Luxiao Technology Has Been Chasing Hot Spots For A Long Time, But It Has Finally Failed. Is It True That This Transformation Of The Third Generation Semiconductor Substrate?

? ? ? ? Since its listing, Luxiao Technology (002617. SZ), which has been closely following the market hot spot, has stood on the "wind outlet" this time.

Recently, Luxiao technology's silicon carbide project progress announcement once again attracted market attention.

According to the announcement, the silicon carbide substrate developed by Hefei Luxiao Semiconductor Co., Ltd. has passed the sample delivery test. Currently, it is actively sending samples to downstream customers, and the installation and commissioning of the equipment for phase I production has been completed and is ready to be put into production in the near future.

Luxiao technology said that the silicon carbide substrate has passed the inspection, showing Hefei Luxiao semiconductor's strong product research and development technology ability in the silicon carbide field, which has a positive impact on the future business performance.

But is Luxiao technology, which has always been used to chasing hot spots, really come this time?

Luxiao technology said in June this year that it had made a breakthrough in the technology of the third generation semiconductor silicon carbide, a subversive material. Visual China

The financing of silicon carbide project is cold

In the hot third-generation semiconductor concept trend, Luxiao's approach is rather ambiguous.

Luxiao technology said in June this year that after years of hard work, the company has made a breakthrough in the technology of the third generation semiconductor silicon carbide, a subversive material.

However, looking through the 2019 annual report of Luxiao technology disclosed on April 28, 2020, there are no words about the third generation semiconductor silicon carbide, and even the chapters of "company development strategy" and "business plan" in 2020 can not find words related to semiconductors.

It is inconceivable that major strategic initiatives have been launched in such a way.

However, in the annual report of 2020, Luxiao technology has made a large description of SiC, and claimed that the SiC project is its forward-looking decision-making, "opening up the company's future performance growth space".

The reason is that Luxiao Technology launched a 1 billion yuan fixed increase refinancing plan with silicon carbide project as the main body, which was approved by the CSRC at the end of that year.

However, the plan can not keep up with the changes, and the "forward-looking" layout of Luxiao technology is not unanimously favored by investors.

In March this year, Luxiao technology completed the refinancing of the above silicon carbide project. The total amount and net amount of the additional subscription were only 643 million yuan and 615 million yuan respectively, far from the original plan of 1 billion yuan. Only the first round of subscription, the sponsor agency sent the subscription invitation documents to 180 specific objects.

In this refinancing, Luxiao technology even had a substantial discount, and the final fixed price increase was 6.91 yuan / share, which was 16.95% and 20.24% lower than the closing price of the previous trading day and the average price of the previous 20 trading days respectively.

This means that although the third generation semiconductor silicon carbide market is hot, investors are not interested in Luxiao technology.

However, what is dramatic is that the share price of Luxiao technology has suddenly soared by 122.74% from May 10 to June 22 this year. Even if the adjusted closing price on June 29 is 14.07 yuan / share, the above fixed increase subscribers have already obtained 103.62% Book floating profit.

And these fixed additional shares with a total of 93.029 million shares will be released from the restrictions on sales on September 4, this year.

Although there are orders, the company is still losing money

Luxiao technology, the third generation semiconductor silicon carbide, has begun to compete with each other.

But at present, the main business of Luxiao technology seems to be more "focused". It said that it will focus on the silicon carbide industry and strive to become a third-generation semiconductor substrate company focusing on silicon carbide.

Luxiao technology has given a 6.09-year static payback period (after tax, including construction period) and 18.26% financial internal rate of return (after tax) for the newly-built SiC substrate industrialization project invested by refinancing. It claims that after the completion of the project, the average annual sales revenue will be 508.64 million yuan, the total profit will be 117.04 million yuan, and the net profit will be 87.78 million yuan.

The investment amount of Luxiao technology's new silicon carbide substrate industrialization project is 695 million yuan, and it is planned to raise 650 million yuan. Due to the lack of actual fund-raising, Luxiao technology reduced the fund-raising investment to 285 million yuan, but it said that the insufficient part would be solved by self financing or other financing methods, which would not affect the layout of silicon carbide industry.

Luxiao technology's so-called breakthrough in silicon carbide technology has been described in the 2020 annual report.

