YongSi Electronics (Ningbo) Co., Ltd. (hereinafter referred to as “YongSi Electronics”) is known as “small long-distance electricity”, which is only one foot away from the science and innovation board. The report letter of Jcet Group Co.Ltd(600584) (600584. SH) has become the biggest “roadblock” on the listing of Yongsi electronics.
Red Star capital Bureau noted that on February 14, Yongsi electronics disclosed a self-examination report of more than 160 pages, which is the first case of publicly disclosing the self-examination report of the report letter on the science and innovation board. in the self inspection report, Yongsi electronics denied one by one the problems questioned by Jcet Group Co.Ltd(600584) such as the infringement of trade secrets, the violation of confidentiality obligations by employees, and the use of Jcet Group Co.Ltd(600584) employee information.
YongSi Electronics will launch its first meeting on February 22. Whether the report of Jcet Group Co.Ltd(600584) will be a fatal blow to YongSi Electronics’ IPO, and whether Yongsi electronics’s hundreds of pages of self-examination report can turn the tide and convince the Shanghai Stock Exchange. I believe the answer will be revealed soon.
766 employees have Jcet Group Co.Ltd(600584) resumes
Yongsi electronics reported unfair competition
Yongsi electronics is mainly engaged in the packaging and testing business of integrated circuits. Its downstream customers are mainly integrated circuit design enterprises. Its products are mainly used in RF front-end chips, AP SOC chips, touch chips, WiFi chips, Bluetooth chips, etc.
There are three giants (s002185 {s002a} and s002156 {s002a} in the field of integrated circuits. Among them, Jcet Group Co.Ltd(600584) is a leading company in China’s sealing and testing industry. According to yole statistics, Jcet Group Co.Ltd(600584) ranked third in revenue among the top ten independent sealing and testing enterprises in the world in 2019.
The relationship between Yongsi electronics and Jcet Group Co.Ltd(600584) is quite deep.
The actual controller of Yongsi electronics is Wang Shunbo, who holds a total of 37.35% of the shares of the company. From August 2011 to September 2017, Wang Shunbo worked in Jcet Group Co.Ltd(600584) and served as the general manager of the integrated circuit business center. After leaving Jcet Group Co.Ltd(600584) , Wang Shunbo resigned to start a business and recruited many talents from his former employer to his company.
Xu Linhua, director of Yongsi electronics, worked in Jcet Group Co.Ltd(600584) from June 1998 to November 2017 and served as sales director; Xu Yupeng, director and deputy general manager of Yongsi electronics, worked in Jcet Group Co.Ltd(600584) from August 2011 to June 2018, and once served as deputy general manager of integrated circuit business center. In other words, three of the four non independent directors of Yongsi electronics have served in Jcet Group Co.Ltd(600584) for many years.
At the end of June 2018, before YongSi Electronics was put into operation, there were 47 directors, supervisors, core technicians, patent inventors and R & D personnel, of which 30 had Jcet Group Co.Ltd(600584) resumes. 66 of the other 89 employees have Jcet Group Co.Ltd(600584) resumes.
With the increase of staff size, the “long electricity taste” of Yongsi electronics decreased. as of May 15, 2021, 766 of the 2227 employees of Yongsi electronics had Jcet Group Co.Ltd(600584) resumes, which decreased from 70.59% at the end of June 2018 to 34.4%.
according to the first round of inquiry Reply of Yongsi electronics, some employees of Yongsi electronics have already held shares of the company through proxy holding without leaving Jcet Group Co.Ltd(600584) .
The effect of digging people is also immediate. Coupled with Wang Shunbo’s rich contacts and experience in the industry for more than ten years, and the rapid development of the chip industry in the previous two years, Yongsi electronics, established in November 2017, has achieved rapid performance, and launched an impact on the science and Innovation Board less than four years after its establishment.
According to the prospectus, Yongsi electronics achieved stable mass production of products in June 2018, and the annual business income reached 38.5443 million yuan. From 2019 to January June 2021, the operating revenue of YongSi Electronics was 366 million yuan, 748 million yuan and 836 million yuan respectively, of which the compound growth rate of revenue from 2018 to 2020 was as high as 338.55%. during the reporting period, its net profit was -39.0473 million, -39.0639 million, 27.8514 million yuan and 108 million yuan respectively, which also increased rapidly.
