Blue Whale News, November 26 (Reporter Xu Xiaochun) After failing to go public through a backdoor listing eight months ago, Ola Semiconductor encountered Si Rui Pu. On the evening of November 25, Si Rui Pu announced plans to acquire shares of Ningbo Ola Semiconductor Co., Ltd. (hereinafter referred to as “Ola Semiconductor”) through the issuance of shares and/or cash, along with raising supporting funds. Starting from November 26, Si Rui Pu has been suspended from trading, with a current market value of approximately 20.4 billion yuan.
Both the IPO and the backdoor listing failed, leading Wang Chengdong and his son to sell their semiconductor assets.
Ola Semiconductor is jointly controlled by Wang Chengdong and his son Wang Yingpu. Wang Yingpu indirectly holds 50.27% of the company’s shares through Hong Kong Aura Investment Co., Limited (hereinafter referred to as “Ola Investment”) and Ideal Kingdom Limited, while Wang Chengdong holds 7.23% indirectly through Ningbo Shuangquan Venture Capital Partnership (Limited Partnership) (hereinafter referred to as “Ningbo Shuangquan”). Together, they control 57.52% of the shares.
Founded in May 2018 during a rising cycle in the semiconductor industry, Ola Semiconductor’s product line includes clock chips, power management chips, sensor chips, and RF chips, as well as providing semiconductor IP licensing services. By 2023, Ola Semiconductor’s revenue was approximately 472 million yuan, with a net loss of about 962 million yuan for the year. However, from January to July 2024, the company turned a profit of approximately 307 million yuan.
According to Tianyancha App, Ola Semiconductor completed three rounds of financing around 2020, attracting multiple investors including Jianggen Capital, Ningbo Tongshang Fund, AVIC Trust, and Hony Capital. In November 2022, Ola Semiconductor submitted its first application to the Sci-Tech Innovation Board, planning to raise over 3 billion yuan for chip development and industrialization. However, after a round of inquiries, Ola Semiconductor voluntarily withdrew its application in May 2024, completely terminating its IPO journey.
Nevertheless, Ola Semiconductor did not give up on the idea of capitalizing. Just three months later, it planned to go public through a backdoor listing via its controlling shareholders Wang Chengdong and Wang Yingpu’s Shuangcheng Pharmaceutical. In August 2024, Shuangcheng Pharmaceutical announced plans to acquire Ola Semiconductor’s shares through major asset swaps, share issuance, and cash payments, while disposing of the original business assets and liabilities of the listed company. However, in subsequent proposals, the backdoor listing plan was changed to only include share issuance and cash payments for asset acquisition and raising supporting funds.
After the announcement, Shuangcheng Pharmaceutical’s stock price surged with 14 consecutive trading limits, and the company’s market value increased sevenfold in just two months. However, in March of this year, due to the failure to reach an agreement with some shareholders of Ola Semiconductor regarding transaction pricing and other commercial terms, this deal ultimately failed.
In April of this year, due to losses and revenue below 300 million yuan, Shuangcheng Pharmaceutical was subjected to delisting risk warnings. Eight months later, the Wang Chengdong family also let go of their semiconductor industry investments that required heavy capital.
According to Si Rui Pu’s announcement, the preliminary confirmed transaction counterparties include the controlling shareholders Ola Investment, Ideal Kingdom Limited, six domestic and foreign employee shareholding platforms, and Hainan Puyuan, with a total shareholding ratio of 86.12%. After the transaction, the Wang Chengdong family will have almost completely divested their holdings.
Si Rui Pu’s turnaround in the first three quarters leads to further acquisitions for growth.
Si Rui Pu, which has set its sights on Ola Semiconductor, primarily focuses on the research and sales of analog integrated circuit products, covering categories such as signal chains, power management, and mixed-signal. In the first three quarters of this year, Si Rui Pu achieved revenue of approximately 1.531 billion yuan, a year-on-year increase of 80.47%, and turned a profit of approximately 126 million yuan.
Si Rui Pu’s growth is largely attributed to its acquisition of Chuangxin Micro. In 2023, due to inventory destocking in certain sectors, exacerbated by inflation and weak demand in the smartphone and PC markets, global semiconductor sales saw a significant decline. Amid weak demand for core signal chain chips, Si Rui Pu reported its first loss since going public.
In 2024, Si Rui Pu made a premium acquisition of Chuangxin Micro to strengthen its layout in the power management category. As early as 2019, Si Rui Pu began developing power management chip products, seeking a second growth curve, and has since secured orders from downstream clients such as Hikvision in security and industrial control. However, Si Rui Pu’s range of power management chips is not extensive. The consolidation with Chuangxin Micro has expanded Si Rui Pu’s customer base in the power management sector to include consumer companies like OPPO, OnePlus, and Xiaomi.
In the first three quarters of this year, Si Rui Pu’s revenue from signal chain chips and power management chips increased by 42.64% and 274.08% year-on-year, respectively, which are the main reasons for the company’s revenue growth. In its semi-annual report, Si Rui Pu also attributed its growth to the integration of its business with Chuangxin Micro, achieving comprehensive layouts in the industrial, automotive, communication, and consumer electronics markets, resulting in significant increases in overall shipments and revenue.
During a research interview, Si Rui Pu stated that, based on the development history of Texas Instruments and Analog Devices, mergers and acquisitions are undoubtedly an effective way for analog IC manufacturers to grow and strengthen, achieving leapfrog development. The target of this acquisition, Ola Semiconductor, also has strong business synergies with Si Rui Pu. From the product range perspective, the de-jitter clock chip is one of Ola Semiconductor’s advantageous products, and through this acquisition, Si Rui Pu will further enhance its layout in power management chips and other analog and mixed-signal chips.
According to the prospectus, Ola Semiconductor is one of the few domestic companies capable of directly competing with foreign manufacturers in the de-jitter clock chip field. Additionally, Ola Semiconductor’s client base includes well-known companies such as ZTE, Ruijie Networks, Huaqin Technology, and China Great Wall, with its clock chip products already becoming supporting chips for Loongson Zhongke and Feiteng Information CPU reference designs. In the overseas market, it has secured bulk orders from Cisco and has become a qualified supplier for Nokia. Furthermore, Ola Semiconductor’s automotive-grade clock chips are also being widely used in the new energy vehicle sector.
However, the transaction is currently in the planning stage, and the parties involved have not yet signed a formal transaction agreement. The specific transaction plan is still under discussion and remains uncertain. In an interview with Blue Whale News, Si Rui Pu stated that they have only reached a preliminary intention, and the specific acquisition plan and the business situation of both parties will need to wait for further announcements from the company.
