The stock price rose by 30.77% after listing, and Xidiwei successfully landed on the Science and Technology Innovation Board

On January 21, Xidiwei was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The company's stock code is 688173 and the issue price is 33.57 yuan per share.

As of press time, Xidi rose slightly by 30.77% to 43.90 yuan, with a total market value of 17.56 billion yuan. 

According to information, Xidiwei is one of the leading semiconductor and integrated circuit design companies in China. Its main business is the research and development, design and sales of analog integrated circuit products including power management chips and signal chain chips. The company's main products include DC/DC chips, super fast charging chips, lithium battery fast charging chips, port protection and signal switching chips, etc., which are currently mainly used in mobile phones, laptops, wearable devices and other fields.

At present, in the field of consumer electronics such as mobile phones, the company's DC/DC chips have been mass-produced and shipped to customers such as Qualcomm, MTK, Samsung, Xiaomi, and Transsion; the company's lithium battery fast charging chips have entered the MTK platform reference design; in the field of super-fast charging chips, the company's innovative high-voltage charge pump products have effectively promoted high-end models to develop towards more efficient, safer and faster charging.

In addition, in the field of automotive electronics, the company's independently developed automotive-grade power management chip products have met the AEC-Q100 standard, and its DC/DC chips have entered Qualcomm's global automotive-grade platform reference design and have been shipped to well-known automakers such as Audi, Hyundai, and Kia.

From 2018 to the first half of 2021, Xidiwei achieved operating income of RMB 68.1632 million, RMB 115.3189 million, RMB 228.3886 million, and RMB 218.5759 million, respectively, and the corresponding net profits were RMB -5.3840 million, RMB -9.5752 million, RMB -144.8725 million, and RMB 19.1749 million, respectively. It has not yet made a profit in the most recent year; as of June 30, 2021, the company's undistributed profits amounted to RMB -53.3498 million, and there were accumulated unrecovered losses.

Regarding the main reason for the company's continued losses, Xidiwei said that product promotion has a certain verification and trial cycle, and the sales scale is gradually increasing. It takes a certain amount of time for the company's revenue scale to reach a higher level. At the same time, chip design requires continuous R&D investment to achieve product line upgrades and expansions. During the reporting period, the company's R&D investment was large, resulting in high R&D expenses.

In addition, from 2018 to the first half of 2021, Xidiwei recognized share-based payment expenses of RMB 505,000, RMB 8,065,200, RMB 139,070,700 and RMB 21,763,100 respectively due to equity incentives and other reasons. The net profit after deducting the share-based payment expenses was RMB -4,879,000, RMB -1,510,100, RMB -5,801,800 and RMB 40,938,000 respectively. It said that it is expected that after the initial public offering and listing, the company will not be able to pay cash dividends in the short term, which will have a certain degree of adverse impact on the investment returns of shareholders; the company cannot guarantee profitability in the next few years and may also face the risk of delisting after listing.