It is worth mentioning that in the application draft of the prospectus, Yongsi electronics once claimed to be “already in the first echelon of Chinese independent packaging and testing manufacturers”. After being questioned, Yongsi electronics deleted the expression here and changed it to “actively catching up with the first echelon of Chinese independent packaging and testing manufacturers” in the meeting draft of the prospectus.
Yongsi electronics major customers are also closely related to Jcet Group Co.Ltd(600584) . in 2020 and the first half of 2021, the largest customer of YongSi Electronics was Weijie Chuangxin, an IPO enterprise on the science and innovation board, with relevant amounts of 94.0407 million yuan and 91.9874 million yuan respectively, accounting for 12.57% and 11.00% of the current revenue of Yongsi electronics.
During the reporting period, Jcet Group Co.Ltd(600584) was the second largest supplier of Weijie Chuangxin, of which the amount in the first half of 2021 was as high as 320 million yuan. In other words, the major customers of Yongsi electronics are also customers of Jcet Group Co.Ltd(600584) .
In November 2021, just as Yongsi electronics made every effort to rush through the science and innovation board, Jcet Group Co.Ltd(600584) reported to the regulatory authorities that Yongsi electronics and some executives violated Jcet Group Co.Ltd(600584) trade secrets by unfair competition, resulting in the loss of Jcet Group Co.Ltd(600584) talents and technology.
According to Jcet Group Co.Ltd(600584) , Yongsi electronics obviously does not conform to the growth law of general semiconductor enterprises. Yongsi electronics has only been established for 4 years. Obviously, it should be in the start-up stage or growth stage of centralized R & D investment and accumulation of customer base. However, the company has achieved ultra-high profits. Therefore, it is very likely to rely on the technology or customer resources known by Jcet Group Co.Ltd(600584) former employees.
At the same time, Jcet Group Co.Ltd(600584) initiated a series of legal actions against Yongsi electronics. According to the report letter, Jcet Group Co.Ltd(600584) the lawsuit against YongSi Electronics will have a significant adverse impact on its continuous operation, and Yongsi electronics does not have the conditions to apply for issuance and listing.
disclose hundreds of pages of self inspection report
Yongsi electronics denies the reported contents one by one
Jcet Group Co.Ltd(600584) there are two main views expressed in the report letter:
First, some employees of Yongsi electronics held shares of Yongsi electronics through others during their term of office in Jcet Group Co.Ltd(600584) , which violated the conflict of interest policy of Jcet Group Co.Ltd(600584) and the employees’ basic obligations of integrity and loyalty, Jcet Group Co.Ltd(600584) has filed labor arbitration and litigation.
Second, among the only 38 patent inventors of Yongsi electronics, up to 32 were originally employed by Jcet Group Co.Ltd(600584) , accounting for 84.21%.
Jcet Group Co.Ltd(600584) believes that Yongsi electronics has unstable patents and comes from patents or know-how owned by Jcet Group Co.Ltd(600584) . For some invention patents authorized by Yongsi electronics, Jcet Group Co.Ltd(600584) initiated a request for invalidation to the patent administration department.
For the information reported by Jcet Group Co.Ltd(600584) , Yongsi electronics disclosed a self-examination report of more than 160 pages on February 14, and replied one by one in terms of infringement of trade secrets, violation of confidentiality obligations by employees, use of business secrets such as Jcet Group Co.Ltd(600584) employee information and customer information, and impact on the listing and sustainable operation of the company.
Regarding the reported infringement of Jcet Group Co.Ltd(600584) trade secrets, Yongsi electronics said that the main products and related technologies of since its establishment have been independently developed and obtained on the basis of public knowledge, the product evolution and technology R & D process are clear and traceable, and there is no infringement of Jcet Group Co.Ltd(600584) intellectual property rights or technical secrets.
Yongsi electronics said that it has a complete product, process and material design team and can independently design the electrical performance, packaging process and packaging structure of all mass-produced packaging types. As of the issuance date of this reply, it has formed more than 7000 packaging product design drawings, which can fully prove the independent design process and technological evolution process of the product.
