologies, including LED lighting fixtures designed for easy installation and removal, mounting bracket technology for lighting projects, new LED luminaire technology based on airflow self-cleaning, half-cell module technology, and emergency lighting distribution boxes. Meanwhile, the company is actively laying out its strategy in the field of smart luminaires, integrating high-quality resources, and has initially achieved commercial application.

According to information from the China Association of Lighting Industry（中国照明电器协会）, among enterprises exporting industrial and mining lamps in the first three quarters of 2021, Hengtai Lighting ranked first. In the single market of the United States, Hengtai Lighting holds a 1/4 market share.

As it stands, Hengtai Lighting's IPO is progressing quite smoothly.It took less than three months from acceptance to the review meeting.On June 27, 2022, Hengtai Lighting officially passed the tutoring acceptance by the Jiangsu Securities Regulatory Bureau; shortly after, on June 29, the Beijing Stock Exchange formally accepted Hengtai Lighting's IPO application; on July 11, Hengtai Lighting received an inquiry letter and completed its response on August 26; on September 9, Hengtai Lighting updated its listing application review status to "Under Inquiry".

In terms of performance, from 2019 to 2021, Hengtai Lighting's revenue was RMB 511 million, RMB 496 million, and RMB 767 million respectively, with net profit attributable to shareholders of the parent company being RMB 72.1066 million, RMB 48.4468 million, and RMB 79.851 million respectively.In the first half of 2022, the company achieved revenue of RMB 351 million, a year-on-year increase of 6.66%, with a net profit of RMB 68.04 million, a year-on-year increase of 133.57%.

Hengtai Lighting products are mainly sold to the North American market. The prospectus shows that the company's products have entered the U.S. market, accumulating rich customer resources in the United States during its operations. Despite the China-U.S. trade war, the company's business has continued to grow steadily. In the future, Hengtai Lighting will further expand its overseas sales network.

In this IPO, Hengtai Lighting plans to issue no more than 22.2 million shares, aiming to raise a total of RMB 199 million, which will be used for the annual production project of 5 million sets of LED luminaires, the technological transformation project for intelligent production equipment, and the R&D center upgrade project.

In terms of R&D and talent, Hengtai Lighting stated that the company has established the Nantong Engineering Technology Research Center (a municipal-level R&D center) and set up an independent testing center. As of the date of signing the prospectus, the company has applied to the Jiangsu Provincial Department of Science and Technology for the Jiangsu Provincial Enterprise Engineering Technology Research Center, which is currently under review. As of December 31, 2021, the company had 57 technical personnel. The company has established a stable management team and an excellent technical talent pool led by General Manager Li Pengqing, who have always focused on the LED lighting industry and possess extensive industry experience.

▲ Key questions raised during the review meeting

Further Reading:

On November 15, 2021, the Beijing Stock Exchange officially commenced trading. The BSE was upgraded from the Select Tier of the NEEQ, positioning itself to serve innovative small and medium-sized enterprises . It will develop in a differentiated manner alongside the existing Shanghai and Shenzhen stock exchanges and the three major boards (Main Board, ChiNext, and STAR Market), playing an important role in broadening financing channels for SMEs, serving the real economy, deepening NEEQ reforms, and improving the multi-tiered capital market.

Small and medium-sized enterprises (SMEs) are a key pillar of China's economic development, contributing over 50% of tax revenue, more than 60% of GDP, over 70% of technological innovation, upwards of 80% of urban employment, and accounting for more than 90% of all enterprises. However, against the backdrop of pandemic impacts, slowing economic growth, rising costs, deleveraging, and environmental protection-driven capacity reduction, SMEs face mounting operational pressures. In this context, the Beijing Stock Exchange (BSE) was established to primarily serve "specialized, refined, distinctive, and innovative" SMEs , catering to businesses that are "earlier-stage, smaller, and newer." Although these companies start small, they possess immense growth potential. Under the national strategy of fostering "dual circulation" in domestic and international markets, the BSE, as fertile ground for SMEs, will nurture a cohort of "specialized, refined, distinctive, and innovative" enterprises capable of becoming "hidden champions."

Recently, the Beijing Stock Exchange held four listing review meetings in five working days, with seven companies undergoing review. The BSE has further accelerated its issuance review process to drive high-quality expansion.