Core Viewpoint - The unprecedented "AI computing power race" is driving a "storage supercycle," significantly boosting demand for enterprise-grade storage hard drives, leading to substantial stock price increases for major data storage companies like Seagate, SanDisk, and Western Digital, which have outperformed the broader market this year [1][2][4]. Group 1: Stock Performance and Market Trends - Seagate and Western Digital's stock prices have surged over 200% this year, reaching historical highs, driven by increased capital expenditures from cloud computing giants for AI data centers [2][8]. - The S&P 500 index has seen Seagate and Western Digital rank as the second and third highest gainers, significantly outperforming other tech giants [7]. - The storage sector index has risen over 11% this year, reaching record highs, indicating strong market sentiment towards storage companies [7][8]. Group 2: AI Infrastructure Investment - Major tech companies, including Alphabet, Microsoft, and Amazon, have announced significant increases in their annual capital expenditure plans for AI infrastructure, with global AI infrastructure spending projected to reach $3-4 trillion by 2030 [2][8]. - The demand for enterprise-grade HDDs and SSDs is expected to grow exponentially due to the increasing AI workloads and data generation from large-scale cloud customers [14][15]. Group 3: Supply and Demand Dynamics - The ongoing expansion of AI computing demand is leading to a tight supply of storage products, with Western Digital and Seagate benefiting from long-term contracts with major clients [4][10]. - The storage chip market is experiencing unprecedented price increases, with analysts predicting that the current "supercycle" could last until 2027 [11][16]. - The shift towards higher-capacity enterprise-grade hard drives is being accelerated by the need to meet the growing storage demands associated with AI applications [10][14]. Group 4: Analyst Ratings and Future Outlook - Analysts from various financial institutions have upgraded their ratings and price targets for Western Digital and Seagate, reflecting strong demand and positive market conditions [15][16]. - The overall sentiment in the market is bullish, with expectations that the storage sector will continue to see growth driven by AI infrastructure investments [9][15].

Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. (Dapu Micro) has taken a significant step in its IPO process by responding to the first round of inquiries from the Shenzhen Stock Exchange (SZSE) as the first unprofitable company applying for the ChiNext board, aiming to raise 1.878 billion yuan [2][11]. Group 1: Company Financials and Projections - Dapu Micro's IPO application was accepted on June 27, 2023, with a planned fundraising of 1.878 billion yuan, underwritten by Guotai Junan Securities [2]. - The company reported revenues of 557 million yuan, 519 million yuan, and 962 million yuan for the years 2022 to 2024, with net losses of 534 million yuan, 617 million yuan, and 191 million yuan respectively, projecting profitability by 2026 [5][6]. - The company attributes its current unprofitability to high R&D costs, limited bargaining power in the early stages, significant share-based payment expenses, cyclical fluctuations in the storage industry, and price volatility of NAND Flash [5][6]. Group 2: Inquiry Details from SZSE - The SZSE's first round of inquiries included 12 questions covering industry trends, technological innovation, operational sustainability, revenue sources, cost structure, gross margin changes, inventory, cash flow, and fundraising project details [4][9]. - Dapu Micro was specifically asked to provide a quantitative analysis of its unprofitability causes, the changes in these causes over the reporting period, and whether these issues are common in the industry [5][6]. Group 3: Market Position and Competitive Landscape - Dapu Micro is recognized as a leading provider of semiconductor storage products with full-stack self-research capabilities in enterprise-level SSDs, including controller chips, firmware algorithms, and modules [5]. - The company has a significant reliance on its largest supplier, with procurement from World Peace International (Hong Kong) accounting for 84.49%, 62.56%, and 66.26% of its costs over the reporting periods [9]. Group 4: Use of Proceeds and Future Plans - The funds raised from the IPO will be allocated to three main projects: 958 million yuan for the next-generation controller chip and enterprise-level SSD R&D, 220 million yuan for the enterprise-level SSD module mass production testing base, and 700 million yuan for working capital [10]. Group 5: Regulatory Environment and Compliance - The SZSE has emphasized the need for thorough scrutiny of unprofitable companies seeking to list, ensuring that they adequately demonstrate their operational sustainability and profitability forecasts [11]. - Dapu Micro's valuation was confirmed at 6.81 billion yuan during its last funding round in December 2024, with expectations to meet the minimum market capitalization requirement of 5 billion yuan for listing [10][11].