Regarding the use and patent application of Jcet Group Co.Ltd(600584) technical achievements and trade secrets by soliciting Jcet Group Co.Ltd(600584) resigned personnel, Yongsi electronics said that most of the personnel in the founding team and core team had rich industry experience, technical skills and resources before joining Jcet Group Co.Ltd(600584) .
Among the 5-member founding team, Zhang Jiqin and Wu Chunyue were not Jcet Group Co.Ltd(600584) before joining Yongsi electronics; Wang Shunbo and Xu Yupeng have worked in well-known packaging and testing enterprises such as rimoonlight and Xingke Jinpeng for many years. They have grown into high-end talents in the field of advanced packaging and were introduced to work in Jcet Group Co.Ltd(600584) in 2011. Therefore, before joining Jcet Group Co.Ltd(600584) , the founding team has established the knowledge system and industry cognition of advanced packaging, accumulated certain industrial resources, and has the ability to build medium and high-end packaging and testing production lines from scratch.
In addition, of the 766 people from Jcet Group Co.Ltd(600584) , Yongsi electronics believes that most of them have low ranks and are mainly personnel in production related positions, which does not involve the company’s product and technology research and development.
A total of 199 directors, supervisors, senior managers, core technicians, patent inventors, technicians and other personnel above M5 are involved. Through self-examination, the above 199 people do not violate the obligation of confidentiality or infringe Jcet Group Co.Ltd(600584) trade secrets.
Yongsi electronics also said that the information of employees does not constitute a trade secret. The spontaneous job hopping of former Jcet Group Co.Ltd(600584) employees to Yongsi electronics is the independent job selection behavior of relevant employees , which does not belong to unfair competition stipulated by law.
As for the customer information, according to the interview with Xu Linhua, the deputy general manager in charge of sales of Yongsi electronics, because Jcet Group Co.Ltd(600584) and Jcet Group Co.Ltd(600584) belong to companies in the same industry, there are overlapping customers, but the relevant customer information and trading opportunities are obtained through open channels.
Yongsi electronics said that even if it loses the lawsuit, it will have little impact
Jcet Group Co.Ltd(600584) : it has not verified 4 major events and continues to protect its rights
For the litigation cases involved by both parties, Yongsi electronics said that the possible legal consequences of Jcet Group Co.Ltd(600584) unfair competition litigation against the company are relatively minor, and even if the lawsuit is lost, it will not have a significant adverse impact on the company’s main business.
In response to the above cases, Wang Shunbo, the actual controller of Yongsi electronics, also issued a commitment to actively promote Yongsi electronics’s response to litigation, patent invalidation defense and relevant countermeasures. If Yongsi electronics loses the above lawsuit and therefore needs to execute the effective judgment, it will bear all the damages that Yongsi electronics needs to bear, so as to ensure that Yongsi electronics and the public shareholders after this issuance and listing will not suffer losses due to the above expenses.
In response to the self inspection report released by Yongsi electronics, Jcet Group Co.Ltd(600584) published an article on the official website on February 17, saying that Yongsi electronics failed to carefully verify and reply to some major concerns, including:
\u3000\u30001. How Yongsi electronics, founded in November 2017, experienced complex links such as R & D, verification, characterization test and process commissioning in just a few months to form mass production capacity and make profits in multiple processes at the same time;
\u3000\u30002. Analysis of why “mature technology” constitutes the technical basis of “medium and high-end packaging products” of Yongsi electronics;
\u3000\u30003. Whether the managers and technicians who accepted the equity holding arrangement but were still working in Jcet Group Co.Ltd(600584) provided technical and market support to Yongsi electronics;
\u3000\u30004. Analysis of why the unfair competition and intellectual property infringement litigation initiated by Jcet Group Co.Ltd(600584) do not constitute “major ownership disputes” and “major legal risks”.
Jcet Group Co.Ltd(600584) will reply to the securities regulatory authority and continue to promote legal actions to safeguard its own legitimate rights and interests and the order of industry competition.
The Red Star capital Bureau will continue to pay attention to whether the report of Jcet Group Co.Ltd(600584) will be a fatal blow to the IPO of Yongsi electronics, and whether the hundreds of pages of self-examination report of Yongsi electronics can turn the tide and convince the Shanghai Stock Exchange.
