About Guangdong Leadyo Ic Testing Co.Ltd(688135)
Application documents for issuing shares to specific objects
Reply to the inquiry letter of the second round of audit
Sponsor (lead underwriter)
North block of excellence Times Square (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong Province
February, 2002
Shanghai Stock Exchange:
We have received the second round of examination and inquiry letter on Guangdong Leadyo Ic Testing Co.Ltd(688135) application documents for issuing shares to specific objects (hereinafter referred to as the "inquiry letter") issued by your exchange on January 28, 2022, Guangdong Leadyo Ic Testing Co.Ltd(688135) (hereinafter referred to as " Guangdong Leadyo Ic Testing Co.Ltd(688135) ", "issuer" and "company") Citic Securities Company Limited(600030) (hereinafter referred to as "sponsor" and " Citic Securities Company Limited(600030) ") has studied and implemented the relevant issues in the inquiry letter one by one. Now the reply to the questions in the inquiry letter is as follows, please review.
Unless otherwise specified, the abbreviations or terms in the reply report of this inquiry letter have the same meanings as those in the prospectus for the issuance of A-share securities to specific objects in Guangdong Leadyo Ic Testing Co.Ltd(688135) 2021.
The font of this reply report represents the following meanings:
Review the questions listed in the inquiry letter in bold
Reply to the questions listed in the inquiry letter
References to the prospectus are in italics (not bold)
Amendments and supplements to the prospectus (in BOLD)
catalogue
Question 1 about Dongcheng Guangdong Leadyo Ic Testing Co.Ltd(688135) IC test project four
Question 1 about Dongcheng Guangdong Leadyo Ic Testing Co.Ltd(688135) IC test project
According to the reply of the first round of inquiry, 25572 square meters of plant will be built in the project invested by the raised funds. It is estimated that the site demand for the new test equipment is about 6000 square meters. In addition to the area for placing the new test equipment and setting up warehouse, inspection and packaging, the proposed plant also leaves enough space for further production expansion in the future.
The issuer is requested to explain: (1) the matching relationship between the estimated storage volume of the leased plant and equipment and the number of sets / sets of equipment to be purchased in this raised investment, and analyze the reasons and urgency of the new plant in this raised investment in combination with the contract period of the leased plant, the estimated completion and relocation time of the proposed plant, and whether the proposed plant will replace the leased plant as the final implementation place of the project after the completion of the proposed plant; (2) In the new plant, the specific area for the actual use of the expected production capacity of this raised investment, such as the placement of new equipment, warehouse, inspection and packaging, and analyze the rationality and necessity of the area of the new plant invested by this raised investment; (3) Whether the use arrangement of the spare space after the completion of the plant is rented out; If so, whether to invest in real estate business.
The recommendation institution is requested to check and express clear opinions.
reply:
1、 Issuer description
(I) the matching relationship between the expected storage volume of the leased plant equipment and the number of sets / sets of equipment to be purchased by the raised investment, and the reasons and urgency of the new plant invested by the raised investment are analyzed in combination with the contract term of the leased plant, the expected completion and relocation time of the proposed plant, and whether the proposed plant will replace the leased plant as the final implementation place of the project after the completion of the proposed plant
1. Matching relationship between the expected storage volume of the leased plant equipment and the number of sets / sets of equipment to be purchased in the raised investment. The address of the leased plant is building 8, No. 5, Weifeng Road, Dongcheng Street, Dongguan City, Guangdong Province. The leased plant will first place the equipment purchased in the raised investment project. This Dongcheng Guangdong Leadyo Ic Testing Co.Ltd(688135) IC test project plans to purchase three batches of testing machines (and supporting sorters or probe sets), with a total of 340 sets. According to the construction plan of this raised investment project, the equipment will be placed in the leased plant first, which is the first and second batch of equipment. The number of equipment is about 200-250 sets, accounting for about 58.82% - 73.53%.
2. Combined with the contract term of the leased plant, the estimated completion and relocation time of the proposed plant, and whether the proposed plant will replace the leased plant as the final implementation place of the project after the completion of the proposed plant
Dongguan Guangdong Leadyo Ic Testing Co.Ltd(688135) Testing Co., Ltd., as the implementation subject of the raised investment project, signed a house lease contract with Dongguan Wuguan Industrial Co., Ltd. the address of the leased plant is building 8, No. 5, Weifeng Road, Dongcheng Street, Dongguan, with a lease area of 6250 ㎡. The lease contract expires on July 14, 2026.
