Group 1 - Shenzhen Shangdingxin Technology Co., Ltd. (Shangdingxin) has submitted its prospectus to the Hong Kong Stock Exchange, with Jinyuan Capital as the sole sponsor [1] - Shangdingxin, established on October 9, 2011, is a fabless power semiconductor supplier focused on the development and supply of customized power device products [1] Group 2 - The company's revenue has fluctuated due to the demand cycle in the power semiconductor industry, with reported revenues of approximately 167 million RMB, 113 million RMB, and 122 million RMB for the years 2022, 2023, and 2024 respectively [2][3] - Gross profit margins for the same periods were 55.8%, 55.0%, and 56.9%, with net profits of 53.6 million RMB, 31.0 million RMB, and 35.1 million RMB [2][3] Group 3 - Approximately 60% of Shangdingxin's revenue comes from the consumer electronics sector, which has seen a decline in demand, leading to a drop in revenue from 112 million RMB in 2022 to 68.2 million RMB in 2024, a decrease of 38.94% [4] - The main products include MOSFETs, IGBTs, and GaN MOSFETs, with MOSFETs accounting for over 99% of revenue [4] Group 4 - The average selling price of trench MOSFETs decreased from 0.62 RMB per unit in 2022 to 0.45 RMB per unit in 2024, while SGT MOSFET prices fell from approximately 0.60 RMB to about 0.46 RMB [5][6] - This price decline is attributed to oversupply and reduced market demand, leading to a general drop in raw material prices [5] Group 5 - Shangdingxin is a small enterprise with only 64 employees as of March 25, 2025, and has never received external financing, relying on operational cash flow and bank loans [6] - The company has faced cash flow challenges, with cash and cash equivalents reported at 17.98 million RMB, 2.86 million RMB, and 16.22 million RMB at the end of the respective reporting periods [7] Group 6 - Despite declining performance and tight cash flow, Shangdingxin distributed dividends of approximately 32.5 million RMB and 51.3 million RMB in 2022 and 2024, respectively, which accounted for about 70% of the company's net profits during those years [7] - The founders, Liu Daoguo and Wu Yingling, control 95% of the company, benefiting significantly from the dividends distributed [8]