On the eve of IPO! Huawei suddenly invested in this chip company

On April 21, the Science and Technology Innovation Board IPO of SiRuiPu Microelectronics Technology (Suzhou) Co., Ltd. (hereinafter referred to as "SiRuiPu") was accepted by the Shanghai Stock Exchange, with Haitong Securities serving as the sponsor.

Image source: Shanghai Stock Exchange official website

The company is an integrated circuit design company that focuses on the research and development and sales of analog integrated circuit products. Since its establishment, the company has always insisted on developing high-performance, high-quality and high-reliability analog integrated circuit products, and currently has more than 900 product models available for sale. The company's products are mainly signal chain analog chips, and are gradually expanding to power management analog chips. Its application range covers many fields such as information communication, industrial control, monitoring security, medical health, instrumentation and household appliances.

Financial data shows that SiRuiPu's revenue in 2017, 2018 and 2019 was RMB 112 million, RMB 114 million and RMB 304 million respectively; the corresponding net profits in the same period were RMB 5.1247 million, -RMB 8.8194 million and RMB 70.9802 million respectively.

Image source: Company prospectus

SiRuiPu said that it plans to raise 850 million yuan for analog integrated circuit product development and industrialization projects, R&D center construction projects, and replenishment of working capital projects. SiRuiPu has many shareholders, including Huawei and state-owned assets. Among the company's customers are ZTE, Hikvision, Harman, and iFlytek.

As of the date of signing of this prospectus, the issuer has 15 shareholders, among which shareholders holding 5% or more of the issuer's shares or voting rights include Huaxin Ventures, ZHIXUZHOU, Jinying Investment, FENGYING, Di'e Xinze, Hubble Technology, and Angu Ventures. Huaxin Ventures holds 24.74% of the shares, and its largest shareholder is Shanghai Venture Capital Co., Ltd. under the Shanghai State-owned Assets Supervision and Administration Commission.

Image source: Company prospectus

At the same time, Huawei "suddenly invested" on the eve of SiRuiPu's IPO. On May 15, 2019, the company signed an "Investment Agreement" with its original shareholders and Hubble Technology, stipulating that Hubble Technology would subscribe for 2,241,147 shares of the company's additional issuance for RMB 72 million, of which RMB 2,241,147 was included in the company's registered capital, and the remaining RMB 69,758,853 was included in the company's capital reserve. The unit price of this capital increase was RMB 32.13 per share.

On April 3, 2020, PricewaterhouseCoopers issued a "Capital Verification Review Report" to review the above capital verification report. On July 4, 2019, the company obtained the "Business License" issued by the Jiangsu Provincial Market Supervision Administration. After the capital increase was completed, Hubble Technology ranked seventh among the company's largest shareholders.

As of the date of disclosure of the prospectus, Hubble Technology is the sixth largest shareholder of the company, holding 8% of the shares. According to its prospectus, Huawei Investment Holding Co., Ltd. holds 100% of Hubble Technology.

Source: CapitalBang