(2) Estimated completion and relocation time of the proposed plant
According to the planning of Dongcheng Guangdong Leadyo Ic Testing Co.Ltd(688135) IC test project, the overall construction period is 36 months, mainly including the construction of new plant, temporary plant leasing, equipment purchase and installation, staff recruitment and training, equipment production and other work arrangements. The expected completion time of the proposed plant is the end of the second year since the implementation of the raised investment project, and the expected completion time of the relocation of the leased plant and equipment is the first quarter of the third year. The details are as follows:
Sequence item T + 1 T + 2 T + 3
No. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Infrastructure construction and decoration
Plant leasing
1. First batch of equipment
1.1 purchase and installation of the first batch of equipment
pretend
1.2 recruitment and training of the first batch of employees
Discipline
1.3 the first batch of equipment is put into operation
2. Second batch of equipment
2.1 purchase and installation of the second batch of equipment
pretend
2.2 recruitment and training of the second batch of employees
Discipline
2.3 the second batch of equipment is put into operation
3. Relocation of leased plant and equipment
4. The third batch of construction
4.1 purchase and installation of the third batch of equipment
pretend
4.2 recruitment and training of the third batch of employees
Discipline
4.3 the third batch of equipment is put into operation
Note: T represents the year of construction and Q represents the quarter
According to the above table, if the construction of the company's raised investment plant starts from June 2022, it is expected to complete the plant construction in June 2024; Since the leased plant is different from the address of the plant to be built by the company in this raised investment
The transportation distance is less than 2km and the relocation is less difficult. It is expected that the equipment relocation of the leased plant can be completed in September 2024 without affecting the production.
(3) Whether the proposed plant will replace the leased plant as the final implementation place of the project after the completion of the project
Based on the urgency of capacity expansion, the company implemented the Dongcheng Guangdong Leadyo Ic Testing Co.Ltd(688135) integrated circuit test project in the leased plant in the early stage. After the new plant is completed, the relevant equipment of the leased plant will be relocated to the new plant. At that time, the new plant will replace the leased plant as the final implementation place of the project.
3. Analyze the reasons and urgency of raising funds to invest in the new plant
The reasons and urgency of the company's raising funds to invest in the new plant are as follows:
(1) It is an inevitable choice to meet the growing market demand and improve market share
With the trend of the IC industry shifting to mainland China, the IC market in Chinese mainland is growing rapidly. In terms of design, according to the data of China Semiconductor Industry Association, the scale of China's integrated circuit design market reached 377.84 billion yuan in 2020, with a year-on-year increase of 23.34%; In terms of manufacturing, according to IC Insight's forecast, the capacity of wafer fabrication in Chinese mainland will reach 4 million 100 thousand pieces / month in 2020. Under the background of the continuous growth of IC industry chain market and the increasingly refined industrial division of labor, IC testing, as a necessary link of design and manufacturing verification, plays an indispensable role in the industry chain. At present, China's IC test supply still has a large gap compared with the rapidly growing design and manufacturing market demand. This raised investment project is the inevitable choice for the company to meet the growing market demand and improve the market share.
(2) Meet the urgent needs of downstream high-quality customers
The company has stable testing service quality and is deeply recognized by the market. Its main customers include Shenzhen Goodix Technology Co.Ltd(603160) (603160), Allwinnertech Technology Co.Ltd(300458) (300458), ZTE micro, southwest integration, Ziguang Tongchuang and Shanghai Belling Corp.Ltd(600171) (600171) well-known enterprises in the industry. At the same time, the company's customer acquisition capacity and quantity have been continuously improved, and the company added 25 customers in 2018; In 2019, the company added 30 new customers; In 2020, the company added 39 new customers; From January to September 2021, the company added 41 new customers, and the company's customer resources increased steadily. Under the background of the accelerated development of China's integrated circuit industry and the global chip shortage, the chip testing demand of the company's downstream customers is more urgent. The company needs to build factories and improve the chip testing capacity to better meet the needs of downstream high-quality customers.
