Lianyu Optoelectronics' IPO application accepted; Dongang Technology terminates ChiNext IPO

01 Lianyu Optoelectronics IPO Application Accepted

On February 22, the Shenzhen Stock Exchange's public website for issuance and listing review information updated the review status of listing applications. The main board IPO application of Shenzhen Lianyu Optoelectronics Co., Ltd. (abbreviated as "Lianyu Optoelectronics") has been accepted.

Lianyu Optoelectronics disclosed its prospectus (draft for filing). Lianyu Optoelectronics will issue no less than 18.3 million shares. The funds raised will be used for the following projects with the proposed investment amounts: Smart lighting production headquarters base project, with an investment of approximately RMB 445 million; R&D center construction project, with an investment of approximately RMB 114 million; working capital replenishment project, with an investment of RMB 100 million. After this stock issuance, the company plans to go public on the ChiNext Board of the Shenzhen Stock Exchange.

The prospectus shows that Lianyu Optoelectronics focuses on the R&D, production, and sales of medium- and high-power LED lighting products. Its main products are LED luminaires and LED light sources, primarily applied in outdoor and industrial lighting fields, while continuously expanding into specialized lighting areas such as horticultural lighting, sports lighting, and explosion-proof lighting.

In 2019, 2020, 2021 and the first half of 2022, Lianyu Optoelectronics' main business revenue was RMB 522 million, RMB 630 million, RMB 1.221 billion and RMB 620 million respectively, and the net profit attributable to shareholders after deducting non-recurring items was RMB 63.5181 million, RMB 54.9075 million, RMB 95.3475 million and RMB 72.9147 million respectively. During the reporting period, the company's R&D investment accounted for 4.56%, 4%, 3.68% and 3.81% of its revenue.

Lianyu Optoelectronics primarily sells its products through exports, operating under the ODM model. According to data from the China Association of Lighting Industry (CALI), in 2021, Lianyu Optoelectronics ranked third among Chinese exporters of outdoor lighting luminaires, specifically street lights, and held the top position for exports to the US market. The company's industrial lighting luminaires, specifically high-bay lights, ranked second among Chinese enterprises exporting to the global market. The company has established itself as one of the leading manufacturers of outdoor and industrial lighting in the North American market.

Lianyu Optoelectronics stated that it will continue to consolidate its first-mover advantage in the North American market, build an international sales network leveraging its product competitive advantages, and pursue global expansion to provide customers with comprehensive high-quality products. The company's vision is to strive to become an internationally leading manufacturer of LED outdoor, industrial, and special lighting.

02 Dongang Technology Terminates ChiNext IPO

The Shenzhen Stock Exchange website recently disclosed the decision to terminate the review of Xiamen Dongang Technology Co., Ltd. (hereinafter referred to as "Dongang Technology") for its initial public offering and listing on the ChiNext board.

On February 17, 2023, Dongang Technology submitted to the Shenzhen Stock Exchange the "Application of Xiamen Dongang Technology Co., Ltd. for Withdrawal of Application Documents for Initial Public Offering and Listing on the ChiNext Board", and the sponsor submitted to the Shenzhen Stock Exchange the "Application of China Merchants Securities Co., Ltd. for Withdrawal of Application Documents for Initial Public Offering and Listing on the ChiNext Board of Xiamen Dongang Technology Co., Ltd.". In accordance with the relevant provisions of Article 62 of the "Shenzhen Stock Exchange Rules for Review of Stock Issuance and Listing", the Shenzhen Stock Exchange decided to terminate the review of Dongang Technology's initial public offering and listing on the ChiNext Board.

Dongang Technology is mainly engaged in the R&D, production, and sales of professional mobile lighting tools. Its product portfolio includes folding lamps, flood lamps, pocket lamps, pen lights, long lights, headlamps, and other series, covering more than 230 models, forming a relatively comprehensive product layout.

As of the date of signing the prospectus, Zhuang Junhui directly holds 80.505 million shares of the company, representing a shareholding ratio of 53.67%. Meanwhile, he indirectly controls 22.5 million shares of the company through Dongang Investment, accounting for 15.00% of the company's total share capital. In total, he controls 68.67% of the company's shares and is the controlling shareholder and actual controller of the company.

Dong'ang Technology originally planned to publicly issue no more than 50 million new shares on the ChiNext Board of the Shenzhen Stock Exchange, accounting for no less than 25% of the total share capital after the issuance; the originally planned fund raising amount was RMB 384.9539 million, to be used for the "High-end Professional Mobile Lighting Tools Production Base Construction Project", "R&D Center Construction Project", and "Marketing Network Construction Project".