① The Shanghai Stock Exchange announced that Shanghai Xinzi Technology Co., Ltd.'s Star IPO has been accepted, aiming to raise 0.785 billion yuan; ② According to Statistics from Frost & Sullivan, in 2023 and 2024, Xinzi Technology's semiconductor-grade perfluoroether rubber seals ranked third in sales scale in the Chinese market for two consecutive years, ranking first among Chinese enterprises.
According to the "Star Daily" on June 17 (Reporter Chen Junqing), on June 16, the official website of the Shanghai Stock Exchange showed that the IPO of Shanghai Xinzi Technology Co., Ltd. (hereinafter referred to as "Xinzi Technology") was accepted, aiming to raise 0.785 billion yuan, with Sinolink as the sponsor.
According to the prospectus, Xinzi Technology's main product is semiconductor-grade perfluoroether rubber seals, and the company has formed a product matrix including perfluoroether rubber seals and perfluoroether rubber functional components based on self-developed formula.
According to Statistics from Frost & Sullivan, in 2023 and 2024, Xinzi Technology's semiconductor-grade perfluoroether rubber seals ranked third in sales scale in the Chinese market for two consecutive years, ranking first among Chinese enterprises.
The gross margin of perfluoroether rubber seals exceeds 60%.
In terms of performance, Xinzi Technology's revenue and net income have been increasing year by year. The prospectus shows that from 2022 to 2024, at the end of each period, the company achieved revenues of 0.042 billion yuan, 0.13 billion yuan, and 0.208 billion yuan, with net income of 1.7338 million yuan, 36.3884 million yuan, and 68.9356 million yuan, respectively.
By business division, perfluoroether rubber seals are Xinzi Technology's main business, and from 2023 to 2024, the revenue from this segment accounted for more than 93% of total product revenue. In addition, the profitability of this business has also further improved in recent years; from 2022 to 2024, the gross margin of Xinzi Technology's perfluoroether rubber seals was 39.93%, 54.61%, and 61.61%, respectively, mainly due to the increase in capacity utilization, decrease in upstream raw material purchase prices, and changes in product structure and models.
In the prospectus, Xinzi Technology compared itself with Fuchuang Precision, Pioneer Precision, and Kema Technology, stating that the average gross margin of the main business for these companies is approximately between 30% and 40% in 2024, while Xinzi Technology's gross margin for its main business in 2024 is 62.16%.
It is important to note that Advanced Micro-Fabrication Equipment Inc. China's customer concentration is relatively high. The prospectus indicates that from 2022 to 2024, the revenue share from the company's top five customers was 79%, 79%, and 77% respectively at the end of each period.
According to reports, Advanced Micro-Fabrication Equipment Inc. China's core products are primarily used in the core process equipment of the semiconductor front-end manufacturing, and are key components of semiconductor equipment in the "consumable" category. The high concentration of downstream semiconductor equipment manufacturers and wafer manufacturers has also led to a relatively high customer concentration for the company.
In terms of material procurement, perfluoroether raw rubber is the main raw material required for Advanced Micro-Fabrication Equipment Inc. China's production, and the procurement of perfluoroether raw rubber is mainly done through imports. The prospectus shows that from 2022 to 2024, the procurement amount from the company's top five suppliers accounted for 88.00%, 94.38%, and 90.62% of the total procurement amount respectively at the end of each period.
According to Statistics from Frost & Sullivan, the localization rate of semiconductor-grade perfluoroether rubber seals is less than 10% in 2024, indicating a broad space for localization development. The prospectus states that Advanced Micro-Fabrication Equipment Inc. China covers nine of the top ten wafer manufacturers in mainland China and four of the five largest semiconductor equipment manufacturers in mainland China.
Regarding the use of funds, Advanced Micro-Fabrication Equipment Inc. China stated in the prospectus that the funds raised from this IPO will be invested in projects related to the company's main business. The implementation of these projects will effectively strengthen the company's operating capabilities, enhance research and development levels, expand product varieties, and help the company increase its market share in the semiconductor-grade perfluoroether rubber sealing industry.
Advanced Micro-Fabrication Equipment Inc. China and Tuojing Technology have invested.
In terms of shareholding structure, as of the date of signing the prospectus, Xie Changjie directly holds 20.26% of the shares of Advanced Micro-Fabrication Equipment Inc. China, making him the largest Shareholder of the company. Meanwhile, he indirectly controls 26.72% of the shareholding rights through Oruixi and Yuanxi. Therefore, Xie Changjie collectively controls 46.98% of the voting rights of Advanced Micro-Fabrication Equipment Inc. China, making him the controlling Shareholder and actual controller of the company.
Xie Changjie graduated from Fudan University. He started working at Semiconductor Manufacturing International Corporation in 2001; from 2005 to 2020, he was responsible for sales and technical applications of a top international sealing brand in the Chinese market, leading a team to maintain a leading market share for the sealing product in China for a long time, and has rich experience in the market and applications of the semiconductor industry and sealing products; in 2020, Xie Changjie established Advanced Micro-Fabrication Equipment Inc. China in Shanghai.
Regarding institutional shareholders, Shenzhen Capital Group directly holds 8.96% of Xinneng Technology, making it the largest institutional shareholder of Xinneng Technology. Other institutional shareholders include Semiconductor Manufacturing International Corporation holding 5.5%; IDG directly holds 2.16%.
In terms of financing history, the business information shows that Xinneng Technology has completed a total of five rounds of financing. In April 2021, Xinneng Technology obtained angel round financing from Shenzhen Capital Group and Central South Venture Capital. In December of the same year, the company received over 100 million yuan in Series A financing led by Hushan Capital and Semiconductor Manufacturing International Corporation.
By the end of May 2023, Xinneng Technology received a strategic investment of 30 million yuan from Tuo Jing Technology and Advanced Micro-Fabrication Equipment Inc. China; in the following May 2024, it obtained strategic investments from Sinochem Capital and Shengang Investment. The company's most recent financing occurred in September 2024, where institutions like IDG Capital and Jianxin Investment joined in on the Series B financing of Xinneng Technology.
