1. Company introduction: (total share capital is 834,853,2865,438+0 shares) (1) The company is a high-end advanced packaging and testing service provider for integrated circuits, focusing on the field of display driver chips and taking a leading position in the industry. The company's main business focuses on front-end gold bumps, integrating wafer testing (CP), back-end glass flip-chip packaging (COG) and film flip-chip packaging (COF), forming a comprehensive service capability for full-process packaging and testing of display driver chips. The company's packaging test services are mainly used for display driver chips of mainstream panels such as LCD and AMOLED. The packaged and tested chip is the core component to realize the screen display of various terminal products such as smart phones, smart wear, HDTV, notebook computers and tablet computers. The company is one of the first batch of advanced packaging and testing enterprises for display driver chips in China, with the ability to manufacture gold bumps and the first 12 _ wafer gold bump production line and mass production, and the ability to package and test 8 _ and 12 _ wafers in the whole process. In 2020, the company's display driver chip packaging shipments ranked third in the global display driver chip packaging and testing field, ranking first in China, with strong market competitiveness. The company has been deeply involved in the packaging and testing of display driver chips for many years, and has accumulated rich customer resources with advanced packaging and testing technology, stable product yield and excellent service ability. The company's customers include Yong Lian Technology, Tianyu Technology, Ruiding Technology, Qi Jing Optoelectronics and other world-renowned display driver chip design companies. Sealed chips are mainly used for panels of well-known manufacturers such as BOE and AUO. The top five display driver chip design companies in the world in 2020 are the main customers of three family companies, and the top ten display driver chip design companies in China in 2020 are the main customers of nine family companies. (2) At present, the company's packaging test products are mainly used in the field of display drivers, aiming at providing full-process packaging test. According to the specific process, the package testing services involved include gold bumps, wafer testing (CP), flip-chip glass packaging (COG) and flip-chip thin film packaging (COF). (III) The income composition of the company's main business is as follows: II. Industry and competition: (1) The integrated circuit manufacturing industry chain mainly includes three sub-industries: chip design, wafer manufacturing and packaging and testing. Packaging and testing industry is located in the middle and lower reaches of the industrial chain, which essentially includes packaging and testing. However, because the testing process is generally completed by packaging manufacturers, it is generally called packaging testing industry. Packaging is the process of arranging, fixing and connecting chips on the substrate, and packaging with insulating medium to form electronic products. The purpose is to protect the chip from damage, ensure the heat dissipation performance of the chip and realize the transmission of electrical signals. The packaged chip can work in higher temperature environment, resist physical damage and chemical corrosion, bring better performance and durability, and facilitate transportation and installation. Testing includes wafer testing before packaging and finished product testing after packaging. Wafer testing mainly examines the electrical performance of each die, and finished product testing mainly examines the electrical performance and function of the product. The purpose is to screen out chips with defective structure and unsatisfactory function and performance, which is an important means to save cost, verify design, monitor production, ensure quality, analyze faults and guide application. The packaging and testing industry is the most mature sub-industry in China's integrated circuit industry, which has a strong international competitiveness. The global packaging and testing industry is shifting to Chinese mainland. According to the statistics of China Semiconductor Industry Association, the sales scale of chip design, wafer manufacturing and packaging testing in the domestic integrated circuit industry structure is about 4: 3: 3. The balance of industrial structure is conducive to the formation of internal circulation in integrated circuit industry. With the accelerated development of the upstream chip design industry, it can also promote the development of the downstream packaging and testing industry in the industrial chain. The integrated circuit industry developed from Europe and America in the early days. With the technological progress of the industry and the global allocation of resource elements, the production capacity of packaging testing has gradually shifted from Europe and America to emerging Asian markets such as China, Taiwan Province Province, Chinese mainland, Singapore and Malaysia. At present, the global packaging and testing industry has formed a tripartite confrontation among China, Taiwan Province Province, Chinese mainland and the United States. According to the data of Prospective Industry Research Institute, in 20 19, the share of China's packaging and testing enterprises in the global market reached 64.00%, among which enterprises in Taiwan Province Province of China accounted for 43.90% and enterprises in Chinese mainland accounted for 20. 