Core Viewpoint - Zhaoxin Integrated's IPO application has been accepted by the Shanghai Stock Exchange, aiming to raise 4.169 billion yuan for new processor development and R&D center projects [1] Group 1: Financial Performance - Zhaoxin Integrated has experienced significant financial pressure, with a total loss exceeding 2 billion yuan over three years due to high R&D costs and declining gross margins [1][8] - The company's gross margin has sharply decreased from 38.79% in 2022 to 15.40% in 2024, significantly lower than the industry average [4][6] - The company reported net losses of 7.27 billion yuan, 6.76 billion yuan, and 9.51 billion yuan over the past three years, totaling 23.54 billion yuan [8] Group 2: Customer Dependency - Zhaoxin Integrated relies heavily on a few major customers, with the top five customers accounting for 88.60% to 96.63% of sales from 2022 to 2024 [3] - The first major customer, China Electronics International, contributed over 50% of sales during the same period, indicating a high customer concentration risk [3] Group 3: Product Performance - The company's main products, the "Kaixian" and "Kaisheng" series, have shown strong growth, with revenue growth rates of 74.64% and 51.78% for the "Kaixian" series in 2023 and 2024, respectively [2] - The "Kaisheng" series server processors exhibited even higher growth rates of 289.01% and 547.63% in the same years, albeit from a low base [2] Group 4: R&D Investment - Zhaoxin Integrated's R&D expenses were 9.84 billion yuan, 9.88 billion yuan, and 8.13 billion yuan over the past three years, representing an exceptionally high R&D expense ratio of 289.50% to 91.44% [8] - The company has a lower proportion of employee compensation in its R&D expenses compared to peers, which may affect its long-term competitiveness [9][10]

Core Viewpoint - Shanghai Zhaoxin Integrated Circuit Co., Ltd. has officially submitted its application for listing on the Sci-Tech Innovation Board, focusing on the research, design, and sales of high-end general-purpose processors and supporting chips, positioning itself as a leading domestic CPU design enterprise compatible with x86 instruction sets [2] Business Overview - The company specializes in the research, design, and sales of high-end general-purpose processors and supporting chips, with a comprehensive technical capability covering all aspects of CPU design and development [2][3] - Zhaoxin has successfully designed and mass-produced six generations of general-purpose processors, forming two major product series: the "KX" series for desktop PCs/embedded processors and the "KX" series for server processors [2] Innovation and Technology - The company has achieved six major breakthroughs in independent innovation, mastering the full platform implementation technology for general-purpose processors, and has created multiple domestic firsts in key CPU metrics such as frequency, I/O interfaces, and cache capacity [3] - As of December 31, 2024, the company holds 1,434 authorized patents, including 1,410 domestic and foreign invention patents, along with software copyrights and integrated circuit layout design rights [3] Ecosystem Development - Zhaoxin collaborates closely with over 3,000 partners in the domestic industry chain, supporting various operating systems and forming over 200,000 software and hardware adaptation projects [4] - The company provides computing solutions across various sectors, including government, finance, education, energy, and healthcare, contributing to the sustainable development of the digital economy [4] Financial Performance - The company's revenue from high-end general-purpose processors and supporting chips is projected to grow significantly, with revenues of 340.04 million yuan, 555.13 million yuan, and 889.22 million yuan from 2022 to 2024 [5] - The net profit attributable to shareholders is negative, with figures of -726.61 million yuan, -675.58 million yuan, and -951.39 million yuan for the same period, indicating ongoing losses [5] Gross Margin Analysis - The company's gross margin has declined from 38.79% in 2022 to 15.40% in 2024, attributed to new product launches and price adjustments of existing products [6] Fundraising and Project Investment - Zhaoxin plans to raise 383 million yuan to invest in projects including new generation server processors, new generation desktop processors, advanced process processor R&D, and a research center [7] - The new generation server processor project will utilize Chiplet technology to enhance performance and specifications, while the desktop processor project will feature a new microarchitecture and significant improvements in performance metrics [8][9] R&D Center Development - A new R&D center will be established in Shanghai to ensure sustainable development and continuous innovation, focusing on advanced processor microarchitecture, high-performance cores, and next-generation I/O interfaces [11]