According to the announcement by Yandong Micro yesterday evening (June 5th), the first phase of the fund, which owns more than 5% of the shares, plans to reduce its shareholding by no more than 2% of the total share capital through block trades due to its own capital needs. The second phase of the fund also invested in Yandong Micro during the IPO stage through strategic placement. However, since the lifting of the lock-up period at the end of last year, the overall stock price of Yandong Micro has fallen below the issue price, resulting in temporary unrealized losses for the second phase of the fund.
"Sci-Tech Innovation Board Daily" (June 6th, reporter Guo Hui) "Da Jijin" plans to reduce its shareholding in IDM semiconductor manufacturer Yandong Micro, which is also the first reduction announcement issued by Yandong Micro since its listing."
According to the announcement released by Yandong Micro on the evening of June 5th, due to its own funding needs, the shareholder National Integrated Circuit Fund (referred to as "Da Jijin Phase I") holding more than 5% of Yandong Micro's shares plans to reduce its shares through bulk trading, and will reduce the company's shares no more than 23.98 million within three months after 15 trading days from the day when this reduction plan is disclosed, this reduction plan will be executed through bulk trading at the market price, and the reduction shall not exceed 2% of the total share capital of the company.
From the shareholder structure, before the reduction, the proportion of Da Jijin Phase I’s shareholding in Yandong Micro was 9.42%, ranking third among shareholders. The largest shareholder of Yandong Micro was Beijing Electronic Control Holding Co., Ltd with a shareholding proportion of 35.07%, and the shares will be unlocked in the middle of 2026; Yandong Micro's second largest shareholder is Beijing Yizhuang International Investment and Development Co., Ltd, with a shareholding proportion of 14.09%, of which 9.42% of the company's shares were released from restriction at the end of 2023.
It is understood that Da Jijin Phase I invested in Yandong Micro in the form of capital increase in April 2018, with an amount of 506 million yuan. Based on the closing price of Yandong Micro on the latest trading day (June 5), which was roughly calculated at 18.15 yuan per share, the market value of Da Jijin Phase I's shareholding in Yandong Micro was about 2 billion yuan before the reduction, and the market value of the shares to be reduced by Da Jijin Phase I was over 400 million yuan.
The establishment of Da Jijin Phase I is mainly to support the development of China's integrated circuit industry and guide social capital to increase investment in the semiconductor field. Looking back on the development of the company after the investment of Da Jijin Phase I in Yandong Micro, the enterprise has grown all the way, with revenue increasing from 1.041 billion yuan in 2019 to 2.127 billion yuan in 2023; the net profit attributable to the parent also turned profitable after a loss of 126 million yuan in 2019, with 550 million yuan in peak industry cycle profit in 2021, and 450 million yuan in net profit attributable to the parent in 2023.
It is reported that the first phase of Yandong Micro's 12-inch wafer production line has already achieved trial production, and the process platform that has been connected includes high-density power devices TMBS and Trench MOS products; the construction of the second phase of the 12-inch wafer line project is being implemented in an orderly manner with a planned capacity of 40,000 pieces per month. As for the 8-inch production line, Yandong Micro's new process platform products, such as IGBT and FRD, have passed the reliability certification of domestic leading automobile customers and have formally entered the vehicle regulation market; at the same time, MOS, BCD and other process platforms are continuing to achieve stable mass production, with a yield of more than 98%.
It is worth noting that in addition to Da Jijin Phase I, Da Jijin Phase II also entered Yandong Micro's IPO stage through strategic placement, with the actual payment amount of 600 million yuan including commissions, and a shareholding proportion of about 1.42%, which was unlocked in December 2023.
However, since the lifting of restrictions at the end of last year, the overall stock price range of Yandong Micro has been lower than the issue price of 21.98 yuan per share, that is, lower than the cost price of Da Jijin Phase II's shareholding. At present, the total market value of its shares held was roughly estimated at 309 million yuan based on the latest trading day's (June 5) closing price of 18.15 yuan per share. Therefore, it is expected that the probability of Da Jijin Phase II reducing its holdings in the short term is small, given its current temporary floating loss.
As of the noon close on June 6th, Yandong Micro's stock price has fallen by more than 8%.