Two over two BOE supplier Wright Optoelectronics will land on the science and technology innovation board

BOE supplier Lite Optoelectronics and analog integrated circuit manufacturer Nanochip Micro will be held on the same day on November 1, and both passed the meeting smoothly.

Both companies were listed on the New Third Board. Among them, Lite Optoelectronics is mainly engaged in the research and development, production and sales of OLED organic materials, BOE is the company's largest customer, this year's sales revenue from BOE accounted for more than 70% of the year.

Nanochip micro focuses on the research and development and sales of high-performance, high-reliability analog integrated circuits, the shareholders behind it are "star-studded", Shenzhen Venture Capital, Xiaomi and other direct shareholdings, and the list of shareholders of the national large fund is looming.

60% of Wright Optoelectronics comes from BOE

Lite Optoelectronics is mainly engaged in the research and development, production and sales of OLED organic materials. The company's OLED organic material products include OLED terminal materials and OLED intermediates. The company's current mass-produced OLED terminal materials are mainly RedPrime materials and hole transport layer materials in the light-emitting layer materials. OLED intermediates are front-end products for the production of OLED end materials.

In terms of performance, from 2018 to the first half of 2021, the main business income of Lite Optoelectronics was 82.5597 million yuan, 179 million yuan, 245 million yuan and 148 million yuan, respectively. Among them, more than 60% came from BOE, accounting for 75.81%, 86.16%, 74.22%, and 62.88% respectively. Lite Optoelectronics customers are highly concentrated, and the dependence on BOE is large.

In addition to its customer status, BOE is also a shareholder of Lite Optoelectronics. Since October 2020, BOE has indirectly held shares in the company through Tianjin Xianzhi Chain and Suzhou Core Kinetic Energy, of which Tianjin Xianzhi Chain holds 4.17% of the shares and Suzhou Xin Kinetic Energy holds 0.60% of the shares.

For large customers to rely on, Lite Optoelectronics prompted the risks. The first is the risk of technical iteration, Wright Optoelectronics said that because the current OLED display industry is still in a stage of rapid development, BOE's various display panel products need to be updated and upgraded every other period, in addition to the use of original materials in new products, new materials will also be tested, and the requirements for material properties are also constantly updated and iterated. If the company cannot follow up on the needs of BOE in time, or there is a leapfrog technological breakthrough in the market in the short term and the company fails to follow up, there is a certain risk in the cooperation between the two parties, which may affect the company's performance.

In this IPO, Lite Optoelectronics intends to raise 1 billion yuan, of which 700 million yuan will be invested in the "OLED terminal material research and development and industrialization project". The company said that after the fundraising project reaches production, it will add 15 tons of OLED terminal material production capacity. The remaining proceeds are used to supplement working capital.

Nanochip micro is mainly engaged in the research and development and design of analog chips

Nanochip micro focus on high-performance, high-reliability analog integrated circuit research and development and sales, products cover the field of analog and mixed-signal chips, more than 600 models of products available for sale, widely used in information and communications, industrial control, automotive electronics and consumer electronics and other fields. The company continues to expand its product categories around application scenarios, with shipments exceeding 670 million units in 2020.

Nanochip adopts the Fabless business model. Enterprises adopting this model focus on chip research and development, design, wafer manufacturing, chip packaging and chip testing are handed over to outsourced manufacturers, which is conducive to product iteration and innovation.

The main business of Nanochip Micro is divided into two major sectors: chips and customized services. Among them, the chip business is the main source of revenue, accounting for 98% of revenue in 2020. According to the different types of products, the chip business can be divided into signal sensing chips, isolation and interface chips, and driver and sampling chips, accounting for 53.78%, 44.33% and 0.39% of the main business revenue in 2020.

In terms of performance, the revenue of Nanochip from 2018 to the first half of 2021 was 40.2233 million yuan, 92.1032 million yuan, 242 million yuan and 341 million yuan, respectively; the corresponding net profit for the same period was 2.3085 million yuan, -9.1085 million yuan, 50.816 million yuan and 90.0799 million yuan, respectively.

In this IPO, Nanochip Micro raised a total of about 750 million yuan, investing in signal chain chip development and system application projects, R&D center construction projects and supplementary working capital projects.

It is worth mentioning that Naxin Micro was originally a company listed on the New Third Board, which was listed on the New Third Board on August 11, 2016, and terminated its listing on the share transfer system from September 19, 2018.

After delisting from the New Third Board, Nachi micro has made frequent moves in capital operation, and from September 2018 to January 2021, the company has implemented a total of 11 share transfers and 5 capital increases. Many funds actively participate in the team of nano-core micro-financing, such as the national large fund subsidiary Juyuan Juxin, Shenzhen Venture Capital and Xiaomi Yangtze River and other well-known industrial capital.