UP OPTOTECH(SZ:002338) 3 6 Ke·2025-12-22 10:35Core Viewpoint - Changchun Changguang Chenxin Microelectronics Co., Ltd. (referred to as "Changguang Chenxin") has submitted a prospectus to the Hong Kong Stock Exchange, aiming for an IPO after previously attempting to list on the A-share market and the Sci-Tech Innovation Board [1][2]. Company Overview - Established in September 2012, Changguang Chenxin became a joint-stock company in December 2022, headquartered in Changchun, Jilin Province [3]. - The company is primarily owned by a group of shareholders, including Aopu Optoelectronics, which holds 25.56% of the shares, making it the largest external shareholder [4]. Product and Market Position - Changguang Chenxin specializes in CMOS image sensors (CIS) and operates on a fabless model, offering over 50 standard products across nine product series [6][8]. - The company's CIS products are crucial for enhancing performance and image quality in industrial cameras, scientific cameras, and professional film cameras [6]. - As of January to September 2025, CIS accounted for approximately 96.8% of total revenue, with area array sensors making up about 76.4% and line array sensors about 17.6% [8]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first nine months of 2025 were approximately RMB 604 million, RMB 605 million, RMB 673 million, and RMB 565 million, respectively [12]. - Net profits for the same periods were -RMB 84.1 million, RMB 170 million, RMB 197 million, and RMB 148 million [12]. - The gross profit margin has shown a decline from 76.2% in 2022 to 64.2% in the first nine months of 2025, attributed to a shift from high-end to mainstream markets [14][16]. Market Dynamics - The global CIS market is characterized by high concentration, with the top five players accounting for 84.2% of the market share in 2024 [33]. - Changguang Chenxin holds a market share of approximately 15.2% in the global industrial CIS market and 16.3% in the scientific imaging sector, ranking third among global competitors [33]. Cash Flow and Investment - The company has faced cash flow pressures, with a significant decrease in cash and cash equivalents from RMB 403 million at the end of 2024 to RMB 191 million by September 2025 [21][22]. - Despite positive operating cash flow, the company recorded net outflows in investment activities during the reporting period [21]. Future Outlook - The company is currently in an investment phase, focusing on expanding its product lines and applications to achieve steady growth, while also addressing concerns regarding its cash position and past related-party transactions [35].