SoftBank(US:SOBKY) Sou Hu Cai Jing·2025-12-04 11:54Core Viewpoint - Yixin Communication is preparing for an IPO on the Hong Kong Stock Exchange, aiming to raise funds for product diversification, R&D enhancement, and market expansion [1][4]. Company Overview - Founded in 2017, Yixin Communication is a leading player in the cellular communication chip sector, ranking first in China and third globally with a market share of 15.3% [2]. - The company has a strong product matrix covering low, medium, and high wireless transmission speeds, with notable market leadership in NB-IoT and Cat.1bis products [2][4]. Financial Performance - Yixin Communication has shown steady revenue growth, with projected revenues of RMB 4.1 billion in 2022, RMB 5.33 billion in 2023, and RMB 5.52 billion in 2024 [8][9]. - The company successfully turned a profit in 2024, achieving a net profit of RMB 12.4 million, with further growth expected in 2025 [8][12]. Investment and Shareholding - The company has raised a total of RMB 1.419 billion through six rounds of financing, attracting investments from notable firms such as SoftBank Vision Fund and Qiming Venture Partners [4][6]. - The largest shareholder is the founder Liu Shi, holding 16.23% of the shares, followed by Hasegawa and SoftBank Vision Fund [6]. Product Development and Market Strategy - Yixin Communication is focusing on the development of two significant 5G products: the 5G RedCap chip and the ultra-fast 5G eMBB chip, expected to launch in 2026 and 2027 respectively [12]. - The company aims to leverage its low power consumption and cost advantages while enhancing functionality for industrial IoT applications [12]. Customer Base and Risks - The company has expanded its customer base to over 40 component clients, but faces a high customer concentration risk, with 87.9% of revenue coming from the top five clients [12][14]. - Diversifying the customer base is crucial for mitigating risks associated with high dependency on a few clients [13][14].