Electronic Enthusiasts Network reported (text/Liu Jing) On June 28, the IPO of Xinxiang Microscience and Technology Innovation Board was accepted by the Shanghai Stock Exchange. It plans to go public and raise 1.519 billion funds, and the sponsor is CICC.


Shanghai Xinxiang Microelectronics Co., Ltd. (abbreviation: Xinxiang Micro) was established in 2005 and is committed to the research and development, design and sales of display chips. The main products are integrated display chips and separate display chips, which are widely used in smart wearables, mobile phones. , Tablet PC, IT display equipment, TV, commercial display and industrial control and other fields.


As the first company in the industry to achieve mass production of display chips, the shipments of new phase micro display chips have increased rapidly, from 154 million in 2019 to 217 million in 2021. According to statistics from CINNO Research, Xinxiang Microelectronics ranked fifth in display chip shipments in mainland China in the first half of 2021, and ranked third in the world in LCD smart wearable market shipments in 2020.


Net profit will increase by 512% in 2021, and sales of display power management chips will exceed 120 million


The prospectus shows that from 2019 to 2021, Xinxiangwei achieved operating income of 206 million yuan, 297 million yuan, and 629 million yuan respectively, totaling 1.132 billion yuan in three years, with a compound annual growth rate of 74.57%. In 2021, revenue growth will accelerate by 111.78%.


The net profit achieved in the same period was -09 million yuan, 25 million yuan, and 153 million yuan respectively, with the largest increase in 2021, with a growth rate of 512%.

In the past three years, the scale of performance has maintained a continuous growth trend, and there will be a high growth momentum in 2021, with both revenue and net profit hitting record highs.

The main business of Xinxiangwei consists of integrated display chips and separate display chips. The separate display chip business includes display power management chips and separate display driver chip products.

The integrated display chip is the largest business of Xinxiangwei. From 2019 to 2021, it will achieve revenue of 134 million yuan, 173 million yuan, and 398 million yuan, accounting for 65.50%, 599.30%, and 63.32% of the current total revenue, respectively. Contributed more than 60% to Xinxiangwei's annual revenue. The sales volume of this largest business in 2021 will exceed 87.18 million, and the output will reach 91.43 million.

Display power management chip is the second largest business of Xinxiang Microelectronics. In the past three years, the proportion of revenue has increased year by year. In 2021, the revenue will reach 193 million yuan, and the revenue proportion will increase from 25.17% in 2019 to 30.72%.

In 2021, the revenue of integrated display chips, display power management chips, and discrete display driver chips will increase by 130.24%, 134.93%, and 2.77% year-on-year, respectively. The revenue growth rate of display power management chips is particularly outstanding, and it is the strongest performing business in 2021, with sales exceeding 129 million units.



Benchmarking Novatek and Sitronix, the gross profit margin increased by 27.71 percentage points

According to CINNO Research statistics, in 2020, the global display driver chip shipments will be about 8.3 billion, and the overall market size will be 8.6 billion US dollars. It is expected that shipments will reach 9.2 billion units in 2022, and the overall market size will reach $14.9 billion. Affected by the continued decline in the consumer electronics market, previous estimates may be revised down.

In the display driver chip track, overseas major manufacturers Novatek Technology, Silicon Chuang Electronics, Ruiding Technology, Yili Technology, Tianyu Technology, Silicon Works, Qijing Optoelectronics, and Samsung dominate, and the leading domestic manufacturers are Chipone. North, Gekewei, Xinxiangwei, Tiandeyu, Yunyinggu, Yi Siwei, etc. Overall, the global market share of display driver chips is mainly occupied by Taiwanese companies.

According to statistics from CINNO Research, in terms of display driver chip shipments, in the first half of 2021, the shipments of domestic manufacturers Chichuang North, Gekewei, and Xinxiangwei accounted for 3.5% and 3.0% of the global display driver chips, respectively. , 1.5%. Although the current shipments are small, the year-on-year growth rate of domestic manufacturers' performance is higher than that of some overseas manufacturers. Under the Dongfeng of domestic substitution, the shipments continue to grow rapidly.

The gross profit margins of Xinxiangwei in the past three years were 20.98%, 20.91%, and 48.62%, respectively. The gross profit margin has continued to grow significantly, and it will increase by 27.71 percentage points in 2021. In terms of profitability, it is generally lower than the industry average. In 2021, Xinxiang Microelectronics is better than Gekewei, Weir, Lixin and Ruiding.

From 2019 to 2021, Xinxiangwei invested 32 million yuan, 29 million yuan, and 55 million yuan in research and development, accounting for 15.36%, 9.64%, and 8.77% of the current total revenue, respectively.

Compared with peer companies, the R&D expense rate of Xinxiangwei in 2021 is lower than that of Tiandeyu, Shengbang, Novatek, Ruiding and Sitronix, but higher than Gekewei, Weir, and Lixinwei.

The evolution and development of the new phase micro display driver technology, the resolution, frame rate and the same level of the leading enterprises

At present, the main technical development directions of display driver chips include: high resolution, high frame rate, and zero number of peripheral devices.

In terms of high resolution, the mainstream resolution specifications of mobile phone display driver chips are QQVGA to 2K, the mainstream resolution specifications of monitors and TVs are HD to 4K, and the highest resolution of the current screen on the market is 8K. In terms of high frame rate, the frame rate of display devices such as mobile phones and desktop monitors has been increased from 60fps to 240fps.

