The Shenzhen Stock Exchange issued one inquiry after another, repeatedly demanding to explain the rationality and necessity of raising funds to build R & D centers and factories and reserve funds. However, China micro semiconductor equipment (Shanghai) Co., Ltd. (hereinafter referred to as “China micro Corporation”, 688012. SH) has never expressed the willingness to reduce the amount of fund-raising. < / P > < p > on October 10, this year, China micro Corporation announced to raise 10 billion yuan for the construction of industrial base, port headquarters, R & D center and science and technology reserve fund of China micro Corporation. This is only 15 months from the IPO. < / P > < p > on the one hand, the company is convinced that the current plant can not meet the demand, on the other hand, it is busy with investment and financial management, and the latest fair value change income has reached 156 million yuan. During the planning period, Xingcheng investment has cashed out more than 2.3 billion yuan through its institutions. According to Gartner’s forecast, the scale of China’s leading semiconductor equipment market will reach 61.45 billion yuan in 2020, accounting for about 20% of the global total investment in semiconductor equipment. < p > < p > in semiconductor products, integrated circuits occupy the largest market demand and growth, and the wafer manufacturing equipment market share of integrated circuit equipment has reached more than 80% of the overall scale, etching equipment is one of them. < / P > < p > according to the public information, the sub sectors of the company are the etching equipment industry in the semiconductor equipment industry and the MOCVD equipment industry in the LED equipment industry, mainly providing the above equipment for the manufacturing enterprises of semiconductor products such as integrated circuits, LED chips, etc. < / P > < p > as a result, China micro Corporation has been favored by the capital. In the middle of this year, the stock price once reached 298 yuan / share, with a cumulative increase of 190% compared with the beginning of the year. The market value has expanded from 60 billion yuan to more than 150 billion yuan. < / P > < p > in the first three quarters of this year, the company’s revenue was 1.476 billion yuan, a year-on-year increase of 21%; the net profit attributable to the parent company was 277 million yuan, a year-on-year increase of 105%; but the non net profit loss was 454.73 billion yuan. The company explained that “it was the increase of 61 million yuan in share based payment expenses in the current period, the increase of R & D investment and the decrease of capitalization amount of R & D expenses.” < / P > < p > according to the third quarterly report, the gross profit margin of China micro corporation decreased by 4% to 34.8% year on year, ranking in the middle of the semiconductor equipment industry; the contract liabilities (advance accounts receivable) decreased to 505 million yuan, compared with 700 million yuan in the first three quarters of last year, which confessed that “due to the lower customer demand of Blu ray MOCVD equipment.” In recent years, the global semiconductor equipment market continues to have a cyclical dynamic wave, which brings corresponding operational risks to the company. Downstream wafer factories and LED chip manufacturers prudently expand production. The company suggests that it cannot rule out that the downstream follow-up investment is less than expected, and the demand for related equipment procurement is weakening, which will have an adverse impact on the performance < / P > < p > as of December 24, the company closed at 157.77 yuan per share, with a cumulative decline of 40% since the second half of the year, and its market value of 84.4 billion yuan was almost cut. < / P > < p > according to semi data, after years of development, the global etching equipment market has shown a relatively fixed monopoly pattern. In 2019, Fanlin semiconductor, Tokyo electronics and applied materials together account for more than 50% of the global market share. < / P > < p > in July last year, the company raised 1.552 billion yuan for high-end semiconductor equipment expansion and upgrading and other projects as well as supplementary working capital. < / P > < p > on October 10, this year, the company plans to issue no more than 80.229 million shares, that is, no more than 15% of the total share capital, and raise no more than 10 billion yuan for industrial base construction, port headquarters and R & D center of the company, and science and technology reserve funds, using 3.177 billion yuan, 3.756 billion yuan, and 3.08 billion yuan respectively. < / P > < p > the company said: “with the rapid increase of market demand for the company’s products, the existing plants and equipment have been unable to meet the company’s production needs, which has restricted the company’s growth to a certain extent.” < / P > < p > the third quarterly report disclosed that due to the increase of interest income from bank financial products, the investment income of China micro Corporation reached 18.285 million yuan, a year-on-year increase of 1468.6%; the income from changes in fair value was 156 million yuan, a year-on-year increase of 3398%, mainly due to the rise of SMIC International’s share price indirectly held by it. On October 21, the Shanghai Stock Exchange issued the first round of inquiry letter, requiring