Core Insights - The article discusses the evolving landscape of IPO requirements across different stock exchanges in China, highlighting the increasing profit thresholds for companies seeking to go public [1][2][3]. IPO Requirements by Exchange - **North Exchange (北交所)**: - The North Exchange has become a primary venue for IPOs, with 116 companies applying, benefiting from low thresholds and efficient review processes [8][27]. - Companies listed here do not undergo on-site inspections, significantly reducing compliance costs and time [32]. - **ChiNext (创业板)**: - Companies need a minimum net profit of 1.5 billion to be considered viable for listing, with many firms in the semiconductor sector applying despite recent losses [2][15]. - The average revenue for companies applying is above 3 billion, with a median of 9.41 billion [16]. - **Sci-Tech Innovation Board (科创板)**: - The board has accepted several loss-making companies with high valuations, indicating a focus on innovative firms [3][20]. - Companies must demonstrate significant revenue, with a median of 4.56 billion for applicants [22]. - **Main Board (主板)**: - The main board has seen a resurgence in traditional industries, with companies needing at least 2 billion in net profit to apply [5][13]. - The average revenue for applicants is above 5 billion, with a median of 27.02 billion [11]. Market Trends - The first half of 2025 saw a significant increase in IPO applications, with a total of 177 companies, marking a 130% increase from the previous year [8]. - The North Exchange accounted for 65% of these applications, reflecting its attractiveness to innovative small and medium enterprises [8][32]. - The overall market is showing a trend towards supporting consumer-oriented companies, aligning with government policies [13][15].

Core Viewpoint - Shenzhen-based Dapu Microelectronics is seeking an IPO on the ChiNext board, focusing on enterprise-level SSDs for data centers, and is the first unprofitable company to be accepted for listing on the board [1][2]. Company Overview - Dapu Microelectronics, founded in April 2016, specializes in semiconductor storage products, particularly enterprise-level SSDs [3][4]. - The company has a full-stack self-research capability in "controller chip + firmware algorithm + module" for enterprise-level SSDs and outsources assembly production to EMS factories [4][6]. - The founder, Yang Yafei, controls 66.74% of the voting rights and has a background in Qualcomm [3]. Financial Performance - Dapu Microelectronics has experienced significant revenue fluctuations, with revenues of 5.57 billion yuan in 2022, 5.19 billion yuan in 2023, and projected 9.62 billion yuan in 2024 [8]. - The company reported net losses of 5.34 billion yuan in 2022, 6.17 billion yuan in 2023, and a projected loss of 1.91 billion yuan in 2024, totaling over 13 billion yuan in losses over three years [8]. - The company's gross profit margins have been unstable, with rates of 0.46%, -26.36%, and 27.26% over the past three years [13]. Market Position - Dapu Microelectronics ranks fourth in the domestic enterprise-level SSD market with a market share of 6.4% as of 2023 [6][28]. - The global enterprise-level SSD market was valued at $20.454 billion in 2022 and is expected to reach $51.418 billion by 2027, with a CAGR of 20.25% [24]. Industry Dynamics - The semiconductor storage industry is heavily influenced by the semiconductor cycle, with significant price fluctuations observed [28]. - Major global players like Samsung, SK Hynix, Western Digital, Micron, and Kioxia dominate over 90% of the market, impacting pricing and production decisions [28]. - Dapu Microelectronics plans to raise 1.878 billion yuan for R&D and production projects, indicating a focus on innovation and market competitiveness [28].

Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. (Dapu Micro) has become the first unprofitable company to have its IPO application accepted by the Shenzhen Stock Exchange, marking a significant milestone for the ChiNext board's support of innovative unprofitable enterprises [1][4]. Company Overview - Dapu Micro focuses on the research and sales of enterprise-level SSD products for data centers, possessing full-stack self-research capabilities in "controller chips + firmware algorithms + modules" and achieving mass production [1][2]. - The company has shipped over 3,500 PB of enterprise-level SSDs, with more than 70% of shipments featuring self-developed controller chips [2]. Market Position - In 2023, Dapu Micro ranked fourth in the domestic enterprise-level SSD market with a market share of 6.4%, while international manufacturers still dominate the market [2]. - The company's customer base includes major domestic and international internet companies such as Google, ByteDance, Tencent, Alibaba, JD.com, and others, as well as leading server manufacturers and telecom operators [2]. Financial Performance - Dapu Micro reported revenues of 557 million yuan, 519 million yuan, and 962 million yuan for the years 2022 to 2024, with net losses of 534 million yuan, 617 million yuan, and 191 million yuan respectively [3]. - The company attributes its lack of profitability to high R&D investments, limited bargaining power in the early stages, cyclical fluctuations in the storage industry, and significant share-based payment expenses [3]. IPO Details - Dapu Micro plans to raise 1.878 billion yuan through its IPO, which will be allocated to the development and industrialization of next-generation controller chips and enterprise-level SSDs, as well as to establish a mass production testing base for SSD modules [3]. - The company has a special voting rights mechanism, allowing its major shareholders to control a significant portion of the voting rights, with the actual controller holding 66.74% of the voting rights [3]. Industry Context - The China Securities Regulatory Commission has announced the implementation of a third set of standards on the ChiNext board to support high-quality unprofitable innovative enterprises, with Dapu Micro being the first to benefit from this new policy [4][5]. - The introduction of these standards aims to enhance the inclusivity and adaptability of the ChiNext board for quality technology companies, facilitating the aggregation of advanced production factors in the technology sector [5].