Sanwei Xinan IPO: The number of technology patents is less independent password chip market share of less than 0.5 %

There are imported dependence on the main raw material chips and assembly accessories of San Weixin'an, and there may be risks of disconnection. In addition, the company has been repeatedly questioned because the number of technical patents has not been questioned without core technology patents. At the same time, the password chip independently developed independently has not been promoted to the market, and the market share is only 0.41%.

A few days ago, according to information on the website of the Shanghai Stock Exchange, Sanwei Xinan Technology Co., Ltd. (hereinafter referred to as "Sanwei Xin'an"), which is planned to be listed on the Science and Technology Board, was changed to "Submitting Registration". The prospectus shows that Sanwei Xinan's proposed shares plan to issue no more than 19.14 million shares this time, accounting for not less than 25%of the total share capital after the issuance.

It is worth mentioning that by studying the prospectus disclosed by San Weixin'an, it is found that there are import dependence issues such as the main raw material chips and assembly accessories of Sanwei Xinan, and there may be risk of disconnection. In addition, the company has been repeatedly questioned because the number of technical patents has not been questioned without core technology patents. At the same time, the password chip independently developed independently has not been promoted to the market. The company's market share is only 0.41%.

In response to related issues, I found that the interview with San Weixin Anfa requested doubts, but as of press time, Sanwei Xinan did not give a reasonable explanation.

The main raw material chips, assembly accessories, etc. are dependent on imports

San Weixin'an is a major domestic provider of commercial password infrastructure. It focuses on the innovation of password technology and the research and development, sales and services of password products, and provides comprehensive commercial password products and solutions for the field of network information security.

The company's products include password chips, password board cards, password machines and password systems. It fully supports domestic SM1, SM2, SM3, SM4, SM7, SM9, ZUC and other password algorithms. It provides data plus deprivation and digital signatures for various information systems, etc. Password operations, and provide a security and comprehensive key management mechanism, which can realize the domestic password transformation and data security guarantee of various application scenarios. For key information infrastructure and cloud computing, big data, blockchain, digital currency, the Internet of Things , V2X Vehicle Network, Artificial Intelligence and other emerging areas provide password services such as data encryption, digital signatures, identity authentication, key management and other password services.

According to the prospectus data, from 2019 to 2021, Sanwei Xinan's operating income was 134 million yuan, 202 million yuan, and 270 million yuan, respectively. The corresponding net profit corresponding to the mother was 20.478 million yuan, 52.3055 million yuan and 74.695 million yuan, respectively. Essence From January to March 2022, the company realized operating income of 27.2888 million yuan, a slightly increased year-on-year increase of 6.54%; the net profit attributable to shareholders belonging to the parent company was -92.145 million yuan, a year-on-year decrease of 4.57%. Affected by the adversely affected by the epidemic, the net profit of San Weixin'an in the first quarter of this year has developed a loss.

Source: prospectus

It should be noted that the main raw material chips and assembly accessories of Sanwei Xin'an rely on imports. The prospectus shows that the main raw materials required for the production of the company's products are chips, motherboards, PCB, etc. During the reporting period, the company's direct materials accounted for about 70%of the operating costs, of which the main raw materials such as chips were greatly affected by the semiconductor industry.

In each period of the reporting period, the amounts of Sanwei Xinan's procurement chip were as high as 19.741 million yuan, 230,628,800 yuan, and 360,900 yuan, of which imported chips accounted for 39.52%, 46.77%, and 50.22%, respectively. During the same period, the amount of assembly accessories such as the company's main board was 11.9941 million yuan, 11.9076 million yuan, and 19.9139 million yuan, respectively, of which imported assembly accessories accounted for 57.12%, 51.67%, and 56.60%, respectively.

Source: prospectus

Although the company's main raw materials have domestic alternatives, comprehensive considerations from the performance, reliability, and price of raw materials, during the reporting period, the company adopts a high proportion of imported chips and assembly accessories, and there is a certain risk of import dependence.

