Lite Optoelectronics Science and Technology Innovation Board Debut Shaanxi will add a new listed company

On November 1, at the 80th Listing Committee Review Meeting of the Science and Technology Innovation Board in 2021, Shaanxi Wright Optoelectronic Materials Co., Ltd. (hereinafter referred to as "Lite Optoelectronics") made its first meeting, and Shaanxi is expected to add a new listed company.

The first largest customer BOE

In the past three years, it has contributed more than 70% of its revenue

Wright Optoelectronics is the 2021 Xi'an Ganmen List TOP20 enterprises, formerly known as Wright Limited, which was established in 2010, mainly engaged in the research and development, production and sales of OLED organic materials.

In the field of display technology, OLED is gradually replacing LCD as the mainstream display technology of mobile terminals due to its thin and light, low power consumption, high contrast, and bendable characteristics. In recent years, BOE, Huaxing Optoelectronics, Visionox and other panel manufacturers have spent huge sums of money to build OLED production lines, and correspondingly, the release of panel manufacturers' production capacity has put forward a greater demand for OLED organic materials.

The revenue of Wright Optoelectronics is related to the domestic panel giant BOE. BOE is the largest customer of Lite Optoelectronics, and from 2018 to 2020, sales revenue to BOE accounted for 75.81%, 86.16% and 74.22% of Lite Optoelectronics' revenue. In addition to BOE, the customers of Lite Optoelectronics who supply batches also include Huaxing Optoelectronics and Hehui Optoelectronics.

In recent years, the OLED industry has developed rapidly, and the production capacity of domestic OLED panel manufacturers such as BOE has continued to grow, which has driven the performance of Lite Optoelectronics all the way up. However, Wright Optoelectronics also hinted in the prospectus that there is a risk of greater dependence on BOE.

30% shareholder of the company

In the past year, "surprise" into the shares

Prior to the IPO of the Science and Technology Innovation Board, Lite Optoelectronics was listed on the New Third Board for more than a year from January 2016 to October 2017.

After being delisted from the New Third Board, Lite Optoelectronics has experienced multiple capital increases and share transfers, and has introduced more powerful shareholders. For example, the company's second largest shareholder, Legend Chengye and Legend Huicheng, are involved in Legend Holdings, the National Social Security Fund, the Chinese Academy of Sciences and so on.

Before the issuance, Lite Optoelectronics had 37 shareholders, and in the latest year, the company added 13 shareholders, accounting for about 30%. Listing expectations are the reasons for some shareholders to invest. Wright Optoelectronics said that when some shareholders invested in or transferred the company's equity, they agreed with the controlling shareholder and the actual controller on the VAM clause on share repurchase, and the VAM clause was the IPO of Wright Optoelectronics.

The actual controller of Wright Optoelectronics is Wang Yalong, chairman and general manager of the company. As of the latest prospectus, Wang Yalong directly holds 54.85% of the shares, and the Xi'an Qilin, Gongqingcheng Qilin and Gongqingcheng Qinghe controlled by him hold a total of 6.75% of the shares of Lite Optoelectronics. Therefore, Wang Yalong directly and indirectly controls a total of 61.6% of the shares of Lite Optoelectronics.

A securities company person believes that the actual controller of the enterprise holds a relatively high proportion of equity, which is conducive to the stability of the company's daily decision-making and implementation, and is also beneficial to the company's subsequent technological innovation ability, but it is necessary to pay attention to avoiding the risk of control concentration.

From the meeting to the listing

How long will it take?

There are 63 companies in Shaanxi that are listed on A-shares. In addition to Wright Optoelectronics, there are 5 companies that have not yet been issued after passing the issuance review meeting.

Wind data shows that the audit status of Sirui New Materials and Juguang Technology is "submitted to the Securities Regulatory Commission"; Meineng Energy has passed the issuance review committee; Yidian Tianxia and Rongxin Education need to be supplemented due to expired financial information, and the audit status is temporarily "suspended review".

An investment banker introduced that from the meeting to the formal listing, IPO companies also need to go through a series of links such as sealing, post-meeting matters, and submission plans, due to different review rhythms, different issuers, and different lengths of time, generally within half a year. If the procedures are processed quickly, they will be issued in about a month.

According to the logic of the past, the meeting is almost the last hurdle to determine the success of a company's IPO. As long as the meeting is successful, it is only a matter of time before the company goes public. However, since the beginning of this year, all this is undergoing new changes.

Wind data shows that since 2021, 9 companies have stopped at the post-conference registration stage.

"Since the pilot registration system, enterprises have passed the on-site inspection and successfully passed the meeting, which no longer means that the listing has entered the safe. Because at the registration stage, the supervision will still strictly check the enterprise. As soon as problems were identified, the IPO collapsed. The above-mentioned investment banker said.

Therefore, although the registration system relaxes the listing threshold, the ultimate success of the IPO depends on whether the company's own conditions are too strong. Huashang Daily reporter Li Cheng