Core Viewpoint - Chipde Semiconductor, a semiconductor packaging and testing solution provider, has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, despite facing significant financial challenges including continuous losses and a negative net asset position [1][3]. Revenue Growth and Losses - From 2022 to 2024, Chipde Semiconductor experienced strong revenue growth, with revenue increasing from 269 million to 827 million yuan, representing a compound annual growth rate of over 40%. In the first half of 2025, revenue reached 475 million yuan, a year-on-year increase of 22% [2]. - Despite revenue growth, the company reported losses of 360 million, 359 million, and 377 million yuan for the years 2022, 2023, and 2024, respectively, accumulating over 1.3 billion yuan in losses within three and a half years [2]. - High sales costs have significantly impacted profitability, with costs rising from 484 million to 994 million yuan during the same period. The company attributes its losses to depreciation, financing costs, and employee stock compensation, although depreciation accounted for less than 26% of sales costs [2]. Insolvency Issues - As of June 30, 2025, Chipde Semiconductor had cash and cash equivalents of 149 million yuan, total assets of 3.579 billion yuan, and total liabilities of 4.530 billion yuan, resulting in a net asset deficit of 950 million yuan, indicating insolvency [3]. - The net asset deficit has been increasing, with figures of -343 million, -750 million, -916 million, and -950 million yuan reported from 2022 to mid-2025 [3]. - The company is heavily reliant on external financing, with cash outflows for investment activities reaching 345 million yuan in the first half of 2025, despite cash inflows from operating activities of only 82.96 million yuan [3]. - Accounts receivable have also been rising, with amounts of 65.5 million, 146 million, 168 million, and 186 million yuan reported during the same period, alongside increasing impairment provisions [3]. Customer Concentration - Chipde Semiconductor has a high customer concentration, with revenue from the top five customers accounting for over 50% of total revenue during the reporting period, specifically 60.5%, 50.4%, 53.0%, and 55.2% [4]. - The largest single customer contributed between 24.3% and 27.3% of total revenue, indicating a significant dependency on major clients for revenue stability [4]. - The company primarily sells its products and services domestically, with domestic revenue share increasing from 93.9% to 97.9%, while efforts to expand into international markets remain to be seen [4]. Shareholder Activity Before IPO - Prior to the IPO, several shareholders of Chipde Semiconductor have sold shares totaling over 77 million yuan, raising concerns about the company's future prospects [5][6]. - Notable transactions include a 60 million yuan share transfer by Shenzhen Gongchuang and Ningpu Semiconductor on July 3, 2025, followed by another transfer worth approximately 17.19 million yuan by other investors on September 30, 2025 [5]. - The largest shareholder group, including Zhang Guodong, Pan Mingdong, Liu Yi, Ning Tai Semiconductor, and Ningpu Semiconductor, holds a combined voting power of 24.95% [6]. Use of IPO Proceeds - The company plans to use the funds raised from the IPO to build production facilities, establish new production lines, and purchase related equipment to enhance manufacturing capacity and meet market demand [6].