Core Viewpoint - Shanghai Zhaoxin Integrated Circuit Co., Ltd. has submitted an IPO application to the Sci-Tech Innovation Board, aiming to raise 4.169 billion yuan [1] Company Overview - Zhaoxin Integrated focuses on the research, design, and sales of high-end general-purpose processors and supporting chips, with main products including the "Kaixian" series desktop processors and "Kaisheng" series server processors [1] - The company has made significant progress in expanding its market presence in the medical industry, successfully winning a bid for over 6,000 medical desktop PCs for a major hospital, competing against Intel and AMD [1] Industry Context - The medical industry is undergoing a digital transformation, with plans to significantly enhance the upgrade ratio of core information systems in hospitals by the end of 2025, despite facing challenges such as ecosystem fragmentation and system compatibility [1] - In response, Zhaoxin Integrated has introduced platforms like "seamless migration" and "one-stop support," collaborating with ecosystem partners to establish a Medical Application Innovation Center, providing comprehensive selection guidance from chips to operating systems and application software [1] Partnerships and Collaborations - Zhaoxin Integrated has nearly 4,000 ecosystem partners in system integration, software, and hardware, and has collaborated with major domestic operating system vendors such as Kirin Software Co., Ltd., Tongxin Software Technology Co., Ltd., and Zhongke Fangde Software Co., Ltd. to complete over 200,000 software and hardware adaptation and product optimization projects [1]

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]