Naxin Micro-news three-board delisting to go to the test science and technology innovation board IPO: plans to raise 750 million yuan

Recently, Capital State learned that Suzhou Naxin Microelectronics Co., Ltd. (hereinafter referred to as "Naxin Micro") science and technology innovation board IPO has been accepted by the Shanghai Stock Exchange, and this time it plans to raise 750 million yuan.

Nanochip is an integrated circuit design company focusing on the development and sales of high-performance and high-reliability analog integrated circuits. Its products cover analog and mixed-signal chips in the technical field. Currently, it has provided more than 600 models of products for sale. It is used in the fields of information communication, industrial control, automotive electronics, and consumer electronics.

Financial data shows that the company's 2018, 2019, and 2020 revenues were 40,223,300 yuan, 92,103,200 yuan, and 242 million yuan respectively; the corresponding net profits for the same period were 2.3085 million yuan and -910 million yuan respectively. 850,000 yuan and 50.977 million yuan.

In 2020, the issuers operating income was 241,897,100 yuan, and the realized net profit attributable to the owners of the parent company (the lower one before and after deducting non-recurring gains and losses) was 40,492,800 yuan.

Based on its own circumstances, the issuer chooses the listing criteria specified in Item (1) of Article 2.1.2 of the "Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules", that is, "The estimated market value is not less than RMB 1 billion, and the last two The annual net profit is positive and the cumulative net profit is not less than RMB 50 million, or the estimated market value is not less than RMB 1 billion, the net profit in the most recent year is positive and the operating income is not less than RMB 100 million."

This fundraising is planned to be used for signal chain chip development and system application projects, R&D center construction projects, and supplementary working capital projects.

It is worth mentioning that Naxin Micro was originally a company listed on the NEEQ. The company was listed on the NEEQ on August 11, 2016, and was terminated on the equity transfer system on September 19, 2018.

The company stated that during the period of applying for listing and listing, the company was not subject to any regulatory measures or disciplinary actions were taken by the National Share Transfer System, nor was it subject to administrative penalties and investigations by the China Securities Regulatory Commission.

It is worth noting that the shareholders behind Naxin Micro are "star-studded", Shenzhen Venture Capital, Xiaomi, etc. directly hold shares, and SMIC and National Large Fund are looming on the shareholder list.

Naxinwei admits that the company has risks such as market competition, inability to sustain rapid growth in operating performance, high concentration of outsourced processing and suppliers, and insufficient continuous technological innovation capabilities. Specifically, the major risks are as follows:

(1) The risk of insufficient continuous technological innovation capabilities

The company is mainly engaged in the research and development, design, and sales of analog chips, and its industry is the integrated circuit design industry. The integrated circuit design industry is a typical technology-intensive industry, and continuous technological innovation is an important means for the company to maintain its competitive advantage in the market. With the intensification of market competition and the continuous enrichment of end-customer product application scenarios, the company needs to continuously optimize existing products and develop new technologies and new products according to technological development trends and end-customer needs, so as to maintain technological innovation and product competitiveness. If the company cannot make accurate judgments on the future market development trend, maintain core technological advantages, and launch competitive new products, and the new technologies and new products launched by competitors meet the needs of the market, the company will gradually lose market competitiveness. It will adversely affect the company's future sustainable development and operation.

(2) The risk of outsourcing processing and high supplier concentration

During the reporting period, the company adopted the Fabless model commonly used in the integrated circuit design industry. Wafer manufacturing, chip packaging, and chip testing were all completed by outsourced manufacturers. Limited by factors such as technology level, capital scale, etc., the number of wafer and packaging test suppliers that meet the company's technology, supply, and foundry cost requirements is small worldwide, and the company's foundry services for wafer manufacturing, packaging, and testing It is mainly commissioned by well-known manufacturers in the industry such as DongbuHiTek, TSMC, SMIC, and ASE. The company's purchases from the top five suppliers accounted for 87.85%, 85.83%, and 81.44% of the total purchases in the current period, respectively, with a high degree of concentration. With the acceleration of the localization of the semiconductor industry chain, the demand for chip foundry in the domestic semiconductor industry has risen rapidly in recent years, and the capacity of upstream wafer manufacturing and packaging and testing manufacturers has gradually tightened. If the shortage of chip foundry production capacity intensifies, or the wafer market price, packaging, and testing processing costs rise sharply, it will have an adverse impact on the company's production and operation, and profitability.

(3) The risk that business performance cannot continue to grow rapidly

During the reporting period, the companys operating income was 40,223,300 yuan, 92,103,200 yuan, and 241,897,100 yuan, with an average annual compound growth rate of 145.28%, showing a rapid growth trend; after deducting non-recurring After the profit and loss, the net profit attributable to the owners of the parent company was 2.0184 million yuan, 6.781 million yuan, and 40,492,800 yuan, with an average annual compound growth rate of 347.90%, and the net profit also showed rapid growth. the trend of. During the reporting period, the rapid growth of the company's operating performance was mainly affected by factors such as growth in downstream demand and opportunities for localized substitution. During the reporting period, the company increased its R&D investment, expanded its personnel scale, and increased its investment in fixed assets such as R&D and testing equipment, making the company's R&D expenses, personnel scale, and fixed asset scale all present a trend of rapid growth. If the company's downstream market demand declines in the future and related costs and expenses rise, which will lead to a decline in product sales or gross profit margin, there is a risk that the company's operating performance may not continue to grow rapidly.

(4) Market competition risk

During the reporting period, Nanochip's main products are signal sensing chips, isolation and interface chips, driver and sampling chips. The main competitors are foreign leading companies with the early establishment, large revenue scale, and high brand influence, such as Melexis and Renesas, Infineon, ADI, and TI. The company still has a certain gap with the above-mentioned companies in terms of revenue scale, product richness, and technology accumulation. If the company cannot maintain its technical and cost-effective advantages in the segmented product field in the future, it will not be able to launch timely improvements in terms of functionality, performance, and reliability. Products that meet market demand will face more intense competition in the customer development process, and there is a risk that the above-mentioned foreign manufacturers will use their first-mover advantages to squeeze the company's market share.