Op Lighting is under pressure and its performance is stagnant
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In May, Op Lighting once again embarked on the IPO road, ready to go to the main board of the Shanghai Stock Exchange. It plans to issue no more than 58 million shares, or will raise more than 1.2 billion yuan for three fundraising projects. Behind the sprint IPO, Op Lighting is facing internal and external problems. The internal performance growth began to slow down, LED transformation is not smooth; the external is facing a major transition period from traditional lighting to LED in the lighting market. Many new LED lighting companies have begun to eat away from the lighting market share and the huge pressure on the property market to decline. According to the pre-disclosed Prospectus, the growth of Op in the LED lighting era is not optimistic. The 2013 performance growth has slowed significantly. In 2012, Op Lighting's operating income and net profit increased by 16.78 and 187.52 respectively, while the growth rate in 2013 was 8.02 and 11.54 respectively. Op Lighting is mainly focusing on national home lighting, with lighting sources, lamps and controls. Product development, production and sales are the main business. As of the disclosure date of the prospectus, the company's main products are divided into 4 categories, including home lighting, light sources, commercial lighting, lighting control and other products. Among them, only home lighting products include more than 500 kinds of household lighting products in nearly 13 series, such as living room series, restaurant series, bedroom series, children's room series, study series, kitchen and bathroom series, balcony series. In this IPO, Op Lighting intends to raise about 1.2 billion yuan to invest in green lighting production projects (566.6 million yuan), display centers and marketing network construction projects (471.3 million yuan) and R&D center construction projects (166.5 million yuan). Among them, the green lighting production project includes two sub-projects. The annual output of LED green lighting products is 22.749 million, and the estimated investment is 230 million yuan. The non-LED green lighting products are expected to invest 33.86 million yuan. A veteran of the lighting industry said that Oupu is focusing on home lighting in the traditional lighting era. The fundraising projects are also centered on the main business of lighting. It is undoubtedly for its LED lighting era to continue to expand its scale and consolidate its market leading edge. Good thing. However, from the current market situation, Op Lighting is already the first in the home lighting segment. It is quite difficult to continue to expand its market share. If it can be quickly opened in the commercial lighting field, it is the best, but facing The difficulty is undoubtedly the biggest. In addition, in 2013, Op Lighting's growth rate of both operating income and net profit showed a significant slowdown. From 2011 to 2013, the company's operating income was 2,687,343,300 yuan, 3,314,209,700 yuan and 3,390,043,700 yuan respectively. They were 14,731,300 yuan, 42,929,490 yuan and 47,881.51 yuan respectively. In 2012, the company's revenue and net profit increased by 16.78 and 187.52 respectively compared with 2011. In 2013, the company's revenue and net profit increased by 8.02 and 11.54, respectively. In the declaration, Op Lighting also admitted that the lighting industry is already a In the global competitive market, international famous brands have already regarded China as one of their main sales markets. Domestic well-known brands have also begun to vigorously explore the international market. Relevant industry enterprises have continuously increased their investment in the lighting industry, some large home appliances and electronics companies, LEDs. Chip manufacturing and packaging companies in the upstream and midstream of the industry gradually extended their business to lighting applications. At the same time, the rise of e-commerce in recent years has also impacted traditional marketing channels. In the future, the market competition methods, means and intensity of the lighting industry will change. If the company cannot adapt to the future competition situation, it may face the risk of market share loss. In addition, the inventory of Op Lighting has shown an obvious upward trend year by year. At the end of 2011, the end of 2012 and the end of 2013, the company's inventories were 218 million yuan, 236 million yuan and 292 million yuan respectively. The net inventories in 2012 and 2013 increased by 8.26 and 23.73 respectively. The net inventory in 2012 and 2013 was net. The amount also accounts for 10.47 and 11.31 of the total assets respectively. In this regard, Opal Lighting explained that the total of products and finished products increased by RMB 29,913,300 over the end of 2011, an increase of 21.42, which was the company's sales for the peak season. The increase in inventory reserves; at the end of 2013, the balance of products and finished products increased by RMB 50.82 million compared with 2012, an increase of 29.66. Except for the increase in safety stock standards due to the increase in sales volume of the company, the growth rate of e-commerce sales of the company since 2013 has been very high. Fast, due to the high e-commerce sales and delivery speed requirements, short stocking period, in order to deal with such sales companies need to increase inventory. In the future, Oup will increase the risk of commercial lighting development, and it will face the risk of further increase in inventory. In the declaration, Opp also admits that the commercial lighting business has the characteristics of high product customization and long supply cycle. The development of such services will also expose the company to the risk of increased inventory balance and lower turnover rate.