Semiconductor wafer manufacturer Youyan Silicon Co., Ltd. IPO was accepted: the controlling shareholder had raised 75% of the funds to expand production in connection with bogus transactions.

At present, semiconductor wafers blow a new wave of out-of-stock prices, supplier Youyan Semiconductor Silicon Materials Co., Ltd. (hereinafter referred to as "Youyan Silicon") chose to go to Science and Technology Innovation Board IPO, at this time has been accepted by the Shanghai Stock Exchange.

A reporter from Science and Technology Innovation Board Daily noted that the controlling shareholder of Youyan Silicon is Fang Yongyi, the real controller of RS Technologies, a company listed on the Tokyo Stock Exchange, with Japanese nationality. Before "transforming" into a foreign-funded enterprise, Youyan Silicon was once a state-owned enterprise and an important business segment for A-share listed companies to research new materials.

It is worth noting that, RS Technologies has participated in fictional transactions and was punished by the Japanese Financial Agency, and the company is at risk of the impact of big-country trade frictions on business and revenue.

The controlling shareholder is a Japanese company.

Youyan Silicon is mainly engaged in the R & D, production and sales of semiconductor silicon materials, including semiconductor silicon polishing wafers, silicon materials for integrated circuit etching equipment, semiconductor zone fused silicon single crystals, etc., which can be used in the manufacture of semiconductor products such as integrated circuits, discrete devices, power devices, sensors, optical devices, integrated circuit etching equipment components, etc.

As of the date of disclosure of the prospectus, Youyan Ace, RS Technologies and Youyan Group hold 36.28%, 30.84% and 21.73% of the shares, respectively. Further penetrate the equity of the relevant shareholders, RS Technologies controls 69.78% of Youyan Silicon through direct and indirect ways, and is the controlling shareholder of the company.

It is reported that, RS Technologies (Securities Code: 3445. T) is a Japanese company listed on the Tokyo Stock Exchange in March 2015. Fang Yongyi has 43.05 per cent of the voting rights of RS Technologies and is the actual controller of R & D silicon through its control of 69.78 per cent of the company. Fang Yongyi is also a Japanese national, and he also owns Taiwan's Ayers, Yunian Semiconductor and other companies.

A reporter from Science and Technology Innovation Board Daily noted that Youyan Silicon was not only a state-owned enterprise, but also once belonged to an important business section of A-share listed companies to research new materials, and this IPO belongs to the "secondary listing." The company originated from the Semiconductor Silicon material Research Laboratory of Youyan Group (formerly Beijing Nonferrous Metals Research Institute) and began to study semiconductor silicon materials since the 1950s. In March 1999, Youyan New material (formerly known as Youyan Semiconductor material) launched by Youyan Group was listed on the Shanghai Stock Exchange. Silicon wafer and silicon single crystal are its key business segments.

However, due to the average performance after the listing of Youyan New Materials and the break-even or substantial losses in most years of the silicon material business, Youyan New Materials sold its semiconductor silicon material industry as a whole to Youyan Group in 2014. After being stripped of the listed company system, Youyan Semiconductor (the predecessor of the company) has always been a single shareholder of Youyan Group, and the actual controller is the State-owned assets Supervision and Administration Commission of the State Council.

However, the operating condition of Youyan Semiconductor has not improved significantly after the split, and Youyan Group has reached a cooperation with RS Technologies. After a series of operations, RS Technologies has become the controlling shareholder of the company, and Youyan Silicon has changed from a state-owned enterprise to a foreign-funded enterprise.

Since then, Japan has led a series of changes in Youyan Silicon, including increasing capital, introducing strategic investors, injecting 19.99% of Shandong Youyan Aisi into Youyan Silicon, relocating its production base to Dezhou, Shandong, and so on. A reporter from Science and Technology Innovation Board Daily noted that Shandong Youyan Aisi is the main body of the company's 12-inch silicon wafer business, but the largest shareholder is Texas Huida Fund (holding 60.02%), with a state-owned background.

