The actual controller may change, and LED lighting company Chenfeng Technology will suspend trading from today

On May 8, Chenfeng Technology announced that the company received a notice from the controlling shareholder Haining Qiujing Investment Co., Ltd. (hereinafter referred to as Qiujing Investment) on May 7 that Qiujing Investment and its concerted parties are planning a major event, which may lead to changes in the company's controlling shareholder and actual controller.

In view of the significant uncertainty surrounding the above matters, trading in Chenfeng Technology stocks and its derivatives will be suspended from the market opening on the morning of May 8, 2023 (Monday), and the trading suspension is expected to last for one trading day.
It is reported that Chenfeng Technology is mainly engaged in the research and development, production and sales of lighting product structural components. Its main products include LED bulb radiators, lamp base products, printed circuit boards, lamp metal parts and others.

Qiujing Investment was established in 1998 and is an enterprise mainly engaged in capital market services. Currently, Qiujing Investment holds 35.10% of the shares of Chenfeng Technology.

Source: Chenfeng Technology 2023 First Quarter Report

In terms of performance, in 2022, Chenfeng Technology achieved operating income of 1.162 billion yuan and net profit attributable to the parent company of -40.4776 million yuan.

Come 2023, Chenfeng Technology achieved operating income of 250 million yuan in the first quarter and a net profit of 3.8981 million yuan attributable to shareholders of the listed company.

Regarding changes in performance in 2022, Chenfeng Technology pointed out that in 2022, the macroeconomic growth trend will slow down, geopolitical conflicts will intensify the instability of the world, and inflationary pressure will continue to rise. The overall demand in the lighting industry is shrinking, and the development of the industry is facing great difficulties and challenges.

Faced with the adverse effects of high raw material price fluctuations, poor logistics, and low-price competition in lighting product structural components, Chenfeng Technology will focus on promoting the construction of Chenfeng projects and investment projects in India in 2022.

Among them, Chenfeng India, a subsidiary of Chenfeng Technology, was established in 2018. In the annual report, Chenfeng Technology pointed out that the operating income of the Indian subsidiary in 2022 was 190.4633 million yuan, a year-on-year increase of 186.44%. At present, the self-built factory of the Indian subsidiary has been capped and is undergoing mechanical and electrical engineering construction. It is expected to be completed and put into operation in 2023.

On October 20, 2022, Chenfeng Technology pointed out in a survey of specific subjects that India is in a period of rapid development, the industry is not very developed, the market competition for LED lighting structural parts is not very fierce, and the market prospects are good. It also pointed out that after the self-built factory of India Chenfeng is put into operation, the planned annual output value target is about 300 million yuan.

It is reported that the Indian factory mainly produces PC covers and LED radiator products.

In terms of fundraising projects, Chenfeng Technology will publicly issue 4.15 million convertible corporate bonds to the public in 2021, raising a total of 415 million yuan, with a net fundraising amount of 406.2562 million yuan; the fundraising projects are "high-power LED lighting structural parts and kitchenware accessories production line construction projects", "intelligent upgrade projects", "acquisition of 16% equity of Mingyi Electronics project" and "supplementary working capital project".

+In 2022, Chenfeng Technology added Jiangxi Chenfeng as the implementation entity of the fundraising project, and jointly completed the "High-Power LED Lighting Structural Parts and Kitchenware Accessories Production Line Construction Project" with its holding subsidiary Mingyi Electronics. At the same time, Chenfeng Technology added Jiangxi Chenfeng Factory in Ruichang Economic Development Zone, Jiujiang City, Jiangxi Province as the implementation location of the fundraising project.

+The company believes that this move will further leverage the advantages of the LED industry cluster and resource location advantages of Ruichang City, Jiangxi Province, help the company improve the efficiency of the use of raised funds, and provide more powerful support for the effective implementation of raised investment projects.