SOSEN speed! Focus On New Opportunities, Expand Production Capacity Rapidly

2021, the first year of the "14th Five-Year Plan", will witness the tenth anniversary of the establishment of SOSEN! Ten years of entrepreneurship, ten years of brilliance, at the beginning of the year, SOSEN handed over an excellent 2020 transcript once again and obtained IPO approval quickly in February. Whether it is production and operation or the road to listing, the "SOSEN speed" is everywhere. 

In 2020, SOSEN realized an revenue of RMB 676.4205 million and a net profit of RMB 97.6204 million after deducting non-recurring gains and losses. From 2017 to 2020, revenue and deducting non-net profit achieved an average annual high composite growth of 43.67% and 62.93% respectively. Under the background of the continuous explosive growth of LED lighting market demand, SOSEN complies with market demand and lays out new development strategies actively, expands new plants to increase production capacity rapidly, increases R&D investment, and strives to expand market share.

SOSEN Grasp New Opportunities for Plant Grow Lighting, Expand Production Capacity Rapidly

In 2020, the Covid-19 virus epidemic has swept the world, but LED lighting and LED Drivers industries are still growing against the trend. According to the statistics of the China Lighting Association, the total export value of China's lighting industry in 2020 was US$52.588 billion, breaking through US$50 billion for the first time, an increase of 15.7% year-on-year. Among them, the total annual export value of LED lighting products was US$35.594 billion, an increase of 17.9% year-on-year. Both set a record for the largest increase since 2016. In emerging market, the performance of LED plant grow lighting is particularly eye-catching. Because plant grow lighting in a special environment, it is not restricted by seasons, space and other factors, relying on the advantages of increasing crop growth speed, saving energy and saving water resources, ushered in explosive growth in 2020. According to public data, LED plant grow lighting has become one of the fastest growing lighting applications in 2020. The export of plant grow lighting has increased by more than 5 times in the first three quarters. It was estimated the global LED plant grow lighting system market scale will exceed US$2 billion in 2021.

Plant grow lighting represents one of the important development directions of agricultural science and technology in the future, and has received strong support from the agricultural sector. In the future, it will burst out with stronger technology and market potential, and the market prospects are broad. Relying on its own technology and products advantages, SOSEN carried out a forward-looking R&D layout and market expansion for new LED Drivers in the field of plant grow lighting as early as 2018, and grandly launched related series of products in 2019. Finally, when the golden development opportunity of plant grow lighting was ushered in, SOSEN seized the market opportunity and realized the company's sales breakthrough of LED Drivers for plant grow lighting quickly in 2020. SOSEN’s annual revenue of LED Drivers in the field of plant grow lighting applications totaled about RMB80 million in 2020. In the future, the company will continue to make efforts in the field of plant grow lighting, and LED Driver of plant grow lighting is expected to become a key star series product that promotes the company’s continuous take-off .

Plant Grow Lighting Application Case

In order to meet the continuous and rapid growth of market demand, SOSEN expanded a 10,000㎡ factory again, added numbers of highly automated production lines, brought in more advanced production equipments to improved the level of production automation and product technology. At the same time, in the production and supply management, SOSEN has fully applied the operating technologies of SAP, MES and other information-based intelligent manufacturing management systems to the management of the new production line, which has greatly increased the company's capacity utilization rate.

Accurate Advance the Construction of Zhongshan Production Base and R&D Center Projects

In order to reserve production capacity, new products and new technologies for the continuous and rapid growth of market demand, SOSEN lays out corporate development plans actively. In mid-2020, it has fully launched the preparatory work of IPO fundraising project "High-Power Smart LED Drive Production Base Project and Smart LED Drivers R&D Center”. On December 25, 2020, the government of Xiaolan Town, Zhongshan City will formally start the construction of the key construction projects in a centralized construction ceremony. According to the plan, the main construction of the fund-raising project will be completed and accepted before the end of 2021.

This project is an IPO fundraising project, with a total land area of about 30 acres and a total construction area of 77177.93㎡. The total investment of the project is RMB399 million. 10 new automated high-power LED drive power production lines will be built to improve the level of automated production. The production capacity of power LED Drivers is 12.15 million pieces per year, meeting the company's demand of capacity expansion. At the same time, a new research and development center will be built to become the company's reserve base, innovation base and testing base for new technologies, new products, and new business areas. It will focus on the research and development of advanced power product technologies, and in-depth development of plant grow lighting, smart lighting, 5G smart poles and other new field LED Drivers product.

As a key construction project of the Xiaolan Town Government in Zhongshan City, with the government’s enthusiastic, thoughtful, professional, high-quality and precise service and the passionate input of the construction unit and all project members, the construction is being advanced steadily, efficiently and accurately as planned. The pile foundation project has been successfully completed and has now entered the construction stage of earth excavation and foundation caps.

GEM IPO Registration Take Effect, Embracing the Capital Market

Achieving the initial listing and landing on the capital market is an important strategic move for the company in the process of fulfilling the corporate vision of "creating an outstanding brand of LED Drivers". In 2016, the company completed the restructuring of a joint-stock company and prepared for IPO listing formally. In the past five years, SOSEN has given back to shareholders and employees with brilliant performance and development, and fulfilled the growth mission of "SOSEN" for customers and all partners who are moving forward with the company.

Work hard for several years and build a dream for the future. After 8 months, SOSEN IPO obtained the approval of the China Securities Regulatory Commission for the registration of the GEM to take effect finally in February 2021. SOSEN is preparing to embark on a new journey in the capital market with a new look and in the best state actively. At the same time, SOSEN breakthrough in the field of plant lighting applications and the favorable environment for continued market growth have further strengthened the SOSEN’S confidence in the development of the capital market steadily.

Ten years of ups and downs to start a business, ten years journey to create brilliance! Year-by-year brilliant performance, precise advancement of fundraising projects, rapid expansion of the company’s production, and the entry into force of the GEM IPO registration, every journey is engraved with the concentric and peers of SOSEN people, and the amazing “SOSEN Speed” in everywhere. In 2021, with the favorable development trend of the industry and the assistance of the capital market, SOSEN will embark on a new journey. SOSEN will not forget its original intention and continue to write a new chapter with high-quality products andservices and excellent performance. "Light up the world", “SOSEN” can be expected in the future.