Smart sensor chip manufacturer Canrui Technology Co., Ltd. IPO Xiaomi Industry Fund lurks

According to the reporter, Shanghai Canrui Technology Co., Ltd. (hereinafter referred to as "Canrui Technology") plans to create a board IPO, CITIC Securities as its guidance organization.

This is not the first time that Canrui Technology has participated in IPO tutoring. As early as December 2015, the Shanghai Securities Regulatory Bureau disclosed Ping an Securities's report on the mentoring record of Shanghai Canrui Technology Co., Ltd., but the aforementioned mentoring agreement was terminated in 2016 because of disagreements between the two sides on the declaration time.

In April 2017, Canrui Technology and Donghai Securities once again launched IPO tutoring, but in less than a year, Canrui Technology and Donghai Securities "parted ways" for undisclosed reasons.

In December 2019, Canrui Technology launched the IPO tutoring work for the third time, and this time the coaching brokerage was replaced by Societe Generale Securities, but on July 21, 2011, the official website of the Shanghai Securities Regulatory Bureau disclosed that "taking into account Canrui Technology's listing plan and arrangements, after friendly negotiation, the two sides agreed to terminate the tutoring."

In other words, the cooperation with CITIC Securities is the fourth IPO tutoring of Canrui Technology in more than five years.

It is understood that Canrui Technology is mainly engaged in high-performance integrated circuit research and design, packaging testing and sales of high-tech enterprises, the main products and services include smart sensor chips, photoelectric driver chips and package testing services, products are widely used in smart phones, smart homes, computers, wearable devices, financial security and intelligent security and other fields.

The tutoring information disclosed by Canrui Technology in 2015 also showed that Canrui Technology was shortlisted for the supply chain system of Lenovo, ZTE, Xiaomi, Hisense, Gree and other manufacturers and became its supplier.

It is worth noting that the production mode adopted by Canrui Technology is the mode of IC design + self-built closed test factory, which is more obvious in MEMS, simulated IC and other fields.

For example, in the field of MEMS, Science and Technology Innovation Board listed company Minxin shares chose to build a self-built closed test factory. Minxin shares explained that by building a self-built closed test plant, Desi can better control product quality and ensure the continuous stability of closed test capacity, thus enabling the company to have the threshold conditions to enter brand customers, with the production volume of the company's self-built closed test plant. The whole closed test capacity can also meet the capacity needs of the company's follow-up service customers.

Minxin shares said that its advantage lies in the full localization of the industrial chain system, in the current international situation, brand customers will pay more attention to the security of the supply chain system.

In addition, Gale shares, Ruichuangwei Nano and so on have self-built complete packaging and testing production lines.

For the choice of this model, Huaxin Jintong (Beijing) Investment Fund Management Co., Ltd. founding partner Wu Quan believes that there are three reasons, first, the IC design manufacturers themselves have the characteristics of light assets; second, the construction of wafer manufacturing plants have capital and capacity constraints; third, the threshold of packaging and testing is relatively low, which is a better choice for productive and capitalization attempts. "through the closed test plant to design coordination, production outsourcing, with the formation of their own capital, capacity and other conditions, will slowly build a manufacturing plant."

Wu Quan further added that the technological production characteristics of simulated IC are more obvious, so its design must also be combined with production.

Wu Quan told reporters that generally speaking, this is a good phenomenon, and it is also a necessary transition for the evolution and development of China's semiconductor industry, an intermediate phenomenon and a return.

In terms of ownership structure, on December 24, 2019, the registered capital of Canrui Technology increased from 52.5 million yuan to 56.1349 million yuan. Among them: the new registered capital from Shannan Chending Industrial Development Co., Ltd., Jiaxing Yongchuan Equity Investment Partnership (limited partnership) subscribed for 1.6155 million shares and 2.01939 million shares respectively.

On May 31, 2020, Zhang Bin, a shareholder of Canrui Technology, transferred his 1.782% equity (corresponding to 1 million shares) and 2.672% equity (corresponding to 1.5 million shares) of the company to Suzhou Juyuan casting Core Venture Capital Partnership (limited partnership) and Hubei Xiaomi Changjiang Industrial Fund Partnership (hereinafter referred to as "Xiaomi Industrial Fund"). At the same time, Shanghai Jingyang Investment Consulting Co., Ltd. (hereinafter referred to as "Shanghai Jingyang") also transferred its 0.328% stake in the company (corresponding to 184000 shares) to Xiaomi Industrial Fund.

According to the latest issue of tutoring information as of July 22 this year, Shanghai Jingyang holds a 62.23% stake in the company, and Luo Liquan and Roger and his son together own 99% of Shanghai Jingyang and have control over Shanghai Jingyang. The two men also indirectly hold a stake in Canrui Technology through the Shanghai Snapshot Micro Enterprise Management Center (limited partnership) and the Shanghai Group Micro Enterprise Management Center (limited partnership), respectively.

The above-mentioned father and son together control 82.99% of the total votes of Canrui Science and Technology shares, and they are the joint actual controllers of Canrui Science and Technology.

In addition, Xiaomi Industrial Fund is the company's fourth largest shareholder, with a shareholding ratio of 3.89%.