Selling more than 4 billion chips, Jerry launched its fourth IPO

As the wearable industry continues to warm up, Zhuhai Jieli Technology Co., LTD. (hereinafter referred to as "Jieli") may successfully land A shares.

According to the latest public offering counseling enterprise publicity information released on the official website of the CSRC, Jerry, the enterprise founded on August 30, 2010, its fourth IPO filing before the counseling has been completed on September 28, 2023, thus, its new round of pre-IPO counseling work officially kicked off.

Chen S, a senior executive of a chip factory, told the Chaodian think tank, "The current prosperity of the wear industry is higher, Jerry after so many years of precipitation, its own strength is stronger than some listed companies, and this time can basically complete the listing."

It is reported that Jerry has declared IPO three times on March 15, 2017, October 29, 2018, September 13, 2021, and the IPO was terminated on August 24, 2022.

Among them, when Jie Li started the capital increase in March 2021, there were two heavy external shareholders who strongly intervened in it, although Shanghai Huahong, which was actually controlled by Shanghai State-owned assets, only subscribed to its new 900,000 shares, the signal of state-owned assets as a shareholder was obviously of great significance to Jie Li. And millet technology is using nearly 230 million cash to subscribe to its 10.8 million shares, making it the largest outside investor in Jerry Li.Jieli specializes in the research, development and sales of system-on-chip (SoC) such as RF intelligent terminal and multimedia intelligent terminal, and is committed to providing customers with high specifications, high flexibility and cost-effective balance of master control platform chip and "SoC solution" one-stop service. At present, Jeri has formed a platform development pattern mainly based on Bluetooth headset chips and Bluetooth speaker chips, and also covers intelligent terminal chips such as intelligent Internet of Things terminal chips, health and medical terminal chips, and ordinary audio chips.

According to the prospectus, Jeri achieved revenue of 1.657 billion yuan, 2.41 billion yuan and 2.461 billion yuan in 2019, 2020 and 2021, respectively, and the corresponding net profit was 270 million yuan, 390 million yuan and 460 million yuan, respectively, showing a trend of growth year by year.

Although its 2022 performance has not been publicly disclosed, according to Chaodian think tank from the industry chain news, Jieli profit last year still maintained a stable growth trend.

In terms of products, Bluetooth headset chip and Bluetooth speaker chip are the main pillars of Jeri's revenue, and in 2021, the two businesses accounted for 42.62% and 32.35% of the company's overall revenue, respectively.

According to relevant data, 2018-2021 global shipments of Bluetooth audio transmission equipment totaled 4.6 billion units, while during the same period, Jeri Bluetooth audio chip sales totaled more than 4 billion, and comparable companies in the same industry Broadcom Integrated, Hengxuan Technology and Torch Technology Bluetooth audio chip sales totaled 704 million, 1.025 billion and 1.243 billion, respectively.

As of December 31, 2021, JILI has 292 R&D personnel, accounting for 72.28% of the total number of employees, and has 173 authorized invention patents (including 3 overseas invention patents), 58 integrated circuit layout designs and 113 software Copyrights.

In terms of customers, the products of Jie Li Technology have entered many well-known terminal brand manufacturers including Xiaomi, Transsion, QCY, Fenda Technology, Shanshui Audio, Elvis Presley, Lindu, Renweyou, HP, Philips, Xia Xin, Lenovo, MOTOROLA, Senko and so on, and the products are widely welcomed by the market.

For Jerry, this listing journey, in addition to their own core competitiveness, the industry in which they continue to heat up is also one of the important conditions.

Chaodian think tank data show that in the second quarter of 2023, the global smart watch shipments increased by 17.8% year-on-year, reaching about 35,911,000; TWS shipments reached 68.16 million pairs, returning to 8% year-on-year growth in Q2 compared to a double-digit decline in the previous quarter.

In addition, as a cross-border expert, Jerry TWS, smart watch market share are leading.

Chaodian think tank data show that in 2022, the top ten TWS Bluetooth main control chip manufacturers occupy a total of 95% of the TWS chip market share, Jerry with 26% market share ranked first; From January to February 2023, the top 10 smart watch master chip manufacturers shipped 29.93 million pieces, and Jerry's market share of 13% ranked fourth.

"Jerry is rapidly gaining market share in the watch industry and is the chipmaker most likely to challenge Realtek's position." A smart watch ODM executive Huang S told the tide power think tank.

According to the Tide Power think tank, the supply chain overlap of TWS and smart watches is as high as 80%. Jeri has strong customer adhesion in the smart wearable industry chain, which is its advantage of straight-line overtaking.