Huaqin Technology is going public on the main board of Shanghai Stock Exchange: it plans to raise 5.5 billion yuan, with a half-year income of 50 billion yuan

Recently, Huaqin Technology Co., Ltd. (hereinafter referred to as “Huaqin Technology”) pre-disclosed the updated prospectus and prepared to be listed on the main board of Shanghai Stock Exchange.
In this sprint listing, Huaqin Technology plans to raise 5.5 billion yuan, mainly for the manufacturing project of consumer electronic intelligent terminals of Ruiqin Technology, the reconstruction and expansion project of Nanchang pen smart production line, the project of Shanghai Emerging Technology Research and Development Center, the project of Huaqin Silk Road Headquarters, the second phase of Huaqin Technology Wuxi Research and Development Center, as well as to supplement the working capital.
According to the information of Tianyan, Huaqin Technology was founded in 2005, and its former names include Shanghai Huaqin Communication Technology Co., Ltd. and Huaqin Communication Technology Co., Ltd. At present, the registered capital of the company is 652 million yuan, the legal representative is Qiu Wensheng, and the shareholders include Intel Investment.
According to the prospectus, Huaqin Technology is a platform-based company engaged in the R&D, design, manufacturing and operation of smart hardware products, mainly serving smart hardware brand manufacturers and Internet companies at home and abroad, such as Samsung, OPPO, Xiaomi, Vivo, Amazon, Lenovo, LG, Acer, Asus, Sony, etc.
It is reported that the product line of Huaqin Technology covers smart phones, laptops, tablets, smart wear (including smart watches, TWS headsets, smart bracelets, etc.), AIoT products (including smart POS machines, auto electronics, smart speakers, etc.) and servers and other smart hardware products.
According to the data of Counterpoint, the shipment volume of smart phone ODM/IDH of Huaqin Technology will reach 160 million in 2021, ranking first in the global smart phone ODM/IDH industry. At the same time, Huaqin Technology will ship more than 10 million laptops in 2021, accounting for about 5% of the global notebook ODM/EMS shipments.
In 2019, 2020, 2021 and the first half of 2022, the revenue of Huaqin Technology was 35.30 billion yuan, 59.866 billion yuan, 83.759 billion yuan and 50.108 billion yuan respectively; The net profit was 503 million yuan, 2.191 billion yuan, 1.875 billion yuan and 1.023 billion yuan respectively, and the net profit after deduction was 359 million yuan, 1.695 billion yuan, 1.043 billion yuan and 735 million yuan respectively.
Among them, smart phones, laptops and tablets are the main product categories of Huaqin Technology. During the reporting period, the company’s total main business income of smartphones, laptops and tablets was 33.059 billion yuan, 54.208 billion yuan, 75.456 billion yuan and 44.644 billion yuan respectively, accounting for 95.38%, 93.01%, 93.96% and 92.77% of the main business income.
Huaqin Technology said in the prospectus that although its net profit attributable to the parent company in 2019 and 2020 kept growing, the net profit attributable to the parent company in 2021 decreased by about 299 million yuan, or 13.63%, compared with 2020; Although the net profit after deduction of non-income in 2019 and 2020 kept growing, the decline in 2021 was about 652 million yuan, or 38.48%, compared with 2020.
Huaqin Technology said in the prospectus that the company has always focused on research and development, and rapidly expanded with its lean intelligent manufacturing capabilities and excellent technology migration capabilities. In view of the high overall income scale of the company, the slight fluctuation of gross profit rate will have a great impact on the overall profit level of the company.
Huaqin Technology said in the prospectus that the company has five R&D centers across the country, currently has more than 10000 experienced R&D teams, and invested more than 10 billion yuan in R&D during the reporting period. As of August 31, 2022, the company has more than 2200 authorized patents, including more than 900 invention patents and more than 1100 computer software copyrights.
According to smart bud data, Huaqin Technology has 1585 patent applications, including 850 invention patents, accounting for 53.63%. Through algorithm analysis, the patent layout of Huaqin Technology mainly focuses on mobile terminals, electronic devices, controllers, baseband chips, display screens and other technical fields.
As of the signing date of the prospectus, Shanghai Aoqin holds 229.5 million shares of Huaqin Technology, accounting for 35.21%, and is the controlling shareholder of the company. Qiu Wensheng directly holds 5.31% of the company’s shares, and indirectly controls 41.42% of the company’s shares through Shanghai Aoqin and Shanghai Haixian, with a total control of 46.73% of Huaqin Technology.
According to the prospectus, Qiu Wensheng has been the chairman of Huaqin Technology since 2006, and has been the general manager of the company since the establishment of its predecessor, Huaqin Technology Co., Ltd., as the actual controller of the company. At present, Qiu Wensheng is the chairman and general manager of Huaqin Technology.
Before the IPO, Shanghai Qinyuan held 6.45%, Shanghai Haixian 6.21%, Shanghai Qinbei 6.07%, Shanghai Qinxun 6.01%, Shanghai Qinguang 5.78%, Shanghai Qinduo 5.59%, Cui Guopeng 2.49%, Intel 2.10%, Wu Zhenhai 2.07%, Xuxin Qiantai 1.73%, Chen Xiaorong 1.66%.
At the same time, Yuexiang Investment held 1.51%, China Mobile Fund held 1.45%, Qualcomm Wireless held 1.23%, Zhang Jianghaocheng (SS) and Haisi Minhe held 0.92%, Zhilu Investment, Huiqing Zhide and Huaxin Jingyuan held 0.74%, China Mobile Investment (CS) held 0.72%, and Nanjing Zhaoyin held 0.61%.
In addition, Yitang Huachuang and Jichuang Yuyuan all hold 0.37% shares respectively, Zhongjin Pucheng (CS), Ningbo Aowen and Yuanzun Investment all hold 0.36% shares respectively, China Merchants Investment (SS), Chengdu Jingwei, Jinxin Yuanhai, SME Fund and Jianguang Guangqin all hold 0.31% shares respectively, and Lianli Fund and Bank of Communications Qiqin all hold 0.18% shares respectively.