Core Viewpoint - Zhuhai is a significant hub for China's semiconductor industry, ranking among the top ten cities in the country for integrated circuit design sales, with a comprehensive enterprise matrix covering the entire semiconductor supply chain [1] Company Overview - Yueya Semiconductor, established in April 2006, is headquartered in Doumen District, Zhuhai, and is seeking to list on the ChiNext board with CITIC Securities as the sponsor [2] - The largest shareholder, AMITEC, is an Israeli company controlled by Rafi Amit and Yotam Stern, while the second largest shareholder, New Trust Industry, is ultimately controlled by China Ping An [3][4] Business Operations - Yueya Semiconductor focuses on the research, production, and sales of advanced packaging key materials and products, primarily IC packaging substrates and embedded packaging modules [5] - The company's products are crucial for connecting wafers and PCBs, directly impacting the performance of related chips and end products [6] Financial Performance - The company's revenue for 2022, 2023, 2024, and the first half of 2025 was 1.667 billion, 1.705 billion, 1.796 billion, and 811 million yuan respectively, with net profits of 415 million, 188 million, 215 million, and 91.47 million yuan [8] - The gross profit margin has been declining, with figures of 38.97%, 26.65%, 25.49%, and 24.42% over the reporting periods [12] Product Segmentation - IC packaging substrates accounted for 85.41%, 90.42%, 88.37%, and 67.54% of the company's revenue during the reporting periods, making it the primary revenue source [10] - The proportion of embedded packaging modules in the main business revenue increased from 14.59% in 2022 to 32.46% in the first half of 2025, driven by demand from major clients like Infineon [10] Market Context - The global packaging substrate market is recovering from a low of $16 billion in 2023, with expectations to reach $21.4 billion by 2026, driven by demand in emerging markets such as 5G and AI [22] - Taiwan, South Korea, and Japan dominate the global IC packaging substrate capacity, with mainland China's contribution at approximately 15% but only 5% in actual output [24][26] Future Prospects - Yueya Semiconductor plans to raise 1.28 billion yuan for projects focused on high-performance embedded packaging modules for AI, a research center, and to supplement working capital [26][27] - The company faces challenges from global competition and price declines in some products, emphasizing the need for continuous R&D investment to maintain market share [16][18]