On The Eve Of IPO, Harbert Was Invested In The HUAWEI Supply Chain.

Members of the integrated circuit industry are expanding.

On the same day of the domestic semiconductor silicon wafer leading silicon industry listing, in April 20th, the main product of the Simulink chip microelectronics technology (Suzhou) Limited by Share Ltd (short for "sharp") was listed for application.

At present, the analog chip products of shuupu have entered the supply chain system of many well-known customers. The end users include ZTE, Haier, Ningde times, Hikvision, HKUST, and so on.

From the perspective of shareholding structure, there are no actual controllers in the company. The largest shareholder is a well-known semiconductor investment fund Huaxin venture capital. It is worth noticing that six months ago, HUAWEI's wholly-owned subsidiary, Harbert technology, became a shareholder in IPO.

Hard technology background

This is an integrated circuit design company specializing in Analog IC Product R & D and sales. The company's main products are signal chain analog chips, accounting for more than 9 of revenue. In recent years, it has gradually extended to power management analog chips. Its applications range from information communication, industrial control, monitoring and security, medical and health, instrumentation and household appliances.

Integrated circuit is a capital intensive industry, and the company's funds are mainly invested by shareholders and accumulated by its own profits. The financing channels are relatively single and the financing capacity is constrained.

In this IPO, the company intends to raise funds of 850 million yuan for analog integrated circuit product development and industrialization projects, R & D center construction and supplementary liquidity.

She is a young company, founded in 2012, and applied for a new three board listing in February 2016. Before listing, the company's profitability is not stable, and its performance often falls into losses.

Until now, the size of the company has remained small, but has been gradually profitable. Financial data showed that in 2017, 2018 and 2019, the revenue of the company was 112 million yuan, 114 million yuan and 304 million yuan respectively. The corresponding net profit for the same period was 5 million 124 thousand and 700 yuan, -881.94 yuan and 70 million 980 thousand and 200 yuan respectively.

Companies are also willing to spend money on R & D. From 2017 to 2019, R & D investment accounted for 25.61%, 35.74% and 24.19% respectively.

As of the end of last year, the company had 16 patents, including 14 invention patents, and 31 exclusive rights in the layout of integrated circuits in China.

According to the evaluation index of science and technology created by the SFC, the 3 indexes of R & D investment, patent and revenue are consistent with the location of "hard technology" enterprises.

From the perspective of clients or shareholders, they are all very attractive. At present, the analog chip products of the company have entered the supply chain system of many well-known customers, including ZTE, Haier, Ecovacs, Hikvision, Dahua Technology, Haman, HKUST, Hon Fei, Ningde times, Diyu medical care and other industries.

The largest shareholder of the company is Huaxi venture capital, an investment fund for China in the semiconductor industry. The latter is a world-renowned venture capital institution. The shareholders of Huaxin ventures include TSMC, Toshiba, ARM, SMIC and other well-known semiconductor companies.

Another star shareholder with more than 5% stake is Harbert technology. Harbert technology is a wholly owned subsidiary of HUAWEI, founded in April 23, 2019. In May 15th, just 22 days after its establishment, Harbert subscribed for 2 million 241 thousand and 147 shares of the 2 million 241 thousand and 147 shares at a price of 32.13 yuan.

After half a year's stake in HUAWEI, a new round of equity transfer has been launched by Mr. reupu, including Jiaxing Jun Qi, Hefei Run Guang, Hui You Chuang Jia, Hui You Chuang, Yuan He Pu Hua, etc. It is worth noting that the share transfer price has risen to 80.32 yuan, which is more than double the cost of HUAWEI's stock market half a year ago.

However, the 5 shareholders who have been involved in the assault have been lucky enough to take the last bus. In December 27, 2019, he accepted Haitong Securities coaching and registered in Jiangsu securities regulatory bureau to open a new journey.

Domestic alternative acceleration

In recent years, trade friction has occurred all over the world. Integrated circuit technology has become one of the important bargaining chips in trade negotiations. This has also attracted the attention of relevant industry chain companies, especially the chance of domestic alternative targets.

Describing its market position, this is a few of the few companies in China that can compete directly with the world's leading companies in the same industry and break through overseas technology monopolies in the field of key analog IC devices.

How did he destroy overseas technology monopoly? Prospectus shows that the company based on CMOS technology fully HD video filter design, the performance of the international leading enterprises similar products, while substantially reducing product costs and prices, and enter the domestic security monitoring leading enterprises supply chain, to achieve import substitution; the company will Sigma-Delta ADC technology is applied to mixed signal chips, which provides real-time data for energy consumption monitoring and regulation of 5G base stations, and successfully enters the supply chain of leading enterprises in China's communications equipment, breaking through the monopoly of foreign manufacturers.

In the development process of HUAWEI, the role of HUAWEI is also very subtle. The most direct link is the direct stake in the company.

Since its inception, Harbert has invested in third generation semiconductor materials, silicon carbide leading enterprises, Shandong Tianyue, focusing on wafer level optical chips, Kun Yu photoelectric, high-speed transmission chip design company, Xingang coast and so on.

Harbert's investment path is a footnote for HUAWEI to find a substitute for the supply chain, and the investment of the company is clearly part of the industry chain.

"Harbert is HUAWEI to deal with trade friction, and in order to reduce the risk of supply chain, in addition to looking for domestic alternatives, HUAWEI also supports domestic semiconductor enterprises through Harbert investment. At present, Harbert's investment is accurate, which is needed for investment and can be seen by Harbert. An IC investor said.

At the same time, twenty-first Century economic report reporter noted that in 2019, its revenue doubled, which was inseparable from the revenue contribution of mysterious customer A. In 2019, the revenue from the customer jumped to 57.13%. It is worth noting that although the client is anonymous, the client is the affiliated party of the company, and HUAWEI is also a related party.

In 2016, the company began to develop many kinds of high difficulty analog chips for the customer, got qualified supplier certification at the end of 2017, began to be purchased in 2018, and began purchasing A from the company in 2019. It was in 2019 that the replacement of HUAWEI's key components was speeded up.

The identity of A has not yet been officially confirmed. In April 22nd, the reporter telephoned the telegraph office, and nobody answered.

Reporters learned that, for customers' business secrets and other considerations, the company can apply for exemption from disclosing important customers, which has precedents in many companies of A shares.

In addition, the reporter noted that in the previous research reports of many brokerages, they regarded the company as an alternative target for analog chips, but there was still a gap between their products and international factories.

In the prospectus, the company admitted that compared with the international analog chip companies, the development time of the local companies in China is relatively short, and there is still a certain gap between the technology reserves and product categories, resulting in the diversity of product structure. In the field of high precision operational amplifier, low noise instrumentation amplifier, high-speed interface chip, high-performance power management, high-speed ADC chips and other high-end analog chips, the analog IC design industry still has a big gap with the world's advanced level in terms of design environment, design tools, design talents and design experience.

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