Venture(US:VEMLY) Di Yi Cai Jing Zi Xun·2025-12-21 10:28Core Viewpoint - The news highlights the upcoming IPO application of Guangdong-based Yu Xin Semiconductor Technology Co., Ltd. (referred to as "Yu Xin Semiconductor"), marking it as the second unprofitable company to apply for an IPO on the ChiNext board, following Da Pu Wei. Unlike Da Pu Wei, which expects to turn profitable by 2026, Yu Xin Semiconductor anticipates achieving profitability by 2029, raising concerns about its financial sustainability and potential delisting risks due to its unprofitable status [1][9]. Group 1: Company Overview - Yu Xin Semiconductor provides 12-inch wafer foundry services and specialized process solutions for chip design, with applications in consumer electronics, industrial control, automotive electronics, and artificial intelligence [2]. - The company operates two 12-inch wafer fabs with a combined planned capacity of 80,000 wafers per month and plans to build a third fab with an additional capacity of 40,000 wafers per month, bringing the total to 120,000 wafers per month upon completion [2]. - The company's shareholder structure is diverse, with no single controlling shareholder, and major shareholders include Yu Xin Zhong Cheng (16.88%), Guangdong Semiconductor Fund (11.29%), and others [2]. Group 2: Financial Performance - Yu Xin Semiconductor's revenue for the reporting period (2022 to mid-2025) is projected to be 1.545 billion, 1.044 billion, 1.681 billion, and 1.053 billion yuan, with a significant year-on-year revenue decline of 32.46% in 2023, followed by a projected growth of 61.09% in 2024 [3]. - The company has reported increasing net losses, with figures of 1.043 billion, 1.917 billion, 2.253 billion, and 1.2 billion yuan, indicating a trend of escalating financial losses [3]. - As of the end of the reporting period, the company had accumulated undistributed losses of 8.936 billion yuan, reflecting its ongoing financial challenges [3]. Group 3: Industry Context - The semiconductor industry is characterized by strong cyclicality influenced by global economic fluctuations, demand changes in downstream markets, and inventory cycles [5]. - The industry has entered a downcycle due to global economic downturns and geopolitical conflicts, with a recovery expected in 2024, as indicated by rising consumer electronics indicators [6]. - Yu Xin Semiconductor's sales revenue from integrated circuit foundry products decreased by 40.70% in 2023, with a sales price drop of 32.32%, but is expected to recover in 2024 with over 70% growth in both sales revenue and volume [6]. Group 4: Financial Risks - The company's asset-liability ratio reached 76.08%, significantly higher than the industry average, primarily due to high fixed costs and reliance on bank and shareholder loans for funding [7]. - Yu Xin Semiconductor's R&D expense ratio is notably high, averaging 37.28% to 57.31% during the reporting period, reflecting its focus on innovation despite financial losses [7]. - The company faces potential delisting risks if it fails to meet the financial criteria set by the ChiNext board, including negative net profit and insufficient revenue [9].