Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Jed for the clue delivery! Core East and West reported on August 12, just now, the domestic CPU leading Haiguang information to issue price 36 yuan / share landing Kechuang board.

Haiguang Information opened at 70 yuan per share, an increase of 94.44%. After the opening, Haiguang information share price fell slightly, as of core east and west written, the stock price was 67.87 yuan per share, an increase of 88.53%, with a total market capitalization of 157.8 billion yuan.

Haiguang Information, which was founded in 2014, belongs to the same department of Chinese department as another domestic CPU dragon core. As soon as the company was established, it received angel round financing from dawning of China Science and Technology, National Science Holdings and so on. Among them, dawning of Chinese Science and Technology is a listed company under the Chinese Academy of Sciences, which has developed for more than 20 years and is in a leading position in technology and market share.

By the end of the reporting period, the company's Haiguang CPU series products Haiguang No. 1 and Haiguang No. 2 have realized commercial application, Haiguang No. 3 has completed laboratory verification, Haiguang No. 4 is in the stage of research and development, Haiguang DCU series products have realized commercial application, and Haiguang No. 2 is in the stage of research and development.

This IPO, Haiguang Information plans to raise 9.148 billion yuan, mainly for the new generation Haiguang general processor, coprocessor research and development, as well as advanced processor technology research and development center construction, science and technology and development reserve funds.

The use of ▲ Haiguang information to raise funds

First, the members of the Godson research group have joined, and now there is no real controller Haiguang Information was established, just in September 2014, the General Office of the Ministry of Industry and Information Technology officially established the National Integrated Circuit Industry Investment Fund, the semiconductor industry ushered in an entrepreneurial upsurge, investment institutions began to seize the semiconductor market.

In October 2014, Tianjin Haitai Technology Investment Management Co., Ltd., a listed company controlled by Tianjin Haitai Holdings Group Co., Ltd., a large state-owned enterprise in Tianjin, invested 308 million yuan to establish Haiguang Co., Ltd. In December of the same year, Haiguang Limited received angel round financing from Haitai Investment, Broadband Capital CBC, dawning of China Science and Technology Holdings. Subsequently, Haiguang Co., Ltd. changed its name to Haiguang Information Technology Co., Ltd in 2017.

The development of the company also overlaps with Godson. The predecessor of Godson was the Godson Research Group established by the Chinese Academy of Sciences in 2001, and Tang Zhimin was the leader of the research group at that time. He and Hu Weiwu led the research team. On August 10, 2002, Godson 1, China's first general-purpose high-performance microprocessing chip with independent intellectual property rights, was successfully developed. Hu Weiwu is the founder, chairman and general manager of Godson.

In January 2016, Tang Zhimin subscribed Haiguang Limited 163 million yuan to increase its registered capital. From 2016 to 2019, Tang Zhimin was also president of Haiguang Information Technology Co., Ltd., president of Chengdu Haiguang IC Design Co., Ltd., and president of Chengdu Haiguang Microelectronics Technology Co., Ltd., according to public information from the Chinese Academy of Sciences.

Resume of Tang Zhimin, a researcher at the Institute of Computing Technology, Chinese Academy of Sciences, ▲ (Picture Source: official website of the Chinese Academy of Sciences)

In May 2018, Meng Xiantang joined Shuguang of China Science and Technology as chairman. He graduated with a master's degree in business administration from the Hong Kong University of Science and Technology and was the director of the National Development and Reform Commission, deputy inspector and deputy general manager of National Science Holdings Co., Ltd. At present, Meng Xiantang holds a total of 0.64%.

According to public information, the legal person of Haiguang Information is not Meng Xiantang, but Sha Chaoqun, the general manager of the company. He was the vice president and senior vice president of Shuguang Technology of China Science and Technology, and is now a director and general manager of Haiguang Information, with a shareholding ratio of 0.53%.

Sha Chaoqun, Director and General Manager of ▲ Haiguang Information

In addition, the prospectus revealed that at present, the company does not have a controlling shareholder or actual controller, and its largest shareholder is China Science dawning, a leading domestic server enterprise, with a shareholding of 32.10%. The next shareholders who hold more than 5% of the shares in the company are Chengdu State assets, Haifu Tianding Partnership and Blue Sea Light Boat Partnership, which hold 19.53%, 12.41% and 6.99% of the shares respectively.

Among them, Chengdu State Capital holds 8.28%, 6.8% and 4.45% respectively through Chengdu Industrial Investment, Chengdu High Investment and Chengfu Collection, and Blue Ocean Light Boat Partnership is the employee shareholding platform of the high company.

▲ equity structure chart

Second, the company made its first profit last year, with an annual compound growth rate of nearly 150%. The company made its first profit in 2021. Its products are in the lead in the relevant performance indicators of domestic CPU, and a number of products are commercialized. From 2019 to 2021, the revenue compound growth rate of Haiguang Information reached 146.85%.

