Core Viewpoint - Wuhan Juxin Microelectronics Co., Ltd. (Juxin Micro) has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for key technology research, global sales expansion, strategic investments, and working capital [1][3]. Financial Performance - Juxin Micro reported a revenue growth of 128.7% from 2022 to 2024, with revenues of RMB 127 million, RMB 242 million, RMB 667 million, and RMB 400 million for the respective years [13]. - The company achieved a turnaround in 2024, reporting a net profit of RMB 9.734 million after recognizing deferred tax assets of RMB 40.747 million, despite previous losses [14]. - However, in the first half of 2025, Juxin Micro faced a "revenue without profit" situation, with a 53.64% revenue increase but a 37.60% decline in adjusted net profit [14]. Customer Dependency - Juxin Micro has a significant reliance on a major client, referred to as Client E, which contributed 99.73% and 97.13% of the company's direct sales revenue in 2022 and 2023, respectively [2][19]. - The top five clients accounted for 99.7%, 90.5%, 78.3%, and 81.7% of total revenue during the reporting period, indicating a high customer concentration risk [19]. Funding and Valuation - Since its establishment, Juxin Micro has completed 10 rounds of financing, raising over RMB 1.1 billion, with notable investors including Xiaomi, OPPO, and ByteDance [3]. - As of June 2025, the post-investment valuation of the company was approximately RMB 5.31 billion [3]. Governance and Management - The board of directors consists of nine members, including four executive directors and three independent directors, with Liu Deheng serving as the chairman and CEO [10][8]. - The compensation for the board members varied, with Liu Deheng's remuneration significantly higher than that of other directors [10][12]. Profitability Challenges - Juxin Micro's gross margin has been declining, with rates of 27.6%, 23.6%, 23.4%, and 23.3% over the reporting period [16]. - The majority of revenue comes from smart sensing products, which have seen a decline in gross margin from 25.8% to 22.8% [17][16].