Longxun Semiconductor (Hefei) Co., Ltd. (hereinafter referred to as Longxun Shares) is mainly engaged in the research and development and sales of high-speed mixed signal chips, and is currently sprinting to Science and Technology Innovation Board IPO.
According to the prospectus, Longxun Co., Ltd.'s chip products are mainly divided into high-definition video bridge and processing chips, and high-speed signal transmission chips. They can be used in diversified terminal scenarios such as video conferencing, security monitoring , vehicle display, AR/VR, display and commercial display, PC and peripherals, 5G and AIoTh. Longxun Co., Ltd. mainly adopts the distribution model. From 2019 to the first half of 2022, Longxun Co., Ltd.'s main business income was RMB 104.5477 million, RMB 136.0173 million, RMB 234.8036 million, and RMB 122.2016 million, respectively, of which the proportion of distribution income was 91.24%, 93.62%, 97.48%, and 98.07%, respectively.
As of the end of June 2022, Longxun Co., Ltd. has obtained 79 domestic patents (including invention patents 62) and 37 overseas invention patents. In addition, Longxun Co., Ltd. has obtained 110 integrated circuit layout design exclusive rights and 84 software copyright . Longxun Co., Ltd. has developed more than 140 high-speed mixed signal chip products, and many products are internationally competitive. In 2020, Longxun Co., Ltd. ranked sixth in the global high-definition video bridge chip market and eighth in the global high-speed signal transmission chip market.
However, our research found that the relevant parties in Longxun Co., Ltd.'s prospectus seemed to be missing, and the quality of information disclosure seemed to need to be improved. In addition, the amount of fundraising and investment of Longxun shares increased significantly compared with the previous declaration. During the reporting period, the amount of dividends of was frequently paid for , but the funds were also raised for development and technology reserve funds.
Source: Photo Network
Affiliated parties have found that there seems to be some missing
Jia Bingyan is a director of Longxun Co., Ltd. The prospectus shows that from October 2019 to the present, Jia Bingyan has served as deputy secretary-general of the Investment Committee Secretariat of Shenzhen Innovation Investment Group Co., Ltd. and deputy general manager of East China Headquarters.
industrial and commercial information shows that Shenzhen Venture Capital directly holds 1.42% of equity in Anhui Fuyin New Materials Co., Ltd. (hereinafter referred to as: Fuyin New Materials) and directly holds 1.63% of investment share of Suzhou Xiongli Technology Co., Ltd. (hereinafter referred to as: Xiongli Technology). At the same time, Fuyin New Materials and Xiongli Technology have a director named Jia Bingyan.
Anhui Hongtu Venture Capital Management Co., Ltd. (hereinafter referred to as: Anhui Hongtu Venture Capital) and Lu'an Hongtu Venture Capital Management Co., Ltd. (hereinafter referred to as: Lu'an Hongtu Venture Capital) are both wholly-owned subsidiaries of Shenzhen Venture Capital. Shenzhen Venture Capital holds 100% of the equity of Anhui Hongtu Venture Capital and Lu'an Hongtu Venture Capital through Shenzhen Venture Capital Hongtu Private Equity Investment Fund Management (Shenzhen) Co., Ltd. According to industrial and commercial information, Jia Bingyan also serves as the general manager of Anhui Red Earth Venture Capital and Lu'an Red Earth Venture Capital.
I wonder if the directors of Fuyin New Materials and Xiongli Technology, as well as the general managers of Anhui Hongtu Venture Capital and Lu'an Hongtu Venture Capital, are the same person as Jia Bingyan, the director of Longxun Shares? Did Longxun Co., Ltd.'s prospectus omit the above-mentioned part-time information of Jia Bingyan?
In addition, Longxun Co., Ltd.'s prospectus recognizes directors as affiliated natural persons, and other legal persons who serve as directors and senior executives serve as affiliated natural persons (except independent directors) as directors and senior executives. So, should Longxun Co., Ltd.'s prospectus identify Fuyin New Materials, Xiongli Technology, Anhui Red Earth Venture Capital, and Lu'an Red Earth Venture Capital as affiliates?
information disclosure quality seems to need to be improved
Longxun Co., Ltd. submitted an application document for listing on the Science and Technology Innovation Board to Shanghai Stock Exchange in October 2020. At that time, Longxun Co., Ltd.'s sponsor was Huaan Securities Co., Ltd. (Securities abbreviation: Huaan Securities ; stock code: 600909.SH). On January 26, 2021, Longxun Co., Ltd. and Huaan Securities applied to the Shanghai Stock Exchange to withdraw the application documents. In November 2021, Longxun Co., Ltd. signed a counseling agreement with China International Financial Co., Ltd. (stock abbreviation: CICC; stock code: 601995.SH).
