The Shanghai Stock Exchange disclosed on Tuesday that the application of Shanghai Southchip Semiconductor Technology Co., Ltd. for a listing on the STAR Market had been accepted. The company plans to issue no more than 63.53 million shares in public, and the total amount of funds raised will not exceed 1.658 billion yuan ($246.88 million). The sponsor of this issuance is China Capital Management.
According to the prospectus, Southchip is one of the leading analog and embedded chip design enterprises in China. The company’s existing products have covered charging management chips, charging protocol chips and lithium battery management chips. The products are mainly used in various consumer electronics fields such as smartphones, laptops, tablets, power adapters and smart wearable devices, as well as industrial fields such as energy storage power supplies and power tools, and automotive fields. Among them, in 2021, the company’s charge pump charging management chip revenue accounted for 60.41%.
It is worth mentioning that, as one of the first companies to lay out USB-PD charging management in China, the company has launched a variety of charging management chips to support different terminal equipment requirements. The firm has become the backbone of the domestic consumer electronics charging management market. According to Frost & Sullivan, in terms of shipments in 2021, the company’s charge pump charging management chip ranked first in the world, and the Buck-Boost charging management chip ranked second in the world, and first in China.
Financial data show that in 2019, 2020 and 2021, the operating income of Southchip was 107 million yuan ($15.94 million), 178 million yuan ($26.5 million) and 984 million yuan ($146.52 million) respectively. The net profit was -9. 8534 million yuan (-$1.47 million), -7.975 million yuan (-$1.19 million) and 244 million yuan ($36.33 million) respectively.
Southchip’s shareholders include well-known entities such as Suzhou Oriza Holdings Corporation, Suzhou Juyuan Casting Venture Capital Partnership (L.P.), Shunwei Technology and Shenzhen Sequoia Hanchen Equity Investment Partnership (L.P.). They also include industrial capital institutions such as Longqi Technology, Intel, ZMI, Shanghai Moqin Intelligent Technology Co., Ltd., Xiaomi Fund and OPPO Communication.
Southchip said that the fundraising is mainly to be used for R&D and industrialization projects of high-performance charging management and battery management chips, highly integrated AC-DC chipsets and automotive electronic chips, construction projects of test centers and supplementary working capital.