Stock abbreviation: Xidi micro stock code: 688173 Guangdong Xidi Microelectronics Co., Ltd
Halo Microelectronics Co.,Ltd.
(core area of qiandenghu venture capital town, No. 6, Guilan North Road, Guicheng Street, Nanhai District, Foshan City)
Self numbered eight seats (A8) (unit 305-308)
Initial public offering announcement on the listing of science and Innovation Board
Co sponsor (lead underwriter)
China (Shanghai) pilot Free Trade Zone 1 Jianguomenwai street, Chaoyang District, Beijing
27th and 28th floors, tower 2, international trade building, No. 8, Puming Road
January 20, 2002
hot tip
The shares of Guangdong Xidi Microelectronics Co., Ltd. (hereinafter referred to as "Xidi micro", "the company", "the issuer" or "the company") will be listed on Shanghai Stock Exchange on January 21, 2022.
The company reminds investors to fully understand the stock market risks and the risk factors disclosed by the company, avoid blindly following the trend of "speculation" in the initial stage of IPO, and make prudent decision and rational investment.
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee that the information disclosed in the listing announcement is true, accurate and complete, promise that there are no false records, misleading statements or major omissions in the listing announcement, and bear legal liabilities according to law. The opinions of Shanghai Stock Exchange and relevant government authorities on the listing of the company's shares and related matters do not indicate any guarantee to the company.
The company reminds investors to carefully read and publish on the website of Shanghai Stock Exchange（ http://www.sse.com.cn. ）The contents of the "risk factors" chapter of the company's prospectus, pay attention to risks, make prudent decisions and make rational investment.
The company reminds the majority of investors that investors are invited to refer to the full text of the company's prospectus for relevant contents not involved in this listing announcement.
Unless otherwise specified, the abbreviations or terms in this listing announcement shall have the same meanings as those in the prospectus of the company's initial public offering of shares and listing on the science and innovation board. The reporting periods in this listing announcement refer to 2018, 2019, 2020 and January June 2021. 2、 Investment risk tips
The company reminds investors to pay attention to the investment risk at the initial stage of IPO (hereinafter referred to as "new shares"), and investors should fully understand the risk and rationally participate in the trading of new shares.
Specifically, the risks at the initial stage of listing include but are not limited to the following: (I) the restrictions on rise and fall are relaxed
On the main board of Shanghai Stock Exchange and Shenzhen Stock Exchange, the increase limit ratio on the first day of listing is 44%, the decrease limit ratio is 36%, and then the increase limit ratio is 10%.
Within the first five trading days after the listing of enterprises on the science and innovation board, there is no limit on the rise and fall of the stock trading price; Five trading days after listing, the price limit ratio is 20%. There is a more severe risk of stock price fluctuation on the Kechuang board than that on the main board of Shanghai Stock Exchange and Shenzhen Stock Exchange. (II) the number of tradable shares is small
At the initial stage of listing, the lock up period of original shareholders' shares is 12 to 36 months, the lock up period of joint sponsors' shares is 24 months, the lock up period of shares allocated to special asset management plans and other strategic investors is 12 months, and the lock up period of online lower limit share sale is 6 months. After this issuance, the company's non tradable shares are 31110765, accounting for 7.78% of the total share capital after issuance, At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity. (III) the shares can be used as the subject matter of margin trading on the first day of listing
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, which may produce certain price fluctuation risk, market risk, margin call risk and liquidity risk. Price fluctuation risk means that margin trading will aggravate the price fluctuation of the underlying stock; Market risk means that when investors use stocks as collateral for financing, they need to bear not only the risks caused by the changes in the original stock price, but also the risks caused by the changes in the stock price of new investment, and pay corresponding interest; Margin call risk means that investors need to monitor the level of guarantee ratio in the whole process of trading to ensure that it is not lower than the maintenance margin ratio required by margin trading; Liquidity risk refers to that when the price of the underlying stock fluctuates violently, the financed purchase of securities or the repayment of securities, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk. (IV) the market sales rate is higher than the average level of comparable companies in the same industry
As of January 6, 2022 (T-3), the market sales rate of listed companies with business and business model similar to that of the issuer is as follows:
The market sales rate of comparable listed companies whose main business is similar to that of the issuer is as follows:
Securities code securities abbreviation market value of the company static market sales ratio corresponding to operating income in 2020
(100 million yuan) (100 million yuan) (Times)
688173.sh xidiwei 134.28 2.28 58.80
300661.SZ Sg Micro Corp(300661) 677.38 11.97 56.61
603501.SH Will Semiconductor Co.Ltd.Shanghai(603501) 2,443.27 198.24 12.32
688601.SH Wuxi Etek Microelectronics Co.Ltd(688601) 92.58 5.43 17.05
688536.SH 3Peak Incorporated(688536) 582.38 5.66 102.81
688508.SH Wuxi Chipown Micro-Electronics Limited(688508) 130.15 4.29 30.32
300782.SZ Maxscend Microelectronics Company Limited(300782) 1,044.05 27.92 37.39
Average number of comparable companies 42.75
Securities code securities abbreviation market value of the company static market sales rate corresponding to operating revenue in 2020
(100 million yuan) (100 million yuan) (Times)
Median comparable companies 33.85
Data source: wind information, data as of January 6, 2022 (T-3).
Note 1: there may be mantissa difference in the calculation of market sales rate, which is caused by rounding.
