Core Viewpoint - Jiangsu Xinde Semiconductor Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, showcasing rapid growth driven by technological breakthroughs while facing challenges such as reliance on overseas markets and industry competition [1] Group 1: Company Overview - Founded in 2020, Xinde Semiconductor is one of the few advanced packaging product providers in China with comprehensive technical capabilities [1] - The company has established the "Chip and Advanced Packaging Technology Platform (CAPiC)" to enhance its technological knowledge and continuously develop cutting-edge technologies [1][3] Group 2: Financial Performance - Revenue is projected to grow from 269 million yuan in 2022 to 827 million yuan in 2024, representing a compound annual growth rate (CAGR) of over 40% [3] - Adjusted net profit is expected to turn from a loss of 154 million yuan in 2022 to a profit of 59.77 million yuan in 2024, with further growth to 59.34 million yuan in the first half of 2025 [3] - Gross loss rate is expected to decrease significantly from 79.8% in 2022 to 20.1% in 2024, and further to 16.3% in the first half of 2025 [3] Group 3: Research and Development - The company has increased its R&D investment from 58.71 million yuan in 2022 to 93.76 million yuan in 2024, with 44.38 million yuan invested in the first half of 2025 [3] - Xinde Semiconductor holds over 200 patents, including 32 invention patents and 179 utility model patents, covering key areas in packaging structure, methods, and equipment [3] Group 4: Market Challenges - The company has a long-term reliance on overseas sales, which account for over 75% of its revenue, exposing it to geopolitical changes and trade frictions [4] - Raw material costs are a significant concern, with direct materials constituting over 90% of the main business costs, and reliance on imported core materials poses potential risks [4] - Inventory levels have been rising, with a book value of 1.624 billion yuan at the end of 2024, representing over 36% of current assets, which may lead to inventory devaluation risks due to accelerated industry technology iterations [4] Group 5: Fundraising and Future Plans - The funds raised will be used to build production bases, establish new production lines, and procure related equipment to enhance manufacturing capabilities and meet growing market demand [5] - The company aims to focus on the explosive demand for advanced packaging, deepen customer cooperation, and expand market share while continuously iterating core technologies like 2.5D/3D and Fan-out to improve gross margins through scale effects and cost control [5]