Core Viewpoint - Linyi Intelligent Manufacturing (领益智造) has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for R&D, capacity enhancement, strategic investments, and operational needs, amidst a trend of increasing overseas revenue and decreasing domestic revenue [1][2][3]. Group 1: Company Overview - Linyi Intelligent Manufacturing is an AI hardware intelligent manufacturing platform that provides comprehensive manufacturing services and solutions globally [2]. - The company has established a full product matrix covering core materials, precision components, modules, and assembly, with applications in AI hardware, automotive, and low-altitude economy sectors [2]. - As of September 30, 2025, the company operates 62 regional centers, with 14 located overseas, serving over 4,000 clients across more than 30 countries and regions [2][3]. Group 2: Financial Performance - The company's revenue for the reporting period was 345.03 billion, 341.54 billion, 442.6 billion, and 375.90 billion, with corresponding profits of approximately 15.6 billion, 20.14 billion, 17.61 billion, and 19.66 billion, indicating a situation of "increased revenue without increased profit" [4]. - Despite a 29.59% revenue growth in 2024 compared to 2023, the company has seen a decline in profit margins [4]. - The revenue from the top five clients accounted for 49.1%, 52.0%, 56.0%, and 56.4% of total revenue during the reporting period, highlighting a dependency on a few major clients [4]. Group 3: Revenue Trends - The proportion of overseas revenue increased from 26.2% in 2022 to 47.3% in the first three quarters of this year, while domestic revenue decreased from 73.8% to 52.7% [3]. - The majority of the company's revenue comes from AI hardware, with its revenue share fluctuating between 87.6% and 92.1% during the reporting period [2]. Group 4: Strategic Initiatives - The funds raised from the IPO will be used for enhancing R&D capabilities, increasing production capacity, strategic investments, and general corporate purposes [1]. - The company previously considered issuing GDRs for listing on the London Stock Exchange but opted for convertible bonds as an alternative financing method [6][7].

Core Viewpoint - The company Lingyi iTech has submitted an IPO application to the Hong Kong Stock Exchange, aiming to expand its market presence in the AI and low-altitude economy sectors while facing challenges in profit margins [1][4]. Group 1: Company Overview - Lingyi iTech was established in 2006 and went public on the Shenzhen Stock Exchange in February 2018, initially focusing on consumer electronics die-cut products [1]. - The company has developed a comprehensive product matrix covering core materials, precision components, modules, and assembly, with applications in AI hardware, automotive, and low-altitude economy sectors [1]. - According to Frost & Sullivan, Lingyi iTech ranks first in the global AI terminal device high-precision components market with a market share of 6.7% and third in the high-precision intelligent manufacturing platform market with a 1.5% share [1]. Group 2: Financial Performance - Revenue from AI hardware business constituted 91.2%, 89.9%, 92.7%, and 87.6% of total revenue from 2022 to the first three quarters of 2025, while automotive and low-altitude economy business contributed 3.1%, 4.1%, 4.8%, 4.5%, and 5.2% respectively [1]. - The company's revenue for 2022, 2023, and 2024 was reported at 34.503 billion, 34.154 billion, and 44.26 billion yuan, with net profits of 1.571 billion, 2.023 billion, and 1.755 billion yuan respectively [4]. - In 2023, revenue decreased by 0.35% year-on-year, while net profit increased by 26.78%. In 2024, revenue grew by 30.48% year-on-year, but net profit decreased by 14.42% [4]. Group 3: Profit Margins - The company's gross margin has been declining, with figures of 19.8%, 18.7%, and 14.4% from 2022 to 2024. The gross margin for AI hardware was 21.2%, 20.6%, and 16.2%, while for automotive and low-altitude economy it was 3.3%, 1.9%, and 0.6% [2][3]. - The decline in gross margin is attributed to a competitive pricing strategy aimed at capturing market share for new products that have not yet achieved full economies of scale [4]. Group 4: IPO Purpose - The funds raised from the IPO will be used to enhance R&D capabilities, increase production capacity through equipment investment, support strategic investments and acquisitions, expand production facilities domestically and internationally, and for working capital and general corporate purposes [5].