Core Viewpoint - Shanghai ChaoSilicon Semiconductor Co., Ltd. has initiated its IPO process on the Sci-Tech Innovation Board, aiming to raise 4.965 billion yuan despite not achieving profitability and facing increasing losses [1][3]. Financial Performance - The company reported cumulative losses of approximately 31.46 billion yuan from 2022 to 2024, with net profits of -8.03 billion yuan, -10.44 billion yuan, and -12.99 billion yuan for the respective years [3][4]. - Revenue for the same period was approximately 9.21 billion yuan, 9.28 billion yuan, and 13.27 billion yuan [3]. Business Operations - Shanghai ChaoSilicon specializes in 300mm and 200mm semiconductor silicon wafers, primarily focusing on P-type silicon wafers, with a smaller portion of N-type wafers [3]. - The company is currently in a capacity ramp-up phase, which has led to high production costs and has not yet realized economies of scale [3][4]. Future Outlook - The company anticipates achieving profitability by 2027, contingent on the gradual release of production capacity and increased order volume [4]. - As of the end of 2024, the company expects to have accumulated undistributed profits of -39.72 billion yuan [4]. Goodwill and Risks - The company holds goodwill of 1.394 billion yuan, representing 9% of total assets, primarily from the acquisition of Chongqing ChaoSilicon Semiconductor Co., Ltd. [5]. - There are concerns regarding potential goodwill impairment if the performance of the acquired company does not meet expectations [5]. Regulatory Issues - Shanghai ChaoSilicon has faced three administrative penalties since January 2022, all related to Chongqing ChaoSilicon, indicating some regulatory scrutiny [5][6]. Related Transactions - The company has significant related party transactions, particularly with Japanese firms, amounting to approximately 516 million yuan in 2022 [7]. - The procurement from these Japanese firms was influenced by the company's initial lack of commercial credibility in the Japanese market [8].