Core Viewpoint - Tianyu Semiconductor has submitted a listing application to the Hong Kong Stock Exchange, aiming to capitalize on the growing demand for silicon carbide (SiC) epitaxial wafers, despite facing financial challenges in recent years [1][2]. Company Overview - Tianyu Semiconductor, established in 2009, specializes in the supply of silicon carbide epitaxial wafers and had previously sought to list on the Shenzhen Stock Exchange before terminating its A-share listing guidance in 2024 [1][10]. - The company has been focusing on innovation in production processes, particularly in the industrialization of 4H-SiC epitaxial wafers and related technologies [4]. Industry Context - Epitaxial wafers are critical raw materials for manufacturing power semiconductor devices, with a shift from silicon to new materials like SiC and gallium nitride (GaN) reflecting the industry's pursuit of higher efficiency and performance [3]. - The global epitaxial wafer industry is experiencing significant capacity expansion and rapid technological advancements, which may impact the pricing of silicon carbide products [8]. Financial Performance - Tianyu Semiconductor reported revenues of RMB 437 million, RMB 1.171 billion, RMB 520 million, and RMB 257 million for the years 2022, 2023, 2024, and the first five months of 2025, respectively [6]. - The company incurred a net loss of RMB 500 million in 2024, following a profit of RMB 2.8 million in 2022 and RMB 95.9 million in 2023 [6]. - The average selling price of silicon carbide wafers has been declining, from RMB 9,276 per piece in 2022 to RMB 8,831 in 2023, and further down to RMB 6,753 in 2024 [8][9]. Production Capacity - As of May 31, 2025, Tianyu Semiconductor's production capacity for 6-inch and 8-inch epitaxial wafers is approximately 420,000 pieces annually [4]. - The company has begun mass production of 8-inch epitaxial wafers, expanding its product offerings to meet the growing demand in various sectors, including renewable energy and smart grids [4]. Customer Concentration - A significant portion of Tianyu Semiconductor's revenue comes from its top five customers, accounting for 61.5%, 77.2%, 75.2%, and 61.8% of total revenue in 2022, 2023, 2024, and the first five months of 2025, respectively [8].