10%, both higher than that in the United States. Thanks to the strong support of industrial policies and the demand of downstream applications, the domestic packaging and testing market has achieved rapid development with the integrated circuit industry. According to Frost &; According to Sullivan's data, from 20 16 to 2020, the compound annual growth rate of Chinese mainland's packaging test market is 12.54%, which is much higher than the global packaging test market's growth rate of 3.89%. Judging from the income structure of packaging and testing business, Chinese mainland packaging and testing market is still dominated by traditional packaging business. However, with the continuous investment of domestic leading manufacturers of M&A and R&D at home and abroad, Chinese mainland's first package business is expected to develop rapidly. In recent years, well-known chip design companies such as Qualcomm, Huawei Hisilicon, MediaTek and Yong Lian Science and Technology have gradually transferred packaging test orders to Chinese mainland enterprises. At the same time, the scale of domestic chip design enterprises is gradually expanding, and the world's leading wafer manufacturing enterprises have also set up factories in Chinese mainland to expand production. In this context, domestic packaging and testing enterprises will enter a more rapid development stage. At the same time, advanced packaging in the future will create more value for the integrated circuit industry. With the increasing demand for advanced packaging for smart cars and 5G mobile phones and tight production capacity, the price of packaging testing will increase, and domestic manufacturers who arrange advanced packaging business in advance will benefit. According to Frost &; According to Sullivan's data, the packaging and testing market in Chinese mainland is expected to maintain a compound annual growth rate of 7.50% in the next five years, reaching a market scale of 35,565,438+90 million yuan in 2025, accounting for about 75.6 1% of the global packaging and testing market, among which advanced packaging will continue to develop at a high speed, with a compound annual growth rate of 29.9 1% in 2025. In the global industrial structure of display driver chips, Korean manufacturers and manufacturers in Taiwan Province Province of China occupy a dominant position, including Samsung, Yong Lian Technology, Qi Jing Optoelectronics, Ruiding Technology and so on. In recent years, with the rise of Zhongying Electronics, Gekewei, Ming Microelectronics and other manufacturers, Chinese mainland's market share has been increasing. In the future, with the gradual enrichment of China's chip design talent resources, the improvement of wafer manufacturing industry's capacity supply, the further improvement of packaging and testing technology integration and the sustained and rapid development of display panel industry, Chinese mainland's market share in display driver chips will continue to increase. Thanks to the growth of global display panel shipments, the display driver chip market has also grown rapidly. According to Frost &; According to Sullivan's statistics, the global shipment of driver chips has increased from 123.9 1 billion in 20 16 to1654 billion in 2020, with a compound annual growth rate of 7.49%. It is expected that it will continue to grow in the future, and the shipment volume will increase to 23.32 billion pieces by 2025. The steady growth of LCD panel shipments has led to the gradual growth of LCD driver chip shipments. In 2020, the global shipment of LCD driver chips will be 1.5 1.40 billion, which is expected to stabilize at a high shipment level in the future and increase to 20.87 billion by 2025. Thanks to the rapid growth of OLED screens, the output of OLED driver chips has also increased rapidly, which is expected to reach 2.45 billion chips by 2025, with a compound growth rate of 13.24% in the next five years. Driven by the growth of downstream display panel market, plus favorable national policies and a large amount of capital investment, the growth rate of display driver chips in Chinese mainland is higher than the global average. According to statistics, in 20 16, the shipment of display driver chips in Chinese mainland was only 2.35 billion, but it has increased to 5.27 billion in 2020, with a compound annual growth rate of 22.37%. Among them, the shipment of LCD driver chips increased from 2.27 billion chips in 20 16 to 5 billion