Montage Technology(SH:688008) 阿尔法工场研究院·2025-06-25 10:59Core Viewpoint - Lanke Technology is planning to go public in Hong Kong, aiming to raise approximately $1 billion, despite having over 7 billion yuan in cash and cash equivalents, which raises questions about the necessity of this fundraising [3][6][10][19]. Group 1: Company Overview - Lanke Technology, an A-share listed IC design company, is preparing for an IPO in Hong Kong amid the domestic semiconductor localization trend [3]. - The company announced its plan to issue H-shares and list on the Hong Kong Stock Exchange on June 20 [4]. - As of the end of Q1 2025, Lanke Technology's cash and cash equivalents amounted to approximately 7.036 billion yuan [12]. Group 2: Financial Performance - In 2024, Lanke Technology achieved revenue of approximately 3.639 billion yuan, a year-on-year increase of 59.2%, and a net profit of 1.412 billion yuan, soaring by 213.1% [13]. - The interconnect chip product line generated sales revenue of 3.349 billion yuan, marking a historical high with a year-on-year growth of 53.31% [14]. - In Q1 2025, the company continued its high growth trajectory, reporting revenue of 1.222 billion yuan and a net profit of 525 million yuan, representing year-on-year increases of 65.78% and 135.14%, respectively [17]. Group 3: Strategic Intentions - The decision to pursue fundraising through a Hong Kong IPO is viewed as a strategic move rather than a necessity, aimed at enhancing brand recognition and trust with international clients, particularly in the cloud computing and AI sectors [20][21]. - The company has no controlling shareholder or actual controller, with the founders holding only 2.18 million shares each, which is insufficient for a controlling position [34][35]. Group 4: Management and Compensation - In 2024, the founders of Lanke Technology received a pre-tax salary of 9.99 million yuan each, while other executives received significantly lower compensation [37][38]. - The company invests heavily in its R&D personnel, with 74.65% of its workforce in R&D and an average annual salary nearing 1 million yuan, totaling approximately 533 million yuan in compensation [40][41]. Group 5: Market Context - The trend of A-share listed companies seeking to issue H-shares in Hong Kong is growing, with notable examples like CATL completing a $5.252 billion IPO recently [42][43]. - Lanke Technology's timing for entering the Hong Kong market appears strategic, aligning with broader market movements [44].