Core Viewpoint - Xiamen Youxun Chip Co., Ltd. (Youxun) has entered the first round of inquiry for its IPO, aiming to raise 889 million yuan for various projects including next-generation access network and high-speed data center chip development [2][4]. Company Overview - Youxun was established in 2003 and primarily engages in the research, design, and sales of optical communication front-end transceiver chips, with applications in optical modules and various network fields [6]. - The company holds the top domestic market share for 10G and below optical communication front-end chips but faces challenges from price competition in the chip industry [9]. Financial Performance - Revenue for Youxun from 2022 to 2024 was 339 million yuan, 313 million yuan, and 411 million yuan, respectively, with net profits of 81 million yuan, 72 million yuan, and 78 million yuan [6]. - The company experienced a year-on-year decline in revenue and net profit of 7.65% and 11.44% in 2023, respectively [6]. - Gross margin decreased from 55.26% in 2022 to 46.75% in 2024, while net profit margin fell from 24.01% to 18.97% over the same period [6]. Sales and Pricing Dynamics - Sales volume of the main product, optical communication transceiver chips, was 110 million, 107 million, and 137 million units from 2022 to 2024, with average selling prices declining from 2.66 yuan to 2.49 yuan [9]. - The sales revenue impact due to price changes was a decrease of 846.70 thousand yuan in 2024, while sales volume changes contributed positively by 7.60 million yuan [7]. Inventory and Cash Flow Concerns - Youxun's inventory value surged to 175 million yuan in 2024, a 94.44% increase year-on-year, constituting over 30% of current assets [9]. - The net cash flow from operating activities dropped by 93.24% to 3.91 million yuan in 2024, representing only 5.03% of net profit [9]. R&D Expenditure Trends - The R&D expense ratio for Youxun decreased from 21.14% in 2022 to 19.10% in 2024, falling below the average of comparable companies by 0.60 to 12.35 percentage points [10].