“Science and Technology Innovation Board Daily” (May 28) Recently, the Shenzhen Stock Exchange issued an announcement stating that it will terminate the Goertek Microelectronics GEM IPO review. Three years ago, Goertek Co., Ltd. (002241), the parent company of Goertek Microelectronics, stated that it intended to split the listing and listing application was approved by the Shenzhen Stock Exchange.

However, the PE bosses who entered the market at the time were ultimately unable to wait for the IPO investment feast. On May 28, the “Science and Technology Innovation Board Daily” reporter telephoned Goertek Co., Ltd., and its director and secretary office staff said, “The reason for terminating the listing of Goertek Microelectronics has been disclosed in the announcement.” As to whether Goertek Microelectronics will launch an IPO plan in the future, the staff said that the details will be disclosed in the announcement.

According to the announcement, the termination of the spin-off of Goertek and its listing on the GEM is based on factors such as the current market environment. In order to coordinate the operation plan of Goertek Micro Capital, the decision was made after thorough communication and careful verification with all parties concerned. The termination of the spin-off will not have a substantial impact on the company, but major asset restructuring matters (including the spin-off listing) cannot be planned for 1 month after the spin-off is terminated.

After 3 years of waiting, Goertek Microelectronics was valued at 18.5 billion before investing

Back in time 3 years ago, in March 2021, Goertek Corporation (002241) announced that the holding subsidiary Goertek Microelectronics plans to increase capital and expand its shares and introduce 15 external investors, with a pre-investment valuation of 18.5 billion yuan. At the time, this was another incident where a listed company with a large market capitalization introduced external capital into its chip company following the division of BYD Microelectronics by BYD.

According to the announcement, the investors introduced by Goertek Microelectronics this time are very “luxurious”. They have both local state-owned capital, as well as PE bosses such as CITIC Construction Investment Capital, CICC Qichen, Cornerstone Capital, and CCB International.

Specifically, Qingdao Microelectronics Innovation Center Co., Ltd., which has the largest single investment, is 100% owned by Qingdao Laoshan Science and Technology Innovation Development Group, which is also controlled by the Qingdao Laoshan District Finance Bureau. In this battle investment, it invested 550 million yuan in one fell swoop.

The “Science and Technology Innovation Board Daily” reporter noticed that the massive investment in Laoshan District of Qingdao may be related to the establishment of the Goertek Microelectronics Research Institute. According to the 2024 Global Unicorn List, Goertek Microelectronics is one of the 4 listed companies in Laoshan District.

Second, Gongqingcheng Chunlin Equity Investment Partnership (Limited Partnership) invested a large amount of 260 million yuan. Equity penetration shows that the limited partnership's executive GP is CITIC Construction's investment capital. Counseling the disclosure of filing information. The subsidiary agency for Goertek Microelectronics's IPO is CITIC Construction Investment Securities.

In addition, Beijing Chunlin Equity Investment and Weifang Guowei Runxin Hengxin, which are managed by CITIC Construction Investment, also participated in the investment. Overall, CITIC Construction's investment capital and the funds it manages invested a total of 450 million yuan, accounting for 21% of Goertek Microelectronics' total holdings and stock expansion.

Qingdao Henghuitai Industrial Development Fund, Rongcheng Urban Construction Investment, Shenzhen Linghui Cornerstone Equity Investment Fund Partnership (Limited Partnership), CICC China Finance (Xiamen) Smart Industry Equity Investment Fund Partnership (Limited Partnership), CCB Science and Technology Innovation (Suzhou) Investment Linked Equity Investment Fund (Limited Partnership) followed.

These equity investment funds respectively represent investment institutions such as Qingdao Jufeng Technology Venture Capital, Shandong Rongcheng State-owned Assets Administration Commission, Cornerstone Capital, China Merchants Shekou Industrial Zone, CCB International Capital, and CICC Capital.

Since then, Goertek has teamed up with more than 10 organizations and individual investments such as Jiang Long and **** to complete a 2.15 billion yuan capital increase for Goertek Microelectronics.

Apple “cuts orders”, Goertek Microelectronics experiences performance fluctuations

With the completion of this capital increase, Goertek Microelectronics launched a GEM IPO in July 2022 and plans to raise 3.191 billion yuan.

According to the prospectus, the company's operating income from 2019 to 2021 was 2,566 billion yuan, 3.159 billion yuan and 3.345 billion yuan respectively, with a compound growth rate of 14.17%. Excluding the impact of share payments and government subsidies, net profit was 307 million yuan, 281 million yuan and 309 million yuan respectively.

In March 2023, the IPO application documents submitted by Goertek Microelectronics expired, but in June 2023, after the financial information was updated, Goertek Microelectronics still hasn't waited until the news of listing registration.

According to the second round of inquiries, Goertek revealed that revenue from January to June 2023 was 1,232 billion yuan, down 15.77% year on year; net profit to mother was 909.84 million yuan, down 38.39% year on year. As for the reason for the decline in performance, Goertek said it was mainly affected by factors such as slowing growth in major global economies and slowing overall demand in the semiconductor industry and consumer electronics industry.

Meanwhile, Goertek Co., Ltd., the parent company of Goertek Microelectronics, was “cut off” by Apple.

In 2022, Goertek said it received a notice from a major overseas customer to suspend production of one of its intelligent acoustic complete machine products. The “cut order” will affect 2022 revenue of no more than 3.3 billion yuan. After Apple “cut the order,” the net profit of Goertek shares fell sharply from 2022 to 2023, to 1,749 billion yuan and 1,088 billion yuan, respectively, down 59.08% and 37.8% from the previous year.

Meanwhile, according to the prospectus, Goertek Microelectronics accounted for 51.36%, 87.94%, and 11% of Goertek's sales during the reporting period, respectively. Although the amount of sales to the parent company has declined year by year, Goertek Microelectronics, which is backed by Goertek shares, has raised market concerns about whether subsequent sales data will “change its face” against the backdrop of a downturn in the industry.

In this context, when more than 10 institutions fought for Goertek Microelectronics, the gambling agreement involved also surfaced.

In the first round of inquiries, Goertek revealed that Goertek Co., Ltd. signed gambling agreements with six institutions Chunlin, Chunlin Investment, Guowei Runxin, CICC China Finance, and Construction Investment. It was agreed that if Goertek Microelectronics cannot achieve a qualified listing before June 30, 2023, the investors mentioned above have the right to request Goertek Group or its related parties to repurchase all of the shares held by the investors at the agreed repurchase price.

The “Science and Technology Innovation Board Daily” reporter noticed that during the battle investment, the aforementioned institutions invested a total of 870 million yuan.

In an interview with the “Science and Technology Innovation Board Daily” reporter, an investor said that Goertek Microelectronics' main MEMS acoustic sensors rely more on built-in third-party chips, which has caused the company's gross margin to continue to decline and is lower than the peer average. At the same time, its share in the global MEMS market has declined. According to relevant data, Goertek's market share of microelectronics fell to about 25% in 2022, a sharp drop from the 2020 high of 32%.

Most importantly, according to this investor, in April 2024, the Shenzhen Stock Exchange issued new regulations to increase the growth requirements of GEM listed companies, including increasing the compound growth rate index of operating income from 20% to 25%. “The 15.77% decline in revenue data for the first half of 2023 means that Goertek Microelectronics can no longer reach the target of compound revenue growth rate.”