ChipOn terminates STAR Market IPO

On March 14, the Shanghai Stock Exchange issued a decision to terminate the review of ChipON Technology Co., Ltd. (hereinafter referred to as "ChipON") for its initial public offering and listing on the STAR Market.

It is reported that on March 7, 2023, ChipON and its sponsor, Huatai United Securities Co., Ltd., respectively submitted to the Shanghai Stock Exchange the "Application of Beijing ChipON Technology Co., Ltd. for Withdrawal of the Review of Its Initial Public Offering and Listing on the STAR Market" and the "Application for Withdrawal of Application Documents for the Initial Public Offering and Listing of Beijing ChipON Technology Co., Ltd. on the STAR Market", requesting the withdrawal of the application documents. In accordance with relevant regulations, the Shanghai Stock Exchange has decided to terminate the review of the company's initial public offering and listing on the STAR Market.

Chipone is a display chip design company. Since its establishment in 2008, it has been dedicated to the R&D, design, and sales of display chips, committed to providing display chip solutions for various display panels and screens.

Chipone now offers a rich portfolio of display chip products, primarily including panel display driver ICs, power management ICs, LED display driver ICs, and control ICs. It covers mainstream display technologies such as LCD, LED, and OLED, and is applied in smartphones, TVs, laptops, tablets, monitors, wearable devices, and various indoor and outdoor LED displays, meeting customers' diverse display needs.

Meanwhile, Chipone is expanding into display technology fields such as small-pitch LED displays and silicon-based OLED displays, while conducting R&D on key SoC chip technologies.

The prospectus shows that Chipone's revenue in 2019, 2020, and 2021 was RMB 1.447 billion, RMB 2.38 billion, and RMB 5.674 billion, respectively; net profits were -RMB 168 million, RMB 22.52 million, and RMB 862 million, respectively.

According to the prospectus, from 2019 to 2021, the company's inventory book values were RMB 309 million, RMB 539 million, and RMB 1.775 billion, respectively. As the scale of operations continued to expand, the company's inventory book value showed a continuous growth trend. Accordingly, its inventory increased by 229% Year-on-year (YoY) in 2021.

According to the prospectus, as of the date of signing the prospectus, Chipone's total share capital was 431,065,156 shares. The issuer has a total of 98 shareholders, including 2 individual shareholders, 18 partnership shareholders serving as employee stock ownership platforms, and 78 other institutional shareholders.

According to incomplete statistics, from 2019 to 2021, ChipON completed a total of 8 rounds of equity transfers. Huawei Hubble Technology Venture Capital Co., Ltd. (hereinafter referred to as: Hubble Technology) invested RMB 100 million to acquire shares; Xiaomi Industry Fund invested RMB 350 million to acquire shares, and vivo invested RMB 500 million to join.

Prior to the issuance, Hubei Xiaomi Yangtze River Industry Fund held a 3.73% stake, making it the sixth-largest shareholder of ChipOn; vivo held a 1.59% stake in the company; Huawei-backed Hubble Technology held a 0.94% stake in ChipOn; additionally, Shenzhen Hubble Technology Investment Partnership (Limited Partnership) also held a 1.51% stake in the company through ChipOn's restructuring. Furthermore, the state-owned equity holder Zhuhai Sci-Tech Innovation Investment held a 2.34% stake in ChipOn.

According to the information, on June 30, 2022, the Shanghai Stock Exchange accepted its application documents for the initial public offering (IPO) and listing on the STAR Market in accordance with the law, and conducted a review as required.

The company originally planned to raise RMB 6,009,570,500 for the R&D and industrialization projects of display touch-integrated chips, display and multimedia processing chips, OLED display driver chips, small-pitch LED display driver chips, large-size LCD display driver chips, power management chips, silicon-based OLED display driver chips, and the construction of an integrated circuit testing center.