Recently, MEMS sensor giant XDLK Microsystem successfully went public on the Science and Technology Innovation Board According to the prospectus, XDLK Microsystem was established in 2012, and its main business is the research and development, testing and sales of high-performance silicon-based MEMS inertial sensors. Its main products are high-performance MEMS inertial sensors, including MEMS gyroscopes and MEMS accelerometers.
The application fields of XDLK Microsystem products include industrial production, monitoring and maintenance of industrial equipment, navigation and control of unmanned systems, ocean monitoring, weather forecasting, navigation and control of unmanned equipment above and below water, oil exploration, survey and mapping, bridge monitoring, geological exploration, disaster early warning and other fields.
In terms of future product development, XDLK Microsystem state that its application fields will be expanded to include autonomous driving, robotics, civil aviation, commercial aerospace and so on. In the prospectus, XDLK Microsystem also emphasized many times that the product parameters have competitive advantages with international MEMS sensor giants, and can realize the localization process of high-end application fields of MEMS sensors.
According to the financial data disclosed in the prospectus, XDLK Microsystem achieved operating revenues of RMB 79.891 million, RMB 1.09 billion, RMB 1.66 billion, and RMB 67.9703 million for the fiscal years 2019, 2020, 2021, and January to June 2022, respectively. The net profits attributable to the parent company for the same periods were RMB 37.9258 million, RMB 51.8991 million, RMB 82.6051 million, and RMB 31.0644 million, respectively.
Among them, the gross profit margin of XDLK Microsystem is extremely high: it reached 90.66%, 88.25% and 85.47% in 2019, 2020 and 2021 respectively, which is comparable to liquor, biomedicine and software enterprises. Moreover, the gross profit of XDLK Microsystem ranks first among A-share sensor concept companies, which is nearly 20 percentage points higher than Donghua Testing Technology, which ranks second.
Yang Shengjun, a partner of Cornerstone Capital, one of the company's investors, said: "XDLK Microsystem is one of the representatives of the highest technical level in the industrialization of local high-end MEMS gyroscope products, and has technical advantages in the field of MEMS gyroscopes: it has three core technical teams: front-end MEMS design, special control ASIC design and MEMS chip packaging and testing; Innovative MEMS inertial devices and process design ensure high yield and low cost; Completely independently designed MEMS overall algorithm controls ASIC to give full play to the performance of MEMS devices; Optimized packaging technology and test process specifications ensure mass production of MEMS products."
Figure1: MEMS product
The overall weakness of China's sensor industry has resulted in a scarcity of domestic companies engaged in the high-performance, industrial-grade MEMS inertial sensor chip design and development. In the field of MEMS inertial sensors, the gap between domestic companies and their foreign counterparts is substantial.
According to Yole statistics, internationally renowned manufacturers such as Honeywell and ADI occupy nearly half of the market share, while domestic MEMS inertial sensor manufacturers, XDLK Microsystem, MEITEK and other companies have small market share, and there is still a big gap in market share. Therefore, due to the high gross profit, the company explains that "technological indicators have reached international advanced levels, with localization advantages, changing the situation where high-performance MEMS inertial sensors were subject to foreign manufacturers. The company has strong sales bargaining power."
From a domestic perspective, there are not many A-share companies that primarily focus on MEMS sensors. Among them, the only Science and Technology Innovation Board (STAR Market) company that extensively focuses on MEMS sensors for general consumer electronic demands is MEMSENSING. Its gross profit for the years 2019 to 2021 was only 38.62%, 35.52%, and 35%, respectively.
In addition, the prospectus also lists R&D enterprises involved in MEMS sensors or sensors with the same efficacy, such as RAYTRON, STARNETO and Beijing NAVIGATION CONTROL but the gross profit of related companies is far lower than that of this company. In this regard, XDLK Microsystem said that the functional requirements of the above-mentioned products are obviously different from those of the company, and the gross profit has its own industry characteristics.
The IPO of XDLK Microsystem in Science and Technology Innovation Board plans to issue no more than 114,933,333 new shares, and plans to raise 1 billion yuan, of which 230 million yuan is used for high-performance and industrial-grade MEMS gyro development and industrialization projects; 147 million yuan is used for high-performance and industrial MEMS acceleration design, development and industrialization projects; 157 million yuan is used for the development and industrialization project of high-precision MEMS pressure sensors; 222 million yuan is used for the construction project of MEMS device packaging and testing base; 245 million yuan is used to supplement working capital, and the sponsor institution is CITIC Construction Investment.
During the listing review, the Listing Committee of Shanghai Stock Exchange inquired about the product yield of XDLK Microsystem and the self-built packaging test survival line. In the matters that need to be further implemented, XDLK Microsystem is once again urged to implement "the issuer is requested to supplement the disclosure of the economic considerations of the self-built packaging test production line in the prospectus and the impact on stabilizing the product yield."
XDLK Microsystem's Science and Technology Innovation Board Debut, Remarkably High Gross Profit Comparable to Pharmaceuticals-China.exportsemi.com
