Core Viewpoint - Qiangyi Semiconductor (Suzhou) Co., Ltd. is attracting significant market attention as it aims for an IPO on the Sci-Tech Innovation Board, showcasing impressive growth metrics but facing scrutiny over various structural issues [1][7]. Financial Performance - The company has achieved remarkable growth, with revenue increasing from 254 million yuan in 2022 to 641 million yuan in 2024, and net profit soaring from 15.62 million yuan to 233 million yuan, marking a year-on-year increase of 1149.33% [3][4]. - In the first half of 2025, the company reported revenue of 374 million yuan and a net profit of 138 million yuan, indicating continued robust performance [3]. Customer Concentration - Sales to a major client, Company B, reached 224 million yuan in 2024, accounting for 34.93% of total revenue, while the top five customers' sales proportion increased from 62.28% in 2022 to 81.31% in 2024, highlighting a growing customer concentration risk [4][6]. - The gross margin from sales to Company B has significantly outperformed other clients, rising from 49.90% in 2022 to 61.62% in the first half of 2025, raising concerns about potential conflicts of interest [4][5]. Related Party Transactions - The company has a high level of procurement from its top five suppliers, with percentages of 49.14%, 40.19%, and 60.67% over the reporting period, indicating potential risks associated with related party transactions [5][6]. - Notably, a supplier controlled by the company's actual controller, South Pi Semiconductor Co., Ltd., has been involved in significant transactions with Qiangyi, leading to questions about the rationale behind these decisions [5]. Inventory and Production Capacity - The company plans to raise 1.5 billion yuan, with 1.2 billion yuan allocated for the development and production of probe cards, aiming to significantly expand production capacity despite existing underutilization [6]. - The production and sales rates for 2D MEMS probe cards have been consistently low, with rates of 79.25%, 78.40%, and 81.84% from 2022 to 2024, raising concerns about potential overcapacity [6]. - The company's inventory has reached 112 million yuan, with a significant increase in inventory impairment provisions from 4.89 million yuan in 2022 to 27.21 million yuan, indicating potential challenges in inventory management [6][7]. Conclusion - Despite Qiangyi Semiconductor's technological advancements and rapid growth, issues such as high customer concentration, complex related party transactions, aggressive expansion plans, and weak inventory management pose significant risks to its long-term sustainability [7].