GigaDevice(SH:603986) Zhi Tong Cai Jing·2025-12-17 23:32Core Viewpoint - Zhaoyi Innovation has passed the listing hearing on the Hong Kong Stock Exchange, with CICC and Huatai International as joint sponsors [1] Company Overview - Zhaoyi Innovation is a diversified integrated circuit design company that provides a variety of chip products including Flash, niche DRAM, microcontrollers, analog chips, and sensor chips for various applications such as consumer electronics, automotive, industrial automation, energy storage, battery management, personal computers, servers, IoT, and network communication [4] - The company operates on a fabless business model, focusing on design and R&D while outsourcing manufacturing to external foundries and semiconductor assembly and testing partners [4] - Established in 2005, Zhaoyi Innovation has become a well-known enterprise in the specialized storage chip and MCU sectors in mainland China, building a globally influential brand [4] Market Position - According to Frost & Sullivan, Zhaoyi Innovation ranks second globally and first in mainland China in NOR Flash with a market share of 18.5% as of 2024 sales [5] - The company ranks sixth globally and first in mainland China in single-level NAND Flash with a market share of 2.2% [5] - In niche DRAM, it ranks seventh globally and second in mainland China with a market share of 1.7% [5] - Zhaoyi Innovation is eighth globally and first in mainland China in MCU with a market share of 1.2% [5] - The company is the second largest in fingerprint sensor chips in mainland China, holding approximately 10% market share [5] Industry Trends - The edge AI sector is rapidly developing, with 2025 expected to mark a significant breakthrough in edge computing capabilities [6] - This transformation is expanding the application boundaries of AI, presenting new opportunities for companies within the industry [6] Financial Performance - Revenue for the fiscal years 2022, 2023, 2024, and the six months ending June 30, 2025, is approximately RMB 81.3 billion, RMB 57.61 billion, RMB 73.56 billion, and RMB 41.5 billion respectively [6] - Profit for the same periods is RMB 20.53 billion, RMB 1.61 billion, RMB 11.01 billion, and RMB 5.88 billion respectively [6] - Detailed financial data shows a decline in gross margin from 45.5% in 2022 to 30.39% in 2023, with a recovery to 35.7% in 2024 [7] - Operating profit margins have also decreased from 28.0% in 2022 to 2.4% in 2023, with a forecasted recovery to 15.6% in 2024 [7]