(Text/Xia Fenglin, Editor/Xu Zhe) In the context of the introduction of the "Six Mergers and Acquisitions" policy, the semiconductor industry has ushered in a wave of mergers and acquisitions. Following Changdian Technology (600584. SH), Changchuan Technology (300604. SZ), Guangzhi Technology (300489. SZ) and other listed semiconductor companies have successively issued mergers and acquisitions and restructuring plans, Jingfeng Mingyuan (688368.SH), an LED chip company listed in the early stage of the Science and Technology Innovation Board, issued a suspension announcement on planning a major asset restructuring.

According to the announcement, Jingfeng Mingyuan intends to buy the control of Sichuan Yichong Technology Co., Ltd. (hereinafter referred to as "Sichuan Yichong"). The counterparties of this transaction are mainly Guangzhou Weijunsi Investment Enterprise (Limited Partnership), Shanghai Jinju Lihe Enterprise Management Center (Limited Partnership), Chengdu Zhihe Juxin Enterprise Management Center (Limited Partnership), Chengdu Zhihe Jucheng Enterprise Management Center (Limited Partnership), Zhihe Jude Co., Ltd. and other Sichuan Yichong shareholders.

It is understood that Sichuan Yichong, founded in 2016 and headquartered in Sichuan, is a wireless charging chip and solution service provider, the main products are wireless charging chips and intelligent hardware. Prior to the acquisition, Sichuan Yichong had completed 15 rounds of financing, including Shenzhen Capital Group, CCB Investment, Shangqi Capital, SAIC Group, CICC Capital, Volkswagen Transportation, NIO Capital, Haier Smart Home and other Zhonglu Capital.

According to media reports, Sichuan Yichong had intended to land on the Science and Technology Innovation Board, and if the merger and reorganization is successfully implemented, Sichuan Yichong can enter the capital market with a curve, and for Jingfeng Mingyuan, whose performance continues to lose money and its profitability has fallen to a trough since its listing, it may be able to bring some changes. It is worth mentioning that before the announcement of the restructuring, Jingfeng Mingyuan's share price continued to rise sharply, and it was questioned about insider trading.

It is planned to acquire a star manufacturer of wireless charging chips, and the stock price is rushing

According to the announcement, Jingfeng Mingyuan is planning to purchase the control of Sichuan Yichong by issuing shares, issuing directional convertible corporate bonds and paying cash, and intends to raise matching funds, and the counterparty mainly involves Sichuan Yichong shareholders such as Guangzhou Weijunsi Investment Enterprise (Limited Partnership), Shanghai Jinju Lihe Enterprise Management Center (Limited Partnership), Chengdu Zhihe Juxin Enterprise Management Center (Limited Partnership). If the acquisition is completed, Sichuan Yichong will be listed on the Science and Technology Innovation Board.

According to public information, Sichuan Yichong is a wireless charging chip and solution service provider, focusing on magnetic resonance coupling wireless charging technology; Involving consumer electronics, automotive electronics, unmanned aerial vehicles and other products; The main products are chips for second-generation wireless charging technology, fast charging protocol chips, AC/DC chips and intelligent hardware. Among them, wireless charging chips and fast charging protocol chips are the main products that Jingfeng Mingyuan does not have.

According to the enterprise investigation, since its establishment, Sichuan Yichong has completed 15 rounds of financing, including Shenzhen Capital Group, CCB Investment, Shangqi Capital, SAIC Group, CICC Capital, Volkswagen Transportation, Weilai Capital, Haier Smart Home and other Zhonglu Capital. Among them, Sichuan Yichong has won hundreds of millions of yuan in the D+ round and F round of financing. It can be seen that Sichuan Yichong is a star project in the primary market. According to relevant media reports, Sichuan Yichong had intended to be listed on the Science and Technology Innovation Board.

In addition, the personal resume of Pan Siming, the actual controller of Sichuan Yichong, also added some highlights to this merger and reorganization. According to media reports, Pan Siming is a "post-80s", he graduated from the Department of Electrical Engineering of Tsinghua University with a bachelor's degree, graduated from the Missouri University of Science and Technology in United States with a doctorate, and after graduation, he entered United States Cisco Network Technology Company, serving as a scientist at the innovative technology R&D center of the company's Silicon Valley headquarters, and later served as an iPhone system design and architecture engineer at Apple's United States.

