Core Viewpoint - Shengbang Co., Ltd. (300661) has submitted its prospectus to the Hong Kong Stock Exchange for a main board listing, joining the A+H listing trend, despite facing significant operational challenges and revenue volatility [1][6]. Group 1: Financial Performance - Shengbang's revenue decreased from 3.188 billion yuan in 2022 to 2.616 billion yuan in 2023, a decline of 17.9%, before rebounding to 3.347 billion yuan in 2024 [2][3]. - Net profit plummeted nearly 70% from 858 million yuan in 2022 to 270 million yuan in 2023, a drop of 68.5%, although it recovered to 491 million yuan in 2024, still below 2022 levels [2][3]. - In the first half of 2025, revenue grew by 15.37% to 1.819 billion yuan, but the growth rate decreased by 21.90 percentage points compared to the first half of 2024, indicating insufficient growth momentum [2][4]. Group 2: Profitability Challenges - The company's gross margin has declined from 52.9% in 2022 to 44.9% in 2023, reflecting potential pricing pressures or rising costs [4][5]. - In the first half of 2025, while net profit attributable to shareholders increased by 12.42% to 201 million yuan, the net profit excluding non-recurring items fell by 14.98% to 134 million yuan, indicating reliance on non-operating gains for profit growth [2][4]. Group 3: R&D and Innovation - Shengbang has significantly increased its R&D investment, with expenditures of 626 million yuan, 737 million yuan, and 871 million yuan over the past three years, representing 19.6%, 28.2%, and 26% of total revenue respectively [6][7]. - Despite high R&D spending, the conversion of these investments into profitable outcomes has been inadequate, as evidenced by the substantial drop in net profit during the same period [6][7]. Group 4: Supply Chain Risks - The company relies heavily on a few suppliers, with the top five suppliers accounting for over 91% of total purchases, indicating a significant supply chain dependency risk [10][12]. - Shengbang's revenue is primarily generated through distribution channels, with a high reliance on distributors, which poses additional risks in terms of revenue stability and market control [12]. Group 5: Market Outlook - The company acknowledges the challenges posed by industry downturns and intensified competition, emphasizing the need for continuous innovation to maintain market share [6][13]. - The successful transformation through the Hong Kong listing will depend on overcoming these operational and market challenges [13].

Company Overview - Shengbang Co., Ltd. (300661) has submitted an application for listing on the Hong Kong Stock Exchange, with Huatai International and China International Capital Corporation (CICC) as joint sponsors [1] - The company is a comprehensive analog integrated circuit (IC) firm, offering approximately 6,600 types of analog ICs and sensor products across 36 product categories [1] - The product portfolio is divided into two main areas: signal chain integrated circuits and power management integrated circuits [1] Industry Insights - The products are widely used in various sectors, including industrial, networking, consumer electronics, electric vehicles, data centers, robotics, renewable energy, and next-generation consumer devices [1] - The company employs a "Fabless+" operational model, focusing on circuit design, system innovation, and differentiated analog processes [1] - The Chinese analog integrated circuit market is expected to continue its growth, projected to reach 334.6 billion RMB by 2029 [1]