On the morning of November 2, shares of Ocean'S King Lighting Science&Technology Co.,Ltd. (ASX: 002724) opened at the daily limit down after the company issued a risk warning.

Previously, driven by AI lighting and speculative hype around the Chinese characters for "sheep" and "ocean," the stock surged 110.89% in October even as the broader A-share market pulled back sharply.

In a November 1 announcement, the company stated that its shares had accumulated a closing price deviation exceeding 100% over ten consecutive trading days (October 19 to October 30, 2026). Under relevant Shenzhen Stock Exchange regulations, this constitutes a case of severe abnormal stock trading volatility.

The company noted that revenue from its AI-powered smart lighting business remains limited in scale and does not yet have a material impact on overall performance. It also clarified that while it produces professional luminaires with radiation-resistant certification for use in nuclear island areas, lighting equipment is not its primary production equipment and the company does not fall under the "nuclear power" concept. Additionally, the company currently has no products capable of operating at depths of 10,000 meters and has no connection to the "deep-sea technology" concept.

The stock's rally began in mid-October. Since October 16, the share price has risen in a one-directional trend, gaining over 100% during the period. The company has repeatedly triggered abnormal stock trading volatility conditions.

From a news perspective, the stock has been associated with concepts such as "AI plus smart lighting," "nuclear power," and "deep-sea technology." Public information shows that the company was founded in August 1995 and is a privately held high-tech enterprise engaged in independent research, development, production, and sales of various professional lighting equipment, lighting plus intelligent control systems, and service products, as well as undertaking various lighting engineering projects. It listed on the Shenzhen Stock Exchange in November 2014.

The company is a leading domestic manufacturer of industrial lighting equipment for special environments, with its original business covering related tracks such as smart light poles. However, there is a gap between strategic layout and revenue realization, and the company has explicitly noted in its announcement that AI plus smart lighting revenue remains limited in scale.

As the first professional work lighting enterprise in China, the company's main business has gradually transformed from the early research, development, sales, and production of traditional special environment lighting equipment toward a professional lighting service-oriented enterprise. Its products have evolved through multiple generations including halogen tungsten lamps, gas discharge lamps, and energy-saving lamps, and have now entered the sixth generation LED lighting era. Product forms have also upgraded from single professional lighting fixtures to a multifunctional integrated "lighting plus" composite system.

Currently, the domestic professional lighting industry presents a development pattern of stable overall volume with structural differentiation. Competition in the traditional single-fixture market is intensifying and prices continue to face pressure, while high-value-added tracks centered on intelligent IoT, system energy efficiency, and special extreme scenarios continue to grow.

In the first three quarters of this year, the company recorded operating revenue of 1.077 billion yuan, down 3.93% year-on-year, and net profit attributable to shareholders of 62.6381 million yuan, up 14.32% year-on-year. Third-quarter net profit alone was 34.2301 million yuan, turning profitable compared to the same period last year.