BPSemi(SH:688368) Nan Fang Du Shi Bao·2025-12-02 23:15Core Viewpoint - The acquisition and restructuring case of Sichuan Yichong Technology Co., Ltd. by Jingfeng Mingyuan has raised industry concerns due to the ambiguous nature of its major clients and significant product return issues [4][5][10]. Client Information - Yichong Technology's largest clients in the past two and a half years are small-scale distribution companies with low registered capital and employee counts, leading to concerns about the transparency of client information [4][5]. - The sales model of Yichong Technology is primarily distribution-based, with over 70% of revenue coming from distributors in 2023 and 2024 [5]. - Shenzhen Yuchuangyi Electronic Technology Co., Ltd. was the largest client in 2023 and 2024, contributing revenues of 216 million and 211 million respectively, but dropped out of the top five clients in early 2025 [5][6]. Revenue Authenticity Concerns - The Shanghai Stock Exchange has requested detailed disclosures regarding the changes in major distributors and the authenticity of Yichong Technology's revenue, particularly concerning the three clients (C, D, E) that lack detailed information [5][6]. - The three clients, identified as Shenzhen Yuchuangyi, Nanjing Lingdi Information Technology Co., Ltd., and another unnamed client, have very small operational scales, raising questions about their ability to generate significant revenue for Yichong Technology [7]. Product Defects and Financial Impact - Yichong Technology faced significant inventory write-downs due to product defects, with a provision of 54.11 million for inventory depreciation reported by the end of 2024 [9]. - The A-series products, which are used in mobile phones from brands like Honor and Lenovo, experienced a failure rate of 0.01% to 0.1% due to design flaws, leading to a substantial return of 218.18 million units from Shenzhen Yuchuangyi [9][10]. - The financial impact of these defects resulted in nearly 50 million in inventory losses, highlighting the risks associated with the company's product quality and management practices [9][11]. Research and Development Trends - Yichong Technology has been reducing its R&D team size over the years, with the number of R&D personnel decreasing from 250 in 2023 to 230 by May 2025 [11]. - The R&D expense ratio has also declined significantly, indicating potential challenges in innovation and product development [11].