Power semiconductor manufacturer Anxin electronic rerouting Kechuang board listed! Nearly half of the funds raised will be used to expand production.

Recently, Anhui Anxin Electronic Technology Co., Ltd. (hereinafter referred to as "Anxin Electronics") Science and Technology Innovation Board IPO, a power semiconductor manufacturer, has been accepted by the Shanghai Stock Exchange in an attempt to achieve a leap forward with the help of the capital market in the business cycle of the semiconductor industry.

Industry insiders told Science and Technology Innovation Board Daily that Anxin started IPO tutoring in January 2017 and changed its listing location from gem to Science and Technology Innovation Board after the results were released in 2020.

However, although the performance of the company has been beautiful in recent years, some of the indicators of Anxin Electronics have barely crossed the line according to the relevant requirements of the attributes of science and technology in the review of Kechuang Board.

Adopt IDM mode

Anxin's main business is the design, manufacture and sales of power semiconductor chips, power devices and film diffusion sources of key semiconductor materials, using IDM production and management mode. According to the company, the chip products are designed and fabricated by the company itself. 90% of chip products are sold directly to external closed test vendors, and only 10% are used in their own closed test business.

In terms of business, power semiconductor chips are the company's core business, accounting for about 66% of revenue in the past three years, including fast recovery diode (FRD) chips, epitaxial fast recovery diode (FRED) chips, transient suppression diode (TVS) chips and other products; power devices include power diodes, rectifier bridges, high-power devices, etc., accounting for about 30% of business revenue. The film diffusion source business belongs to the new business segment, which currently accounts for less than 5% of revenue.

Anxin Electronics adopts the production management mode of independent subsidiaries and has three semiconductor manufacturers and a trading company, including Xinxu Semiconductor, an Mei Semiconductor, Shandong Core Source and Anxin Trading. Among them, Shandong Core Source is acquired by Anxin Electronics in 2019, has a diffusion paper source mass production line, and is the main body of the company's film diffusion source business.

Benefiting from the strong demand in the semiconductor industry, the capacity utilization rate of Anxin Electronics has increased significantly since 2020, from 60% to 70% in 2018 to more than 90%. Up to now, Anxin has completed three 4-inch photoresist process chip production lines, which can reach an annual output of 4.7 million FRD/FRED chips, TVS chips and high-performance STD chips; a 5-inch photoresist process FRD/FRED chip, TVS chip high-end chip automation production line is under construction, with a design capacity of 3.6 million chips per year.

"at present, the contradiction between supply and demand in the industry is prominent, and production capacity is the biggest obstacle to the development of enterprises. Although Anxin is not outstanding in technical capability, its product performance can meet the basic needs of the market. " An investor in the industry told Science and Technology Innovation Board Daily.

From the perspective of fund-raising projects, Anxin Electronics also hopes to expand production capacity with the help of the capital market and seize the opportunity of this round of business cycle in the semiconductor industry. Data show that the company plans to issue no more than 10.14 million new shares, raising a total of 395 million yuan. Among them, 180 million yuan is used for high-end power semiconductor chip R & D and manufacturing projects, and 115 million yuan for R & D center upgrading construction projects, replenishing 100 million yuan in liquidity.

According to reports, the high-end power semiconductor chip R & D and manufacturing project will build a high-end power semiconductor chip production line with an annual output of 3.6 million pieces on the basis of the existing production line, mainly producing STD chips, TVS chips, FRD chips and FRED chips; the R & D center upgrade construction project will improve the company's current main products, production process improvement, and layout of new products, new materials and applications.

In terms of ownership structure, Wang Liangen, Wang Liangmei and Guoyuan Investment hold 35.99%, 25.64% and 6.08% respectively, making them the top three shareholders of the company. Among them, Wang Liangen and Wang Liangmei are brothers, and signed a unanimous action agreement in March 2016, holding a total of 61.63% of the company, which is the actual controller of the company. Guoyuan Investment is a wholly-owned subsidiary of Guoyuan Securities, the sponsor.

Some attribute indicators of scientific innovation barely cross the line.

From the perspective of the overall operation, the strong market demand has driven the high performance of Anxin Electronics, with the company's revenue growing at an average annual compound growth rate of 32.89% in the past three years. Especially since the second half of 2020, in the market environment where the contradiction between supply and demand is prominent, the price and sales volume of Anxin electronic products have been further improved.

The company's revenue in the first quarter of 2021 was 86.43 million yuan, an increase of 102% over the same period last year. Among them, the average unit price of chip products is 58.71 yuan per chip, and the average unit price of device products is 0.1381 yuan per piece, an increase of 11.17% and 5.9% respectively over the average price in 2020; 959100 chips are sold and 177 million devices are sold, accounting for 30.4% of the total sales in 2020, respectively.

In the case of the decline in the overall cost of the product, the gross profit margin of Anxin Electronics has increased obviously in the past two years. In terms of cost, the purchase amount of major materials accounts for about 55% of the total raw materials. Among them, silicon wafers are the main raw materials, accounting for nearly 30%. Although the average unit price of silicon wafers increased by 5.8% in the first quarter of 2021, the unit cost of power semiconductor chips decreased by 9.63%. The company's gross profit margin of its main business in the first quarter increased by 9.94 percentage points to 38.86% compared with the end of 2020.

"the beautiful performance of Anxin Electronics in recent years is mainly driven by the industry's high-profile demeanor dividend, and the company's own scientific and technological attributes are not outstanding." The person familiar with the matter told Science and Technology Innovation Board Daily that Anxin started IPO tutoring in January 2017. at that time, it intended to be listed on gem, and it was decided to change its listing to Kechuang Board only after the financial results were landed in 2020.

A reporter from Science and Technology Innovation Board Daily contacted the relevant person in charge of the company and tried to communicate with him on related issues, but had not replied as of press time.

Compared with the relevant requirements of the scientific and technological attributes of supervision, some of the indicators of Anxin barely crossed the line. The company's cumulative R & D investment accounted for 7.17% of its cumulative revenue in the past three years, slightly exceeding the regulatory requirements of 5%. In the past three years, the cumulative R & D investment amount is 41.65 million yuan, less than 60 million yuan; the company's revenue in 2020 was 257 million yuan, breaking through the 200 million yuan mark for the first time; by the end of the first quarter of 2021, the company's R & D personnel accounted for 11.38%. The index is not only slightly more than 10% of the regulatory requirements, but also much lower than similar companies, such as Yangjie Technology, Suzhou solid technetium, Hua Wei Electronics and other R & D personnel account for more than 20%.

What is worth paying attention to is that Anxin Electronics has a high proportion of labor dispatch employees. And in 2019, the company's labor dispatched employees accounted for 21.84% of the total employment, which was found to be illegal by the Chizhou Bureau of Human Resources and Social Security. If you take into account the company's high proportion of labor dispatched employees, the proportion of Anxin electronic R & D may be lower than the standard line required by the regulatory requirements.

The company's core technical personnel include Wang Liangen, Zhang Xiaoming, Li Jianli and other five people, accounting for 0.65% of the total number of employees. A reporter from Science and Technology Innovation Board Daily noted that Wang Liangen, one of the real controllers, had served as deputy general manager and general manager of Yangzhou Jerry Semiconductor Co., Ltd from May 2009 to June 2013. Data show that Yangzhou Jerry Semiconductor is the main subsidiary of Yangjie Technology, mainly responsible for semiconductor chip manufacturing.