Core Viewpoint - Xiamen Youxun Chip Co., Ltd. (Youxun Co.) is set to have its IPO reviewed again on October 15 after a previous delay due to concerns over the sustainability of its operating performance and the stability of its actual controller's control rights [1] Group 1: Company Overview - Youxun Co. is a leading player in the domestic market for optical communication chips, focusing on the research, design, and sales of optical communication front-end transceiver chips [2] - The company plans to raise 809 million yuan for projects related to next-generation access networks, high-speed data center chips, and 800G optical communication chips [2] - Youxun Co. claims to be a "national champion" in the optical communication sector, with a market share of 26.64 billion yuan in the 10Gbps and below segment, projected to be the largest in China and second globally by 2024 [4] Group 2: Financial Performance - Revenue for Youxun Co. during the reporting period was approximately 339 million yuan in 2022, 313 million yuan in 2023, 411 million yuan in 2024, and 238 million yuan in the first half of 2025, showing a compound annual growth rate of 10.26% [7] - The company's net profit for the same periods was 81.4 million yuan, 72.1 million yuan, 77.9 million yuan, and 46.9 million yuan, with non-recurring net profits also showing a decline [7] - The gross margin of the main business has decreased from 55.26% in 2022 to 43.48% in the first half of 2025, indicating pressure from both product pricing and costs [8] Group 3: Market Dynamics - The average selling price of key products has declined, with the average price of the optical communication transceiver chip dropping from 2.66 yuan per unit in 2022 to 2.29 yuan in the first half of 2025, a decrease of nearly 14% [8] - The market size for 10Gbps and below optical chips is projected to grow from 370 million USD (approximately 2.66 billion yuan) in 2024 to 490 million USD (approximately 3.53 billion yuan) by 2029 [4] - Youxun Co. has a high customer concentration, with sales to the top five customers accounting for over 65% of total revenue during the reporting period [10] Group 4: Governance and Control Issues - The company has faced internal governance issues, with significant power struggles among founders lasting up to 15 years, impacting its operational stability [11] - The actual control of the company has changed hands multiple times, with the current controllers holding only 27.13% of voting rights, raising concerns about control stability [12] - The listing committee has requested explanations regarding the stability of the actual controller's rights and the potential risks of control changes post-IPO [12]

IPO Review and Registration Progress - Three companies were reviewed last week, with two IPO registrations approved and one company facing a delay in review [2][3] - Yuan Chuang Co., Ltd. and Xin Guang Yi both received approval for their IPOs, targeting the Shenzhen Main Board and the ChiNext Board respectively [2] - Yuan Chuang's main business involves the research, production, and sales of rubber tracks, with projected revenue of 1.349 billion yuan in 2024, an 18.19% increase year-on-year, but a 12.94% decline in net profit [2] - Xin Guang Yi focuses on high-performance special functional materials, with its performance closely tied to the FPC industry and consumer electronics [3] Upcoming IPOs - Four companies are scheduled for IPO reviews this week, including Bai Ao Sai Tu, Heng Dong Guang, Nan Wang Digital, and Mo Er Thread [4][5] - Bai Ao Sai Tu, a clinical pre-CRO and biotechnology firm, aims to raise 8 billion yuan, with projected revenues increasing from 534 million yuan in 2022 to 980 million yuan in 2024 [5] - Heng Dong Guang specializes in passive optical devices, reporting a 105.84% revenue increase to 1.021 billion yuan in the first half of 2025 [5] - Mo Er Thread, a GPU chip design company, plans to raise 8 billion yuan for various chip development projects, with a revenue of 702 million yuan in the first half of 2025 [6] New Stock Listings and Subscription Dynamics - One new stock, Shi Chang Co., Ltd., was listed last week, with a first-day increase of 271.56% [9] - Shi Chang specializes in automotive fuel systems, with a focus on lightweight and low-emission products, targeting major automotive manufacturers [10] - This week, You Sheng Co., Ltd. is set to be listed, focusing on lightweight components for new energy vehicles, reporting a 30.76% revenue growth in the first half of 2025 [11] - One new stock subscription is scheduled for Ao Mei Sen, with an issue price of 8.25 yuan per share, focusing on intelligent equipment manufacturing [12] New Applications and Approvals - Three new IPO applications were accepted last week at the Beijing Stock Exchange, including Jiu Mu Chemical, Bai Nuo Pharmaceutical, and Shen Lan Hua [7] - Jiu Mu Chemical, a subsidiary of Wanrun Co., focuses on OLED materials, reporting a revenue decline of 23.1% in the first half of 2025 [7] - Bai Nuo Pharmaceutical aims to raise 800 million yuan for drug development and digital platform projects, with a revenue of 287 million yuan in the first half of 2025 [8] - Shen Lan Hua, specializing in high-end organic pigments, reported a 25.04% revenue increase to 388 million yuan in the first half of 2025 [8]

