Core Viewpoint - Shenzhen Xihua Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with Agricultural Bank of China International as its sole sponsor. The company specializes in edge AI chips and solutions, with products adopted by major automotive OEMs and globally recognized consumer electronics brands [1]. Financial Performance - The company reported net losses of RMB 129 million, RMB 153 million, RMB 81 million, and RMB 63 million for the years 2022, 2023, 2024, and the first nine months of 2025, respectively [2][3]. - Revenue figures for the same periods were RMB 87 million, RMB 150 million, RMB 244 million, and RMB 240 million, with gross margins of 35.7%, 21.5%, 28.4%, and 22.1% respectively [2][3]. Product Offerings - Xihua Technology provides a comprehensive range of edge AI chips and solutions, including smart display chips (AI Scaler and STDI chips) and smart sensing control chips (TMCU, general MCU, touch chips, and smart cockpit solutions) [2]. Research and Development - The company has been investing heavily in research and development, with expenditures of RMB 114 million, RMB 125 million, RMB 87 million, and RMB 67 million for the years 2022, 2023, 2024, and the first nine months of 2025, respectively [4]. Customer Concentration Risk - Xihua Technology faces concentration risk as a significant portion of its business relies on a few major clients. The largest client contributed revenues of RMB 67 million, RMB 87 million, RMB 162 million, and RMB 90 million for the respective years, accounting for 76.7%, 57.9%, 66.5%, and 37.4% of total revenue [5][6]. - The revenue from the top five clients for the same periods was RMB 78 million, RMB 118 million, RMB 217 million, and RMB 197 million, representing 89.9%, 78.6%, 88.8%, and 82.2% of total revenue [6]. Fundraising Purpose - The funds raised from the listing will be used to enhance the company's R&D capabilities for existing product lines, develop next-generation chips for AMOLED touch and audio drivers, build automotive electronic module production facilities, expand global market influence, and serve as working capital for general corporate purposes [6].

Core Viewpoint - Shenzhen Xihua Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with Agricultural Bank of China International as its sole sponsor. The company specializes in edge AI chips and solutions, with products adopted by major automotive OEMs and globally recognized consumer electronics brands [1][2]. Financial Performance - The company reported net losses of RMB 129 million, RMB 153 million, RMB 81 million, and RMB 63 million for the years 2022, 2023, 2024, and the first nine months of 2025, respectively [2][3]. - Revenue figures for the same periods were RMB 87 million, RMB 150 million, RMB 244 million, and RMB 240 million, with gross margins of 35.7%, 21.5%, 28.4%, and 22.1% respectively [2][3]. Product Offerings - Xihua Technology provides a comprehensive range of edge AI chips and solutions, including smart display chips (AI Scaler and STDI chips) and smart sensing control chips (TMCU, general MCU, touch chips, and smart cockpit solutions) [2][5]. Research and Development - The company has been investing heavily in research and development, with expenditures of RMB 114 million, RMB 125 million, RMB 87 million, and RMB 67 million for the years 2022, 2023, 2024, and the first nine months of 2025, respectively [5]. Customer Concentration Risk - Xihua Technology faces concentration risk, relying heavily on a single major customer, which accounted for 76.7%, 57.9%, 66.5%, and 37.4% of total revenue in the respective years [6][7]. - Revenue from the top five customers represented 89.9%, 78.6%, 88.8%, and 82.2% of total revenue during the same periods [7]. Fundraising Purpose - The funds raised from the listing will be used to enhance the technological R&D capabilities of existing product lines, develop next-generation chips for AMOLED touch and audio drivers, build automotive electronic module production facilities, and expand the company's global market presence and sales network [7].

Core Viewpoint - Xihua Technology, a Shenzhen-based AI chip and solution provider, has officially submitted its IPO application to the Hong Kong Stock Exchange, aiming to enhance its R&D capabilities and expand its product offerings in the AI chip market [1][4]. Group 1: Company Overview - Founded in August 2018, Xihua Technology is recognized as a national-level key "little giant" enterprise, specializing in smart display chips and smart sensing control chips, with over 100 million chips shipped to date [1]. - The company ranks second globally in the Scaler market with a market share of 18.8%, having shipped 37 million units, and holds the largest market share of 55% in the AI Scaler segment [2][3]. Group 2: Financial Performance - Xihua Technology has not yet achieved profitability, reporting cumulative losses of 426 million RMB over less than four years, with R&D expenditures nearing 400 million RMB [5]. - Revenue figures for the years 2022 to 2025 (up to September) are 87 million RMB, 150 million RMB, 244 million RMB, and 240 million RMB, respectively, indicating a compound annual growth rate of 67.8% from 2022 to 2024 [5][8]. - The gross margin fluctuated significantly, with rates of 35.7%, 21.5%, 28.4%, and 22.1% for the respective years, attributed to the company's relatively small sales scale [8][9]. Group 3: Product Lines and Market Position - Xihua Technology has developed 17 chip models across two main product lines: smart display chips (including AI Scaler and STDI chips) and smart sensing control chips (including TMCU and general-purpose MCUs) [11][12]. - The smart display chips have consistently contributed over 85% of the company's revenue from 2022 to 2025, while the revenue share from smart sensing control chips has increased from 1.9% in 2022 to 14.4% in the first nine months of 2025 [11][12]. Group 4: R&D and Technological Development - The company has established three major technological foundations, with over 50% of its workforce dedicated to R&D, totaling 81 employees [20][22]. - Xihua Technology has filed 361 patent applications, with 85% being invention patents, and holds 169 granted patents as of September 2025 [22]. Group 5: Customer and Supplier Dependency - A significant portion of Xihua Technology's revenue is concentrated among a few key customers, with the top five customers contributing 89.9% of total revenue in 2022, decreasing to 82.2% in the first nine months of 2025 [23][24]. - The company also relies heavily on a limited number of suppliers, with the top five suppliers accounting for 81.8% of total procurement costs in 2022, which decreased to 76.6% in the first nine months of 2025 [27][29]. Group 6: Ownership Structure - The founder and chairman, Chen Xi, and his spouse, Wang Hong, collectively control 65.51% of Xihua Technology [30][32].