According to the disclosure of Luxiao technology, it has broken through the key technologies of silicon carbide long crystal furnace and long crystal link, including the development of 6-inch quartz tube silicon carbide crystal growth furnace, research on the theory of large-scale silicon carbide single crystal preparation, solving the problems of crystal growth control difficulty, high microtubule density and serious crystal back corrosion, and synthesis of high-purity silicon carbide raw materials.

However, Luxiao technology's response to the feedback from the previous application documents of fixed increase refinancing shows that the above-mentioned key core technology breakthroughs are the result of in-depth cooperation with China Science and Technology Research Institute and Guohong Zhongyu.

The cooperation between Luxiao technology and Guohong Zhongyu began in August 2019. At that time, its wholly-owned subsidiary, Luxiao sapphire, won an order for 80 sets of complete sets of silicon carbide long crystal equipment of Guohong Zhongyu, with a total contract amount of 126 million yuan.

In November 2019, Luxiao technology announced to jointly develop 4-inch, 6-inch, 8-inch and even larger silicon carbide long-crystal equipment with China Science and Steel Research Institute and Guohong Zhongyu. At the same time, Guohong Zhongyu customized about 200 silicon carbide long crystal furnaces to Luxiao technology, with a total purchase amount of about 300 million yuan.

However, the revenue of Luxiao sapphire, which obtained the above orders, will be zero in 2019, with a loss of 10.8073 million yuan; In 2020, the revenue is 27.7876 million yuan, and the loss is 36.6394 million yuan.

However, Luxiao technology announced in July 2020 that the longcrystal equipment delivered by Luxiao sapphire to Guohong Zhongyu is in good condition and qualified crystals have been grown.

Long term pursuit of hot spots

With the tide surging, Luxiao technology has opened a big mouth in the field of silicon carbide.

In August 2020, Luxiao technology announced that it and Changfeng County Government of Hefei jointly invested in the construction of the third generation power semiconductor (SIC) Industrial Park, including the R & D and production of SiC crystal growth, substrate production and epitaxial growth. The total investment scale of the project is expected to be 10 billion yuan, and the investment of phase I is expected to be 2.1 billion yuan.

Since then, Luxiao technology established a joint venture with Hefei Beicheng and Changfeng tetrahedron in October 2020, with a registered capital of 200 million yuan. Luxiao technology accounted for 47.5% of the shares.

On June 25 this year, it was announced that Hefei Luxiao semiconductor, which will be put into production in the near future, plans to increase its registered capital by 110 million yuan, including 95 million yuan from Changfeng Investment Promotion Fund and 15 million yuan from Luxiao technology, becoming the largest shareholder with 35.48% shares.

However, before Luxiao's transformation to embrace silicon carbide, there had been many cross-border transformation and folding wings, and all of these were due to the tide receding and showing naked swimming state.

In 2017, Luxiao technology successively invested 350 million yuan and 550 million yuan to acquire 100% equity of Shanghai Zhengyun and Jiangsu dingyang, so as to enter the new energy vehicle and photovoltaic industry.

What's embarrassing is that Luxiao technology exploded after its acquisition, resulting in a huge loss of 991 million yuan in 2018.

In 2014, the share price of sapphire soared before and after it announced to enter the sapphire industry. After that, it obtained refinancing, but soon changed its fund-raising on the ground of unclear market prospect of sapphire industry.

Earlier, Luxiao technology intervened in small loan companies when the market was chasing the financial hot spot of equity participation, but later it also carried out equity disposal.

In addition, in 2019, the concept of industrial hemp is booming, and Luxiao technology immediately announced the signing of a contract for the extraction equipment of hemp with a cost of 120 million yuan, and cooperated with the Institute of atomic energy utilization of the Chinese Academy of Agricultural Sciences to research and develop the intensive processing experiment of relevant parts of industrial hemp, which eventually failed.

Statistics show that the total financing amount of Luxiao technology listed in 2011, including IPO and fixed increase refinancing, was as high as 4.152 billion yuan, while in the 10 years from 2011 to 2020, its total net profit was negative 298 million yuan.

But this time, Luxiao technology, which has not raised enough funds, has launched into the third-generation semiconductor silicon carbide. Will it repeat the old road mentioned above? The market is waiting for the answer.

?