reporter｜Zhang Qiaoyu
Shaoxing SMIC Integrated Circuit Manufacturing Co., Ltd. (hereinafter referred to as SMIC Shaoxing) has embarked on the road of Science and Technology Innovation Board IPO in just four years.
company's revenue is rising steadily. From 2019 to 2021 (reporting period), the compound growth rate of SMIC Integration's operating income reached 173.91%, but it is difficult to stop losses. As of the end of 2021, SMIC Integration's cumulative loss reached 3.545 billion yuan, exceeding the company's annual operating income in 2021.
Interface News reporter noticed that on the one hand, SMIC has provided 573 patent authorizations for SMIC Integration, and it is questionable how SMIC Integration's own technical strength is; on the other hand, the company has expanded in a relatively radical way, and the large number of fixed assets such as equipment, factories and power infrastructure purchased every year have caused the company's fixed assets to remain high, the gross profit margin continues to be negative, and the short-term debt repayment ability is becoming increasingly tight, and it can only meet the increasing number of operating capital requirements through external debt financing tools such as bank borrowing. In the case of
, SMIC Integration chose to raise 12.5 billion yuan of funds to overcome the IPO, of which 4.34 billion yuan was used to make up for the flow, but in 2019 and the year before the IPO, SMIC Integration was still buying land to build a building.
radical expansion
was established for four years, and SMIC's operating income reached 2.024 billion yuan as of 2021.
prospectus shows that SMIC Integration is a process wafer foundry company . The company was founded in 2018 and is mainly engaged in wafer foundry several module packaging and testing business in fields such as MEMS and power devices. In 2021, the company's foundry business revenue from wafer was 1.846 billion yuan, accounting for 92.09% of the main business revenue, of which 72.21% of the revenue from power devices.
In the field of power devices with a large revenue ratio, SMIC Integration stated that it is one of the few foundry companies in China that provide automotive-grade IGBT chips. Several advanced main drive inverter modules for new energy vehicles' electronically controlled electric systems have formed large-scale mass production. As of the end of 2021, the company's monthly wafer foundry capacity was 100,000 pieces.
From 2019 to 2021, SMIC Integrated's operating income was RMB 270 million, RMB 739 million and RMB 2.024 billion, respectively; while the turnover increased, the net profit continued to lose, corresponding to RMB -772 million, RMB -1.366 million and RMB -1.407 billion, respectively, with the cumulative loss amount reaching RMB 3.545 billion, exceeding the company's annual operating income in 2021. The reason behind
is that since its establishment, SMIC Integration has been moving towards a rapid business expansion.
From 2019 to 2021, SMIC Integrated's debt-to-asset ratio was 50.35%, 44.47% and 65.74%, respectively, seriously deviating from the average level of comparable companies in the same industry such as Huarun Micro (688396.SH), Silan Micro (600460.SH), Huahong Semiconductor (600360.SH), and Hua Microelectronics (600360.SH). The difference between the company's current assets minus current liabilities in was -1.734 billion yuan, 484 million yuan and -748 million yuan respectively. Except in 2020, the company's current assets cannot cover the current liabilities .
In addition, the net cash flow generated by SMIC Integration's operating activities in 2021 was 578 million yuan, which could not cover the 2.762 billion yuan cash purchased, accepted services and paid to employees in that year, and the difference between the two. All signs indicate that at present, SMIC Integration has huge pressure on short-term operating capital.
Interface News reporter noticed that during the reporting period, SMIC Integrated purchased fixed assets, intangible assets and other long-term assets of and , respectively, and the amount of net cash flow generated by operating activities in each period was -516 million yuan, 46.8815 million yuan and 578 million yuan, respectively.
Generally speaking, the ratio of cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets to the net cash flow generated by operating activities is between 3% and 60%, indicating that the company has great long-term growth potential. However, the proportion of SMIC Integration in 2020 and 2021 reached 5276.60% and 885.29%, respectively, which has far exceeded the normal range. Under the aggressive expansion, the risk of investment has increased accordingly.The expansion of
is specifically reflected in the company's purchase of a large number of fixed assets (covering factory buildings, power and infrastructure, machinery and equipment, etc.). The original book value of fixed assets from 2019 to 2021 was 3.624 billion yuan, 4.464 billion yuan and 9.102 billion yuan, respectively, of which the original value of machinery and equipment was 2.552 billion yuan, 3.170 billion yuan and 6.939 billion yuan, respectively, which are the main part of the purchase.
But it should be noted that the depreciation amount of fixed assets purchased in large quantities was as high as RMB 218 million, RMB 885 million and RMB 1.974 billion in the reporting period according to the industry depreciation ratio, which is close to the company's operating income in each period, of which the depreciation amount of machinery and equipment was as high as RMB 216 million, RMB 787 million and RMB 1.724 billion, respectively, which became the main reason for the losses.
From 2019 to 2021, SMIC Integration's comprehensive gross profit margin was -179.96%, -94.02% and -16.40%, respectively, which continued to be negative.