(3) At the same time of performance growth, the company has improved the stability of production and operation, consolidated its market position and competitive advantage. The company has paid close attention to the cutting-edge needs of the integrated circuit industry, continuously increased investment in test technology research and test scheme development, improved chip test capability, and achieved rapid growth of performance. The compound growth rate of operating revenue of the company in the last three years has reached 35.17%, From January to September 2021, the operating revenue was 271283100 yuan, with a year-on-year increase of 54.20%, maintaining a rapid growth. As the company's factory building and leasing scale change, it is difficult to meet the company's business needs and actively improve the operation efficiency of the company's own factory building and leasing service, Lay the foundation for the company to seize the market development opportunities, so as to further consolidate the company's market position and competitive advantage.
To sum up, the company needs to build new plants and expand production capacity through this equity investment to meet the growing market demand, improve the stability of production and operation, and further consolidate the company's market position and competitive advantage. The demand for this capacity expansion is urgent. The company will first implement the raised investment project through the leased plant. The construction of the new plant is expected to be completed in June 2024. At that time, the relevant equipment of the leased plant will be relocated to the new plant to further complete the implementation of the raised investment project, so as to speed up the implementation of the raised investment project and improve the use efficiency of the raised funds. Therefore, the new plant of the company's raised investment project is reasonable and urgent.
(II) in the new plant, the specific area for the actual use of the expected production capacity of the raised investment, such as the placement of new equipment, warehouse, inspection and packaging, and analyze the rationality and necessity of the area of the new plant invested by the raised investment
1. In the new plant, the specific area for the actual use of the expected production capacity of this raised investment to place the new equipment, warehouse, inspection, packaging and other purposes
The raised capital investment project will build 25572 square meters of factory buildings. The specific areas for the actual use of the expected production capacity are as follows:
Site use and proportion of site area (M2) in the area of new plant
Place new equipment 6000 23.46%
Warehouse 3000 11.73%
Supporting area note 1700 6.65%
Inspection and packaging 377 1.47%
Continue to improve production capacity and testing technology 14495 56.68%
Note: the supporting area includes turnover area, accessories room, baking room, etc
According to the above table, the company estimates that the site demand for new test equipment in this raised investment project is about 6000 square meters; The warehouse area is about 3000 square meters; The area of inspection and packaging site is about 377 square meters; The supporting area is about 1700 square meters. In addition to the area for placing the new test equipment and setting up warehouse, inspection and packaging, the remaining 14495 square meters of plant is reserved for the company to continue to improve the chip test capacity and layout high-end test technology in the future, so as to meet the needs of the sustainable development of the company's business.
2. Rationality and necessity of the new plant area invested by raising funds
(1) The company's performance is growing rapidly and customer demand is urgent. It is necessary to continue to expand production capacity to meet future business needs
According to the planning of the company's previous raised investment projects and this raised investment project, the compound growth rate of the company's total production capacity in the next five years is expected to be 14.03%. In recent years, the company has continuously improved its chip testing capability and improved its performance. The compound growth rate of the company's operating revenue in the last three years is 35.17%, and the operating revenue from January to September 2021 increased by 54.20% year-on-year. The expected compound growth rate of the company's production capacity under the planning of raised investment projects is still significantly lower than the growth rate of the company's operating revenue during the reporting period. In addition, the company has been recognized by the market for its excellent and stable testing service quality, and has established stable cooperative relations with well-known customers in the industry such as Shenzhen Goodix Technology Co.Ltd(603160) (603160), Allwinnertech Technology Co.Ltd(300458) (300458), ZTE micro and so on. With the accelerated development of China's integrated circuit industry, the demand of such downstream high-quality customers for chip testing will be more urgent.
Therefore, the company will still have the demand to further improve the chip test capacity and technology in the future, and needs a larger plant area for use. Therefore, part of the newly-built plant area of the company will be used to further improve production capacity and layout high-end testing technology in the future. Before, the company mainly carried out production and operation through leased plants. With the continuous expansion of the company's business scale, it is difficult to meet the company's needs only through leased plants. The construction of sufficient self owned plants in this raised investment project can improve the stability of the company's production and operation, Reserving part of the plant area for further improving production capacity and technology in the future is conducive to the sustainable development of the company and can
