[High-tech LED News] Newsletter On the evening of October 26, Gaogong LED reporter learned from relevant persons of the CSRC that Dongguan Qinshang Optoelectronics Co., Ltd. had a successful A-share initial meeting and will become the 10th LED-based company since 2010. Listed companies in the business.

In 2010, Qinshang Optoelectronics realized revenue of 552 million yuan. In the first half of 2011, Qinshang Optoelectronics realized revenue of 319 million yuan and net profit of 37.95 million yuan. Based on operating income, Qinshang Optoelectronics will become the largest listed company in China's LED lighting application revenue to date.

According to the disclosure information of the prospectus, the company's main business includes LED landscape lighting, LED functional lighting, LED display and LED special lighting. Among them, LED functional lighting based on high-power white LED lighting technology is the company's main business. The main aspects and development direction, at the end of the reporting period, its proportion of the company's main business income accounted for more than half. At the same time, the contribution of high-power white LED functional lighting to the company's main business will also increase significantly year by year.

EMC model is expected to spread rapidly

Previously, Qinshang Optoelectronics has been actively exploring cooperation with energy-saving service companies, and tried to implement major lighting energy-saving renovation projects with EMC companies in the EMC model.

At this stage, the expansion of the LED lighting market with the EMC model has extremely high requirements for the company's own funds. After the successful fundraising by Qinshang Optoelectronics, the LED lighting energy-saving retrofit will directly provide users with effective financial support through the EMC model. According to the company's disclosed plan, by 2014, EMC business revenue accounted for about 30% of the company's main business income.

Mid-to-high-end lighting prices and channel wars started in advance

With the investment of fundraising projects, the company's production capacity will further expand. According to the previously announced plan, Qinshang Optoelectronics will implement dynamic price management to accelerate the LED lighting penetration process based on changes in the purchase price of major raw materials such as upstream chips and changes in the company's comprehensive costs.

At the same time, during the reporting period, the company began planning to establish LED lighting and light experience centers and marketing display centers in major domestic regions, and actively develop distribution agency relationships with traditional lighting product distributors through specialized business units and specialized marketing strategies. Establish and improve the channel system of the company's indoor products, landscape lighting products and outdoor lighting products.

In recent years, domestic traditional lighting companies rely on their own channel advantages to gradually transform into LED lighting, but the pace is still cautious. With the LED lighting companies such as Qinshang Optoelectronics gradually expanding their channels through the capital market, the channels and price wars of traditional lighting companies and LED lighting companies are expected to start ahead of schedule.

Three major risks may affect the performance of Qinshang Optoelectronics

In the prospectus, Qinshang Optoelectronics also listed the relevant investment risks.

First, the risk of market competition, as more and more traditional lighting companies have begun to gradually transform into semiconductor lighting companies, the industry has greater market competition risks.

Second, the risk of a higher balance of accounts receivable. The company's outdoor lighting products and integrated solutions have a relatively long cycle. In the event of a failure to recover the purchase price in time, there is a risk of loss of bad debts.

Finally, the market risk of raising funds investment projects, due to rapid expansion of production capacity, and the project requires vigorous development of domestic and foreign markets, the company may be out of production risk due to insufficient market development capabilities.

Accelerate the pace of listing of LED lighting companies

In 2010, with Guoxing Optoelectronics and Lehman Optoelectronics taking the lead in launching the first shot of LED packaging companies, it quickly boosted the domestic LED packaging and display companies' listing boom.

At present, the A-share market LED segment has a total of 44 listed companies (including non-LED main business). From a number of indicators, the upcoming Hi-Technology Division is leading the industry. With the further development of the raised funds and the successful development of the fundraising project, the scale of the main business of Qinshang Optoelectronics will continue to expand, and it is expected to quickly drive the listing of domestic LED lighting-based business enterprises.

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