Raising 385 million yuan, professional mobile lighting tool company Dongang Technology rushes for IPO

On September 30, Xiamen Dongang Technology Co., Ltd. (hereinafter referred to as: Dongang Technology) GEM IPO application was newly accepted.

It is reported that Dongang Technology is mainly engaged in the research and development, production and sales of professional mobile lighting tools. The products include folding lights, floodlights, pocket lights, pen lights, long lights, headlights and other series, involving more than 230 models. They are mainly used in professional maintenance (vehicle, ship, aircraft and construction machinery equipment maintenance), construction, outdoor operations and emergency disaster prevention and other special scenarios, allowing customers to obtain a safe, stable and convenient lighting experience in complex environments such as strong vibration, strong impact, heavy oil pollution, high and low temperatures, high humidity, and high pressure.

In the prospectus, Dongang Technology pointed out that the LED professional mobile lighting terminal market is mainly located in Europe and North America. In 2021, Europe will account for 38.4%, and North America will account for 33.58% of the market size.

At the same time, professional mobile lighting tools belong to a subdivision of the lighting industry. Due to their special usage scenarios, they have obvious "tool" attributes. Large multinational companies, especially tool brands, occupy an important position. In the field of professional mobile lighting, Snap-on's market share ranks second in North America, while Benel and Würth's market shares rank first and second in Europe respectively.

Dongang Technology adopts a business strategy of focusing on high-quality large customers. It mainly uses ODM methods to customize production for internationally renowned tool companies such as Snap-on, Benel, and Würth, and has established long-term and stable cooperative relationships with these companies. Its products are mainly sold to economically developed regions such as Europe and North America. From 2019 to 2021 and January to June 2022, the proportion of foreign sales in Dongang Technology’s main business income was 99.24%, 99.31%, 98.88% and 93.92% respectively. The composition of the main business income is as follows:

By applying to be listed on the GEM this time, Dongang Technology plans to raise 384.9539 million yuan to invest in high-end professional mobile lighting tool production base construction projects, R&D center construction projects, and marketing network construction projects.

In the future, Dongang Technology will continue to deeply explore the markets of economically developed regions such as Europe and North America. At the same time, it will closely follow the national policy guidance and seize the opportunities of the "Belt and Road" construction. With the product development and manufacturing experience accumulated in the markets of economically developed regions such as Europe and North America, it will launch its own brand products in the countries along the "Belt and Road" and radiate to surrounding areas to promote the global layout of the company's products.