GigaDevice(SH:603986) Sou Hu Cai Jing·2025-12-28 00:33Core Viewpoint - Zhaoyi Innovation has completed Pre-Deal Investor Education for its upcoming Hong Kong IPO, targeting a fundraising scale of approximately $500 million to $800 million, with the offering expected to start next week [2] Company Overview - Zhaoyi Innovation is an integrated circuit design company that provides a diverse range of chip products, including Flash, niche DRAM, microcontrollers (MCU), analog chips, and sensor chips, applicable in various fields such as consumer electronics, automotive, industrial applications, personal computers, and IoT [2][3] - The company operates on a fabless model, focusing on design and R&D while outsourcing manufacturing to external foundries and assembly partners [2] Market Position - As of 2024, Zhaoyi Innovation ranks second globally and first in mainland China in the NOR Flash market with an 18.5% market share, and holds significant positions in other segments such as SLC NAND Flash and MCU [5] - The company has established a strong global customer base and is recognized as a leading brand in specialized storage chips and MCUs in mainland China [3] Financial Performance - For the fiscal years 2022 to 2025, Zhaoyi Innovation's revenues are projected to be approximately 8.13 billion, 5.76 billion, 7.36 billion, and 4.15 billion RMB respectively, with corresponding profits of 2.05 billion, 0.16 billion, 1.10 billion, and 0.59 billion RMB [5] - In Q3 2025, the company reported revenues of 2.68 billion RMB, a year-on-year increase of 31.4%, and a net profit of 508 million RMB, up 61.13% year-on-year [7] Growth Drivers - The growth in revenue is attributed to the improving supply dynamics in the DRAM industry and increasing demand across consumer, industrial, and automotive sectors, supported by the company's diverse product offerings [7] - The rapid development of edge AI is expected to create new opportunities for Zhaoyi Innovation, as its products are crucial for enabling real-time, low-power, and reliable AI inference [7] IPO Fund Utilization - The funds raised from the IPO will be used to enhance R&D capabilities, strategic investments and acquisitions, global expansion, operational efficiency, and general corporate purposes [8]