At the beginning of its establishment in 2005, Xinxiangwei devoted itself to the research and development of display driver chips, adopted a cost-oriented technology development route, and successively independently developed image compression technology, charge recovery and low power consumption technology, and reduced the number of mask layers. Core technologies such as architecture design, built-in capacitor technology, image enhancement technology, clock data recovery of auxiliary channels in TFT-LCD in-screen interface, and external RAM architecture design.

In terms of process cost, New Phase Micro optimizes the overall circuit structure through core technologies such as image compression technology, built-in capacitor technology, external RAM architecture design, architecture design to reduce the number of mask layers, and image enhancement technology, thereby reducing the chip area. , reduce production costs.

In terms of power consumption, the power consumption of the TFT-LCD display driver chip is further reduced through the low power consumption technology of charge recovery.

In terms of display quality, the AMOLED intelligent dynamic compensation technology solves the problem of brightness uniformity and afterimage caused by the limitations of the crystallization process and the characteristics of AMOLED itself that the brightness gradually decays with the increase of lighting time. Display quality.

The comparison between the performance of the new phase micro QQVGA integrated TFT-LCD display driver chip and the similar products of the peer companies Sitronix Electronics and Geke Micro is as follows:

In terms of resolution indicators, it has reached the same level as Sitronix, a major Taiwanese manufacturer, surpassing Geke Micro. The frame rate technical indicators are also better than Gekewei. In terms of frame frequency of WQVGA integrated TFT-LCD display driver chip, Xinxiangwei is also at the forefront of the industry.

The performance of the FHD resolution separate display driver chip is compared with that of Novatek and Qijing Optoelectronics as follows:

New Phase Micro's separate display driver chip has fewer channels than Novatek and Qijing Optoelectronics, and the maximum driving voltage is the same as that of Novatek.

In general, Xinxiang Micro has strong advantages in the number of peripheral devices, cost, resolution and frame rate.


The largest customer is BOE, which contributes over 30% of revenue


In the display driver chip industry, Xinxiangwei is one of the first companies in the industry to achieve mass production. In 2012, Xinxiangwei's display driver chips were successfully introduced into the large-scale product supply chain of Hefei BOE's 6th generation line, and the bulk supply to BOE was officially launched.

It is worth noting that before 2012, Xinxiangwei's display drive products have been widely used in Shanghai Tianma's 4.5-generation line, AVIC's 5th-generation line, and Taiwan's CPT's 6th-generation line.

In 2021, Xinxiang Micro will sell 87.18 million integrated display chips, 129 million display power management chips, and 8.57 million separate display driver chips, with a total sales volume of 217 million. These display chips are mainly sold to downstream display panel manufacturers and display module manufacturers, and eventually flow to mobile phone and tablet computer brands. It is reported that the display chip products of Xinxiangwei have entered well-known terminal brands such as Hewlett-Packard, Dell, Changhong and Lenovo.

The top five customers of Xinxiangwei in 2021 are BOE, Peihong Industrial, Yihua Display, Junqiu Electronics, and Xin Vision. BOE is the largest customer, with a purchase amount of 206 million yuan, accounting for 32.80% of the total revenue and contributing more than 30%.

In 2019 and 2020, BOE is still the largest customer of Xinxiangwei, with orders as high as 65.99 million yuan and 105.82 million yuan respectively.

The sales of Xinxiangwei to the top five customers in the past three years are as follows:

The new big customer BOE was kicked out by Apple in May this year. According to the news released by The Elec, BOE canceled the order because it was discovered by Apple that it had changed the OLED panel design of the iPhone 13 without authorization. Whether the rumors are true or not is unknown, but the Q1 quarter performance of 2022 did decline. BOE's Q1 revenue was basically the same as last year, with a year-on-year increase of 0.4%; net profit attributable to the parent was 4.389 billion yuan, a year-on-year decrease of 16.57%. The consumer electronics market is weak, the market boom is not as good as in 2021, and the price of display panels is currently falling. In 2022, BOE may not increase the number of orders for Xinxiangwei's display chips, and may even shrink, which will affect Xinxiangwei in 2022. performance has caused some resistance.

Raised 1.519 billion to develop advanced display chips

Xinxiangwei went to Kaohsiung to be listed on the Science and Technology Innovation Board, and plans to raise 1.519 billion yuan to invest in the construction of "Hefei AMOLED Display Driver Chip R&D and Industrialization Project", "Hefei Display Driver Chip Test Production Line Construction Project", "Shanghai Advanced Display Chip R&D Center" construction projects" etc.

"Hefei AMOLED Display Driver Chip R&D and Industrialization Project" R&D content includes HD/FHD/WQHD/UHD resolution mobile phone AMOLED driver chip, FHD/WQHD resolution large-screen integrated AMOLED display driver chip and AMOLED chip R&D software and hardware platform building.

It is worth noting that Xinxiangwei launched the "Hefei Display Driver Chip Test Production Line Construction Project". As an enterprise centered on display chip design, Xinxiangwei previously entrusted product testing to chip testing manufacturers. The current construction of the test production line for display driver chips is actually to strengthen its own supply chain, gradually reduce the outsourcing of chip testing, and realize independent testing for its own products. It is reported that in 2021, the largest supplier of new phase micro display driver chip packaging and testing is Huicheng, with a purchase amount of 19 million yuan.

In the future strategy, Xinxiangwei will continue to focus on the research and development of advanced display chips, and strive to provide complete display chip solutions. At the same time, it plans to develop core technologies through industry-university-research cooperation. If the IPO is successful, the funds raised will help Xinxiang Micro achieve the improvement of product structure, the improvement of industrial chain integration capabilities and the enhancement of R&D capabilities.

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