After nearly six months of guidance and preparation, the electronic chemical materials company Juxin Technology Co., Ltd. (hereinafter referred to as "Zhongjuxin") recently submitted Science and Technology Innovation Board IPO declaration materials to the Shanghai Stock Exchange, which intends to raise 1.5 billion yuan, mainly for the new production capacity of 196000 tons / year of ultra-pure electronic chemicals.
Although Juhua shares and the National Integrated Circuit Industry Fund (hereinafter referred to as "Big Fund") hold the same proportion and rank as the largest shareholder, the actual holding of Juhua shares is slightly higher than that of Juhua shares. In the actual operation and management, Juhua shares have maintained a greater influence.
Insiders close to MMC told Science and Technology Innovation Board Daily that the spin-off was mainly based on factors such as supporting the independent development of SMIC and the introduction of external strategic investors. "the two companies are engaged in very different business areas and sizes, and belong to a new sub-industry. After the completion of the split, Juhua shares are quite supportive of the development of the company. "
Revenue contribution of electronic grade hydrofluoric acid to more than 50%
SMIC specializes in the field of electronic chemical materials, mainly engaged in the R & D, production and sales of electronic wet chemicals, electronic special gases and precursor materials. The company's products are widely used in cleaning, etching, film forming and other manufacturing processes in the fields of integrated circuits, display panels and photovoltaic, and are indispensable key materials for the development of the above industries.
A reporter from Science and Technology Innovation Board Daily noted that medium-sized electronic wet chemicals can meet the technical requirements for the manufacture of 8-inch and 12-inch wafers. And electronic-grade hydrofluoric acid, electronic-grade sulfuric acid and electronic-grade nitric acid have reached the G5 product level, at the same level as international giants; the company's electronic special gas business has been formed relatively late, and high-purity chlorine and high-purity hydrogen chloride have reached 6N purity standards, which were officially formed and sold in 2018 and 2019, respectively, and the proportion of revenue gradually increased.
By the end of June 2021, the company's revenue mainly came from electronic wet chemicals and electronic special gases, accounting for 83.8% and 16.2% of revenue respectively. Among them, electronic-grade hydrofluoric acid accounts for more than 50% of past revenue, which is the traditional advantage of medium-sized core.
"Kaisheng fluorochemistry, a core subsidiary of Zhongjuxin, started with hydrofluoric acid and has been precipitated in this field for a long time." A source from a material enterprise in eastern China told Science and Technology Innovation Board Daily that integrated circuits have high requirements for electronic wet chemicals, and the electronic-grade hydrofluoric acid of a small number of domestic enterprises, such as the company and polyfluorodo, is in the leading position in China in terms of technology. however, the mass production of medium and giant cores is earlier and has the advantage of first-mover.
In terms of downstream customers, the core is mainly in the field of integrated circuits, supplemented by display panels and photovoltaic customers. According to the company, electronic wet chemicals have been recognized by SK Hynix, TSMC, Texas Instruments, SMIC, Changjiang Storage and other domestic and foreign companies; electronic special gases and precursor materials have also entered the trial and supply stage of mainstream customers, such as SMIC, Xiamen Lianxin, Silan Micro, Texas Instruments, BOE, Huaxing Optoelectronics and so on.
In the past three years, the combined revenue share of the company's top five customers has remained at about 33%, with SK Hynix, SMIC and Huahong in the forefront. Among them, SMIC has supplied sulfuric acid, hydrofluoric acid, nitric acid, ammonia shui, chlorine and other products for SMIC for five years, and supplied electronic wet chemicals to Huahong Hongli for eight years.
Benefiting from the strong demand in the downstream market and the acceleration of localization and other factors, the company's revenue has grown rapidly in the past three years. The revenue of SMIC in the past three years was 156 million yuan, 331 million yuan and 400 million yuan respectively, with an average annual compound growth rate of 60.11%. However, from the profit point of view, the company's profitability is average, it was established for three years to achieve a break-even, and the non-return net profit of 78300 yuan was deducted in 2020.