From 2019 to 2021, the revenue of Haiguang Information was 379 million yuan, 1.022 billion yuan and 2.31 billion yuan respectively, and the net profit was-137 million yuan,-83 million yuan and 438 million yuan.

According to the prospectus, the reason for its continuous losses in 2019 and 2020 is that the initial operating income of the company's products is relatively small and the investment in R & D is relatively large. In the past three years, the company's R & D investment was 175 million yuan, 546 million yuan and 745 million yuan respectively, accounting for 228.04%, 106.60% and 68.60% of annual revenue respectively.

Revenue doubled in 2021 due to the rapid increase in market demand and the large-scale sale of the company's DCU products.

Changes in revenue, net profit and R & D investment of Haiguang Information from 2019 to 2021 at ▲

The main business income of Haiguang Information can be divided into Haiguang CPU and Haiguang DCU by product. Haiguang CPU is its main source of income. It is the total source of income in 2019 and 2020, accounting for 89.66% in 2021.

Revenue comparison of ▲ Haiguang Information Services from 2019 to 2021

In addition, in the Haiguang CPU series products, the Haiguang 7000 series, which is mainly used in high-end servers, accounts for more than 65% of revenue, and the chip went on sale in the second quarter of 2018.

The company's consolidated gross profit margin in 2019, 2020 and 2021 was 37.31%, 50.50% and 55.95%, respectively. In 2019, the gross profit margin of each series of products was low, because the sales volume was relatively small at that time, and the amortization of self-developed intangible assets accounted for 52.42% of the operating cost, resulting in a higher unit cost of the product.

Currently, the world engaged in CPU or GPU R & D and sales of companies including Intel, AMD, Nvidia, Heidi Semiconductor, etc. There are domestic technology, Cambrian, Beijing Junzheng and Longxin Zhongke, compared with comparable companies in the same industry, Haiguang information comprehensive gross profit margin in 2021 and the average level of available data in the industry basically the same, which may have something to do with the main business of different companies.

Comparison of ▲ Haiguang Information Comprehensive Gross profit margin with comparable companies

From the perspective of regional distribution, the regional distribution of Haiguang information products is limited to 2019. Before 2019, its main customers are server manufacturers in North China. Since 2020, the company's customers in East China have grown rapidly, accounting for an increasing proportion of sales revenue.

On the whole, in the past two years, the transportation conditions in East China are convenient and the manufacturing facilities are perfect, which provide a guarantee for the business growth of Haiguang Information.

Changes in sales regions of Haiguang Information products from 2019 to 2021 by ▲

In terms of quarterly revenue, the company's revenue is basically in line with the characteristics of the industry, the first half of the year with customers in the bidding stage, the fourth stage to complete procurement and product acceptance.

Quarterly sales changes of Haiguang Information products in ▲ from 2019 to 2021

Among them, the revenue accounted for a relatively high proportion in the first quarter of 2019, mainly due to the demand of its end user, the Institute of atmosphere of the Chinese Academy of Sciences, a single large project "simulator device".

Third, authorized by the mainstream x86 architecture, R & D personnel account for more than 90% of high-end processors play an important role in large-scale data processing, complex task scheduling and logical operations. Cloud computing, Internet of things and other different application scenarios also put forward different requirements for the computing performance, power consumption and functions of high-end processors.

In the technical route, Haiguang Information chose a relatively mature x86 architecture. In the global IT industry, Microsoft operating system Windows and Intel CPU occupy most of the market share and form a "Wintel" technology alliance, which is characterized by optimizing all kinds of software applications based on x86 architecture, which makes the software and hardware environment under x86 architecture more mature.

Domestic CPU is compatible with this architecture to develop chips, which can have an ecological advantage at the source.

Through the establishment of Chengdu Haiguang Microelectronics and Chengdu Haiguang Integrated Circuit with AMD, Haiguang Information has been officially authorized by AMD and obtained the core technology of x86 processor design. Among them, Haiguang Microelectronics is mainly controlled by AMD, has the IP authorization of AMD and is responsible for chip production, and Haiguang IC is mainly controlled by Haiguang Information, which is responsible for chip design and sales.

According to the different application fields, technical routes and product characteristics, Haiguang Information divides its products into Haiguang General processor (CPU) and Haiguang Co-processor (DCU) when developing, designing and selling high-end processors used in servers, workstations and other computing and storage devices.

The main product types of ▲ Haiguang Information

1. Haiguang CPU series: using x86 architecture, including three series of products

Haiguang CPU mainly meets the requirements of general processor application scenarios such as complex logic computing and multi-task scheduling, and is compatible with the international mainstream x86 processor architecture and technology route.

At present, there are three series of Haiguang CPU products, namely, Haiguang 7000 series for data center, cloud computing and other complex applications, Haiguang 5000 series for low-end servers in the information construction of government affairs, enterprises and education, and Haiguang 3000 series for entry-level computing fields such as workstations and edge computing servers.

