Hot Topic丨The first shot of Xiaomi’s entry into the semiconductor investment battlefield: Nanxin Technology is listed!
·Focus: Artificial intelligence, chip and other industries
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The scale of the chip industry continues to expand, giving rise to more and more leading companies in the segmented fields, and Nanxin Technology is one of them.
When capital and enterprises are rushing in both directions, Nanxin Technology has already won the game at the starting line.
After 2010, [fast charging] has gradually become the main selling point in the smartphone market, but it is rarely mentioned in the field of mobile power supply.
Around 2015, mobile power supplies generally adopted the traditional step-down charging method, which could no longer keep up with the development of mobile phones. A new power supply step-up and step-down management chip was urgently needed.
With [boost and buck] as the core, Ruan Chenjie was keenly aware of this market gap. He resolutely resigned from Texas Instruments and led several key players to establish Nanxin Technology.
In 2016, Nanxin Technology successfully mass-produced the industry's first buck-boost charge and discharge chip that supports the Type-C Power Delivery protocol.
The product has successfully entered the supply chain of Nanfu, Huawei and other brands, and jointly developed the world's first [SCP super fast charging] mobile power supply with Huawei.
Nanxin Technology has successfully grasped the industrial revolution of USB PD charging on its growth path, and focused on its high-value chips to make single-point breakthroughs;
Then use strong single products to bind large customers, continuously introduce and improve the product matrix, and provide complete solutions from charging end to equipment end.
On April 7, Shanghai Nanxin Semiconductor Technology Co., Ltd. ("Nanxin Technology", SH: 688484) was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.
The opening price on the first day was 38.88 yuan/share, and the closing price was 41.88 yuan/share, an increase of 7.73%, and the market value reached 23 billion yuan.
Using a combination of strategic placement, offline issuance and online issuance, 63.53 million shares were initially issued.
Information shows that the company plans to raise 1.658 billion yuan, of which 457 million yuan will be used for high-performance charging management and battery management chip research and development and industrialization projects;
227 million yuan will be used for highly integrated AC-DC chipset research and development and industrialization projects, both of which will jointly enhance the technical capabilities of power supply products in the original high-end consumer electronics market;
335 million yuan will be used for automotive electronic chip research and development and industrialization project construction;
309 million yuan will be used for the test center construction project.
At present, Nanxin Technology still mainly generates revenue from the field of consumer electronics such as mobile phones. In the field of automotive electronics, its products are only supplied and sold in small batches, and the operating income it creates is relatively small.
However, judging from the projects invested in the amount of funds raised, Nanxin Technology is extremely determined to enter the high-end automotive market.
The company has completed 8 rounds of financing before the IPO, and the D round of financing attracted star investors such as Yuanhe Puhua, Xiaomi Yangtze River Industry Fund, Lightspeed China, OPPO, and Intel.
The prospectus shows that from 2020 to 2022, Nanxin Technology's revenue scale increased from 178 million yuan to 1.301 billion yuan, an increase of more than 7 times, maintaining a rapid growth trend.
According to the company’s data for the first half of 2022, charge pump charging management chips account for more than 70% of revenue.
In the field of general charging management chips, Nanxin Technology is one of the first companies in China to achieve large-scale mass production of buck-boost charging management chips, and the first to launch products and achieve mass production in the notebook computer field.
In the field of AC-DC chips, Nanxin Technology has mastered GaN differential direct drive technology and achieved the early launch and mass production of GaN direct drive controllers and GaN integrated controllers in China.
Nanxin Technology's existing products include a complete set of eight high-quality product lines: Charge pump, DCDC, ACDC, wired charging, wireless charging, fast charging protocol, lithium battery protection, and automotive electronics.
The company's products are mainly used in high-end consumer electronics fields such as mobile phones, notebooks/tablets, power adapters, and smart wearable devices, as well as in industrial fields such as energy storage power supplies and power tools, and in the automotive electronics field.
According to Frost & Sullivan research data, based on shipment volume in 2021, the company's charge pump charging management chip ranks first in the world, and its buck-boost charging management chip ranks second in the world and first in China.
From the perspective of project layout, Nanxin Technology will continue to increase its penetration into the consumer electronics market, focusing on areas with the largest demand;
At the same time, we will speed up the iteration of the company's industrial and automotive chips and seize market opportunities such as industry and automotive that have huge room for development.
