On April 1st, 2019, Montage Technology got the approval to be listed in the Science and Technology Innovation Board. As the first unicorn that handed in the IPO application in STIB, Montage Technology is highly expected by society. According to its prospectus, Montage Technology wants to finance CNY 2.3 billion and its valuation is about CNY 23 billion.
Montage Technology is committed to providing IC based solutions for cloud computing and artificial intelligent (AI) markets. It delivers Jintide CPU, hybrid security memory module (HSDIMM) and memory interface to address the increasing demand for next-generation server platforms with high performance and high security.
According to the financial report of Montage Technology, from 2016 to 2018, the revenue of Montage Technology was CNY 845 million, CNY 1.2 billion and CNY 17.6 billion, while the net profit belongs to the parent company was CNY 93 million, CNY 347 million and CNY 737 million. In 2017 and 2018, the YOY growth rate of Montage Technology’s net profit was 273.8% and 112.4%. In 2018, the net profit margin of Montage Technology is more than 70%. With calculation, we got that the CAGR of the revenue of Montage Technology is 27.66% while the CAGR of the net profit belongs to the parent company of Montage Technology was 99.37%, which shows that the Montage Technology is in a stage with rapid development.
It is amazing that the cash flow of Montage Technology is far more than the requirement of STIB. From 2016 to 2018, the cash flow generated from the operation of Montage Technology was CNY 387 million, CNY 227 million and CNY 969 million. On the other hand, Montage Technology invests a lot of money on research and development. From 2016 to 2018, its R&D ratio was 23.46%, 15.34%, 15.74%, which extremely high and even close to Huawei.
Montage Technology used to be listed in Nasdaq in 2013. (NASDAQ: MONT). At the first day of its offering, the share price of Montage Technology increased USD 2.8, with a growth rate of 28%. In the Nasdaq, the highest share price of Montage Technology was USD 25.
The largest shareholder of Montage Technology is China Electronic Investment Holding Co., Ltd. with a 15.9% share. The China Electronic Investment Holding Co., Ltd. was controlled by China Electronics Corporation (CEC). CEC is directly controlled by the central government of China and it is China's largest state-owned IT enterprise.
YANG Chonghe (杨崇和), the founder of Montage Technology, has the Silicon Valley experience. In 1997, he founded the first chip enterprise which uses a Silicon business model – Xintao Technology. Xintao was acquired by IDT with USD 85 million. YANG is a famous specialist in the designing of the integrated circuit, and there are around 260 employees in Montage Technology while 70% of them are R&D related ones. Currently, Montage Technology has gained 89 invention patents and 39 designing certifications for the integrated circuit. The employees of Montage Technology said that YANG Chonghe is a hardworking person and focuses on the innovation of technology.
Founded in 2014, Montage Technology has experienced 15 years of development. With it, enterprise culture “concentration, innovation, crossing”, Montage Technology is leading the IC industry. In 2018, Montage Technology ranked top 1 of the 20 IC unicorns.