Core Viewpoint - The initial public offering (IPO) application of Xiamen Youxun Chip Co., Ltd. has been postponed for review, raising concerns in the market regarding the company's declining gross margin and the sustainability of its operating performance [2][3][9]. Group 1: Company Overview - Youxun Chip, established in 2003, is a leading domestic player in optical communication chips, focusing on the research, design, and sales of optical communication front-end transceiver chips [6]. - The company's main products include laser driver chips (LDD), transimpedance amplifier chips (TIA), limiting amplifier chips (LA), and integrated optical communication transceiver chips, which provide a complete solution for efficient and reliable optoelectronic signal conversion, amplification, and processing [6]. Group 2: Financial Performance - The company's main business compound annual growth rate (CAGR) over the last three years is 10.26%, but it has shown significant volatility [9]. - In 2022, Youxun Chip's revenue was 339 million yuan, which decreased by 7.67% to 313 million yuan in 2023, but is projected to increase by 31.31% to 411 million yuan in 2024 [9]. - The gross margin has been declining, with figures of 55.26%, 49.14%, 46.75%, and 43.48% for the years 2022 to 2025 (first half) respectively [10]. Group 3: IPO Review and Concerns - The Shanghai Stock Exchange announced that the review of Youxun Chip's IPO application was postponed due to concerns about the continuous decline in gross margin and the sustainability of its operating performance [3][9]. - Key questions raised during the review include the company's product structure, pricing power, market expansion, and the stability of its actual controller's control rights [3][6]. Group 4: Funding and Future Projects - Youxun Chip plans to raise 809 million yuan to enhance its competitiveness, with funds allocated to projects such as the development and industrialization of next-generation access network and high-speed data center chips, automotive chips, and 800G and above optical communication chips [13][16]. - The company aims to address the core demands of global infrastructure upgrades and keep pace with industry trends through these projects [16][17].

Core Viewpoint - The article discusses the IPO process of Youxun Co., Ltd., highlighting regulatory concerns regarding its market potential, sustainability of performance growth, and the rationality of fundraising projects, leading to the postponement of its IPO review by the Shanghai Stock Exchange [1][2]. Company Overview - Youxun Co., Ltd. focuses on the research, design, and sales of optical communication front-end transceiver chips, establishing itself as a leading enterprise in China's optical communication chip sector [6]. - The company aims to raise 8.09 billion yuan through its IPO, which has been postponed, marking it as the third company to face such a delay in 2025 [1][2]. Financial Performance - The company reported revenues of 3.39 billion yuan, 3.13 billion yuan, and 4.11 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of 813.98 million yuan, 720.83 million yuan, and 778.66 million yuan during the same period [13]. - For the first half of 2025, Youxun achieved a revenue of 2.38 billion yuan, reflecting a year-on-year growth of 20.19% [18]. Market Position - Youxun holds the largest market share in China for products with speeds of 10Gbps and below, while its presence in the 25Gbps and above segment is still developing, with only 7% of the global market share attributed to Chinese manufacturers [6][12]. - The company has a strong competitive edge in the 10Gbps segment, with its products being recognized for their technological advancements and reliability [9][10]. Regulatory Concerns - The Shanghai Stock Exchange raised multiple inquiries regarding the sustainability of Youxun's performance, the stability of its controlling rights, and the accounting treatment of share-based payments [3][4][5]. - The company has been asked to clarify its product structure and market competition, particularly in the context of its reliance on a limited range of products [8][11]. Fundraising and Investment Plans - Initially, Youxun planned to allocate 8.89 billion yuan for various R&D and industrialization projects, but it has since canceled its plan to use part of the funds for working capital due to a decrease in its debt ratio [21][25]. - The revised fundraising plan focuses solely on R&D and industrialization projects, with a total investment of 80.91 billion yuan [26].

Group 1 - The Shanghai Stock Exchange announced that the listing review committee will hold a meeting on September 19 to review the IPO of Xiamen Youxun Chip Co., Ltd. [1] - Youxun Chip's IPO was accepted on June 26 this year, indicating a period of less than three months from acceptance to the review meeting [1] Group 2 - According to the prospectus, Youxun Chip is recognized as a "national manufacturing single champion enterprise" in the domestic optical communication field, focusing on the research, design, and sales of optical communication front-end transceiver chips [3] - The company has established a complete core technology system in the design of optical communication chips, achieving breakthroughs in key areas such as transceiver integration, high-speed modulation, and optoelectronic collaboration [3] - For the fiscal year 2024, the company's projected revenue is 410.56 million yuan, with a net profit attributable to the parent company of 68.57 million yuan [3] - The company aims to use the capital raised from the IPO to support technology research and development and industrial upgrading, consolidating its core competitiveness in the optical communication chip sector [3] - The listing is expected to help the company overcome high-end chip technology barriers, accelerate new product development and market expansion, and enhance the position of domestic chips in the global supply chain [3] - Additionally, the IPO will assist in optimizing the company's governance structure, enhancing brand influence, and laying a capital foundation for long-term development [3]