Goertek Microelectronics’ SZSE ChiNext Board IPO Approved

GoerTek, a leading Chinese company in the acoustic, optical and microelectronics industries, announced on Thursday that its subsidiary Goer Microelectronics was accepted for an IPO on the ChiNext Board of the Shenzhen Stock Exchange (SZSE) on Tuesday.

In October 2017, Goer Microelectronics was established, and as of March 2021, GoerTek’s shareholding ratio in the company was 85.9%. Goer Microelectronics is a semiconductor company focusing on R&D, production and sales of Micro-Electro-Mechanical Systems (MEMS) devices.

The company’s main products include MEMS microphones, MEMS sensors, microsystem modules, which are mostly used in smart phones, smart wireless headphones, wearable products, automotive electronics and other fields.

In terms of performance, the firm’s prospectus shows that from 2018 to 2020 and the first half of 2021, the revenues of GoerTek Microelectronics were 1.9 billion yuan ($298 million), 2.6 billion yuan, 3.2 billion yuan and 1.3 billion yuan, respectively, and net profits were 356 million yuan, 309 million yuan, 378 million yuan and 158 million yuan, respectively.

According to the previously released spin-off plan, GoerTek Microelectronics is the only enterprise under GoerTek engaged in R&D, production and sales of MEMS and microsystem modules, so it is not in competition with its parent company after the spin-off.

SEE ALSO: Goertek Microelectronics Plans Listing on SZSE ChiNext Board

According to the prospectus disclosed by GoerTek Microelectronics, the number of shares issued this time does not exceed 79.37 million. The funds raised from the transaction will be used as follows: 1.153 billion yuan for intelligent sensor microsystem module R&D and expansion project (phase I), 1.15 billion yuan for R&D and expansion of the MEMS sensor chip and module, and 888 million yuan for the upgrading of MEMS microphones and modules.