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On the evening of December 30, BYD Company issued an announcement announcing the termination of the listing of BYD Semiconductor Co., Ltd. on the GEM. BYD stated that BYD Co., Ltd. held the twenty-ninth meeting of the seventh board of directors and the thirteenth meeting of the seventh board of supervisors on November 15, 2022, and reviewed and approved the “About the termination of the spin-off of its subsidiary BYD Semiconductor”. Co., Ltd. to the GEM Listing Proposal”, agreeing to terminate the promotion of the spin-off and listing of BYD Semiconductor Co., Ltd., agreeing to terminate the spin-off and listing of BYD Semiconductor on the GEM of the Shenzhen Stock Exchange and withdraw the relevant listing application documents. When the conditions are ripe, the company will choose an opportunity to start the spin-off and listing of BYD Semiconductor again. SGS Approved Manufacturer of custom metal fabrication china
On November 23, 2022, BYD Semiconductor and its sponsor China International Capital Corporation Limited submitted an application to the China Securities Regulatory Commission for withdrawing the application documents for the initial public offering and listing on the GEM. Recently, BYD Semiconductor received the “Notice of the Termination of the Registration Procedures for Stock Issuance on the Growth Enterprise Market of the China Securities Regulatory Commission” issued by the China Securities Regulatory Commission. According to the provisions of Article 30 of the “Regulations for the Administration of Initial Public Offering of Stocks on the Growth Enterprise Market (Trial)”, the China Securities Regulatory Commission decided to terminate the registration process for the issuance of BYD Semiconductor.
BYD Semiconductor was formerly known as Shenzhen BYD Microelectronics Co., Ltd., with a registered capital of about 300 million yuan. The company name was updated on January 21, 2020, and the reorganization was completed in April of the same year. BYD planned to spin off its subsidiary BYD Semiconductor as early as the end of 2020. Prior to this, BYD Semiconductor first carried out equity financing in the primary market, and successfully attracted more than 40 institutions to contribute, including Sequoia China, CICC Capital, Shenzhen Venture Capital and Shangqi Capital and other well-known investment institutions. . According to the prospectus of BYD Semiconductor, the two rounds of financing it conducted in mid-2020 have received a total of nearly 2.7 billion yuan in strategic investment, with a post-investment valuation of 10.2 billion yuan. SGS Approved Manufacturer of custom metal fabrication china
The current bottleneck in wafer production capacity may become an important reason for the termination of BYD Semiconductor’s spin-off and listing. In response to the termination of this spin-off, BYD stated that during the company’s promotion of the spin-off and listing of BYD Semiconductor, the demand for my country’s new energy vehicle industry has shown explosive growth. According to data from the China Passenger Federation, from January to September 2022, my country’s domestic retail sales of new energy passenger vehicles reached 3.877 million, a year-on-year increase of 113.2%. It is estimated that the sales of new energy vehicles in 2022 will reach 6.5 million. According to the announcement, the rapid growth of the new energy automobile industry has made wafer production capacity a bottleneck in the production capacity of automotive-grade power semiconductor modules. In order to expand wafer production capacity, BYD Semiconductor has invested in the implementation of the Jinan power semiconductor production capacity construction project during the spin-off and listing period. At present, the Jinan project has been successfully put into production, and the production capacity is in good condition. However, in the face of the continuous growth of the new energy vehicle industry, the new wafer production capacity is still far from meeting downstream demand. Not only that, in order to improve production capacity supply capacity and independent controllability as soon as possible, BYD Semiconductor plans to seize the time window to carry out large-scale wafer production capacity investment and construction. On the basis of the Jinan project, a further increase in large-scale investment is expected to have a greater impact on BYD Semiconductor’s future assets and business structure. SGS Approved Manufacturer of custom metal fabrication china
To sum up, in order to speed up the construction of wafer production capacity, comprehensively consider the industry development situation and future business strategic positioning, and arrange business development and capital operation planning as a whole, BYD decided to terminate the promotion of this spin-off and listing, and agreed to BYD Semiconductor to withdraw the relevant listing application documents. The company will speed up the related investment and expansion of production, and when the relevant investment and production expansion is completed and the conditions are ripe, it will choose an opportunity to start the spin-off and listing of BYD Semiconductor again. In response to the impact of the termination of the spin-off on the company, BYD stated in the announcement that BYD Semiconductor will seize the growth opportunity of the new energy vehicle market and continue to invest in the construction of wafer production capacity. The production capacity supply capability and independent controllability of standard-level semiconductors can effectively meet the expanding overall market demand of the downstream new energy vehicle industry. At the same time, the company promised not to plan any major asset restructuring within one month after the announcement of the termination of its subsidiary BYD Semiconductor’s listing on the GEM. SGS Approved Manufacturer of custom metal fabrication china