Core Viewpoint - Zhaoyi Innovation (603986) has successfully listed, with an initial share price of HKD 162, raising approximately HKD 4.611 billion from the issuance of 28.9158 million shares, and has seen a significant increase of 45.06% to HKD 235 per share at the time of reporting [1] Group 1: Company Overview - Zhaoyi Innovation is a diversified integrated circuit design company that provides a variety of chip products including Flash, niche DRAM, microcontrollers, analog chips, and sensor chips [1] - The company's products are applicable in various fields such as consumer electronics, automotive, industrial applications (including industrial automation, energy storage, and battery management), personal computers and servers, Internet of Things, and network communications [1] - The company offers a complete set of systems and solutions, including corresponding algorithms and software, to meet diverse customer needs [1] Group 2: Market Position - According to Frost & Sullivan, Zhaoyi Innovation is the only integrated circuit design company globally ranked in the top ten across all markets in NOR Flash, SLC NAND Flash, niche DRAM, and MCU based on 2024 sales [1] - During the historical record period, specialized memory chips and MCUs contributed the majority of the company's revenue [1] Group 3: Business Model - The company adopts a fabless business model, focusing on integrated circuit design and R&D to maintain a technological advantage [1] - Zhaoyi Innovation collaborates with high-quality wafer foundries and packaging testing partners to ensure excellence, scalability, and high-quality products [1]

Core Viewpoint - Zhaoyi Innovation (03986) has successfully listed its shares at a price of HKD 162 per share, raising approximately HKD 4.611 billion, with a significant initial increase of 45.06% to HKD 235 per share [1] Group 1: Company Overview - Zhaoyi Innovation is a diversified integrated circuit design company that offers a variety of chip products including Flash, niche DRAM, microcontrollers, analog chips, and sensor chips [1] - The company's products are applicable in various fields such as consumer electronics, automotive, industrial applications (including industrial automation, energy storage, and battery management), personal computers and servers, IoT, and network communications [1] Group 2: Market Position - According to Frost & Sullivan, Zhaoyi Innovation is the only integrated circuit design company globally ranked in the top ten across all markets in NOR Flash, SLC NAND Flash, niche DRAM, and MCU based on 2024 sales [1] - The majority of the company's revenue comes from sales of specialized storage chips and MCUs during the historical record period [1] Group 3: Business Model - The company operates on a fabless business model, focusing on the design and R&D of integrated circuits to maintain a technological advantage [1] - Zhaoyi Innovation collaborates with high-quality wafer foundries and packaging/testing partners to ensure excellence, scalability, and high-quality products [1]

Core Viewpoint - The company, Zhaoyi Innovation, is set to launch an initial public offering (IPO) of 28.916 million H-shares at a price of HKD 162 per share, with trading expected to commence on January 13, 2026 [2]. Group 1: Company Overview - Zhaoyi Innovation is a diversified integrated circuit design company that offers a variety of chip products including Flash, niche DRAM, microcontrollers (MCUs), analog chips, and sensor chips for various applications such as consumer electronics, automotive, industrial automation, energy storage, personal computers, servers, IoT, and network communications [2]. - The company operates on a fabless business model, focusing on integrated circuit design and R&D while outsourcing manufacturing to external foundries and semiconductor assembly and testing partners [2]. Group 2: Financial Performance - The company reported revenues of RMB 8.13 billion, RMB 5.7608 billion, RMB 7.356 billion, RMB 3.609 billion, and RMB 4.15 billion for the years 2022, 2023, 2024, and the six months ending June 30 for 2024 and 2025, respectively [3]. - Adjusted net profits (non-IFRS) for the same periods were RMB 2.256 billion, RMB 0.258 billion, RMB 1.26 billion, RMB 0.582 billion, and RMB 0.6725 billion, with adjusted net profit margins of 27.7%, 4.5%, 17.1%, 16.1%, and 16.2% [3]. Group 3: Use of Proceeds - Assuming an IPO price of HKD 147 per share, the estimated net proceeds from the global offering will be approximately HKD 4.1807 billion [4]. - The allocation of proceeds includes approximately 40% for enhancing R&D capabilities, 35% for strategic industry-related investments and acquisitions, 9% for global strategic expansion and strengthening global influence, 6% for improving operational efficiency, and 10% for working capital and other general corporate purposes [4].