Core Viewpoint - The initial public offering (IPO) application of Xiamen Youxun Chip Co., Ltd. has been postponed for review, raising concerns in the market regarding the company's declining gross margin and the sustainability of its operating performance [2][3][9]. Group 1: Company Overview - Youxun Chip, established in 2003, is a leading domestic player in optical communication chips, focusing on the research, design, and sales of optical communication front-end transceiver chips [6]. - The company's main products include laser driver chips (LDD), transimpedance amplifier chips (TIA), limiting amplifier chips (LA), and integrated optical communication transceiver chips, which provide a complete solution for efficient and reliable optoelectronic signal conversion, amplification, and processing [6]. Group 2: Financial Performance - The company's main business compound annual growth rate (CAGR) over the last three years is 10.26%, but it has shown significant volatility [9]. - In 2022, Youxun Chip's revenue was 339 million yuan, which decreased by 7.67% to 313 million yuan in 2023, but is projected to increase by 31.31% to 411 million yuan in 2024 [9]. - The gross margin has been declining, with figures of 55.26%, 49.14%, 46.75%, and 43.48% for the years 2022 to 2025 (first half) respectively [10]. Group 3: IPO Review and Concerns - The Shanghai Stock Exchange announced that the review of Youxun Chip's IPO application was postponed due to concerns about the continuous decline in gross margin and the sustainability of its operating performance [3][9]. - Key questions raised during the review include the company's product structure, pricing power, market expansion, and the stability of its actual controller's control rights [3][6]. Group 4: Funding and Future Projects - Youxun Chip plans to raise 809 million yuan to enhance its competitiveness, with funds allocated to projects such as the development and industrialization of next-generation access network and high-speed data center chips, automotive chips, and 800G and above optical communication chips [13][16]. - The company aims to address the core demands of global infrastructure upgrades and keep pace with industry trends through these projects [16][17].

Core Viewpoint - The temporary suspension of the IPO review for companies does not indicate a complete halt on their path to listing, as it allows time for clarification of issues that may affect the listing process [1][9]. Company Summary - Xiamen Youxun Chip Co., Ltd. (Youxun Co.) has had its IPO review on the Sci-Tech Innovation Board temporarily suspended as of September 19, 2023. The company specializes in optoelectronic chips and was established in February 2003 [3]. - Youxun Co. submitted its IPO application in June 2023 and has quickly progressed through two rounds of inquiries within three months [3]. - Key concerns raised by the exchange include risks related to declining gross margins, sustainability of operating performance, changes in control by the actual controller, and accounting treatment of share-based payments during the reporting period [3][6]. Accounting Treatment Issues - A significant issue involves the accounting treatment of share-based payments related to a transfer of shares from an employee to one of the actual controllers, which was not accounted for as a share-based payment [4][5]. - The company claims that the transferred shares will be granted back to eligible incentive recipients within three years, and thus, according to relevant regulations, do not require accounting treatment as share-based payments [5]. - Youxun Co. estimated a share-based payment expense of 102,900 yuan, asserting that it has a minimal impact on operating performance during the reporting period [6]. Financial Projections - For the first half of 2025, Youxun Co. projects revenue of 238 million yuan, representing a year-on-year growth of 20.19%, with a net profit attributable to shareholders of 41.69 million yuan [6]. - The company aims to raise 889 million yuan through its IPO to fund projects related to next-generation access networks, high-speed data center chips, and other advanced chip developments [6]. Industry Context - In 2023, three companies, including Youxun Co., have experienced temporary suspensions in their IPO reviews on the Sci-Tech Innovation Board [7]. - Other companies facing similar situations include Hengkun New Materials and Taijin New Energy, both of which have also had their IPO applications temporarily suspended due to various concerns [7][10].

