Yinhe Micro Power issues 500 million yuan convertible bond plus code layout vehicle gauge grade semiconductor device project

On January 3, Galaxy Microelectronics announced that the company received a notice from the Shanghai Stock Exchange on accepting the application for securities issuance of Science and Technology Innovation Board, a listed company of Changzhou Yinhe Century Microelectronics Co., Ltd., on December 31, 2021. The Shanghai Stock Exchange checked the prospectus and relevant application documents for securities issued by Science and Technology Innovation Board listed companies submitted by the company, and considered that the application documents were complete and in accordance with the legal form, and decided to accept them and examine them in accordance with the law.

根据公告显示，银河微电本次拟通过发行可转债募资5亿元，其中，4亿元用于车规级半导体器件产业化项目，1亿元用于补充流动资金。

With the rapid development of new energy and other emerging applications in China, China's semiconductor discrete device industry has a broad market demand and good prospects for the development of the industry. At present, China has become the largest application market of semiconductor discrete devices in the world, and has maintained a sustained, rapid and stable development. According to the data of China Semiconductor Industry Association, the market demand for discrete devices in China will be 278.42 billion yuan in 2019. In the future, with the continuous development of electric energy, new energy vehicles, rail transit, consumer electronics and emerging intelligent industries, discrete devices industry has great development space and potential. It is expected that the market demand for semiconductor discrete devices in China will grow to 344.78 billion yuan by 2022.

In addition, automotive electronics is the general name of automotive electronic control system and on-board electronic and electrical system, which has the functions of perception, calculation, feedback, control, execution, communication, application and so on. basic electronic products that realize information perception, high-speed computing, state monitoring, behavior decision-making and vehicle control. Automotive electronic products cover all major automotive systems, including chassis system, safety system, body electronics, etc., with the development of automobile intelligence and electrification, driving system, infotainment system, power control system and so on have gradually developed into important application scenarios of automotive electronics, and the proportion of automotive electronic cost to the cost of the whole vehicle is increasing.

According to the report of Jiangsu Semiconductor Industry Association, the cost of automotive electronics currently accounts for about 30% of the cost of the whole vehicle, and it is estimated that the value of automotive electronics will account for nearly 40% of the value of the whole vehicle by 2025. Under the background of the continuous development of the automotive industry and the continuous promotion of automotive electrification and intelligence, automotive semiconductor discrete devices have a broad market prospect as the basic components of automotive electronics.

Data show that Galaxy Micro Power is a high-tech enterprise specializing in the research, development, production and sales of semiconductor discrete devices. mainly engaged in all kinds of small signal devices (small signal diodes, small signal transistors), power devices (power diodes, power transistors, bridge rectifiers) and other semiconductor discrete device products. Based on the professional technology of packaging and testing, the company initially has the integrated management capability under the IDM mode, and can provide customers with a series of products and technical solutions with strong applicability and high reliability to meet the one-stop purchasing needs of customers. The company's products are widely used in computers and peripherals, household appliances, adapters and power supplies, network communications, automotive electronics, industrial control and other fields.

As a professional supplier of semiconductor discrete devices, the company has followed the development trend of the downstream industry for many years, actively laid out emerging markets, and successfully joined the International Automotive Electronics Association. and expand the products from household appliances, computers and peripherals, network and communications, adapters and power supplies to automotive electronics and other application fields, related products are widely recognized by customers in terms of functional stability, quality and reliability, etc. Established a good industry reputation and brand image, production and sales continued to grow.

However, in terms of capacity allocation, the company has no independent production line for semiconductor discrete devices at the car gauge level, and production needs to share the production line with the existing consumer semiconductor discrete devices, because the vehicle gauge products have higher requirements for equipment, therefore, only some equipment with stable and good performance are selected for production, and the capacity utilization of the company's existing semiconductor discrete device production line is already high. Therefore, under the background of the growing market demand in automotive electronics and other high-end applications, the company urgently needs to speed up the production capacity construction of high-end semiconductor discrete devices to seize market share.

The construction of the industrialization project of automotive specification-level semiconductor devices will be based on the company's strategic development direction, comply with the development trend of the industry, and actively grasp the development opportunities of automobile electrification and intelligence, by increasing the production capacity of automotive specification-level semiconductor discrete devices, speed up the layout of the company in the automotive electronics market, promote the further development of the company's business scale, and enhance the driving force of the company's sustainable development.

The industrialization project of automotive gauge-level semiconductor devices will introduce professional R & D and production personnel through the purchase of advanced chip manufacturing equipment, closed test equipment and test and testing equipment for automotive-grade semiconductor discrete devices. build a production line of automotive specification-level semiconductor discrete devices that covers the whole process of chip design, manufacturing and packaging and testing, and strengthen the integrated production capacity of the company's automotive specification-level semiconductor discrete devices. Enhance the production capacity of the company's high-end semiconductor discrete devices to meet the growing product demand in high-end applications. The implementation of the project will help to strengthen the company's IDM management capacity, optimize the company's product structure, promote the further development of the company's main business, consolidate and improve the company's core competitive advantage, and enhance the company's profitability.

As a manufacturer of semiconductor discrete devices, Galaxy Microelectronics attaches great importance to technological R & D and innovation, and has continuously strengthened its R & D investment in semiconductor discrete device chip manufacturing, packaging and testing, product applications and other fields over the years. After years of accumulation, the company has established a technology research and development platform adapted to the company's development scale, promoting the company to maintain a strong ability of independent technology research and innovation, and has a certain product technology reserve in the field of automotive electronic semiconductor discrete devices, which can ensure the smooth implementation of the project.

The company has worked hard in the semiconductor discrete device industry for many years, established an efficient marketing service system, and accumulated rich market development experience and customer resources in the course of operation, which can provide necessary support for the production capacity digestion of the project.

Moreover, Galaxy Micropower continues to summarize the advantages of production management and product quality control in the field of semiconductor power devices, and gradually form a standardized, process and institutionalized system operation, which can ensure the operation of the project.

It is reported that the construction period of the project is 24 months and the production period is 5 years. It is estimated that after the project reaches full production, the average annual sales income is 405.988 million yuan, and the average annual net profit is about 60.0204 million yuan. The payback period of the project investment is 6.11 years (after income tax, including construction period), and the financial internal rate of return (after income tax) is 18.12%.

In addition, taking into account the development trend of the industry, its own operating characteristics, financial situation and business development planning, the company intends to use 100 million yuan of raised funds to supplement current funds in order to optimize the financial structure and reduce liquidity risks. to meet the capital needs of the company's future production and operation development.