Nanxin Technology adopts a business model of "mainly distribution, supplemented by direct sales", and the sales revenue under the distribution model accounts for more than 90%.
In the field of mobile phones, Nanxin Technology is one of the few companies of its kind whose charge pump products have entered all mainstream domestic mobile phone brands such as Honor, OPPO, Xiaomi, vivo, and moto. This to a certain extent guarantees the future of the company's charge pump products. Market share and size.
In addition, in the industrial field, Nanxin Technology’s products have entered brands such as DJI, Hikvision, and TTI;
In the automotive field, the products have been installed on some models of domestic and foreign car companies such as Volvo, Great Wall, BYD, Hyundai, Changan, and Geely.
At present, the global analog chip international market share is mainly occupied by European and American manufacturers. Under this situation, breakthroughs in subdivisions have undoubtedly become an important direction for domestic companies to break through.
The end-to-end complete solution can help the company strengthen cooperation with customers in a wider range and at a higher level, which is also expected to bring more opportunities for the company's development in multiple sinking areas.
In January 2018, Shunwei Capital, a joint venture between Xiaomi’s Zimi Technology and Lei Jun, participated in Nanxin Technology’s Series A financing, marking Xiaomi’s first step into the semiconductor investment battlefield.
Xiaomi Fund holds 2.3740% of the shares, and Zimi Electronics holds 1.9699% of the shares. Xiaomi Fund and Zimi Electronics are companies under the same control, and the actual controller is Lei Jun.
After the charge pump charging management chip produced by the company entered the product systems of Xiaomi and Lenovo, the company's revenue began to grow, so this is an important opportunity for the company's rapid profit growth.
The top five customers of Nanxin Technology, which is mainly based on distribution, are mostly generated under the distribution model. Nanxin Technology sells charge pump charging management chips to companies such as Xiaomi through Zengniqiang and other groups;
And its end customers in the field of consumer electronics such as mobile phones include Honor, OPPO, vivo, moto, Anker, Zimi, Belkin, Harman, Mophie and other world-renowned brands, and has completed direct supplier system certification.
The rapid growth during the reporting period was due to the company seizing the development opportunities brought by the rapid penetration of charge pumps as high-power charging solutions for mobile phones and domestic substitution, and launching high-performance products that can directly compete with major international manufacturers.
In 2021, Xiaomi released its self-developed Xiaomi Pengpai P1 charging chip and said it achieved the industry's first large-capacity single-cell 120W safe fast charging for Xiaomi Mi 12 Pro.
The Xiaomi Pascal P1 chip is self-developed and designed by Xiaomi and manufactured by Nanxin Technology.
2021 is the top of the consumer electronics market, and no one expected that there would be a serious decline in 2022.
So many investment institutions have invested in so many upstream and downstream companies in consumer electronics. Many of them can only wait until the market picks up and corporate performance rebounds before submitting materials for listing.
There are still great opportunities in the power management chip track. The country is generally still in its infancy, and a large part of the market is still occupied by overseas giants.
In addition, not only the field of consumer electronics, but also energy, especially various new energy sources represented by photovoltaics, and energy storage needs, all of which require semiconductors and chips related to power management.
So from a track perspective, there are still quite a lot of opportunities, and we need to look at the targets in detail.
From the company's development perspective, this stems from its high sensitivity to the industry and strong technological breakthrough capabilities. It was the first to seize the industry trend of USB PD fast charging in the field of consumer power supplies. In terms of product lines, Nanxin Technology initially launched USB PD as an entry point.
Seize the industrial revolution of USB PD charging, focus on its high-value chips and make breakthroughs at a single point;
Bind large customers with strong single products, and continuously introduce and improve the product matrix;
Provide a complete solution from the charging end to the device end, and enhance business value through product joint debugging.
A number of factors have jointly contributed to Nanxin Technology's leading position in the fierce market competition.
Reference for some information: Securities Times: "Power chip leader expands automotive electronics applications", Core East and West: "The first chip company invested by Lei Jun is listed", Science and Technology Innovation Board Daily: "Nanxin Technology rose nearly 50% on its first day of listing" % Sequoia, Xiaomi, OPPO and other shareholders earned more than 6 times”, unicorns already knew: “Nanxin Technology successfully landed on the Science and Technology Innovation Board, opening up by more than 35%”
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