FHEC(SH:688362) Zheng Quan Zhi Xing·2025-06-23 11:39Core Viewpoint - Yongxi Electronics (Ningbo) Co., Ltd. is issuing convertible bonds with a total amount not exceeding 1.2 billion yuan, with a term of 6 years and an annual interest payment structure [3][4]. Company Overview - Yongxi Electronics was established on November 13, 2017, and was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board in November 2022 [8]. - The company primarily engages in integrated circuit packaging and testing, with a focus on advanced packaging technologies [8][12]. Financial Performance - The company reported total assets of 123.31 billion yuan and total liabilities of 83.33 billion yuan as of 2023 [6]. - The operating revenue for 2023 was 23.91 billion yuan, showing a growth trend in recent years [8][12]. - The net profit for 2023 was 1.37 billion yuan, indicating a recovery from previous losses [6][22]. Rating and Outlook - The credit rating assigned to Yongxi Electronics is A+ with a stable outlook, indicating a solid credit level expected to remain stable over the next 12 to 18 months [3][4]. - Factors that could lead to an upgrade include significant improvements in industry position and profitability, while factors for downgrade include adverse changes in supply chain stability and demand [4][5]. Industry Context - The global outsourced packaging market was valued at 85.7 billion USD in 2023, with advanced packaging accounting for 48.8% of the market [12]. - The semiconductor packaging industry is experiencing a shift towards advanced packaging technologies due to increasing demand for high-performance computing [12][11]. - The industry is characterized by high technical and financial requirements, with leading companies holding significant market shares [11][12]. Operational Strengths - The company has established long-term partnerships with major domestic chip manufacturers, enhancing customer loyalty [5][16]. - Yongxi Electronics has a diverse product range in advanced packaging, including QFN/DFN and system-in-package (SiP) technologies [13][15]. - The company has been increasing its R&D investment, with a focus on high-density packaging technologies and maintaining a competitive edge [20][21]. Challenges and Risks - The company faces challenges related to its relatively short establishment period and lower production capacity compared to industry leaders [5][17]. - The financial leverage is high due to ongoing capital expenditures, which may impact profitability if not managed effectively [21][22]. - The company’s ability to maintain profitability is under pressure from declining product prices and increased operational costs [22].