Venture(US:VEMLY) Ge Long Hui·2025-07-30 10:02Core Viewpoint - Shenzhen is witnessing a surge of companies, particularly in the semiconductor sector, seeking IPOs, including Dapu Microelectronics, which has recently submitted its prospectus for listing on the ChiNext board [1][2]. Company Overview - Dapu Microelectronics, established in April 2016, focuses on enterprise-level SSDs for data centers and has recently transitioned to a joint-stock company [6][3]. - The company is led by founder Yang Yafei, who holds a 66.74% voting power through his entities [7]. - Dapu Microelectronics has developed a full-stack self-research capability in SSDs, including controller chips, firmware algorithms, and module design [8]. Financial Performance - The company has not yet achieved profitability, making it the first unprofitable company accepted for listing on the ChiNext board [4]. - Revenue has fluctuated due to the semiconductor cycle, with reported revenues of 5.57 billion yuan in 2022, 5.19 billion yuan in 2023, and projected 9.62 billion yuan in 2024 [14]. - Cumulative losses over the past three years exceed 1.3 billion yuan, with net profits of -534 million yuan in 2022, -617 million yuan in 2023, and a projected -191 million yuan in 2024 [14]. Market Position - Dapu Microelectronics ranks fourth in the domestic enterprise SSD market with a market share of 6.4% as of 2023 [9][26]. - The company has shipped over 3,500 PB of enterprise SSDs in the past three years, with 70% of shipments utilizing self-developed controller chips [9]. Industry Context - The global enterprise SSD market is projected to grow from $20.45 billion in 2022 to $51.42 billion by 2027, with a compound annual growth rate of 20.25% [31]. - The industry is dominated by major players like Samsung, SK Hynix, and Western Digital, which collectively hold over 90% of the market share [36]. - Dapu Microelectronics is positioned in a highly competitive and cyclical industry, with its performance closely tied to the semiconductor market dynamics [34][36]. Research and Development - The company has invested heavily in R&D, with cumulative expenses of 737 million yuan over the past three years, accounting for 36.15% of total revenue [22]. - Dapu Microelectronics' R&D focus includes complex technologies related to controller chips and firmware, which are critical for product performance [20]. Supply Chain and Inventory - The company relies on a limited number of suppliers for key components, with the top five suppliers accounting for over 98% of total procurement [24]. - As of the end of 2024, Dapu Microelectronics reported a significant increase in inventory value to 1.062 billion yuan, raising concerns about potential inventory write-downs amid market fluctuations [25].