Core Viewpoint - The article highlights the significant progress of Jiangsu Suzhou's leading MEMS probe card company, Qiangyi Co., in its IPO process on the Sci-Tech Innovation Board, emphasizing its role in the semiconductor industry and the necessity for domestic probe card production to reduce reliance on foreign suppliers [2][3]. Industry Overview - The semiconductor industry in China has a late start and still relies heavily on imports for chip design and wafer manufacturing, leading to a lag in the domestic probe card industry [2]. - The top ten probe card manufacturers globally are predominantly foreign companies, holding over 80% of the market share, indicating a substantial self-sufficiency gap for domestic manufacturers [2]. Company Positioning - Qiangyi Co. is the only domestic company to enter the global top ten in the semiconductor probe card industry, covering various core participants in the domestic chip design, wafer foundry, and packaging testing sectors [3]. - The company aims to enhance its R&D capabilities and MEMS probe card production capacity through funds raised from its IPO, aligning with the growth of China's semiconductor manufacturing capabilities [3]. Product and Market Strategy - The company’s probe card products are primarily used in non-storage fields, including SoC chips, CPUs, GPUs, and RF chips, with a market share in the non-storage sector expected to remain between 60%-75% from 2018 to 2024 [3]. - Qiangyi Co. is actively expanding into the storage sector, developing 2.5D MEMS probe cards for HBM and NAND Flash applications, focusing on key domestic players like Company B, Hefei Changxin, and Yangtze Memory Technologies [3][4]. Financial Performance - The company has experienced rapid growth, with a compound annual growth rate (CAGR) of 58.85% in revenue, reflecting its strong market position and customer recognition [4]. Future Outlook - The domestic probe card manufacturers are expected to benefit from the rapid development of the semiconductor industry and the acceleration of domestic substitution processes [5]. - Qiangyi Co. plans to enhance its product offerings in MEMS probe cards, focusing on increasing market share in 2D MEMS probe cards and scaling up production of thin-film and 2.5D/3D MEMS probe cards [5][6]. - The company aims to achieve breakthroughs in technology, including reaching a testing frequency of 110GHz for thin-film probe cards and developing 3D MEMS probe cards for DRAM chips [6].

IPO Dynamics - Four new stocks are available for subscription this week [3] - Three companies have successfully passed the review for A-share listing [6] Company Insights - Qiangyi Co., known as the "domestic probe card leader," plans to raise 1.5 billion yuan through its IPO on the Sci-Tech Innovation Board, boasting a 58.85% compound annual growth rate in revenue and rising from ninth to sixth in global industry ranking [4] - The company has a significant reliance on a single client, Company B, with sales from the top five clients accounting for 82.84% of total revenue, and this figure reaches 82.83% when considering known testing service revenues for Company B in the first half of 2025 [4][5] - Qiangyi Co. also faces high supplier concentration, with the top five suppliers accounting for 64.27% of purchases, relying heavily on a few foreign suppliers for critical materials and equipment [7] Financial Performance - Zhuozheng Medical has updated its application materials for a Hong Kong IPO, with revenue increasing from 473 million yuan in 2022 to 959 million yuan in 2024, and is expected to achieve its first operating profit since 2021 in 2025 [7] - However, Zhuozheng Medical's total liabilities reached 3.085 billion yuan by the end of 2024, with current liabilities rising from 2.262 billion yuan in 2022 to 2.704 billion yuan by August 2025, indicating significant financial pressure [7] Market Reactions - On November 6, two companies, Wenyan Zhixing and Xiaoma Zhixing, debuted on the Hong Kong Stock Exchange but experienced significant stock price declines of 9.96% and 9.28% respectively on their first day [8] - The market's skepticism stems from the lack of confidence in the short-term growth potential of the autonomous driving sector, despite both companies reporting record high revenues in recent years [8]