Recently, Eastcore Semiconductor Co., Ltd. (hereinafter referred to as "Eastcore" or "Company") issued an announcement to be listed on the Science and Technology Innovation Board. The company's price-earnings ratio is much higher than the industry average. Eastcom IPO In May 2020, Huawei Hubble Technology invested in the company with a shareholding ratio of 4% and did not constitute a related party. It is worth noting that in the same year, the sales revenue generated by Huawei (referred to as "Customer A" in the prospectus) was 233 million yuan, a year-on-year increase of more than five times, accounting for nearly 30% of the company's main business income in the current period. However, in the first half of 20021year, the income contributed by customers showed an obvious downward trend.

In addition, there is a certain gap between the company's product technical indicators and the international and domestic leading level, and the company's R&D expense ratio continues to be lower than the industry average. Whether the company has advantages or needs to be solved urgently in the field of memory chips with fast technology iteration and update. The sales contribution of Hubble Technology, a wholly-owned subsidiary of Huawei, has greatly increased. As of the date of signing this letter of intent, Dongfang Hengxin, the controlling shareholder of Eastcom, directly holds 43. 18% of the shares of the company. The actual controller of the company, Jiang Xueming, and his daughter, Jiang Yuzhou, control 49.96% of the voting rights of the company through employee stock ownership platforms, namely Dongfang Hengxin and Dongxin Kechuang. The data shows that among the top 10 shareholders of the company, many chip industry companies and investors deserve attention.

In May of the same year, Hubble Technology, a subsidiary of Huawei, took a stake in the company. In that year, Eastcom's sales revenue to customer A was 233 million yuan, a year-on-year increase of more than five times, accounting for nearly 30% of the current main revenue. According to the prospectus, Hubble Technology is a wholly-owned subsidiary of Huawei Investment Holdings, and it is related to customer A established by 1987, so it is speculated that customer A is Huawei. Huawei's contribution to the company's sales revenue increased significantly in the year when it became a shareholder, and because its shareholding ratio was less than 5%, it did not constitute a connected transaction. It is worth noting that in the first half of 20021,Huawei's revenue was only 2647 1.7 million yuan, accounting for 5.82% of the current main income. The income generated in the first half of this year is only about 65,438+00% of that of the whole year of last year, which is likely to be greatly reduced, or it is difficult to continue to be a major customer of the company.

There is still a gap between the technical indicators and the industry leading level, and the R&D expense ratio is lower than the industry average. Eastcom's main business is R&D, designing and selling memory chips. The company's product lines include SLC NAND flash memory, nor flash memory and niche DRAM (DDR3/lpddr2). The downstream applications of the products are mainly communication equipment, mobile terminals and wearable devices. According to the data in the prospectus, compared with the international and domestic industry leading level, the technical indicators of the company's products still have a certain gap.

To some extent, product performance has a great influence on product revenue. Through the comparative analysis of technical indicators, Dongxin SLC NAND flash memory products have certain advantages compared with the domestic mainstream level, and nor flash memory products are slightly better than the domestic level in storage capacity coverage, while DRAM products have no advantages as a whole. According to data observation, from 20 18 to 2020, among the company's three major memory chip products, the annual compound growth rate of revenue generated by NAND products is close to 50%, followed by nor products, which is 37.08%, and the annual compound growth rate of revenue is 37.08%. The output generated by DRAM shows a downward trend.