Hengtai Lighting,

Jiangsu Hengtai Lighting Co., Ltd. (hereinafter referred to as: Hengtai Lighting) was successfully listed on the North Exchange today after being delisted and transferred from the New Third Board, becoming the "No. 1 LED lighting stock on the North Exchange". The stock code is 873339, opening up 7.48%.

Hengtai Lighting was founded in 2018, targeting the industrial lighting and commercial lighting markets. It currently has LED lighting technology that can be easily installed and disassembled, mounting bracket technology for lighting engineering, new LED lighting technology based on air flow self-cleaning, half-cut component technology, emergency lighting distribution device box and many other major technologies, and has initially achieved commercial application in the field of smart lighting.

In terms of products, Hengtai Lighting mainly provides LED high ceiling lights (industrial and mining lights) in the field of industrial lighting, and mainly provides LED line lights and LED panel lights in the field of commercial lighting. The products are mainly sold overseas (North America). In recent years, overseas sales revenue has accounted for more than 95%, of which the US market revenue has accounted for more than 85%.

It is worth noting that according to information from the China Lighting Electrical Appliances Association, Hengtai Lighting ranked first among industrial and mining lamp product export companies in the first three quarters of 2021. In the single U.S. market, Hengtai Lighting occupies 1/4 of the market share.

In addition to LED lamps, Hengtai Lighting also provides customized LED lighting intelligent control solutions, which can intelligently control the color temperature, brightness and switching of lighting fixtures based on factors such as space, time, daylight, season, etc., thereby achieving energy-saving and comfortable use experience.

With this issuance of shares, Hengtai Lighting plans to raise 139.416 million yuan to invest in the "annual output of 5 million sets of LED lighting fixtures project", "R&D center upgrade project" and "intelligent production equipment technical transformation project". The main purpose is to expand production scale, enhance innovative research and development capabilities, thereby enhancing core competitiveness and better meeting diversified market demands.

Among them, the total investment of the project with an annual output of 5 million sets of LED lighting fixtures is 157 million yuan. After completion, it will significantly expand the production scale of Hengtai Lighting and enhance the company's warehousing and supply chain capabilities.

The R&D center upgrade project has a total investment of 21 million yuan. The main R&D contents include: strategic cooperation with the optoelectronics college of universities, the development of LED plant lights and UV lamps, LED product R&D centers, IOT intelligent interconnected LED lighting systems, etc., which will help Hengtai Lighting further enhance the company's technological R&D strength in the LED lighting industry and meet the constantly updated market demand.

The total investment in the intelligent production equipment technical transformation project is 21.143 million yuan. It is planned to carry out equipment technical transformation on the punching workshop production line and purchase production equipment such as punches, bending machines, press brakes, manipulators, feeding platforms, servo feeders, etc. The purpose is to improve the technical level of production equipment, improve production efficiency, and reduce labor costs.

Hengtai Lighting pointed out that in the context of global energy conservation and environmental protection, the growing demand for lighting renewal and replacement will promote the continued expansion of the LED lighting market; in addition, smart lighting has become an inevitable trend in the LED lighting industry. At the same time, the demand for the lighting market continues to diversify, injecting new vitality into the LED lighting industry and creating more room for lighting companies to play.

At this stage, Hengtai Lighting has a weaker brand influence than major international manufacturers such as Signify and domestic manufacturers such as Opple Lighting, Foshan Lighting, and Sunshine Lighting. However, it has formed long-term and stable cooperative relationships with some international brand manufacturers. It has undertaken overseas market business in North America, established a certain market position in North America, and its business has also shown a trend of rapid development.

Since 2019, Hengtai Lighting’s revenue and net profit have shown a growth trend, with revenue increasing from 511 million yuan in 2019 to 767 million in 2021. 100 million yuan, with net profit increasing from 72.1066 million yuan in 2019 to 79.851 million yuan in 2021; in the first three quarters of 2022, Hengtai Lighting's revenue was 534 million yuan, and net profit has reached 106 million yuan, a year-on-year increase of 57.57%.

After listing, Hengtai Lighting will expand financing channels, accelerate the expansion of business scale through the implementation of fundraising projects, and gradually enhance its brand influence, thereby increasing market share and maintaining long-term profitability.