Foshan Lighting plans to raise 1.095 billion yuan to expand into lighting subdivisions

In recent years, Foshan Lighting has developed rapidly in lighting subdivisions such as car lighting business and smart light poles, and has actively explored new tracks such as intelligent lighting, health lighting, marine lighting, animal and plant lighting, etc. In order to further accelerate future development in the above market segments, Foshan Lighting recently released a 2023 fixed capital raising plan.

According to news on March 15, Foshan Lighting released the "2023 Plan for Issuing A Shares to Specific Targets", and plans to raise no more than 1.095 billion yuan in additional capital, which will be invested in Foshan Lighting automation transformation and digital transformation construction projects, Foshan Lighting Hainan Industrial Park Phase I, smart street lamp construction projects, and R&D center construction projects.

Foshan Lighting Automation Transformation and Digital Transformation Construction Project: The total project investment is 364 million yuan, and 364 million yuan of raised funds are planned to be used. In order to meet market demand and solve existing production capacity bottlenecks, the project plans to carry out technical transformation of the LED product production line, update equipment, improve the level of automated workshop production, and use Internet of Things technology to create a highly automated and information-based intelligent manufacturing system to carry out digital transformation.

Foshan Lighting Hainan Industrial Park Phase I: The total investment of the project is 334 million yuan, and it is planned to use raised funds of 253 million yuan. It plans to build production plants, production lines and supporting facilities for marine lighting equipment and other related products, add a new marine lighting product line, and focus on promoting the production of fish gathering lights, coastal lighting, breeding lighting, and deep-sea lighting products. After the project is completed, Foshan Lighting will enter the field of marine lighting, gradually increase related products and production capabilities, and promote the domestic substitution of domestic high-end marine equipment.

Smart street light construction project: The total investment of the project is 92 million yuan, and it is planned to use raised funds of 92 million yuan. The construction site is located in Gaoming District, Foshan. The project plans to introduce multi-functional smart light poles and smart high-efficiency outdoor light production lines, and complete the construction of related supporting facilities and equipment. The project combines the development trends of the smart lighting industry and adds multi-functional smart light poles and smart high-efficiency outdoor light product lines to further enrich the company's product types.

Car lighting module production and construction project: The total project investment is 240 million yuan, and it is planned to use 240 million yuan of raised funds. In order to cope with the rapid growth of the automotive lighting module product business, the project plans to invest in a automotive lighting module production line and provide supporting automation equipment and personnel to expand the existing production capacity of automotive lighting module products. After the project is completed, it can further deepen the industrial synergy with its subsidiary Nanning Liaowang and promote the development of Foshan Lighting's automotive lighting series products.

R&D center construction project: The total investment of the project is 145 million yuan, and it is planned to use 145 million yuan of raised funds. This project will conduct R&D and upgrade Foshan Lighting's existing LED lighting products. The project will focus on five major directions: "health lighting", "intelligent lighting", "agricultural lighting", "ocean lighting" and "automotive lighting", develop a series of LED lighting products, and continue to enrich the product system in the field.

Foshan Lighting stated that this fundraising project is closely related to the company's future development strategy and existing main business, and will have a positive impact on the company's main business, which will help the company maintain sustainable development, consolidate its industry position, and significantly enhance future profitability.

Car lights and smart light poles are growing rapidly, and marine lighting is rapidly deploying

It is reported that Foshan Lighting has grown rapidly in the car lights and smart light pole businesses in recent years, and is rapidly deploying in the field of marine lighting.

Specifically, in terms of the car lighting business, in the first half of 2022, Foshan Lighting's car lighting business revenue reached 788 million yuan, a year-on-year increase of more than 4 times, and the revenue share increased from 3.88% in the same period of 2021 to 18.13%, becoming one of Foshan Lighting's key businesses.

Currently, Foshan Lighting has reached cooperation with a number of OEMs, effectively entering the domestic passenger car LED lighting vehicle supply market, while actively exploring the incremental market for new energy vehicles. Previously, Foshan Lighting revealed that the company's car lighting module product business is at full production.

In terms of smart light pole business, Foshan Lighting has actively expanded its smart light pole business by continuously integrating internal resources and won many projects. In 2022, Foshan Lighting's smart light pole revenue will exceed 100 million yuan, an increase from the revenue of more than 70 million yuan in 2021. Previously, Foshan Lighting said that its smart light pole business has received orders of approximately 150 million yuan, becoming a new profit growth point for the company.

In terms of marine lighting, in recent years, Foshan Lighting has been guided by market demand, collaborating with universities and enterprises to jointly conduct research on LED lamps dedicated to fisheries and oceans, and has mastered a number of mature technologies. At the end of last year, Foshan Lighting announced that it would focus on deep-sea lighting, marine fishing lighting and aquaculture lighting, and successfully launched a new aquaculture lighting solution.

Currently, Foshan Lighting is conducting business channel layout in domestic coastal cities for its marine lighting business. In terms of customer resources, Foshan Lighting has established good cooperative relationships with enterprises and universities such as CNOOC, Shenzhen Offshore Oil, Fugang Fishery Group, Jiangpeng Group, China Zhongzheng Fishery Technology Company, Dalian Ocean University, and actively develops customers in marine infrastructure, aquatic fishing and breeding.