Recently, China Resources Microelectronics Co., Ltd. (hereinafter referred to as “China Resources Micro”) issued a number of announcements, involving matters including director changes, the latest financial report, and raised funds.
Chen Nanxiang ceases to serve as director
According to the announcement of the change of directors, the board of directors of China Resources Micro recently received a written resignation report from the director Mr. Chen Nanxiang. The current director of the company, Mr. Chen Nanxiang, applied to resign as a director of the company due to personal reasons. After resignation, Chen Nanxiang will no longer hold any position in China Resources Micro. The directorship is held by Mr. Li Hong
The announcement stated that Mr. Chen Nanxiang’s resignation did not cause the number of members of the company’s board of directors to fall below the quorum, nor would it affect the normal operation of the company’s board of directors, nor would it adversely affect the company’s daily operations.
Source: Screenshot of China Resources Micro Announcement
It is reported that after Mr. Chen Nanxiang resigned as executive vice chairman of China Resources Micro at the end of August this year, he only served as a director of China Resources Micro, and he quickly joined Ziguang Group in early September as the group’s co-president.
Statistics show that Chen Nanxiang joined China Resources Microelectronics in 2002. During his 18-year tenure, China Resources Microelectronics has achieved rapid development. Since 2004, it has been continuously rated as one of China’s top 100 Electronic and information companies by the Ministry of Industry and Information Technology. At present, China Resources Micro has become an influential comprehensive semiconductor company in China, China’s largest power device company, and one of the top ten companies in China’s semiconductor industry. China Runwei is also the only IDM company.
At the beginning of this year, China Resources Micro was formally listed on the Science and Technology Innovation Board, and set a number of “firsts”, such as the first A-share company to be listed as a “red chip” and the first A-share company to be a “limited company” instead of a “company”. A company listed in the form of a company limited by shares, and the first company to introduce the “green shoe mechanism” on the Science and Technology Innovation Board.
For Chen Nanxiang, it may be the best time to leave at this time. After all, making such a choice at the time when China Resources Micro is booming can also be regarded as a successful retreat. I also wish Mr. Chen Nanxiang in Ziguang Group to continue to promote the localization of China’s semiconductor industry. .
Revenue and net profit increased significantly year-on-year
In terms of operating performance, China Resources Micro has become profitable since 2016, and its financial performance has continued to improve.
According to the previous prospectus, from 2016 to 2018, China Resources Micro achieved operating income of 4.397 billion yuan, 5.876 billion yuan, and 6.271 billion yuan, respectively, and realized net profits of -303 million yuan, 70.282 million yuan and 429 million yuan respectively.
In the first three quarters of 2020, China Resources Micro achieved a total of 4.889 billion yuan, an increase of 18.32% year-on-year, and a net profit of 758 million yuan, an increase of 113.63% year-on-year. Among them, the third quarter achieved revenue of 1.826 billion yuan, a year-on-year increase of 22.37%, an increase of 8.62% month-on-month, and a net profit of 311 million yuan, a year-on-year increase of 119.31%.
Source: Screenshot of China Resources WeChat Official Account
Raise 5 billion yuan to focus on power semiconductor packaging and testing
It is worth mentioning that, on the same day as the announcement of the change of directors, there was also an announcement of the change of raised funds.
According to the fund-raising announcement, the number of shares issued by China Resources Micro is determined by dividing the total amount of funds raised by the issue price, and it does not exceed 135,102,799 shares (including the number). The funds to be raised will not exceed 5 billion yuan. After deducting the issuance costs, they will be used for China Resources Micro Power semiconductor packaging and testing base project and supplementary working capital.
Source: Screenshot of China Resources Micro Announcement
According to reports, China Resources Micro plans to centrally integrate existing power semiconductor packaging and testing resources, and build a new power semiconductor packaging and testing base in Chongqing Xiyong Microelectronics Industrial Park to further improve its process technology and manufacturing capabilities in the packaging and testing process.
According to reports, the construction project of China Resources Micropower Semiconductor Packaging and Testing Base covers a total area of about 100 acres, and the planned total construction area is about 120,000 square meters. The project is expected to have a construction period of 3 years. The total investment of the project is 4.2 billion yuan. It is planned to invest 3.8 billion yuan to raise funds. The remaining funds required will be solved by self-raising.
After the project is completed and put into production, it is mainly used for packaging and testing standard power semiconductor products, advanced panel-level power products, and characteristic power semiconductor products; the production products are mainly used in new infrastructure fields such as consumer electronics, industrial control, automotive electronics, 5G, AIOT, etc.
According to data, China Resources Micro is China’s leading semiconductor company with integrated operation capabilities across the entire industry chain including chip design, wafer manufacturing, packaging and testing, and its products focus on the fields of power semiconductors, smart sensors and smart control. The company is currently a leading semiconductor company operating a complete industrial chain in China. The company is a leading domestic semiconductor company operating in the IDM mode and one of the largest power device companies in China.
China Resources Micro stated that after the completion of the fund-raising project, a better product and process match can be formed in the packaging and testing process with chip design, wafer manufacturing and other links, which is conducive to fully releasing the resource advantages and synergy effects of various internal links. The proportion of production integration is expected to further increase, which will promote the company’s further transformation into a comprehensive integrated operation company for power semiconductors.