On January 27, the IPO of one chip company was approved on the science and innovation board and the gem respectively. Xinlong technology technology innovation board IPO plans to raise 263 million yuan, and BYD semi guided gem IPO plans to raise 2.001 billion yuan.
Referring to the prospectus (the draft of the last meeting), the two simulator companies have their own advantages. BYD semiconductors, known as the “first stock of car core” in the market, is like a small giant growing rapidly. It is expected that the profit will increase by about 5 times in 2021. Xinlong technology is “small and beautiful”. Its DC-DC (DC-DC converter) power chip is widely used in vehicle electronic devices, industrial control, consumption and other fields.
scientific and technological innovation foot
BYD semi conductor “the first strand of car core” is by no means a false name.
According to the statistics of omdia, from 2019 to 2020, the sales of BYD semi conducting IGBT module ranked second among the global manufacturers of IGBT module for motor drive controller of Shanxi Guoxin Energy Corporation Limited(600617) passenger cars and first among Chinese manufacturers, and the sales of IPM module maintained the leading position of the top three in China. In addition, the company’s cumulative shipment of vehicle specification MCU chips occupies a leading position among Chinese manufacturers and is the largest manufacturer of vehicle specification MCU chips in China. In terms of smart sensors, BYD semi conducting CMOS image sensors ranked fourth among Chinese manufacturers in terms of sales in 2019.
BYD semi director said that the company always pursues the development concept of “technology is king and innovation is based” and attaches great importance to re-engineering. As of the signing date of the prospectus (last draft), the company has 1167 authorized patents, including 747 invention patents.
BYD semiconductors plans to issue no more than 50 million shares this time, raising about 2.001 billion yuan, which is mainly invested in power semiconductor key technology R & D projects, high-performance MCU chip design and test technology R & D projects, high-precision BMS chip design and test technology R & D projects and supplementary working capital.
Xinlong technology said that the company is one of the few design enterprises in China that focus on the field of medium and high voltage and medium and high power dc-dc power chips. It is also one of the representative enterprises with the most complete product categories in this subdivision field in China. The core parameters of the main products reach or exceed the level of the products of international leading enterprises such as Texas Instruments and adeno.
The prospectus (last draft) disclosed that Xinlong technology has 68 patents, of which 65 are invention patents and 58 are self-developed.
Xinlong technology plans to raise about 263 million yuan in this public offering, which will be invested in the R & D and industrialization construction project of synchronous rectifier high-voltage and high-power chip, the construction project of R & D center and supplementary working capital.
rapid profit growth
Leading market position also brings performance jump growth. BYD semi director expects to achieve a revenue of 3.05 billion yuan to 3.2 billion yuan in 2021, with a year-on-year increase of 111.63% to 122.04%; The net profit attributable to the parent company was 350 million yuan to 395 million yuan, with a year-on-year increase of 496.94% to 573.69%.
For performance growth, BYD semi disclosed two reasons: first, the sales volume of downstream new energy vehicles increased significantly, driving the rapid growth of the company’s profits; Second, affected by the tight global chip supply, downstream home appliances, industrial control and other customers have increased their procurement of Chinese chip manufacturers, including the company, in order to ensure the safety of the supply chain. The sales of the company’s intelligent control IC, intelligent sensor and other products to external customers have increased significantly.
According to the financial data, in 2018, 2019, 2020 and the first half of 2021, the net profit of BYD semi leading to the parent company was 104 million yuan, 85.1149 million yuan, 58.6324 million yuan and 184 million yuan respectively.
As a simulator company, Xinlong technology is “small and beautiful”. In 2019, 2020 and 2021, the company achieved revenue of 111 million yuan, 158 million yuan and 210 million yuan respectively, and net profit attributable to the parent company of 28.6881 million yuan, 43.1677 million yuan and 67.0961 million yuan respectively. The performance growth rate is also very observable.
It should be mentioned that the gross profit margin of Xinlong in the technical reporting period was 43.42%, 42.18% and 49.36% respectively, with a high level of gross profit margin. In addition, the company may be one of the companies with the lowest number of people on the science and innovation board. As disclosed in the prospectus (last draft), the company has 53 employees, including 35 R & D personnel, accounting for 66.04%.
the inquiry of the municipal Party committee of the two cities is accurate
Having reviewed the meeting does not mean that the company will be all right. At the review meeting of the municipal Party committee, both companies were questioned on site.
Specifically, the municipal Party Committee on the gem raised questions on BYD semi guidance, including whether related party transactions are fair or not. It is disclosed that the amount of goods sold by BYD semi director to Byd Company Limited(002594) group during the reporting period was 910 million yuan, 601 million yuan, 851 million yuan and 670 million yuan respectively, accounting for 67.88%, 54.86%, 59.02% and 54.24% of the operating revenue respectively. Power semiconductor and optoelectronic semiconductor products, manufacturing and services are mainly sold to Byd Company Limited(002594) group, and the gross profit margin of related sales is high.
Therefore, the municipal Party committee asked BYD semi guidance to explain three major issues: first, whether the pricing of related party transactions is fair, whether there is a significant unfairness, and whether there is a situation that Byd Company Limited(002594) group transfers the interests of the issuer through related party transactions; Second, the impact of higher gross profit margin of related sales on net profit in the reporting period, and whether the issuer’s operating performance depends on related sales; Third, whether the above situation has a significant adverse impact on independence.
For core Dragon technology, the municipal Party Committee on the science and innovation board made on-site inquiries about the company in three aspects: technical route, R & D process and identification of related parties.
Specifically, in terms of the R & D technology route, the municipal Party Committee on the science and innovation board requires Xinlong technology to explain the background and reasons for choosing the non synchronous rectification technology route and focusing on high-voltage and high-power products in combination with the R & D and mass production process of the existing main high-voltage products; Explain the reasons why the products under research turn to the direction of synchronous rectification and no longer continue to invest in the direction of asynchronous rectification, and analyze the future development prospects of the two technical routes; Explain whether the R & D cooperation with China Resources Microelectronics Limited(688396) and other suppliers has technical dependence on the supplier.
In terms of R & D process, the municipal Party Committee on the science and innovation board requires Xinlong technology to explain the definition of the “batch transfer” stage, whether the division standard of this stage is in line with industry practice, whether customer orders have been obtained at this stage, etc. In addition, the Shanghai municipal Party committee asked the company to explain whether Shanghai Yiheng should be recognized as a related party with special relationship with the company according to the principle of substance over form.