Core Viewpoint - Xiamen Youxun Chip Co., Ltd. is pursuing an IPO on the Sci-Tech Innovation Board, but faces significant uncertainties due to internal conflicts, control issues, and declining profit margins [1] Group 1: Control and Management Issues - The company has experienced a 15-year power struggle between founder Ping Xu and the current controlling shareholders, the Ke family, leading to instability in management [2][3] - The Ke family, lacking a technical background, now holds a combined voting power of only 27.13%, raising concerns about the stability of control [4] - Post-IPO, the controlling shareholders' voting power is expected to dilute to 20.35%, below the critical threshold of 30% for absolute control [5] Group 2: Related Party Transactions - The company has engaged in outsourcing R&D and business transactions with entities associated with the spouse of the controlling shareholder, raising regulatory scrutiny [6] - The total outsourced R&D expenses exceeded 21 million yuan, with significant contracts in place for various projects, including collaborations with universities [9] Group 3: Financial Performance - Revenue showed a decline from 339 million yuan in 2022 to 313 million yuan in 2023, before rebounding to 411 million yuan in 2024 [10] - The net profit followed a similar trend, decreasing from approximately 81.4 million yuan in 2022 to 72.1 million yuan in 2023, then slightly recovering to 77.9 million yuan in 2024 [10] - Despite revenue recovery in 2024, the company's gross margin has been under pressure, declining from 55.26% in 2022 to 46.75% in 2024 [11][12]

Core Viewpoint - Xiamen Youxun Chip Co., Ltd. is set to go public on the Sci-Tech Innovation Board, aiming to raise 809 million yuan for various chip development projects, while facing challenges in profitability and potential control changes post-IPO [2][4][5]. Company Overview - Youxun specializes in the research, design, and sales of optical communication front-end transceiver chips, positioning itself in the upstream of the optical communication industry chain [4][5]. - The company claims to be a "national manufacturing single champion enterprise" in the optical communication field, with a leading market share in 10G and below products [5][6]. Financial Performance - The company reported a fluctuating revenue trend: 339 million yuan in 2022, a slight decline to 313 million yuan in 2023, and a projected increase to 411 million yuan in 2024, representing a year-on-year growth of 31.1% [4][5]. - The net profit excluding non-recurring items for 2022 to 2024 is projected to total 219 million yuan, with 41.69 million yuan reported for the first half of 2025, indicating ongoing profitability [4][5]. Profitability Challenges - The overall gross margin has declined from 55.26% in 2022 to 43.48% in the first half of 2025, attributed to price pressures and increased costs [5][6]. - The company faces intense competition, with a significant reliance on low-margin distribution revenue, which has increased its average unit cost [6]. Control and Governance Issues - The company has experienced a long-standing control dispute, with the current actual controllers, Ke Binglan and his son, having gained control after a decade of changes in ownership and governance [8][12]. - Post-IPO, the combined voting rights of the actual controllers may drop to approximately 20.35%, raising concerns about potential changes in control [2][12].