chips in 2020, with a compound annual growth rate of 21.82%; The number of OLED driver chips has increased from 80 million in 20 16 to 270 million in 2020, with a compound annual growth rate of 35.54%. It is estimated that the shipment of display driver chips in Chinese mainland will reach 8.69 billion pieces in 2025, among which the output of LCD driver chips will increase to 7.9./kloc-0.0 billion pieces, and the output of organic light-emitting diode driver chips will increase to 780 million pieces. In the industrial structure of global display driver chip packaging and testing services, manufacturers in Chinese mainland and Taiwan Province Province occupy a dominant position, including Haobang Technology and Nanmao Technology. In recent years, with the rise of mainland manufacturers such as Huicheng, Chinese mainland's market share has increased. In the future, with the gradual enrichment of chip design talent resources in China, the improvement of wafer manufacturing capacity supply and the further improvement of packaging and testing technology integration, it is expected that the sales share of display driver chip packaging and testing services in Chinese mainland will further increase in 2025. According to statistics, in 2020, the global display driver chip packaging and testing market will reach 3.6 billion US dollars, an increase of 20.00% compared with 20 19. In the future, from the demand side, there will still be new panel production capacity release, and the demand for display driver chips will continue to rise. From the supply side, although the wafer foundry has continuously put into production new capacity, most of them have not yet achieved mass production. It is estimated that the wafer production capacity will reach the balance between supply and demand in 2023. The insufficient output of display driver chips will continue to push up the sales price, so the market scale of display driver chip packaging test will also increase, and it is expected to reach 56 1 billion dollars in 2025. In the future, with the development of domestic chip designers and the shortage of wafer production capacity, the demand of China display driver chip packaging and testing industry will grow rapidly. It is estimated that the overall display driver packaging test market in China will grow from184.3 million yuan in 2026 to 280.8 million yuan in 2025, with a compound annual growth rate of about 1 1.65438%. In 2025, the market share of China display driver packaging test will increase to 77.0538. (2) The global display driver chip packaging and testing industry has a high concentration and obvious head effect. In addition to some manufacturers who provide packaging and testing services for internal display drivers, the leading enterprises in the industry are mainly concentrated in Chinese mainland, Taiwan Province and Chinese mainland. After industrial integration, small and medium-sized packaging and testing plants in Taiwan Province Province of China have been merged by large factories. At present, there are only two leading manufacturers of display driver chip packaging and testing in the world, namely Haobang Technology and Nanmao Technology. Chinese mainland started late. Due to the lack of mature chip designers and insufficient market demand, the scale of packaging and testing enterprises in Chinese mainland is smaller than that in Taiwan Province, China. With the continuous support of chip design enterprises in Chinese mainland and the continuous maturity of enterprise technology in recent years, the rapid rise in demand for packaging and testing of display driver chips will promote the continuous expansion of existing packaging and testing manufacturers of display driver chips and attract more leading packaging and testing manufacturers to enter the industry. According to Frost &; According to Sullivan's statistics, in the global display driver chip packaging and testing industry in 2020, companies that provide services independently and occupy a high market share include Haobang Technology, Nanmao Technology, Huicheng Co., Ltd., Zhong Hao Technology and Tongfu Microelectronics. Among them, Haobang Technology and Nanmao Technology are both listed companies in Taiwan Province Province, China; Zhong Hao Technology was originally a domestic subsidiary of Haobang Technology, and was later acquired by other domestic shareholders; Tongfu Microelectronics is a China A-share listed company. With the innovation and development of technology, the integrated circuit packaging and testing industry has become increasingly refined, resulting in many sub-fields. At present, the company focuses on the field of display driver chip packaging and testing. In the whole IC packaging and testing industry, the main companies are Sunmoon, Amkor, Changdian Technology, Tongfu Microelectronics, Huatian Technology, Crystal Technology, Liyang Chip and Style Technology. Among them, the product lines of Changdian Technology, Tongfu Microelectronics and Huatian Technology span many sub-sectors