LED lighting market listed ** tide

On June 22, 2011, Shenzhen Zhouming Technology Co., Ltd. successfully listed in Shenzhen. In May 2011, the domestic LED packaging company Hongli Optoelectronics (300219.SZ) and the display company Alto Electronics (002587.SZ) also successfully landed on the Shenzhen Growth Enterprise Market and the Small and Medium-sized Board respectively. In addition, Ruifeng Optoelectronics, which has successfully met IPO.

“Only Shenzhen has several LED companies that are preparing for listing. Some of them have submitted applications to the Securities and Futures Commission.” It is understood that companies currently preparing for listing in the LED industry include Mulinsen, Ruifeng Optoelectronics, Juzuo, Wanrun and Lianjian Optoelectronics. Wait. At the same time, the mainland has also already dozens of LED companies have completed or are undergoing a share reform, and once the share reform is over, it will also go to the market. Just last year, three LED chips and packaging companies, Guoxing Optoelectronics (002449.SZ), Qianzhao Optoelectronics (300102.SZ) and Lehman Optoelectronics (300162.SZ), also achieved IPOs respectively.

Listing has clearly become the most important channel for LED companies to expand their scale and accelerate their development. To go to the capital market to ring the listed bell has become a new target for more corporate development. In this regard, Professor Wang Shouren, executive vice president of the Shenzhen Venture Capital Association, said: "Some growth enterprises have generally faced growth bottlenecks when their sales revenue exceeds 100 million yuan and net profits reach 34 million yuan. The board provides a financing platform for these companies so that SMEs can continue to expand their scale through the capital market, further promote R&D, and improve their business management models."

“At present, LED companies in the Mainland cannot compete with Taiwan’s LED giants in terms of technology and scale. If there is no further capital boost, the future development of mainland LED companies will be full of more uncertainties.” Focusing on LED research The investor pointed out. And Hongli Optoelectronics clearly pointed out in its prospectus that subject to the strength of funds, it has been subject to certain restrictions in expanding the production scale of products and optimizing the product mix, especially with the leading companies in Taiwan and abroad. With a certain gap, it is imperative to use capital strength to achieve rapid development and industrial upgrading. “Under the current policy of energy saving and emission reduction in the mainland, if an LED company in mainland China can be successfully listed, it will greatly improve its brand, financial, credit rating, and external market cooperation and market confidence,” said one investor. .

What kind of company is easier to go public?

The flood of LED listings has also raised questions from insiders: What kind of companies are more likely to be listed? What genes are there for companies that are expected to be listed?

In an interview with reporters, some investors also stated that in addition to the “guidedness” of industry distribution, another major gene of potential listed companies is to have an excellent team. The company's development to a certain stage, whether it can be listed, depends on the leadership of the company, or leadership team. This is an important factor in determining whether a company can go public. The first partner of Qingyun Ventures, who was the earliest investor in China's clean technology field, thinks that Mr. Wen Wenzhi believes that companies that have their own qualifications, experience in the lighting industry, and corresponding channel capabilities often have capital assistance. The immediate "effect" can quickly use capital strength to make the company bigger and stronger.

He also emphasized that the semiconductor lighting application market is very diversified, and the market opportunities faced by domestic companies in the future are actually very large. For more companies with market demand, they need to have a strong sense of and control over the entire industry chain. (Especially, the industrial chain that the company expands again extends to, for example, chip companies do packaging and package companies do lighting applications). At the same time, they must have the ability to grasp the channels of a certain professional application market that is in line with the company's own positioning and corresponding technical levels. In general, corporate managers are required to have “thinking thoughtfully” and have a clear understanding of the structure of the industry and its own development.

"Implementing the listing is only a process of company development."

“Implementing the listing is only a process of company development,” said Lin Yufeng, chairman of Zhou Ming Technology. “One of the listings is to provide funds for the development of enterprises, and at the same time to build a sustainable financing capital market platform for future development; the second is to become a listed company. The company will further improve its corporate governance structure. Third, it will attract and retain high-end technical talents through listing to further enhance its technical strength. At the same time, it will further expand the production capacity of the main industry, vigorously expand the LED lighting market, and actively respond to the market at any time. The explosive growth; and further enhance the brand image of Chau Ming."

And why did Schumacher take the lead in many LED companies with IPO expectations? Lin Yufeng said: “Increasing corporate competitiveness and continued growth in performance, and the company’s standardized operations are two important factors for successful listing. In accordance with international standards to regulate the development of enterprises, but also should be the company's core competitiveness." But he also said: These days, the pressure after listing more than the excitement of the listing itself, because the company is bigger At the same time, it also comes with management risks. Moreover, "After the company goes public, people will look at you every step of the way, either to the left or to the right. They say it is not enough and they must be accountable to the shareholders and be responsible for the entire team."

Not only is Lin Yifeng aware of the “risks” brought about by the listing, but one investor who once worked on the stock exchange and has done entrepreneurial startup reminds companies that are preparing to go public. “For companies that want to go public, To make it clear what the benefits of listing are, we must also be clear about the challenges faced after the listing.” In addition to enabling companies to achieve financing, they can attract talents and promote brands through the equity mechanism, which will also bring about some negative impacts. .

"After getting money on the market, the example that the company has begun to decline is commonplace." For enterprises, listing is only the first step in the Long March, and the huge amount of funds raised by listing also imposes higher requirements on the operation of the company. When the business management and management capabilities are not matched in time, the use of funds or other aspects of management problems, resulting in poor operating conditions, there will be risks such as business crisis and reduce value. The investor believes that “it is very valuable for a company to go to the market and it should be regarded as a simple start no matter where it is listed.”