High-end security chips are far ahead of the rest, and Unigroup Guoxin may start subscription of convertible bonds

On June 8, Unigroup Guoxin released a convertible bond issuance announcement, planning to issue convertible bonds of 1.5 billion yuan, of which 600 million yuan will be used for the research and development and industrialization projects of new high-end security series chips, 450 million yuan will be used for the research and development and industrialization projects of vehicle controller chips, and 450 million yuan will be used to supplement working capital.

As the leading domestic smart chip stock, Unigroup Guoxin has maintained a leading position in the field of smart security chips for many years. Its THD89 security chip is the first domestic product to pass the international SOGIS CC EAL6+ security certification, ranking among the world's highest security-level security chips. In 2020, Unigroup Guoxin's security chip shipments hit a record high.

Based on long-term technological innovation and market accumulation, Unigroup Guoxin's security chip products and system solutions have long been widely used in multiple industries such as mobile communications, finance, government affairs, industry, and consumer electronics. They have developed maturely in the traditional market and have stable growth, occupying the top market share in domestic SIM card chips, bank card chips, national secret transportation card chips and other fields.

In recent years, Unigroup Guoxin has made early arrangements and actively expanded in emerging market fields such as the Internet of Things, 5G, cloud computing, Internet of Vehicles, and Industrial Internet, occupying a first-mover advantage. Its security chip innovation business has been fully opened to both domestic and overseas markets: it won the bid for 70 million eSIM wafers from China Mobile IoT, and supplied the first commercial quantum secure call SIM card in China in batches. The overseas sales of high-end SIM card chips have increased significantly, and POS security chips have also been applied in batches in overseas markets.

As the global trend of intelligence continues to deepen, the security chip market continues to grow and is accelerating. It is estimated that the scale of China's smart security chip market will increase to 179.39 billion units in 2023 at an annual compound growth rate of 11%. At the same time, the rapid development of industrial digitalization has further promoted the demand for security chips in emerging markets such as the Internet of Things, 5G, cloud computing, and big data. The market space for high-end security chip projects is huge.

The existing products and markets have fully consolidated Unigroup Guoxin's position in the industry. On this basis, Unigroup Guoxin continues to increase investment and pours 600 million yuan into the active research and development of new high-end security chip products, which will provide broad space and strong guarantee for the long-term and sustained rapid development of its business. According to Guosheng Securities' calculation, the project has an 8-year calculation period, and the maximum revenue in the fifth year is 1.471 billion yuan. When it reaches full operation, the gross profit margin is 33.56%, and the after-tax internal rate of return is 15.26%, which has good economic benefits.

It is reported that the convertible bonds publicly issued by Ziguang Guwei this time are referred to as "Guowei convertible bonds", the bond code is "127038", the total issuance amount is not more than RMB 1.5 billion (inclusive), the issuance quantity is not more than 15 million, and the initial conversion price is 137.78 yuan/share. The priority allotment date for original shareholders and the online subscription date are both June 10, 2021 (T-day). Social public investors can participate in the subscription through the Shenzhen Stock Exchange trading system.