With regard to the background of the shareholding of Shandong Youyan Ace's largest shareholder, the company told Science and Technology Innovation Board Daily: "the fund's investment in Shandong Youyan Ace belongs to equity investment, not 'Ming stock real debt'. There are no future absorption and merger arrangements."

It is worth noting that Youyan Silicon controlling shareholder RS Technologies has been involved in fictional transactions. It is reported that, RS Technologies was fined 6 million yen by the Japanese Financial Agency for producing false records in the securities report. The company responded to Science and Technology Innovation Board Daily that the act did not constitute a major violation under Japanese law.

There has been a significant increase in government subsidy revenue.

From the point of view of the operation, the performance of Youyan Silicon still has a certain degree of volatility since the restructuring. In the past three years, the company's revenue was 696 million yuan, 625 million yuan and 530 million yuan respectively, deducting non-return net profit of 139 million yuan, 116 million yuan and 78 million yuan.

And from the relocation of the production base in Dezhou, Shandong Province, the company's government subsidy revenue increased significantly. During the reporting period, the company received government subsidies of 8.5417 million yuan, 9.9043 million yuan, 37.6852 million yuan and 43.5999 million yuan respectively, accounting for 5.77%, 7.90%, 33.10% and 180.63% of the company's total profits, respectively.

A reporter from Science and Technology Innovation Board Daily noted that since 2020, the unit price of silicon polishing wafers and silicon materials for etching equipment, the main products of Youyan Silicon, has shown a downward trend, and the revenue growth of related products is mainly driven by volume.

The company responded to Science and Technology Innovation Board Daily: "the major fluctuations in revenue and profits in the past three years are mainly affected by the changes in market supply and demand and the prosperity of the industry, as well as the relocation of the company." Although the average sales price of the company's main products fluctuates to a certain extent, it is basically consistent with the price fluctuation of the industry as a whole. "

The market concentration of the global semiconductor silicon material industry is very high, with the combined market share of the top five semiconductor wafer companies accounting for about 90%, while Japanese companies Shinyue Chemical and Shenggao account for nearly half. On the domestic side, the larger silicon wafer manufacturers are mainly Shanghai Silicon Industry, Central shares, Lion Micro, Research Silicon and so on. Japanese recycled wafer giant RS Technologies grabs the domestic market with the help of Youyan silicon, and many market participants say bluntly that there is a risk of the impact of trade frictions among big countries on the company's business and revenue.

"there are no obvious trade frictions against the company's products and equipment in Taiwan and Japan, and they have not had a significant adverse impact on the company's sales and equipment procurement at present. And the company has disclosed the relevant risks in the prospectus. " You research silicon said to the reporter of Science and Technology Innovation Board Daily.

What is different from the 12-inch development of the domestic semiconductor wafer leader Shanghai silicon industry is that Youyan silicon aims at the 8-inch wafer market. The company said that as the process technology continues to improve and the downstream market demand continues to be hot, 8 inches and 12 inches will co-exist for a long time in the future.

Youyan Silicon IPO plans to raise 1 billion yuan, nearly 75% for production expansion, and focus on 8-inch products. Among them, the "8-inch silicon wafer expansion project for integrated circuits" invested 385 million yuan, and the annual production capacity of 1.2 million 8-inch silicon wafers can be increased by 1.2 million yuan after the completion of the project, and 357 million yuan will be invested in the "silicon material project for integrated circuit etching equipment". After the completion of the project, an annual increase of 204000 kg of silicon material can be achieved. 258 million yuan is used to supplement R & D and working capital, mainly invested in the R & D and production of large-size zone fused silicon single crystal for automotive chips, and the development of 8-inch zone fused silicon single crystal.

However, a reporter from Science and Technology Innovation Board Daily noted that Youyan's cash flow is relatively abundant and its asset-liability ratio is less than 5 per cent. During the reporting period, the company's monetary fund balance was 158 million yuan, 281 million yuan, 671 million yuan and 969 million yuan respectively, and the net cash flow of operating activities was 55 million yuan, 294 million yuan, 241 million yuan and 117 million yuan.