Longxun Co., Ltd.'s prospectus shows that in 2021, the intermediary agency expenses included in management expenses of Longxun Co., Ltd. were 624,000 yuan, but according to Huaan Securities' annual report, in 2021, the amount of Huaan Securities provided underwriting sponsorship services to Longxun Co., Ltd. was 943,400 yuan, which is higher than the total intermediary agency expenses included in management expenses disclosed in Longxun Co., Ltd. in 2021.
wafer is one of the main raw materials of Longxun Co., Ltd. According to the prospectus, in 2021, the amount of wafer purchase by Longxun Co., Ltd. will be 59.6099 million yuan. According to the first round of inquiry responses from Longxun Co., Ltd., SILTERRA MALAYSIA SDN.BHD. (hereinafter referred to as Silterra), Lianhua Electronics Co., Ltd. and its affiliates (hereinafter referred to as Lianhua Electronics), Hongjing Technology Co., Ltd. (hereinafter referred to as Hongjing Technology), Canxin Semiconductor (Shanghai) Co., Ltd. and its affiliates (hereinafter referred to as Canxin Semiconductor) are Longxun Co., Ltd. wafer suppliers.
According to the data disclosed in the first round of inquiry response to "Causes of Pricing Differences between Different Wafer Suppliers", in 2021, the number of 8-inch wafers with procurement processes from Silterra of 110nm, 130nm and 180nm were 5033 pieces, 4193 pieces, and 3801 pieces, respectively, with an average price of 4592.99 yuan/piece, 4666.04 yuan/piece, and 3694.82 yuan/piece, respectively. Based on this calculation, in 2021, the amount of wafer purchases from Silterra was 56.7252 million yuan.
In 2021, Longxun Co., Ltd. purchased 12-inch wafers with a process of 40nm and 55nm from Lianhua Electronics to 90 and 18 respectively, with an average price of 17,712.41 yuan/piece and 14,506.26 yuan/piece respectively. According to this calculation, in 2021, Longxun Co., Ltd. purchased wafers from Lianhua Electronics to 1.8552 million yuan.
In addition, Longxun Co., Ltd. purchased 150 8-inch wafers with a process of 180nm from Hongjing Technology, with an average price of 4565.85 yuan/piece, and 100 8-inch wafers with a process of 350nm from Canxin Semiconductor, with an average price of 3445.15 yuan/piece. Based on this calculation, the amount of wafer purchases from Hongjing Technology and Canxin Semiconductor in 2021 will be RMB 684,900 and RMB 344,500 respectively.
summation shows that in 2021, the total amount of wafer purchases from Silterra, Lianhua Electronics, Hongjing Technology, and Canxin Semiconductor was 59.6099 million yuan, which is consistent with the wafer purchase amount of Longxun Shares disclosed in the prospectus in 2021. I wonder if this should mean that in 2021, Longxun Co., Ltd.'s wafer suppliers are only Silterra, Lianhua Electronics, Hongjing Technology, and Canxin Semiconductor? However, the prospectus shows that in 2021, Wenye Lingke (Shanghai) Investment Co., Ltd. and Wenye Technology Co., Ltd. (hereinafter referred to as Wenye Technology) are the fourth largest suppliers of Longxun Co., Ltd., and Longxun Co., Ltd. mainly purchases wafers from it.
In addition, Longxun Co., Ltd.'s first round of inquiry responses divided the main suppliers into three categories: wafer suppliers, packaging and testing suppliers, auxiliary materials and other suppliers, and stated that Wenye Technology is its main supplier of auxiliary materials and other raw materials. During the reporting period, Longxun Co., Ltd. mainly purchased integrated circuit dies and finished chips from auxiliary materials and other raw material suppliers such as Wenye Technology. So, what is the main content of Longxun Co., Ltd.'s procurement from Wenye Technology and its affiliates?
In addition, from 2019 to 2021, the proportion of the amount of wafer purchases from Longxun Co., Ltd. purchased from Silterra to account for 96.29%, 96.61% and 95.16% of the amount of wafer purchases from Silterra, respectively. Longxun Co., Ltd.'s operations seem to have a great dependence on Silterra.
In addition, Longxun Co., Ltd. currently has only one domestic subsidiary, Shenzhen Langtianmu Semiconductor Technology Co., Ltd. (hereinafter referred to as Langtianmu), and another domestic subsidiary, Anhui Xinqi Electronic Technology Co., Ltd., was cancelled in November 2019.
prospectus stated that in 2020, the number of social security payments of Longxun Co., Ltd. was 141, but according to the annual industrial and commercial report, in 2020, the number of social security payments of Longxun Co., Ltd. and its subsidiary Langtianmu was 123 and 0 respectively, totaling 123, which is different from the data disclosed in the prospectus.
fundraising amount increased significantly compared with the previous declaration
"HD video bridge and processing chip development and industrialization project" is one of Longxun Co., Ltd.'s IPO fundraising projects. The prospectus shows that the registration number of the project is 2020-340162-65-03-020817, and the total investment is 281.6706 million yuan.However, according to the prospectus disclosed by Longxun Co., Ltd. in October 2020, the corresponding project of the filing number is "HD video signal processing and control chip development and industrialization project", with a total investment of only 121.4918 million yuan.
