Sharp Core Micro Technology Innovation Board IPO Speed Up: Top Five Customers Account For More Than 80% Of The Revenue, Which May Have Hidden Worries

After the IPO of Geke micro technology innovation board, a leading CMOS leader, passed the review of Shanghai municipal Party committee, the IPO of Ruixin micro, another image sensor manufacturer, is also speeding up.

Recently, Ruixin micro answered the Shanghai Stock Exchange's inquiry letter for the first time, answering key issues such as ownership structure, core technology, business composition, and finance.

The reporter of 21st century economic report noted that during the inquiry on core technology, the Shanghai Stock Exchange asked about the "internationally advanced core technology" and "description of breaking the monopoly of foreign technology" mentioned by the company, and required the company to list the basis for the above statements, otherwise the relevant statements were deleted.

However, Ruixin micro is quite confident of the company's advanced technology, and after listing a number of basis, it said it met the description.

According to the prospectus, Ruixin micro's main business includes high-end image chip customization business and high-sensitivity camera core R & D, design and sales business. The IPO of the science and Technology Innovation Board plans to raise 1.347 billion yuan, which will be used for the R & D and industrialization projects of high-end image sensor chips and movements, as well as development and science and technology reserve funds.

It is noteworthy that Ruixin micro customer concentration is high. In 2017-2019, the sales amount of the company's top five customers accounted for 71.55%, 93.33% and 84.57% of the revenue of the same period respectively.

The reporter also found that a number of key customers and shareholders holding more than 5.00% of the company's shares are controlled by the same actual controller, that is to say, their key customers are related parties of the company, which forms a certain hidden risk to the company's performance.

Image sensor manufacturer Ruixin micro's IPO speed up. Visual China

Advanced technology, absolute confidence

Ruixin micro is an early company engaged in CMOS image sensor design in China. The company was founded in 2008. From the perspective of the future, under the strategic guidance of "independent, safe and controllable", there is no doubt that the process of localization of CMOS image sensor core technology will accelerate, and domestic manufacturers will gradually become the core force of the industry.

So, what is the advantage of Ruixin micro?

The prospectus claims that: the company's technology and products in the field of high-end image chip customization and high-sensitivity camera core have reached the domestic and international advanced level; "it has a number of domestic leading and international advanced core technologies", "has broken the technological monopoly of foreign giants", "the company has become one of the few enterprises in the world that master the technology of ECCD" and "substitute" It has surpassed the foreign similar products, filled in many gaps in the field of domestic image sensor, is one of the few suppliers in the world, and is in the leading position.

The Shanghai Stock Exchange took note of the above statement of the company and asked the company to list the basis for its described market position.

In the reply letter, Ruixin micro said that "replacing and surpassing similar foreign products" in the prospectus was revised to "partially replacing similar foreign products", and "realizing the subversive replacement of vacuum analog signal device technology" was revised to "realizing the upgrading of vacuum analog signal device technology".

For other statements, Ruixin micro believes that there is evidence. In particular, the company mentioned that it was "one of the few companies in the world that mastered ECCD technology.".

The reporter noted that gekewei also mentioned in the prospectus that "Ruixin micro independently developed mccd and ECCD technology, which helps to improve the imaging quality of image sensor."

According to the public information, mccd technology is a brand-new image sensor architecture proposed by Ruixin micro. Compared with conventional CCD, it has higher visible light sensitivity, infrared light sensitivity and larger dynamic range, which is suitable for the security industry with high requirements for light sensitivity. ECCD is a process and technology that embeds CCD pixels on the basis of CMOS general integrated circuit technology, so as to realize monolithic integration of CCD photosensitive mode and CMOS readout mode. This technology is suitable for high-speed moving object shooting and low illumination application environment.

"At present, CMOS image sensor is the mainstream technology route, accounting for nearly 90% of the image sensor market. Ruixin micro is equivalent to taking a new technology path. With mccd technology as the core, Ruixin micro developed a high-sensitivity camera core and realized industrialization. However, it is very difficult to develop the ECCD process, and the public information is relatively small at present. " January 13, a semiconductor industry practitioners explained to reporters.

It is reported that in terms of ECCD technology research and development, Ruixin micro has already completed the sample delivery of relevant scientific imaging products as07 and as08, which have been accepted by the terminal customers. According to the feedback from the end customers, as07 is superior to the foreign sensor products that need to be replaced in terms of system power consumption, sensitivity, readout noise and dynamic range. At the same time, industrial machine vision products bgt51 (monochrome), bgc55 (color 5 channels), bgc51 (color 4 channels) based on ECCD technology are in the state of research.

High concentration of customers

According to the prospectus, the main business of Ruixin micro is divided into two parts, providing high-end image chip customization for high-resolution image acquisition equipment manufacturers, and providing multiple camera cores for high-sensitivity imaging equipment manufacturers.

From 2017 to 2019, the revenue of Ruixin micro was 52.1977 million yuan, 146 million yuan and 253 million yuan respectively. In 2017 and 2018, the net profit was 151.624 million yuan and 279 million yuan respectively. In 2019, the company turned losses into profits and realized a net profit of 52.1174 million yuan.

It is worth noting that as of the end of 2019, the undistributed profit of Ruixin micro parent company was - 311 million yuan, which was due to the early stage of business accumulation and business development, high R & D investment, small income scale, large share payment expenditure and large accumulated loss over the years. In 2018 and 2019, Ruixin micro implemented equity incentive and confirmed that the management fee of share based payment reached 316 million yuan and 39.8239 million yuan respectively.

A risk hidden behind the performance is that the customer concentration of Ruixin micro is high.

According to the prospectus, from 2017 to 2019, the sales amount of Ruixin micro's top five customers accounted for 71.55%, 93.33% and 84.57% of the revenue of the same period respectively.

The reporter of 21st century economic report has noticed that many of the top five clients of the company are anonymous and controlled by the same actual controller as the shareholders who hold more than 5.00% of the company's shares. According to its explanation, the company's core products are mainly used in high-resolution image acquisition equipment and high-sensitivity imaging equipment in special application fields, and customers in downstream application fields are relatively concentrated.

The reporter found that, in addition to the actual controller Luo Wenzhe and the persons acting in concert, shareholders holding more than 5% of the company's shares also include northern industrial technology, Hongta innovation investment, private investment fund Jiaxing Zikui phase III and Tibet Jinsheng TEDA, as well as individual investor Zhang Ying. Among them, north industrial technology is wholly owned by China North Industry Co., Ltd., which is one of China's top ten military enterprises.

Ruixin micro frankly said that if the company's future cooperation with such customers has adverse changes, and the company can not effectively develop other customers, or the existing customer demand is greatly reduced by the impact of relevant national industry policy changes, the higher customer concentration will have adverse impact on the company's operation.

"Customer concentration is a problem faced by many enterprises. The reason why customers are concerned as related parties is that it is easy to breed profit transmission, and then people suspect the stable growth of company performance. However, this is not absolute. As long as the company can prove that the pricing and sales policies of related party transactions are fair, it does not constitute an obstacle to listing. " On January 13, a senior investment banker told reporters.

In the reply letter, Ruixin micro stressed that "the above-mentioned customers purchase high-sensitivity camera cores from Ruixin micro according to their downstream users' needs, and there is no case of stock up for Ruixin micro."