Image sensor manufacturer Ruixinwei terminated its IPO on the Science and Technology Innovation Board

On January 25, the Shanghai Stock Exchange issued the "Decision on Terminating the Review of the Initial Public Offering and Listing of Ruixin Microelectronics Co., Ltd. on the Science and Technology Innovation Board."

It was disclosed that the Shanghai Stock Exchange accepted your company's application documents for the initial public offering and listing on the Science and Technology Innovation Board in accordance with the law on June 29, 2020, and conducted an audit in accordance with the regulations.

As of January 25, 2021, Ruixin Microelectronics and its sponsor CITIC Construction Investment Securities Co., Ltd. have respectively submitted to the Exchange the "Application of Ruixin Microelectronics Co., Ltd. to Withdraw the Application Documents for the Initial Public Offering and Listing on the Science and Technology Innovation Board" (Ruixin Micro [2021] No. 1) and the "Application of CITIC Construction Investment Securities Co., Ltd. to Withdraw the Application Documents for the Initial Public Offering and Listing on the Science and Technology Innovation Board" (CITIC Construction Investment Securities Co., Ltd. [2021] No. 127), applying to withdraw the application documents.

The Shanghai Stock Exchange stated that in accordance with the relevant provisions of Article 67 of the "Shanghai Stock Exchange Science and Technology Innovation Board Stock Issuance and Listing Review Rules", the Exchange has decided to terminate the review of your company's initial public offering and listing on the Science and Technology Innovation Board.

According to the information, Ruixinwei focuses on high-end image chip customization business, research and development, design and sales of high-sensitivity image sensor chips and camera cores. As a high-tech enterprise, the company has always taken "technological innovation" as its development strategy. After years of intensive cultivation, Ruixinwei has a number of domestically leading and internationally advanced core technologies in the fields of circuit design, pixel design and image processing of image sensors. In particular, the MCCD and ECCD technologies independently developed by Ruixinwei combine the advantages of traditional CCD and CMOS, significantly improve the imaging quality of image sensors, and promote the development of domestic image sensor technology. At present, the company has become one of the few companies in the world that has mastered ECCD technology.

It was disclosed that Ruixinwei's high-end image chip customization business is mainly aimed at high-resolution image acquisition equipment manufacturers, providing large-target area array image sensors with global exposure, high sensitivity, and high dynamic range, and linear array image sensors using ECCD technology. The above-mentioned image sensors play an important role as core components of high-resolution image acquisition equipment, filling many gaps in the domestic image sensor field.

Ruixinwei's high-sensitivity camera core business is mainly aimed at high-sensitivity imaging equipment manufacturers, providing a variety of high-sensitivity camera cores. The company's high-sensitivity camera core is based on the independently developed high-sensitivity image sensor chip, integrating the independently developed digital image processing (ISP) soft core running on FPGA, and is developed using low-power system design technology. It has the characteristics of high sensitivity, high reliability, wide dynamic range, low power consumption, compact structure, the same device is universal day and night, digital display transmission and storage, etc. It can output images when powered on, without complex secondary development, greatly reducing the technical difficulty of customer integration. The company's independently developed high-sensitivity camera core can continuously and clearly image in a low-light environment of 1×10-3lx, and can be widely used in various complete equipment for imaging in dark light environments.

According to the prospectus, from 2017 to 2019, Ruixinwei achieved operating income of RMB 52.1977 million, RMB 145.6348 million and RMB 252.8147 million, respectively, with an average annual compound growth rate of 120.08%; the net profit attributable to the parent company's shareholders was RMB -15.1624 million, RMB -278.7040 million and RMB 52.1174 million, respectively.

Ruixinwei stated that in 2018-2019, thanks to the gradual realization of the results of the high-end image chip customization business revenue brought about by the company's continuous R&D investment and the explosive growth in sales of high-sensitivity camera chips, the company got rid of the situation of continuous losses caused by continuous R&D investment, and successfully turned losses into profits and began to enter a period of rapid profitability.

However, from 2017 to 2019, Ruixinwei's sales to its top five customers were RMB 37.3484 million, RMB 135.9154 million and RMB 213.8003 million, respectively, accounting for 71.55%, 93.33% and 84.57% of the company's operating income in the same period, respectively. The high customer concentration poses a risk.