Coincidentally, Longxun Co., Ltd.'s fundraising and investment projects "High-speed signal transmission chip development and industrialization projects" and "R&D center upgrade project" all have the same problems. The draft of the prospectus of
shows that the registration number of the "High-speed signal transmission chip development and industrialization project" is 2020-340162-65-03-020860, and the total investment is 176.6432 million yuan. However, according to the 2020 prospectus, the total investment of the "high-speed signal transmission chip development and industrialization project" corresponding to the filing number is only 86.3534 million yuan.
Prospectus showed that the registration number of the "R&D Center Upgrade Project" is 2020-340162-65-03-020861, and the total investment is 346.6769 million yuan. However, according to the 2020 prospectus, the total investment of the "R&D Center Upgrade Project" corresponding to the registration number is only 107.5 million yuan.
It can be seen that the filing numbers of the three fundraising projects of Longxun Co., Ltd. this time are the same as those in the 2020 prospectus draft, but the total investment amount of the three projects is 804.9907 million yuan, a significant increase of 155% from the total investment amount of 315.3452 million yuan in the 2020 prospectus draft.
In addition, Longxun Co., Ltd. has added a new fundraising project for this IPO. Longxun Co., Ltd. plans to use the IPO to raise 200 million yuan for "development and technology reserve funds." However, the prospectus shows that in 2021 and the first half of 2022, Longxun Co., Ltd. implemented cash dividends twice, with the amount of cash dividends allocated to RMB 12.986 million and RMB 29.6082 million, respectively, with a total dividend of RMB 42.5942 million.
executives were criticized by the Shanghai Stock Exchange for being criticized by
Liu Yongyue is the director and deputy general manager of Longxun Co., Ltd., and was once the secretary of the board of directors of Sichuang Electronics Co., Ltd. (Securities abbreviation: Sichuang Electronics; stock code: 600990.SH).
According to the Shanghai Stock Exchange's Disciplinary Punishment Decision No. [2015] No. 56, during the period when Liu Yongyue was appointed Secretary of the Board of Directors of Sichuang Electronics, Sichuang Electronics violated the regulations in the handling of stock suspension of and resumption of trading and related information disclosure.
According to the decision, in September 2015, SiChuang Electronics applied for suspension of trading on the grounds of planning equity incentives or major matters of employee stock ownership plans, and issued an announcement on the suspension of trading for major matters on the 9th. On the 15th, Sichuang Electronics submitted an application for postponement of stock resumption to the Shanghai Stock Exchange, saying that the suspension planning matters have been clearly defined as the employee stock ownership plan, and it is planned to apply for continued suspension of trading. On the 16th, the Shanghai Stock Exchange issued a regulatory letter to Sichuang Electronics, clearly requiring Sichuang Electronics to fully demonstrate the necessity of stock suspension, timely disclose the determined employee stock ownership plan matters, arrange stock resumption trading as soon as possible, and disclose progress in stages.
htmlOn September 17, Sichuang Electronics issued an announcement on the suspension of major matters through the information disclosure direct channel. On September 24 and October 1, Sichuang Electronics published an announcement on the suspension of major matters in the same way.
On October 12, Sichuang Electronics issued an announcement on suspension of trading of major asset restructuring. After verification, according to the abnormal fluctuation announcement of stock trading issued by Sichuang Electronics on July 7, Sichuang Electronics, its controlling shareholder and actual controller promised that no major asset restructuring or other major matters would occur within at least three months.
The Shanghai Stock Exchange believes that planning employee stock ownership plans is the regular business of listed companies and can be disclosed according to the principle of phased disclosure. After 10 trading days of suspension, Sichuang Electronics postponed the resumption of trading three times, which significantly exceeded the suspension time usually required to plan employee stock ownership plans. Sichuang Electronics is not cautious in handling the delayed resumption of stock trading, and its information disclosure during the suspension period is not sufficient, which limits investors' legitimate trading rights.
SiChuang Electronics' then secretary Liu Yongyue, as the head of the information disclosure department, should be diligent and responsible, handle information disclosure and company stock suspension and resumption of trading, and be responsible for SiChuang Electronics' violations. In December 2015, the Shanghai Stock Exchange issued a disciplinary decision, criticizing SiChuang Electronics and Liu Yongyue.
