Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. (Dapu Micro) has taken a significant step in its IPO process by responding to the first round of inquiries from the Shenzhen Stock Exchange (SZSE) as the first unprofitable company applying for the ChiNext board, aiming to raise 1.878 billion yuan [2][11]. Group 1: Company Financials and Projections - Dapu Micro's IPO application was accepted on June 27, 2023, with a planned fundraising of 1.878 billion yuan, underwritten by Guotai Junan Securities [2]. - The company reported revenues of 557 million yuan, 519 million yuan, and 962 million yuan for the years 2022 to 2024, with net losses of 534 million yuan, 617 million yuan, and 191 million yuan respectively, projecting profitability by 2026 [5][6]. - The company attributes its current unprofitability to high R&D costs, limited bargaining power in the early stages, significant share-based payment expenses, cyclical fluctuations in the storage industry, and price volatility of NAND Flash [5][6]. Group 2: Inquiry Details from SZSE - The SZSE's first round of inquiries included 12 questions covering industry trends, technological innovation, operational sustainability, revenue sources, cost structure, gross margin changes, inventory, cash flow, and fundraising project details [4][9]. - Dapu Micro was specifically asked to provide a quantitative analysis of its unprofitability causes, the changes in these causes over the reporting period, and whether these issues are common in the industry [5][6]. Group 3: Market Position and Competitive Landscape - Dapu Micro is recognized as a leading provider of semiconductor storage products with full-stack self-research capabilities in enterprise-level SSDs, including controller chips, firmware algorithms, and modules [5]. - The company has a significant reliance on its largest supplier, with procurement from World Peace International (Hong Kong) accounting for 84.49%, 62.56%, and 66.26% of its costs over the reporting periods [9]. Group 4: Use of Proceeds and Future Plans - The funds raised from the IPO will be allocated to three main projects: 958 million yuan for the next-generation controller chip and enterprise-level SSD R&D, 220 million yuan for the enterprise-level SSD module mass production testing base, and 700 million yuan for working capital [10]. Group 5: Regulatory Environment and Compliance - The SZSE has emphasized the need for thorough scrutiny of unprofitable companies seeking to list, ensuring that they adequately demonstrate their operational sustainability and profitability forecasts [11]. - Dapu Micro's valuation was confirmed at 6.81 billion yuan during its last funding round in December 2024, with expectations to meet the minimum market capitalization requirement of 5 billion yuan for listing [10][11].