Application of ▲ Haiguang CPU Series products in Server

Foreign mainstream CPU manufacturers have Intel and AMD, domestic CPU manufacturers in addition to Haiguang information, there are Hayes, Godson, Zhaoxin, Feiteng, Shenwei. In the prospectus, Haiguang Information compares the parameters with the CPU products of the above manufacturers, and the results show that part of the performance of its products has reached the international level of the same type of mainstream high-end processors.

Comparison of CPU products of ▲ Haiguang Information with comparable companies

2. Haiguang DCU series: compatible with general environment, some products are comparable to Nvidia A100 in performance.

Haiguang DCU products include Haiguang 8000 series, its first generation product Haiguang 8100 uses FinFET process.

At present, the company's Haiguang DCU series products are based on GPGPU architecture, compatible with the general "CUDA-like" environment, as well as international mainstream business computing software and artificial intelligence software, used in big data processing, artificial intelligence, business computing and other fields.

▲ Haiguang DCU series product form

Haiguang DCU series products Shen Shu No.1 are compared with Yingweida high-end GPU product A100 and AMD high-end GPU product MI100. In typical application scenarios, the performance of Haiguang's products has reached the level of international high-end products of the same type.

Comparison of DCU products of ▲ Haiguang Information with comparable companies

According to the prospectus, Haiguang DCU will be widely used in big data processing, artificial intelligence, business computing and other fields in the future.

As of December 31, 2021, the company had 1031 R & D technicians, accounting for 90.20% of the total employees, and seven core technicians were Liu Xinchun, Ying Zhiwei, Pan Yu, Zhang Panyong, Wang Jianlong, the Yellow River and Yang Xiaojun. Among them, three core technicians graduated from the Chinese Academy of Sciences.

Haiguang Information has established nearly 1,000 R & D teams in Beijing, Chengdu, Suzhou, Shanghai and other places, including CPU front-end, DCU front-end, back-end, silicon back-end, product operation five core R & D teams and technical support, quality management support and guarantee teams.

In addition, Haiguang Information owns intellectual property rights such as 179 authorized patents, 154 software copyrights and 81 exclusive rights to integrated circuit layout-design.

Fourth, break into the tide, Lenovo, Xinhua supply chain reporting period, Haiguang information's main sales model for direct sales, a small number of products for distribution.

Since 2018, the products of Chaochao, Lenovo, Xinhua three, Tongfang and other domestic server manufacturers have been equipped with Haiguang CPU chips, covering customers in the financial sector, such as ICBC and Bank of China, as well as customers in energy and chemical industries such as PetroChina and Sinopec, telecom operators and so on.

During the reporting period, the sales revenue of the company's first five customers accounted for 99.12%, 92.21% and 91.23% respectively, with a high degree of concentration.

Top five customers of ▲ Haiguang Information

Haiguang Information adopts Fabless (no wafer fab) business model, and the procurement items include raw materials, outsourcing processing fees, process and technical service fees, software and hardware leasing, etc.

During the reporting period, its procurement of raw materials, including wafers and DCU semi-finished products, increased, mainly due to strong demand in the downstream market, resulting in an increase in orders for CPU series products of Haiguang Information, coupled with the impact of tight chip supply, the company increased production and stock accordingly.

During the reporting period, the contents purchased by the company's top five suppliers were mainly wafers, chip closed testing services, DCU semi-finished products, HBM memory, IP licensing fees, equipment, intellectual property fees and EDA tools, etc., accounting for 81.41%, 67.83% and 78.41% of the total procurement in the current period, respectively.

Top five suppliers of ▲ Haiguang Information

During the reporting period, Haiguang information did not depend on a single supplier.

Conclusion: the process of localization of CPU is accelerated, and ecological construction still has a long way to go. As the second domestic CPU enterprise successfully listed after Godson, Haiguang Information products have entered the stage of large-scale application.

Different from other domestic CPU players, Haiguang Information is a rare CPU supplier using mainstream x86 architecture in China, which has great advantages in compatibility, software and hardware development. However, in June 2019, Haiguang Information was included in the "entity list" of the US Export Control regulations, and the prospectus showed that AMD no longer provided related technical services for Haiguang Information. This has a certain impact on the company's chip flow, procurement of EDA, IP tools, etc., but it has realized the iterative development of subsequent products and technologies on its own.

This successful listing may help Haiguang Information next generation CPU and DCU research and development and technological breakthroughs.

In recent years, whether it is the server or PC market, the market share of domestic CPU is increasing year by year. Especially in the subdivision areas such as the party, government and army related to national security, the importance of realizing the localization of CPU has become increasingly prominent. However, in addition to tackling key technical problems, domestic CPU still needs to break through the ecological barriers of international giants, and there is still a long way to go for development.

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