Core Viewpoint - The article highlights the financial struggles and operational challenges faced by Nanjing Chip Origin Semiconductor, including unpaid wages and significant revenue decline in early 2024 [2][3][4]. Group 1: Company Overview - Nanjing Chip Origin Semiconductor was founded in 2015 by Lu Sheng, focusing on integrated circuit core intellectual property, chip design, and EDA tools [2]. - The company has a research team with experience from top firms like Marvell, Broadcom, Intel, and ZTE, specializing in chip design and cloud data centers [2]. Group 2: Financial Performance - In 2023, the company achieved a revenue of 1.717 billion yuan, a year-on-year increase of 23.98%, with a net profit of 251 million yuan, up 25.21% [3]. - The strong performance was driven by the sales of photolithography coating and developing equipment, which generated 1.066 billion yuan, a 40.8% increase, accounting for 63.48% of total revenue [3]. - However, in Q1 2024, the company reported a revenue decline of 15.27% and a net profit drop of 75.73%, indicating potential financial distress [3]. Group 3: Operational Challenges - Reports from employees indicate that the company has not paid wages for several months and has failed to distribute year-end bonuses for 2022 and 2023 [4]. - The company is facing a reduction in contract liabilities, suggesting a lack of order growth, with a reported 359 million yuan in contract liabilities by the end of Q3 2023 [3]. - In April 2024, the company engaged in equity pledge financing exceeding 200 million yuan, indicating possible cash flow issues [3].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 1.754 billion yuan for 2024, a year-on-year increase of 2.13%, while the net profit attributable to the parent company was 203 million yuan, a decrease of 19.08% [2][6] - In Q1 2025, the company achieved a revenue of 275 million yuan, representing a year-on-year increase of 12.74%, but the net profit attributable to the parent company dropped to 5 million yuan, a decrease of 70.89% [2][6] - The company signed new orders worth 2.4 billion yuan, a year-on-year growth of 10%, with significant growth in front-end chemical cleaning and bonding equipment [13] - The introduction of new products, such as the FTEX high-capacity coating and developing machine, is progressing well and is expected to meet future high-end lithography machine capacity demands [13] - The potential acquisition of a controlling stake by Northern Huachuang is expected to enhance collaboration across various fields, leveraging strong customer resources and R&D capabilities [13] - The competitive landscape remains favorable, with the company leading in domestic market share for front-end coating and developing equipment, and the advanced packaging demand is anticipated to drive growth in the back-end product portfolio [13] Financial Summary - For 2024, the company is projected to achieve total revenue of 1.754 billion yuan, with a gross profit margin of 38% [18] - The net profit attributable to the parent company is expected to grow to 285 million yuan by 2025 and reach 597 million yuan by 2027 [18] - The company’s earnings per share (EPS) is projected to increase from 1.01 yuan in 2024 to 2.97 yuan in 2027 [18]