the company to explain the rationality of refinancing within 18 months, the main factors of limited capacity, the necessity of expansion, the existence of large amount of financial investment and other issues, and to supplement the non recurring profit and loss statement. < / P > < p > the inquiry letter requires the disclosure of the specific contents of the project, such as the product categories and capacity planning involved in the proposed capacity expansion of the medium and micro industrialization base construction project; the reasons and rationality of the new capacity and the necessity of the new R & D center, and the rationality of the implementation cycle of the three investment projects of five years. < / P > < p > in addition, whether the R & D center in the project and the R & D center in the IPO project are the same R & D center, the necessity of building a new R & D center, the expected application mode and investment direction of the science and technology reserve fund, etc. < / P > < p > and it was not until November 28 that the Shanghai stock exchange received the reply of the inquiry letter from China micro Corporation. At this time, the company did not release the updated plan, nor did it disclose any intention to reduce the fund-raising. < / P > < p > different from the first round of inquiry, the Shanghai Stock Exchange stressed at the beginning that the company needs to implement “if there are major defects in the reply content, which seriously affect the audit work and investors’ understanding, the audit institution can request to reply again or even terminate the issuance and listing audit; if the audit puts forward” please modify “,” please delete “and other requirements, it should explain in the reply whether it is implemented.” And so on. < p > < p > the Shanghai Stock Exchange asked to answer the questions, such as the situation of its own funds, to analyze whether the 3 billion yuan invested in the project has the necessity of implementation, the clarity of the project and the urgency of funds, and to demonstrate the rationality of the replenishment ratio higher than 30%. In recent years, Yin Zhiyao, the actual controller, frequently said in the open market: “in order to realize the leap forward development of high-end semiconductor equipment industry, the government must focus on promoting, deepen the reform and upgrading of macro-control and related policies, and the joint efforts of funds and talents are needed.” < / P > < p > in fact, many of these have been realized in China micro Corporation. In the first three quarters of this year, the company received 161 million yuan of government subsidies; on November 19 and December 18, the company announced again that it would receive 128 million yuan of government subsidies from July 2 to December 17, 2020. < / P > < p > the cash flow of China micro Corporation is also quite rich. Apart from financial income, the company has monetary capital of 985 million yuan, trading financial assets of 1.66 billion yuan and short-term loans of only about 30 million yuan. < / P > < p > more importantly, the macro environment has been paving the way for it. Dongxing Securities pointed out that the United States continues to exert pressure on China’s semiconductor industry chain, and the demand of domestic wafer factories for the de beautification and localization of core equipment is further strengthened. In the short term, the expansion process of Changjiang storage, the company’s key customer, has accelerated. As of the end of the third quarter, the total number of successful bidders was at least 21, all reaching a new high, laying the foundation for the company’s performance growth this year and next year. < / P > < p > what really hinders the company’s share price to continue to rise may be that the capital behind it has seen clearly the lifting of the ban on the sale of restricted shares of the original shareholders of the first 100 million shares, accounting for about 36.27% of the company’s total share capital. Two days later, the original institutional shareholders of zhidu investment, Yuecheng investment and Chuang Cheng Investment announced that they planned to reduce 14.23 million shares in total, accounting for 2.66% of the total share capital through inquiry transfer. < / P > < p > from July 29 to August 11, Xingcheng reduced its holding of 1.7408 million shares through block trading. Then, on August 12 and November 15, Xingcheng announced that it planned to reduce its holding of no more than 5.3486 million shares and 16.0459 million shares respectively through centralized bidding or block trading, accounting for about 4% of the total share capital. < / P > < p > during the reduction period of Xingcheng series, the share price of China micro Corporation is reaching a new high since its listing. If the fixed increase goes smoothly, the relevant institutions will be able to subscribe at a low price and wait for another opportunity in the future. < / P > < p > with the issuance of the inquiry letter again, will the company continue to raise 10 billion yuan? Recently, investor.com called and e-mailed the Securities Department of the company, waiting for three working days, but no reply was received. (produced by thinking Finance) < / P > < p > the purpose of this article is to convey more information, and it does not represent the views and positions of our website. 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