On May 14th, Jiangsu Zhanxin Semiconductor Technology Co., Ltd. (Jiangsu Zhanxin) passed the listing committee review for its initial public offering on the Shenzhen Stock Exchange's ChiNext board. Huatai United Securities is the sponsor, and the company plans to raise 895 million yuan.
According to the prospectus, Jiangsu Zhanxin was founded in 2018 and focuses on the R&D, design, testing, and sales of high-reliability analog chips and micro-module products. The company's products are widely used in various national defense electronic equipment, contributing significantly to the independent and controllable supply of military electronic components in China, ensuring the stability of the military electronic industry chain, and supporting national defense modernization.
The company's analog chip products are primarily power management chips, including DC/DC converter chips, linear regulators (LDO), load and current limit switches (LoadSwitch), among others. Its micro-module products can perform various functions such as isolated and non-isolated DC/DC conversion, logic control, signal modulation, and diode control. Additionally, the company provides supporting discrete device products to its customers.
The company is also expanding its product line, extending into signal chain chips. It has initially completed the R&D layout for multiple product categories, including current sensing chips, voltage reference chips, comparators, operational amplifiers, and timing chips.
The company's products meet the National Military Standards quality system and customer requirements for independent controllability. Its self-defined products have passed the electronic component independent controllability evaluation and certification by the China Electronic Product Reliability and Environmental Testing Research Institute (CEPREI). The products have gained high recognition from major central state-owned military enterprise groups, including China Electronics Technology Group Corporation (CETC), China Electronics Corporation (CEC), Aviation Industry Corporation of China (AVIC), China Aerospace Science and Industry Corporation (CASIC), China Aerospace Science and Technology Corporation (CASC), and China North Industries Group Corporation (NORINCO). They are widely used in various equipment platforms such as airborne, missile-borne, shipborne, land-based, and individual soldier systems.
During the reporting period, the company has supplied products to over 1,600 customers, accumulating a rich customer base.
Jiangsu Zhanxin possesses R&D capabilities in functional definition, circuit design, reliability optimization, and heterogeneous integration packaging technology based on 3D stacking. It consistently adheres to a multi-category analog integrated circuit product development strategy, selling products to customers at various supporting levels within the weapons and equipment manufacturing sector.
Leveraging its deep expertise in chip design and packaging design, combined with fan-out 3D stacking technology, the company has innovatively developed ultra-high power density, highly reliable micro-module products. These products effectively simplify customers' design cycles, assist them in achieving product miniaturization, weight reduction, and reliability enhancement, and contribute to the miniaturization and intelligent upgrade of China's weapon systems.
Jiangsu Zhanxin's business is concentrated in the military sector and has not yet entered the civilian market. In its long-term planning, the company has plans to enter the civilian field. Its products are suitable for high-voltage, high-current, and high-power-density application scenarios, such as computing power and electric drive industries. Currently, the company has completed the R&D of a series of products for computing power supply systems and has provided sample products to a computing power board card manufacturer. Its layout in the electric drive field is currently in the product R&D stage. The aforementioned products have not yet generated stable revenue.
After deducting issuance and other expenses, the net proceeds from the IPO are planned to be invested in the following projects in order of priority:
Financially, for the years 2023, 2024, and 2025, the company achieved operating revenues of approximately 466 million yuan, 413 million yuan, and 639 million yuan, respectively. During the same period, it recorded net profits of approximately 179 million yuan, 95.3543 million yuan, and 228 million yuan, respectively.
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