What is worth paying attention to is that higher fixed assets and projects under construction may put greater pressure on the company's future performance. By the end of June 2021, the book value of MMC fixed assets and projects under construction was 452 million yuan and 256 million yuan respectively, accounting for 26.82% and 15.16% of the total assets, respectively. The company expects a large number of projects under construction to be depreciated after consolidation in the second half of 20111.
Juhua still has great influence.
Zhongjuxin is located in Quhua Street, Kecheng District, Quzhou City, Zhejiang Province. although it has only been established for more than four years, it is closely related to Juhua shares across the road.
In December 2017, Juhua Co., Ltd. and five other shareholders, including Big Fund and Yuanzhi Fuhai, jointly established Zhongjuxin Co., Ltd. (the predecessor of the company). In March 2018, Zhongjuxin Co., Ltd. delisted its shares with 940 million yuan to acquire all the shares of Bouri Electronics and Kaisheng Fluorochemistry, a wholly owned subsidiary of Juhua, bringing the two companies into its pockets. Juhua shares through equity transfer to achieve part of the equity cashing, business spin-off.
It is reported that at present, Zhongjuxin is mainly a controlling company, and its revenue and profit mainly come from its subsidiaries. At present, the company has three wholly-owned subsidiaries, namely Kaisheng Fluoro Chemical, Borey Electronics and medium and Big Core Hubei. Among them, Kay Sheng Fluoro Chemical is mainly responsible for the electronic wet chemicals business, and has a subsidiary Kaiheng Electronics, which holds 51% and 49% shares with the listed company Glinda, respectively; Borey Electronics is mainly engaged in electronic special gases and precursor materials business, while medium Core Hubei is mainly the main body of this IPO fundraising project.
"Zhongjuxin and Juhua shares are engaged in different business areas and sizes, and belong to a new sub-industry. The spin-off is mainly based on factors such as supporting the independent development of CMIC and the introduction of external strategic investors. " A source close to the company told Science and Technology Innovation Board Daily that although it is no longer included in the financial report of Juhua shares after the split, Juhua shares are quite supportive of the company's development and maintain a greater influence.
As of the date of disclosure of the prospectus, Zhongjuxin has a total of 7 shareholders, with Juhua shares and large funds respectively holding 35.2% of the shares and ranking first among the largest shareholders. At present, the board of directors has a total of 9 members. In addition to 3 independent directors and 1 employee director, Juhua shares, Big Fund and Hengxin Enterprise have nominated 2, 2 and 1 board seats respectively.
In terms of management, Chairman Tong Jihong, General Manager Chen Gang, Deputy General Manager he Huilong and Zhang Xue Liang, Dong Secretary Chen Lifeng, Financial Officer Sun Lin and other senior executives all have work experience in Juhua Group or companies within the group system. Only Vice Chairman Yang Zhengfan and Chairman of the Supervisory Board Wu Jiuan come from other shares of the East.
In addition, although the company said that because Juhua shares and large funds hold the same shares, the company does not have a controlling shareholder and actual controller. However, a reporter from Science and Technology Innovation Board Daily noted that the actual shareholding ratio of large funds is still higher than that of Juhua shares. Further analysis of Juxin equity, Juhua shares and Sheng core fund, big fund and Juyuan core respectively have a relationship, and the total actual holdings of large funds are more than Juhua shares.
The above-mentioned East China material enterprises told Science and Technology Innovation Board Daily that although the purchase of shares by large funds will help the company's development to a certain extent, it will also face the problem of exit after listing, and a higher proportion of equity may exert pressure on the stock price.
Giant Core plans to raise 1.5 billion yuan in this IPO,. Among them, 1.2 billion yuan is invested in the "medium-core Qianjiang project with an annual output of 196000 tons of ultra-pure electronic chemicals" to supplement 300 million yuan of working capital. The data show that the total investment of the ultra-pure electronic chemical project is 1.38 billion yuan, and the expanded products include electronic-grade sulfuric acid, electronic hydrofluoric acid, electronic-grade nitric acid, electronic-grade AN water, electronic-grade hydrogen peroxide, electronic-grade isoBing alcohol, electronic-grade mixed acid, etc., with a total production capacity of 196000 tons per year.