of the packaging and testing industry. Crystal Technology focuses on the packaging and testing of CMOS image sensors, and Liyang Chip focuses on the testing of integrated circuits, with the largest scale in South China. In the sub-industry display driver chip packaging and testing field, the main companies are Haobang Technology, Nanmao Technology, Huicheng Co., Ltd. and Zhong Hao Technology. Among them, Haobang Technology and Nanmao Technology are listed companies in Taiwan Province Province, China. Three. Special risk: 1. Before this public offering, the actual controllers Zheng Ruijun and Yang Hui jointly controlled 38.78% of the issuer's voting rights, and the control ratio will further decline after this public offering. The company is in a capital-intensive industry with a large investment in fixed assets. In order to support the development of the company, Zheng Ruijun, the actual controller of the company, paid the capital increase for the employee stock ownership platform, so as to attract outstanding talents, maintain the stability of the team, and transfer some shares held by shareholders. The demand for funds is large, and there are cases of borrowing in the name of individuals. As of the signing date of this prospectus, Zheng Ruijun, the actual controller of the company, has a number of large debts that have not yet matured. The loan principal exceeds 300 million yuan, and the maturity time of the debts is from 2025/kloc-0 to September 2026. If the actual controller fails to repay the loan on schedule three years after the spontaneous pedestrian completes the initial public offering and listing, the shares of the company held by the actual controller may be frozen and disposed of by creditors at that time, which may have a negative impact on the stability of the actual controller of the company. 2. By the end of 20021,the company's audited accumulated uncompensated loss was-224,007,200 yuan, and the accumulated uncompensated loss has not been eliminated, mainly because the IC packaging and testing industry is capital-intensive and technology-intensive, and it needs large-scale investment in fixed assets and R&D to form large-scale production. After the initial public offering and the listing of science and technology innovation board, if the company can't make up the accumulated losses in a short time, it will lead to the lack of ability to pay cash dividends to shareholders. Four. Fundraising projects: V. Financial status: 65,438+0. Reporting period: February 2022,65,438+0-June, the company's operating income is estimated to be 449,358 ~ 482,265,800 yuan, an increase of 25.25% ~ 34.25% compared with the same period in 2026,543.8+0. The estimated net profit is 8,095.95 ~ 65,438+0,034.23 million yuan, an increase of 37.64% ~ 70.60% compared with 2026,5438+0 in the same period; The estimated net profit after non-deduction is 6058. 14 ~ 75764200 yuan, an increase of 95.02% ~ 143.90% compared with 202 1 in the same period. From June to June 2022, the company's operating income, net profit and net profit after deducting non-recurring gains and losses all increased significantly compared with the same period of last year. On the one hand, Hefei production base has continuously introduced high-quality customers and high-end products, and its revenue model has grown rapidly; On the other hand, Hefei production base continues to expand its production capacity. With advanced sealing and testing technology, stable product yield and excellent service ability, customer orders keep growing and production capacity is fully released. Summary of Wu Feng's personal valuation and buying suggestions: Huicheng Co., Ltd. is mainly engaged in front-end gold bumps, integrating wafer testing (CP), back-end glass flip-chip packaging (COG) and film flip-chip packaging (COF) to form a comprehensive service capability for the whole process packaging and testing of display driver chips. In 2020, the company's display driver chip packaging shipments ranked third in the global display driver chip packaging and testing field and ranked first in China, making it the champion of industry giants. As an upstream packaging enterprise of consumer electronics, it benefited from the epidemic dividend of 2 1, and the sales of downstream TVs and PCs increased greatly. At the same time, the company successfully turned losses, and the future growth rate will definitely slow down. Due to short-term hype and long-term pressure, the issuer was given a market value of/kloc-0.4 billion. It is suggested to continue to pay attention to it and actively subscribe for it. Author: Wufeng said that the new shares link:/107141538/227270743 Source: Snowball copyright belongs to the author. Please contact the author for authorization for commercial reprinting, and please indicate the source for non-commercial reprinting. Risk warning: The opinions expressed in this article only represent personal opinions, and it is not recommended to involve the subject matter. So trading on this basis is at your own risk.