On April 12th, 2021, our CEO—Tom Luan, together with the Investment Director—Rex Ren visited TECNON Lighting, an A-share listed company(300650.SZ), which has dual-core businesses in Semiconductors and Commercial Lighting. Following TECNON’s chairman Zhanlong Zhuang’s warm welcoming, the two parties engaged in a candid and in-depth discussion over TECNON’s technology advancement as well as their plan of development in the semiconductors industry.
TECNON Lighting was officially established in 2002, locating in Zhangzhou, Fujian, which provides premium OEM/ODM/customization services in the LED commercial lighting segment. Several key products include LED track spotlight, LED display, and LED sign, while there are also additional services such as spec-in proposals, lighting designs, and on-site constructions, endowing TECNON the abilities to fulfill the multitudinous needs of its clients, who are generally retailers in the clothing, furniture & appliances, grocery, and dining industries.
TECNON Lighting Industry Park
In May of 2020, TECNON released a notice, proposing to acquire a top semiconductors distributor—“Upstar” for 750 million yuan (~120 million dollars), signaling TECNON’s determination in transforming into a Semiconductor enterprise. Upstar is well-known not only for its President: Yi Yuan, a pioneer in driving US business development in China in his early career at Broadcomm and T.I, but Upstar is also recognized for partnering with some of the largest international suppliers and domestic companies in serving the Wireless, Consumer, and Industrial markets. As of May of 2021, the acquisition phase has been completed, and the 2 parties are currently cooperating to formulate strategies for the Semiconductors market.
residential and retail stores lighting (top) & Upstar suppliers (bottom)
Since its establishment in 2002, TECNON has been pursuing the perfecting of optical effects for its clients, enhancing their customers’ shopping experiences, thereby effectively promoting clients’ brands. Its success in the Commercial Lighting industry can be testified by its carrying off of the most prestigious award in the industry—the “Top 10 Lighting Supplier” award under the “Golden Finger Award” category in 2011, only TECNON’s 9th year in the industry.
Under the presence of COVID-19 and the limitations of the health and safety restrictions in 2020, TECNON continued to grow as a result of enhanced management of distribution channels, expansion of the domestic market, and further exploitation of niche markets. On the other hand, the firm is also adapting to the new state of the economy through product innovations.
Tom Luan，Zhanlong Zhuang (TECNON's Chairman)，Yi Yuan (Upstar's Chairman)，Xiaolan Li，Rex Ren (left to right)
Our knowledge and backgrounds in semiconductors resonate with TECNON’s dual-business strategy in “commercial lighting + semiconductors”. Consequently, we the Shenzhen Honesta Capital have formed a close tie with TECNON Lighting through this visit, following which we look forward to facilitating TECNON in initializing and achieving a complete transition to a semiconductor company.