In addition, Interface News reporters noticed that in 2020, SMIC Integrated Cash Flow Statement purchased fixed assets, intangible assets and other long-term assets to pay 2.48 billion yuan in cash. In the current period, the original value of the company's fixed assets increased by 840 million yuan, the projects under construction increased by 443 million yuan, the intangible assets decreased by 119 million yuan, and other non-current assets increased by 580 million yuan, a total increase of 1.744 billion yuan, and the difference between the company and the actual cash payment was about 736 million yuan.
accounting professional told Interface News reporter that it is also necessary to judge the original value of fixed assets, accounts payable, input tax amount and the reduction amount of engineering equipment payable. The purpose of this part of the funds still needs to be paid attention to during subsequent inquiries.
SMIC has granted 573 patents
In fact, SMIC has participated in the entire process of SMIC integration establishment to IPO. SMIC Holdings, wholly-owned subsidiary of SMIC, is one of the founding shareholders of the company. At the time of its establishment, it invested 1.38 billion yuan to hold 23.47% of the shares.
Before 2021, SMIC Integration was an associate company of SMIC. In January 2021, the company signed a new joint venture contract and turned it into a joint venture. Before the issuance of , SMIC Holdings was the second largest shareholder of SMIC Integrated, with a shareholding of SMIC Integrated at 19.57%. In addition, 9 of the two executives of SMIC Integrated Directors, Senior Supervisors and Core Technical Staff 16html, all have relevant experience in working at SMIC.
SMIC provides a lot of support for the early development of SMIC integration.
is most important in the authorization of intellectual property rights. SMIC Integration signed the "Intellectual Property License Agreement" and the "Supplementary Agreement to the Intellectual Property License Agreement" with SMIC Shanghai, SMIC Beijing, and SMIC Tianjin in 2018 and 2021, licensing 573 patents and 31 non-patent technology related to microelectronics and power devices (MEMSMOSFETIGBT). SMIC Integration can use the above intellectual property rights to engage in the research, development, production and operation of microelectronics and power devices.
Within three years of the date of the effective date of the agreement in March 2018, all holding subsidiaries of SMIC in mainland China that hold more than 50% of the shares will not use the relevant intellectual property rights to carry out the micro-electromechanical and power devices (MEMSMOSFETIGBT) business that SMIC is engaged in; within three years from the date of the effective date of the supplementary agreement in March 2021, all holding subsidiaries of SMIC in mainland China and other actually controlled subsidiaries will not use the relevant intellectual property rights.
It is reported that the licensing fee is a one-time fixed licensing fee, with an amount of 1.356 billion yuan.
In addition to the licensed patent, SMIC Integrated's production at the beginning of the reporting period was also carried out on the shoulders of SMIC.
early 2019. SMIC's free production line is still in the construction period, and SMIC Integrated leases purification workshops in SMIC Shanghai and SMIC Shenzhen for production.
can not only be produced using SMIC's workshop, SMIC Integration also entrusts SMIC Shanghai and SMIC Shenzhen to process and manufacture some wafer parts. It is mainly purchased by SMIC Shanghai and SMIC Shenzhen to process silicon wafers , process them into semi-finished wafers and sell them to the company.
The amount of materials and services purchased from SMIC Shanghai, SMIC Shenzhen and SMIC Tianjin was RMB 309 million and RMB 316 million respectively in 2019 and 2020, accounting for 40.93% and 22.04% of the current operating costs, respectively. Among them, the proportion of raw materials purchased to 55.76% and 30.48% of the total material purchases were respectively.
first buy a house to build a building and then raise funds to supplement the flow
has a cumulative loss of 3.5 billion yuan. SMIC Integration, which faces great debt repayment pressure, also purchased 2 pieces of land from the Shaoxing Municipal Government through its holding subsidiary SMIC Real Estate and SMIC Real Estate Phase II before going public.
It is reported that these two plots of land are state-owned construction land for talent supporting land for integrated circuit manufacturing industry. The company will use it to develop and build supporting housing for employees. The costs of winning the above plots are 204 million yuan and 267 million yuan respectively. The average sales prices of the two supporting buildings shall not be higher than 7,000 yuan/square meter (building area) and 13,000 yuan/square meter (building area) respectively.
prospectus shows that the company has implemented the employee equity incentive plan in 2020 and 2021 to confirm the share payment expenses of RMB 5.3916 million and RMB 43.1671 million respectively, and it is expected that from 2022 to 2024, the share payment expenses will be RMB 63.5452 million, RMB 52.8352 million and RMB 12.3163 million respectively.
This round of listing, SMIC Integration plans to raise 12.5 billion yuan, of which 6.66 billion yuan will be used for the second phase wafer manufacturing project; and 1.5 billion yuan will be used for the technical transformation project of MEMS and power device chip manufacturing and packaging and testing production base. It is worth noting that of 43.4 20 million yuan of will be raised by using to supplement working capital.
