Core Viewpoint - Torrens Precision Manufacturing has submitted its application for an IPO on the ChiNext board, highlighting its position as a key supplier of semiconductor components to major clients like North Huachuang and Zhongwei Company, while facing scrutiny over its low R&D investment and ongoing related-party transactions [1][2][4]. Financial Performance - Torrens reported revenues of 283 million, 291 million, 610 million, and 373 million yuan for the years 2022 to 2025 (first half) respectively, with net profits of 33.94 million, 15.30 million, 106 million, and 60.85 million yuan during the same periods [2]. - The company's gross profit margins for the reporting periods were 29.84%, 22.39%, 29.45%, and 29.72% [4]. Product and Market Position - Torrens claims to be one of the preferred suppliers of metal components for domestic semiconductor equipment manufacturers, with over 50% of its revenue coming from semiconductor key process components [4]. - The average selling price of Torrens' semiconductor key process components increased from 9,057.93 yuan in 2022 to 13,200 yuan in the first half of 2025, with gross margins rising from 33.17% to 35.29% [5]. R&D Investment - Torrens' R&D expenditures were 5.55 million, 11.54 million, 23.42 million, and 15.11 million yuan for the years 2022 to 2025 (first half), representing 1.96%, 3.97%, 3.84%, and 4.05% of revenue, which is significantly lower than the industry average [6][7]. Client Dependency - Over 80% of Torrens' revenue comes from North Huachuang and Zhongwei Company, with sales to North Huachuang accounting for 46.18%, 44.06%, 52.11%, and 44.6% of total revenue during the reporting periods [8][9]. Inventory and Accounts Receivable - Torrens has seen an increase in inventory and accounts receivable, with inventory balances rising from 92.68 million to 197 million yuan over the reporting periods [10]. Financing and Valuation - Since 2022, Torrens has completed five rounds of financing, with a latest valuation of approximately 2.759 billion yuan following its most recent funding round [10]. - The company plans to issue up to 46.3684 million new shares in its IPO, aiming to raise 1.156 billion yuan for precision component manufacturing and R&D projects [11]. Related-Party Transactions - Torrens has ongoing related-party transactions, with significant procurement from companies controlled by its actual controller's family members, raising concerns about potential conflicts of interest [14][15].

Core Viewpoint - Torrens Precision Manufacturing (Jiangsu) Co., Ltd. has initiated its IPO on the ChiNext board, aiming to raise 1.156 billion yuan to enhance its market position in the semiconductor precision component industry [1][4]. Company Overview - Torrens is a leading provider of precision metal components in China, focusing on the R&D, production, and sales of key process components for semiconductor equipment, including high-performance parts and system assembly products [2][3]. - The company has established a competitive advantage through a diverse range of semiconductor equipment metal components and has capabilities in laser equipment, providing essential parts like laser cavities and cooling components [2]. Technical Capabilities - Torrens ranks among the top tier of domestic manufacturers in terms of overall technical capabilities, covering high-precision mechanical manufacturing, welding, and surface treatment [3]. - The company has developed integrated capabilities for complex precision component processes and testing, enabling the production of intricate structures required in semiconductor manufacturing [3]. Client Base - Torrens serves major domestic semiconductor equipment manufacturers, with products integrated into the supply chains of companies like Northern Huachuang and Zhongwei, used in core equipment such as etching, film deposition, polishing, and annealing [3]. - The company has also successfully entered the supply chain of the internationally recognized laser equipment firm Lumentum [3]. Financial Performance - From 2022 to the first half of 2025, Torrens reported main business revenues of 279 million yuan, 287 million yuan, 606 million yuan, and 370 million yuan, with net profits of 33.95 million yuan, 15.30 million yuan, 106 million yuan, and 60.85 million yuan respectively [3]. - The company has experienced a compound annual growth rate of approximately 47.37% in revenue and 76.31% in net profit over the last three years, indicating strong growth potential [3]. IPO Details - The IPO aims to raise 1.156 billion yuan, which will be invested in the manufacturing and R&D base for precision components and to supplement working capital [4]. - The fundraising aligns with national industrial policies and the company's development strategy, enhancing its market position and innovation capabilities in the semiconductor precision component sector [4].