【New Stock IPO】Guomin Technology 2701 raises maximum 1 billion yuan in IPO, platform-based integrated circuit design company, entry fee 2182 yuan, what's the water level in A-shares?

Guoxin Technology (New Listing Code: 02701) will conduct an IPO from March 13 to 18. The platform-based integrated circuit (IC) design company plans to issue 95 million H-shares, with 10% available for public sale in Hong Kong. The latest offering price is HKD 10.80, raising up to HKD 1.03 billion. Each lot consists of 200 shares, with an entry fee of HKD 2,181.80. Guoxin Technology is expected to start trading on March 23. CITIC Securities is the sole sponsor.

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Guoxin Technology’s A-shares (Shenzhen: 300077) closed Thursday at RMB 21.96 (approximately HKD 25.02), with a market value of RMB 12.81 billion. The latest H-share offering price is 56.8% lower than the A-shares, representing a 131.7% premium over the A-share level.

Providing Control Chips and System Solutions; Operating Lithium Battery Anode Materials Business

Guoxin Technology is dedicated to providing control chips and system solutions for various smart devices. It also operates a lithium battery anode materials business, offering products including general-purpose MCUs (including general MCU, specialized market chips, RF chips) and BMS chips; as well as artificial graphite products and graphitization services for lithium battery anodes.

In the chip product segment, the company has developed a diversified product portfolio widely used in consumer electronics, industrial control, digital energy, smart home, automotive electronics, and medical electronics. According to Zhuoshi Consulting, based on 2024 revenue projections, it ranks among the top five Chinese companies in the global platform-based microcontroller unit (MCU) market, and among the top three in the global 32-bit platform MCU market. In the Chinese MCU market with built-in commercial cryptography modules, it ranks first.

Performance and Investment Foundations

In the first nine months of last year, revenue reached RMB 960 million, up 16.7% year-on-year. Chip product sales totaled 280 million units, an increase of 13.8%. Revenue from chip products contributed 48.4%. During this period, the company’s attributable net loss was RMB 75.746 million, a 54.4% reduction.

Guoxin Technology has attracted cornerstone investors including Guohua Life, Harvest Oriental II, Dai Wanquan, An Jiangbo, and Xinwangda Financial, with a total investment of RMB 140 million.

Use of Net Proceeds

• 50.8%: Enhance R&D capabilities, develop new product lines, and improve product performance, including high-performance MCUs, multi-protocol communication chips, specialized market chips, and automotive-grade chips
• 9.2%: Upgrade existing product portfolio
• 15%: Conduct strategic investments and acquisitions
• 15%: Repay some outstanding bank loans
• 10%: Operating capital and general corporate purposes

Source: Guoxin Technology Announcement

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