China's Securities Regulator Accepts Puya's Star Market IPO Application
COVID-19 and China
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Puya is a supplier of NOR Flash and EEPROM memory integrated circuits for international consumer electronic vendors, including Huawei, Xiaomi (01810:HK), Samsung (005930:KR) and vivo.

According to its latest prospectus, from 2017 to 2019, the revenues of Puya were CNY 78 million, 178 million and 363 million. Among them, NOR Flash represented the highest proportion, 57.73%, 75.55% and 70.16%.

During the same period, the gross profit margin of Puya was 32.39%, 24.79% and 27.46%, downward in general and fluctuating. 

As a fabless semiconductor company, Puya's chip manufacturing is commissioned by HLMC and SMIC (00981:HK, 688981:SH), and domestic companies like JCET (600584:SH) and Hua Tian (002185:SZ) are responsible for packaging and testing.

Apart from that, there are some risks:

► A high concentration of company suppliers. In the recent three years, 53.99%, 62.03% and 54.36% of wafers were bought from HLMC.

► The decline of downstream customer shipments. According to IDC data, in 2019, global smartphone shipments were 1.37 billion units, down 2.3% year-on-year, marking the third consecutive year of decline.

The firm intends to raise CNY 345.45 million for upgrade and industrialization of flash memory and EEPROM chip projects. 


*Contributor: Ivan Platonov | Editor: Luke Sheehan
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