The market value of the company corresponding to the issuance price of 33.57 yuan / share is 13.428 billion yuan, the operating revenue of Xidi micro in 2020 is 228388600 yuan, and the market sales rate corresponding to the issuance price is 58.80 times, which is higher than the average and median of comparable companies in the same period. There is a risk that the decline of the issuer's share price will bring losses to investors in the future. The issuer and the co sponsor (co lead underwriter) draw investors' attention to investment risks, carefully study and judge the rationality of issuance pricing, and make investment rationally. 3、 Special risk tips (I) unprofitable and the risk of accumulated uncollected losses
In 2018, 2019, 2020 and January June 2021, the issuer's net profit was -5.384 million yuan, -9.5752 million yuan, -144.8725 million yuan and 19.1749 million yuan respectively, and no profit has been realized in the latest year; As of June 30, 2021, the amount of undistributed profits of the issuer was -53.3498 million yuan, with accumulated outstanding losses. The main reasons for the company's continuous losses during the reporting period include: (1) there is a certain verification and trial period for product promotion, and the sales scale presents a gradual rising process. It takes a certain time for the company's revenue scale to reach a high level. In 2018, 2019, 2020 and January June 2021, the company's operating revenue was 68.1632 million yuan, 115.3189 million yuan 228388600 yuan and 218575900 yuan, with a compound annual growth rate of 83.05% from 2018 to 2020, an increase of 185.75% from January to June 2021 compared with the same period of the previous year (the financial data from January to June 2020 in the same period of the previous year were Unaudited); (2) Chip design needs to upgrade and expand the product line through continuous R & D investment. During the reporting period, the company invested a lot in R & D, resulting in high R & D expenses. In 2018, 2019, 2020 and January June 2021, the proportion of R & D expenses in business income after deducting share based payment expenses reached 20.52%, 27.20%, 34.70% and 26.07% respectively; (3) In 2018, 2019, 2020 and January June 2021, the company confirmed the share based payment expenses of RMB 505000, RMB 8065200, RMB 139070700 and RMB 21763100 respectively due to equity incentive. The net profits after deducting the share based payment expenses were RMB -487900, -1510100, -5801800 and RMB 40.938 million respectively.
The growth of the company's operating revenue is affected by more complex internal and external factors. If it cannot grow or even decline as planned in the future, the company will not be able to give full play to the scale effect of its operation, there may be continuous losses and will face the risk that the revenue cannot grow as planned. With the continuous development of the company in the field of analog chips, the company needs to invest more resources in technology and product R & D. if the company makes major mistakes in judging the future R & D direction, there is a risk of large R & D expenditure, R & D failure and products or services can not be recognized by customers; If the company continues to suffer losses and is unable to finance through external channels, it will result in tight cash flow, which will have a negative impact on the company's business development, talent introduction, team stability, R & D investment and market development; It is expected that after the IPO and listing, the company will not be able to pay cash dividends in the short term, which will have a certain adverse impact on the investment income of shareholders; The company cannot guarantee to make profits in the next few years, and may also face the risk of delisting after listing. (II) risk of product R & D and technological innovation
The company's analog integrated circuit products such as power management chip and signal chain chip are mainly used in mobile phones, laptops and wearable devices. It is necessary to define and develop products that meet the actual performance requirements in close combination with the specific application scenarios and application demands of customers. Therefore, the company needs to have a deep understanding of customer demands, industry development trends and market application characteristics, continue to invest in large-scale R & D, and timely convert R & D and innovation achievements into mature products to the market.
However, the R & D and design of integrated circuit products need to go through many links, such as product definition, development, verification, streaming and testing. It needs a certain R & D cycle and there is a certain risk of R & D failure. If the company's future product R & D cannot keep up with the industry upgrading level, the innovation direction cannot meet the needs of customers, or the new product R & D is less than expected, it will bring risks such as the decline of product market recognition, the waste of R & D resources and the loss of market development opportunities, which will have an adverse impact on the company's operating efficiency and effect. (III) high customer concentration and risk of loss of key customers
The company's end customers mainly include intelligent terminal application manufacturers, automobile manufacturers and other consumer electronics manufacturers. The concentration of the end market is relatively high, resulting in a high concentration of customers during the reporting period. In 2018, 2019, 2020 and January June 2021, the company's total sales revenue from the top five customers accounted for 93.87%, 92.15%, 90.51% and 93.22% of the current operating revenue respectively, of which the company's sales revenue from January to June 2021 accounted for more than 50%. The company's main customers include internationally renowned chip platform manufacturers, intelligent terminal manufacturers and electronic component dealers.
In the future, if there are adverse changes in the operation and credit status of the company's main customers or terminal brand manufacturers, or major changes in the operation and procurement strategy of the current main customers, the company's sales revenue to the main customers will be uncertain, which will have an impact on the company's stable profits. In addition, if the demand of some major customers decreases or the scale of cooperation with the company decreases, the growth of the company's revenue may slow down.
The company's second largest customer in 2020 has suspended issuing new orders to the company due to changes in the business environment. In 2020, the operating revenue realized by the company to the customer accounted for 26.77% of the total operating revenue of the current year. In the future, if the customer's order gap cannot be filled by other orders, the company may face the risk of significant decline in revenue.
In 2021 1-6, China's top five customers include Taiwan, Taiwan, Singapore and other regions. As of now, there is no trade friction against the company's products. The cooperation between the company and the above customers is not.