Group 1 - The company, Zhaoyi Innovation, plans to globally offer 28.9158 million H-shares, with 10% allocated for Hong Kong and 90% for international sales, and an over-allotment option of 15% [1] - The expected offer price is HKD 162 per share, with trading on the Hong Kong Stock Exchange anticipated to begin on January 13, 2026 [1] - Zhaoyi Innovation is a diversified integrated circuit design company providing various chip products, including Flash, DRAM, microcontrollers, analog chips, and sensor chips for multiple applications [1] Group 2 - The company reported revenues of RMB 8.13 billion, RMB 5.7608 billion, RMB 7.356 billion, RMB 3.609 billion, and RMB 4.15 billion for the years 2022, 2023, 2024, and the first half of 2024 and 2025, respectively [2] - Adjusted net profits for the same periods were RMB 2.256 billion, RMB 258 million, RMB 1.26 billion, RMB 582 million, and RMB 672.5 million, with adjusted net profit margins of 27.7%, 4.5%, 17.1%, 16.1%, and 16.2% [2] - The company has entered cornerstone investment agreements with several investors, agreeing to subscribe for shares totaling approximately USD 299.7 million under certain conditions [2] Group 3 - Assuming an offer price of HKD 147 per share, the estimated net proceeds from the global offering will be approximately HKD 4.1807 billion [3] - About 40% of the proceeds will be used to enhance research and development capabilities, 35% for strategic industry-related investments and acquisitions, 9% for global strategic expansion, 6% for improving operational efficiency, and 10% for working capital and other general corporate purposes [3]

Core Viewpoint -兆易创新科技集团股份有限公司 (GigaDevice) has submitted its prospectus for a listing on the Hong Kong Stock Exchange, aiming to become another "A+H" listed company, following its initial public offering (IPO) on the Shanghai Stock Exchange in 2016 [1][3]. Company Overview - GigaDevice was established in April 2005 and is headquartered in Beijing, with a registered capital of approximately 660 million RMB. The company primarily focuses on integrated circuit design and research, adopting a fabless business model [3][5]. - The company offers a diverse range of chip products, including Flash, niche DRAM, MCU, analog chips, and sensor chips, along with corresponding algorithms and software solutions [5]. Financial Performance - GigaDevice's revenue for 2022, 2023, and 2024 was approximately 8.13 billion RMB, 5.76 billion RMB, and 7.36 billion RMB, respectively. The gross profit for the same years was about 3.70 billion RMB, 1.75 billion RMB, and 2.62 billion RMB, while the net profit was approximately 2.05 billion RMB, 161 million RMB, and 1.10 billion RMB [6][9]. - The company experienced a significant revenue decline of 29.14% in 2023 compared to 2022, with net profit dropping by 92.15% due to a substantial decrease in product prices [8][9]. Market Position - According to a report by Frost & Sullivan, GigaDevice is the only integrated circuit design company globally ranked in the top ten across NOR Flash, SLC NAND Flash, niche DRAM, and MCU sectors as of 2024 [5]. - In 2023, the company shipped 3.12 billion units of products, marking a year-on-year increase of 12.98%. However, the average selling price across all product lines declined, leading to a drop in gross margin from 47.66% to 34.42% [9][11]. Future Outlook - GigaDevice anticipates a recovery in performance for 2024, projecting a revenue increase of 27.69% to 7.36 billion RMB and a net profit growth of 584.21% to 1.10 billion RMB, driven by improved market demand and inventory replenishment [9][10]. - Despite the anticipated growth, the company's revenue and net profit for 2024 remain below the levels achieved in 2022 [11].