In 2016, Pan Siming returned to China to start a business. In 2019, Pan Siming and his team independently designed the first 10Gbps high-speed signal conditioning chip with complete intellectual property rights and mass production capacity in Chinese mainland. As a result, Yichong has become a leader in the domestic wireless charging industry, and according to media reports in 2022, its valuation has exceeded 1 billion yuan.

Jingfeng Mingyuan said that the transaction is still in the planning stage, and the parties to the transaction have not yet signed a formal transaction agreement, and the specific transaction plan is still under discussion and verification, and there is still great uncertainty. And the announcement did not disclose the financial data of the target company, despite this, before the restructuring announcement, Jingfeng Mingyuan's share price continued to rise sharply, and it was questioned about insider trading.

The trading market shows that in the three trading days from October 17th to 21st, the share price of Jingfeng Mingyuan has risen by 36.84%, and the market has increased by 2.03% in the same period. Among them, the company's share price rose by 10.72% on October 18 at a "20cm" limit, and then rose 10.72% on October 21, hitting the highest point of the year at 113.6 yuan during the session, and closing at 104.82 yuan on the same day.

The industry has picked up, and the performance reverse loss has expanded

The observer network noticed that behind Jingfeng Mingyuan's planning and reorganization, the company's performance is hardly optimistic.

Jingfeng Mingyuan's latest third quarterly report shows that during the reporting period, the company's operating income increased by 18.78% year-on-year to 1.088 billion yuan, and the net profit attributable to the parent decreased by 55.32% year-on-year to -54.3011 million yuan, and the loss expanded over the same period last year, and the net profit loss attributable to the parent company after deducting non-profit was 23.1305 million yuan, and the loss was 78.9128 million yuan in the same period last year.

Among them, in the third quarter, the company achieved sales revenue of 353 million yuan, an increase of 17.51% over the same period last year. In terms of products, in the third quarter, the sales revenue of LED lighting power supply chips was 199 million yuan, the sales revenue of AC/DC power chips was 64 million yuan, the sales revenue of motor control drive chips was 76 million yuan, and the sales revenue of DC/DC power chips was 14 million yuan. During the reporting period, the company continued to consolidate the market share of LED lighting power supply chips, actively developed the second growth curve, and continued to increase the proportion of AC/DC power supply chips and motor control driver chips in the overall business; Based on the successful mass production of the 40V BCD process platform, the sales revenue of DC/DC power chips has been gradually increased.

However, the company's loss widened sequentially in the third quarter. Compared with the company's loss of 1.1074 million yuan in the second quarter, its net profit loss attributable to the parent in the third quarter reached 23.7935 million yuan, and the net profit attributable to the parent company after deducting non-profit turned from profit to loss, with a loss of 5.2953 million yuan.

It should be pointed out that after nearly two years of downturn, the semiconductor industry has finally recovered strongly this year. According to data from the Semiconductor Industry Association (SIA), the cumulative sales of the global semiconductor industry in the second quarter of 2024 reached US$149.9 billion, an increase of 6.5% quarter-on-quarter and 18.3% year-on-year; According to data from the General Administration of Customs of China, in the first eight months of this year, China's integrated circuit exports reached 736.04 billion yuan, a year-on-year increase of 24.8%, and the number of exports was 193.25 billion, a year-on-year increase of 10.5%.

Benefiting from this, the profitability of most listed companies in the semiconductor sector continued to recover. According to incomplete statistics from the observer network, as of the close of trading on October 22, 18 A-share semiconductor companies have announced their third quarterly reports, and only Jingfeng Mingyuan has lost money.

In fact, Jingfeng Mingyuan has been losing money for two consecutive years. Financial data show that in 2022 and 2023, the company's attributable net profit will be about -206 million yuan and -91.26 million yuan respectively.

At the beginning of its listing, Jingfeng Mingyuan's main business was the design of power management driver chips, and the main products were LED lighting driver chips, motor driver chips, etc., which belonged to the analog chip industry. At the time of continuous losses, Jingfeng Mingyuan acquired 61.61% of the shares of Lingou Chuangxin, expanding its technical capabilities in the field of motor control chips and expanding its product portfolio.

However, from the current point of view, the previous acquisition failed to help Jingfeng Mingyuan get out of the haze of losses. It remains to be seen whether the restructuring and merger of Sichuan Yichong can bring positive changes to Jingfeng Mingyuan.