Core Viewpoint - The article discusses the IPO application of Shanghai Zhaoxin Integrated Circuit Co., Ltd. on the Sci-Tech Innovation Board, highlighting its financial struggles and competitive landscape in the CPU industry. Company Overview - Zhaoxin Integrated is one of the six major domestic CPU manufacturers in China, with a cumulative loss of 2.354 billion yuan over the past three years and plans to raise 4.169 billion yuan through the IPO [3][4]. Financial Performance - Projected revenues for Zhaoxin Integrated from 2022 to 2024 are 340 million yuan, 555 million yuan, and 889 million yuan, respectively. The net profits attributable to shareholders are projected to be -727 million yuan, -676 million yuan, and -951 million yuan for the same years [5]. - The company has not yet achieved profitability and has significant cumulative losses due to high R&D costs associated with CPU chip development [5]. Shareholding Structure - Shanghai Lianhe Investment Co., Ltd., wholly owned by the Shanghai State-owned Assets Supervision and Administration Commission, holds 50.07% of Zhaoxin Integrated's shares, making it the controlling shareholder [5]. - VIA Technologies holds 7.89% of Zhaoxin Integrated's shares, with various subsidiaries and related parties being considered as acting in concert [6][7]. Competitive Landscape - The global x86 architecture processor market is dominated by Intel and AMD, creating a duopoly. Domestically, Zhaoxin Integrated faces competition from other CPU manufacturers like Huawei HiSilicon, Hygon Information, and Loongson Technology [10]. - Zhaoxin Integrated's products are compatible with the x86 instruction set, while competitors like Huawei and Feiteng Information use ARM instruction sets, and Loongson Technology employs its own LoongArch instruction set [10]. Market Position and Challenges - Zhaoxin Integrated's projected gross margin for 2024 is 15.4%, significantly lower than the industry average of 50.49% and below Loongson Technology's 31.03% [10]. - In terms of operational performance, Zhaoxin Integrated's projected revenue for 2024 is 889 million yuan, with a net loss of 951 million yuan, indicating a weaker performance compared to Hygon Information, which is expected to generate 9.162 billion yuan in revenue and 1.931 billion yuan in net profit [11].