NSIG(SH:688126) Sou Hu Cai Jing·2025-08-10 22:47Core Viewpoint - Xi'an Yiswei Material Technology Co., Ltd. is the first unprofitable company to apply for an IPO on the Sci-Tech Innovation Board, facing scrutiny due to continuous losses and control issues, making its IPO journey a high-stakes game of capital and risk [2][5][11]. Group 1: Company Overview - Xi'an Yiswei focuses on the research, production, and sales of 12-inch silicon wafers, ranking first in mainland China and sixth globally in terms of average monthly shipment and production capacity by the end of 2024, accounting for approximately 6% and 7% of the global market, respectively [2][5]. - The company's products are utilized in various types of chips, including NAND Flash, DRAM, and logic chips, which are essential for smart devices such as smartphones, personal computers, and data centers [2]. Group 2: Financial Performance - From 2021 to 2024, the company's revenue surged from 207 million to 2.121 billion, a tenfold increase, while net losses expanded from 521 million to 738 million, totaling over 2.465 billion in cumulative losses over four years [5][6]. - As of December 31, 2024, the total assets are approximately 1.742 billion, with a debt ratio of 51.13% for consolidated statements, indicating a significant financial burden [6]. Group 3: IPO and Fundraising - The IPO fundraising project is solely focused on the second phase of the Xi'an Yiswei silicon industry base, with a total investment of 12.544 billion and intended fundraising of 4.9 billion, aimed at expanding production capacity and enhancing technological strength [3][4]. - The company anticipates that the raised funds will facilitate capacity expansion, product diversification, and international market penetration [3]. Group 4: Profitability Concerns - The company has faced challenges in achieving profitability, with the market questioning when it will turn a profit, as management projects profitability by 2027 based on optimistic assumptions regarding shipment volumes and pricing [11][14]. - The gross profit margins have been significantly lower than industry peers, with margins of 9.85%, 0.66%, and 5.49% from 2022 to 2024, indicating a competitive disadvantage [7][9]. Group 5: Control and Governance Issues - The company's control structure is fragmented, with the largest shareholder holding only 12.73% of the shares, raising concerns about the stability of control post-IPO [15][18]. - The actual controllers of the company have a combined ownership of only 25.68%, leading to questions about decision-making effectiveness and potential risks associated with control dilution [20][24].