According to data from the General Administration of Customs, the total amount of chips imported in China in 2021 was 635.48 billion, an increase of 16.9%at the same time, and the import amount exceeded nearly 432.6 billion U.S. dollars, a year -on -year increase of 23.6%, all reached a record high.

In this regard, Sanwei believes that the overall influence of global chip manufacturing capacity, the new crown epidemic and international trade frictions, and other raw materials such as imported chips and assembly accessories have different degrees of supply. The company will have the risk of interruption of imported raw materials such as imported chips and assembly accessories. If the supply and demand price of the main raw material market fluctuates largely, it will affect the procurement cost of the company's raw materials and adversely affect the company's raw material management and cost control.

Industry insiders pointed out that although we also have domestic chips, they still look stretched in the face of huge chip needs, and there are many shortcomings in performance. Once foreign manufacturers stop supplying chips, the consequences will be unimaginable. In order to avoid being subject to people, the development of domestic chips has already been developed. Unexpectedly.

Core technology patent weak market share is less than 0.5%

The cyber warfare has always been known as the important battlefield of future wars, and password technology is the most effective, most reliable, and economical means to ensure the security of network and information security. It is understood that commercial passwords are basic supporting industries and have a wide range of market coverage. At present, the number of commercial password product chain companies in my country has reached more than 1,200, and the industry is decentralized and has not yet formed an industrial cluster advantage. However, in this case, according to the prospectus, San Weixinan's market share was only 0.41%, which was less than 0.5%. The science and technology attributes were widely questioned by the market. The prospectus shows that during the reporting period, the R & D expenses of Sanwei Xinan were 32.91 million yuan, 37.0817 million yuan, and 50.451 million yuan, respectively, accounting for 24.60%, 18.31%, and 18.66%of operating income. However, employee salary, share payment, foreign service fees, and depreciation amortization fees are the main part of R & D expenses. During the reporting period, the total proportion of R & D expenses was 88.10%, 89.89%, and 86.45%, respectively.

Source: prospectus

Compared with comparable companies in the industry, the R & D cost rate of Sanwei Xinan is far exceeding the average level of listed companies in the same industry, and even more than 10 percentage points in 2019. But this does not reflect the company's truthful R & D investment. This is because some new products of the company have not yet formed a scale sales revenue, and the company's sales revenue during the reporting period is small compared to the company in the same industry. The proportion of income is higher.

Source: prospectus

It should be noted that as of the date of the signature of the prospectus, Sanwei Xinan has obtained 24 invention patents, 161 software copyrights, and 6 integrated circuits. , Password card, encryption gateway and other businesses.

With the strong support of national policies, the rapid growth of the market size of the network information security industry, the number of new competitors has continued to increase, but from the company's R & D investment and invention patents, it seems that the company's hard power has become.

In addition, although the XS100 developed by San Weixin An independently developed, although the XS100 has passed the detection and obtained the commercial password product certification certificate through the State Password Administration's Commercial Password Inspection Center, as of the date of the signature of the prospectus, the production of the XS100 chip has not yet been completed, and there is no comprehensive push for comprehensive push. To the market.

In this regard, the company also said that due to the current global chip manufacturing capacity insufficient production capacity and the comprehensive influence of the new crown epidemic, although the company's chip has been in the process of mass production, the possibility of chip products pushed the market time to the market. If the password chip is pushed to the market for a long time, it may adversely affect the company's operation and development.

The technology development of the commercial password industry is changing with each passing day, and the diversified demand for new products in the market is increasing. Therefore, in order to maintain core competitiveness, the company will also need to combine technology development and market demand in the future to determine the development direction of new technologies and new products, and in research and development In the process, a large amount of funds and personnel continue to invest.

Industry insiders pointed out that due to the uncertainty of the industry's development trend, the company may not make accurate decisions in a timely manner in time in the development direction of new technologies and the formulation of important products, or the risk of development failure, which requires investors to pay attention.

From this point of view, how can San Weixin's various status quo maintain their competitiveness? How can the market have enough confidence in it? Whether the company can go public as scheduled and finds that the network will continue to pay attention.

(Reporter: Luo Xuefeng Finance Researcher: Liu Bei)

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