Reporter | Liang Yi
Recently, Xingchen Technology Co., Ltd. (referred to as "Xingchen Technology") has been accepted for GEM . CICC is the main underwriter and Jinyuan Uni-President is the co-lead underwriter.
Xingchen Technology’s main business is the R&D and sales of video surveillance chips. Its products are mainly used in intelligent security, video intercom, intelligent vehicle and other fields.
In this IPO, Xingchen Technology plans to raise 3.046 billion yuan, of which 1.62 billion yuan will be used for the new generation AI ultra-high-definition IPC SoC chip R&D and industrialization project, and 576 million yuan will be used for the new generation AI processor IP research and development project. The remaining 850 million yuan will be used to supplement working capital.
Xingchen Technology has only been established for more than 4 years, and its pre-IPO valuation has reached 4.5 billion. What kind of company is this? Why is it favored by capital?
’s valuation has increased 15 times in three years to 4.5 billion.
The company’s predecessor, Xingchen Co., Ltd., was funded and established by SigmaStar (Cayman) on December 4, 2017, with a registered capital of US$2 million.
Since May 2019, Xingchen Technology has gone through multiple rounds of financing, and its value has increased. As of Series C financing, the company's valuation has reached 4.5 billion yuan, an increase of nearly 15 times in three years.
As of the date of publication, Xingchen Technology’s competitor Fuhan Micro (300613.SZ) has a total value of nearly 20 billion yuan, and its dynamic price-to-earnings ratio is floating at 48 times.
At the end of 2021, Xingchen Technology’s monetary capital was 442 million yuan, and its trading financial assets were 5.305 billion yuan.
is backed by MediaTek
Before the IPO, Xingchen Technology had many external shareholders and the company had no actual controller. The largest shareholder SigmaStar (Cayman) held 31.98% of the shares, and SigmaStar (Cayman) was actually 100% indirectly owned by MediaTek. control.
Interface News reporters noticed that many of the company’s directors, supervisors, senior executives and core personnel were from Morningstar Software R&D (Shenzhen) Co., Ltd., which is controlled by MediaTek. The specific situation of is as follows:
MediaTek is one of the world’s largest smartphone chip suppliers. According to data from CINNO Research, in the first quarter of 2022, MediaTek ranked first in China's smartphone SoC market with a share of approximately 41.2%, a year-on-year increase of approximately 7%, and and Qualcomm accounted for approximately 35.9%, an increase of approximately 4% year-on-year. %,Ranked second.
Xingchen Technology and MediaTek have certain related transactions. In terms of recurring related purchases, during the reporting period, the company purchased product development services, products and EDA usage services from , MediaTek, and its holding subsidiaries; occasional related transactions were the company's purchases of related products from MediaTek and its holding subsidiaries in 2019. Patents are 4.6362 million yuan, inventory is 11.6 million yuan and fixed assets are 1.6386 million yuan.
Among them, the initial team of is still in the process of being established. MediaTek and its holding subsidiaries also provide non-core product development services for Xingchen Technology. The amount of product development services purchased by the company from 2019 to 2021 is 50.8 million yuan respectively. , 38.45 million yuan and 30.308 million yuan, accounting for 29%, 14.31% and 6.68% of the current research and development expenses respectively.
Overall, Xingchen Technology’s R&D expenses during the reporting period were 175 million yuan, 269 million yuan, and 454 million yuan, accounting for 24.64%, 22.53%, and 16.90% of operating income in the same period respectively; at the end of 2021, R&D personnel There are 469 people in total, accounting for 76.51% of the total number of employees.
In addition, Xingchen Technology was also rated as a "National Key Integrated Circuit Design Enterprise" by the National Development and Reform Commission of the People's Republic of China in 2021.
distribution revenue accounts for 90%
From 2019 to 2021, the company's total operating revenue was 711 million yuan, 1.193 billion yuan and 2.686 billion yuan respectively, and the net profits were 63.1492 million yuan, 217 million yuan and 754 million yuan respectively, of which smart Security chips contribute half of the country, and video intercom chip revenue is increasing rapidly.
security monitoring system mainly consists of front-end and back-end parts. The front-end is an Internet camera (IPC), which is mainly composed of lenses, sensors and video surveillance chips (IPC SoC); the back-end is an Internet video recorder (NVR) or a hybrid video recorder. (XVR), equipped with NVR/XVR SoC and monitoring hard drive .
It is reported that in the field of smart security, the global IPC SoC and NVR SoC markets are currently highly concentrated. The former includes several major manufacturers such as Xingchen Technology, Fuhan Micro, Beijing Junzheng , and Novatek Technology . The latter Covering major manufacturers such as Xingchen Technology, Fuhan Micro, Huawei HiSilicon, and Novatek Technology.
According to FrostSullivan data, calculated in terms of shipments, the top five suppliers in the global IPC SoC market share in 2021 collectively account for 85.5% of the market share. Xingchen Technology ranks first with 36.5%, far surpassing the second-ranked Richhan Micro. 15 percentage points; the top four suppliers in the global NVR SoC market share in 2021 collectively account for 97.7% of the market share. Xingchen Technology still ranks first with 38.7%, far exceeding the second-ranked Richhan Micro by more than 10 percentage points.
In addition, Xingchen Technology is also among the leaders in the fields of video intercom and smart vehicles. FrostSullivan data shows that in terms of shipments, the company's share of the global USB video conferencing camera chip market in 2021 is 51.8%, ranking first, while Novatek Technology, the second largest company, has only 14.4%; the company's driving record in China in 2021 Yi chip market share is 24%, ranking second, 1 percentage point behind No. 1 Lingtong Technology.
However, Jiemian News reporters noticed that Xingchen Technology lacked information on chip production capacity and output. The production capacity of chips was unknown, and the production and sales of chips in various application fields were mixed.
In addition, Xingchen Technology mainly focuses on the distribution model. During the reporting period, the distribution revenue was 645 million yuan, 1.03 billion yuan, and 2.386 billion yuan respectively, accounting for 91.26%, 87.16%, and 90.01% respectively. Therefore, the end customers Specific information cannot be obtained from the prospectus.
From the perspective of the industry chain, Xingchen Technology adopts the Fabless model, which outsources production links such as wafer manufacturing and packaging and testing to foundries, which also constitutes the largest cost expenditure. During the reporting period, the company mainly purchased wafers from Nanya Technology Co., Ltd., United Microelectronics Co., Ltd., TSMC, and Winbond Electronics, and purchased packaging and testing services from ASE Investment Holdings Co., Ltd.. The purchase amount of the top five suppliers was 3.92 RMB respectively. 100 million yuan, 624 million yuan and 1.539 billion yuan, accounting for 84.09%, 79.43% and 77.92% respectively.
The global semiconductor supply chain will be tense in 2021, and the prices of some wafer fabs and some packaging processes have increased significantly. However, with strong downstream demand, product price increases and mid-to-high-end products, the company's comprehensive gross profit margin has increased from 42.83% in 2020 to 2021. 46.73% in 2017, and rival Richhan Micro increased from 39.69% to 42.45%.
