Silan Micro's net profit surged 13-fold in the first half of the year; Bolante terminates its STAR Market IPO

Bolanter Terminates STAR Market IPO

According to the Shanghai Stock Exchange (SSE) website on August 13, the SSE has terminated its review of Zhejiang Blue Spectrum Semiconductor Technology Co., Ltd. (hereinafter referred to as "Blue Spectrum") for its initial public offering (IPO) and listing on the STAR Market.

On August 11, 2021, BlueOptics and its sponsor Bohai Securities Co., Ltd. submitted to the Shanghai Stock Exchange the "Application by Zhejiang BlueOptics Semiconductor Technology Co., Ltd. for Withdrawal of Application Documents for Initial Public Offering and Listing on the STAR Market" (2021011) and the "Application by Bohai Securities Co., Ltd. for Withdrawal of Application Documents for the Initial Public Offering and Listing of Zhejiang BlueOptics Semiconductor Technology Co., Ltd. on the STAR Market" (Bohai Securities Equity [2021] No. 236), requesting the withdrawal of the application documents. In accordance with the relevant provisions of Article 67 of the "Rules for Review of Issuance and Listing of Stocks on the STAR Market of the Shanghai Stock Exchange," the Shanghai Stock Exchange decided to terminate the review of BlueOptics' initial public offering and listing on the STAR Market.

Since its establishment, Blueoptics has closely followed the development trends of the LED and other semiconductor industries. It is mainly engaged in the R&D and application of new semiconductor materials, devices, and related equipment, with a focus on the R&D, production, and sales of patterned sapphire and SiC semiconductor substrates and devices, as well as the upgrade, retrofit, and sales of semiconductor process equipment.

Bolante originally planned to issue no more than 49.9245 million shares, accounting for no less than 25% of the total share capital after issuance. The company originally planned to raise RMB 505 million, to be used respectively for the project dedicated to the annual production of 3 million patterned sapphire substrates for Mini/Micro-LED chips, the project for the annual production of 5.4 million sapphire substrates, and the construction project of the third-generation semiconductor R&D center.

Silan Micro's net profit increased 13-fold in the first half of the year

Production capacity and shipment volume will continue to increase

Silan Micro has entered a period of high prosperity.

On the evening of August 16, Silan Micro disclosed its semi-annual report. The company achieved revenue of RMB 3.308 billion in the first half of the year, a Year-on-year (YoY) increase of 94.05%; Net profit attributable to shareholders of the Listed company was RMB 431 million, a significant Year-on-year (YoY) increase of 1306.52%; Net profit attributable to shareholders of the Listed company after deducting non-recurring gains and losses was RMB 402 million, a Year-on-year (YoY) increase of 17998.07%.

Silan Micro's main products include three major categories: integrated circuits, semiconductor discrete devices, and LED (Light-emitting diode) products. After more than twenty years of development, the company has evolved from a pure chip design company into one of the few comprehensive semiconductor product companies in China that primarily adopts the IDM model (Integrated Design and Manufacturing).

According to the company's disclosure, the significant increase in performance is mainly due to three major reasons:

(1) In the first half of 2021, the Company's subsidiary Silan Jixin maintained a high level of output from its 8-inch chip production line. Chip production increased significantly compared to the same period last year, the overall gross profit margin of products rose to 18.35%, and losses were substantially reduced.

(2) In the first half of 2021, the LED chip production line of the Company's subsidiary, Silan Mingxin, was basically operating at full capacity. The output of LED chips increased significantly compared to the same period last year, the overall gross profit margin of products rose to 6.87%, and losses were substantially reduced.

(3) Silan Micro (parent company) saw a significant year-on-year increase in sales volume of integrated circuits and discrete devices, with product gross margin rising to 23.94% and operating profit growing substantially.

Specifically, the company's integrated circuit revenue was RMB 1.12 billion, an increase of 108.19% year-on-year; IPM module revenue exceeded RMB 410 million, a year-on-year increase of over 150%; MEMS sensor product revenue exceeded RMB 140 million, a year-on-year increase of over 290%; and discrete device product revenue was RMB 1.709 billion, an increase of 85.64% year-on-year.

In addition, in the first half of 2021, the company's subsidiary Silan Integrated was basically operating at full capacity, producing a total of 1.2225 million 5- and 6-inch wafers, an increase of 5.68% year-on-year; by strengthening cost control and accelerating product structure adjustment, Silan Integrated achieved a significant increase in operating profit compared to the same period last year.

In the first half of 2021, the company's subsidiary Silan Jixin produced a total of 316,500 8-inch wafers, an increase of 33.43% year-on-year, achieving Revenue of RMB 531.9 million, an increase of 59.90% year-on-year.

In the first half of 2021, the company's revenue from light-emitting diode (LED) products (including LED chips from Sanan Mingxin and LED color screen pixel tubes from Meikale Optoelectronics) was RMB 294 million, an increase of 110.84% compared to the same period last year.

In the first half of 2021, Silan Mingxin's LED chip production line was basically operating at full capacity. The output of LED chips increased significantly compared to the same period last year, the comprehensive gross profit margin of products rose to 6.87%, and losses were substantially reduced. While consolidating its market share in traditional LED color display chips, Silan Mingxin accelerated the R&D and customer expansion for flip-chip Mini-LED chips applied in high-density (COB) color displays and Mini-LED chips for intelligent local backlighting of LCD screens; it also sped up the development of high-brightness LED lighting chips to faster enter mid-to-high-end chip markets such as automotive lighting, mobile phone backlighting, and landscape lighting.

In the first half of 2021, Sanan Optoelectronics' LED packaging production line maintained stable operations. Its new "4-in-1" product gradually increased volume among major domestic clients, achieving significant results in expanding the small-pitch color display market, while the brand value of Sanan continued to rise. In the first half of the year, Sanan Optoelectronics' revenue increased by 74.38% compared to the same period last year, and its revenue is expected to continue growing in the second half.

Silan Micro stated that the company's development goals and strategy are: to take internationally advanced IDM giants as benchmarks, and become a comprehensive semiconductor product supplier with its own brand and world-class competitiveness. By adopting an integrated design and manufacturing model, it will continuously invest production and R&D resources in multiple technical fields such as semiconductor power devices, MEMS sensors, optoelectronic products, and LED chips; leveraging its accumulation in multiple chip design fields to provide targeted chip products and system application solutions; and continuously improving product quality and reputation to enhance product added value.