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KT Micro, ZTE's Supplier, Files for Star Market IPO
COVID-19 and China
Image credit: Jason Leung/Unsplash

Analog chip supplier KT Micro's (Chinese:昆腾微电子) main products include audio SoC and signal chain chips; National Integrated Circuit Industry Investment Fund owns 1.74% of its shares.

According to its latest prospectus, from 2017 to 2019, the revenues of KT Micro were CNY 101.26 million, 104.35 million and 155.26 million. Among them, audio SoC represented the highest proportion, 95.69%, 93.26% and 84.91%, downward in general.

During the same period, the R&D expenditures of the company were CNY 20.74 million, CNY 25.86 million and CNY 28.00 million, an upward trend year on year. 

As a fabless semiconductor company, the firm's chip manufacturing is commissioned by TSMC (TSM:NYSE) 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 customers. In the last three years, 97.50%, 95.52% and 93.15% of revenues came from top-five clients.

► Due to the continuous escalation of international trade frictions, the company's main wafer suppliers, EDA software suppliers and IP core suppliers may be affected and reduce supply.

Through being listed on the Star Market, KT Micro is expected to further enhance the competitiveness of its products.

*Contributor: Ivan Platonov | Editor: Luke Sheehan
ANALYST
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