Core Viewpoint - Tianyu Semiconductor has submitted an IPO application to the Hong Kong Stock Exchange, aiming to expand its production capacity and enhance its R&D capabilities in the silicon carbide (SiC) sector, which is crucial for various applications including electric vehicles and renewable energy [1][8]. Group 1: Company Overview - Established in 2009, Tianyu Semiconductor specializes in the development, production, and sales of 4H-SiC epitaxial wafers, with applications in new energy, rail transportation, smart grids, and consumer electronics [1]. - The company has achieved significant milestones in production capacity, including mass production of 4-inch wafers in 2014, 6-inch wafers in 2018, and becoming one of the few companies in China capable of 8-inch wafer production in 2023 [1]. Group 2: Financial Performance - The company's revenue has shown volatility, with reported figures of RMB 437 million in 2022, RMB 1.171 billion in 2023, RMB 520 million in 2024, and RMB 257 million in the first five months of 2025 [2][3]. - Net profit figures indicate a loss of RMB 500 million in 2024, following a profit of RMB 95.88 million in 2023, and a profit of RMB 951,500 in the first five months of 2025 [2][3]. - The gross margin has fluctuated significantly, with rates of 20% in 2022, 18.5% in 2023, a loss margin of -72% in 2024, and a recovery to 22.5% in the first five months of 2025 [2][3]. Group 3: Customer Dependency - The company relies heavily on its top five customers, which accounted for 61.5% of total revenue in 2022, 77.2% in 2023, 75.2% in 2024, and 61.8% in the first five months of 2025 [5]. Group 4: R&D Investment - R&D expenditures have been consistent, with amounts of RMB 29 million in 2022, RMB 55 million in 2023, RMB 61 million in 2024, and RMB 20 million in the first five months of 2025, indicating a commitment to technological advancement [4]. Group 5: Financing and Shareholding - Since 2021, the company has raised approximately RMB 1.464 billion through seven rounds of financing, with share prices increasing from RMB 2.93 in 2021 to RMB 41.96 in November 2024 [6][8]. - The major shareholders include Li Xiguang and related parties holding 58.36%, with other notable investors such as Huawei and BYD holding smaller stakes [6]. Group 6: IPO Plans and Use of Proceeds - The IPO proceeds are intended for expanding overall production capacity, enhancing R&D and innovation capabilities, strategic investments or acquisitions, and expanding global sales and marketing networks [8].