Core Viewpoint - Youxun Co., Ltd. is preparing for its IPO on the Sci-Tech Innovation Board, aiming to raise 809 million yuan for various chip development projects, while facing challenges in profitability and potential control changes post-IPO [1][5]. Group 1: Company Overview - Youxun Co., Ltd. specializes in the research, design, and sales of optical communication front-end transceiver chips, positioning itself as a leading player in the upstream segment of the industry [5]. - The company claims to be a "national manufacturing single champion enterprise" in the optical communication field, with a significant market share in 10G and below front-end chips [5][6]. Group 2: Financial Performance - The company's net profit excluding non-recurring items is projected to be 95.73 million yuan in 2022, 54.91 million yuan in 2023, and 68.57 million yuan in 2024, totaling 219 million yuan over three years [5]. - Revenue has shown a fluctuating upward trend, with 339 million yuan in 2022, a slight decline to 313 million yuan in 2023, and a rebound to 411 million yuan in 2024, representing a year-on-year growth of 31.1% [5][6]. Group 3: Market Position and Competition - In the 10Gbps and below product segment, Youxun holds the largest market share in China and the second largest globally, competing with major players like MACOM and Semtech [6]. - Despite its champion status, Youxun faces intense competition, with its overall gross margin declining from 55.26% in 2022 to 43.48% in the first half of 2025 [6][7]. Group 4: Control and Governance Issues - The company has experienced a prolonged control struggle, with its actual controller changing multiple times over nearly a decade, leading to governance challenges [9][10]. - Following a series of strategic moves, the current controllers, Ke Binglan and his son, have consolidated their control, but the upcoming IPO may dilute their voting power to approximately 20.35%, raising concerns about potential control changes [9][13].

Core Viewpoint - Xiamen Youxin Chip Co., Ltd. is preparing for its IPO on the Sci-Tech Innovation Board, focusing on optical communication chips, with potential growth driven by AI data center construction, despite recent performance declines due to the semiconductor cycle [1][28]. Company Background - Youxin Chip was established in February 2003 and became a joint-stock company in May 2024, headquartered in Xiamen Software Park [2]. - The company has undergone two changes in actual controllers, with the current control held by the father-son duo, Ke Binglan and Ke Tenglong, since November 2022 [4][5]. Business Focus - Youxin Chip specializes in the research, design, and sales of optical communication front-end transceiver chips, operating under a Fabless model [6]. - The company's products play a crucial role in the optical communication industry, serving as key components in optical modules [6][10]. Financial Performance - The company's revenue has fluctuated in recent years, with reported revenues of 339 million yuan in 2022, 313 million yuan in 2023, and projected 411 million yuan in 2024 [15]. - The gross profit margin has been declining, with figures of 55.26% in 2022, 49.14% in 2023, and 43.48% in the first half of 2025, primarily due to price competition and rising costs [18][19]. Market Position - Youxin Chip holds approximately 28% market share in the 10Gbps and below segment, ranking first in China and second globally [21][26]. - The global market for optical communication chips is expected to grow significantly, particularly in data centers, with a projected market size of 20.9 billion USD in 2024 and 60.2 billion USD by 2029 [23][26]. Customer Base - The company has established strong relationships with major optical module manufacturers, with over 60% of its revenue coming from the top ten clients [13][15].

Core Viewpoint - Xiamen Youxun Chip Co., Ltd. is set to go public on the Sci-Tech Innovation Board, aiming to raise 809 million yuan for various chip development projects, while facing challenges in profitability and potential control changes post-IPO [1][3]. Company Overview - Youxun specializes in the research, design, and sales of optical communication front-end transceiver chips, primarily operating in the upstream segment of the optical communication industry [2]. - The company claims to be a "national manufacturing single champion enterprise" in the optical communication field, with a leading market share in 10G and below front-end chips [3]. Financial Performance - The projected non-GAAP net profits for Youxun from 2022 to 2024 are 95.73 million yuan, 54.91 million yuan, and 68.57 million yuan, totaling 219 million yuan [3]. - Revenue has shown fluctuations, with 339 million yuan in 2022, a slight decline to 313 million yuan in 2023, and an expected increase to 411 million yuan in 2024, representing a year-on-year growth of 31.1% [3]. - In the first half of 2025, revenue reached 238 million yuan [3]. Revenue Structure - Approximately 90% of Youxun's revenue comes from optical communication transceiver chips, with 86.74% of sales in the first half of 2025 derived from 10G and below products [4]. Profitability Challenges - The overall gross margin has declined from 55.26% in 2022 to 43.48% in the first half of 2025, indicating pressure on profitability despite the company's market position [5][6]. - Factors contributing to the gross margin decline include price reductions due to industry competition and increased costs from changes in customer structure [6]. Control and Governance Issues - Youxun has experienced a prolonged control struggle, with the current actual controllers, Ke Binglan and his son, having gained control after a decade of disputes [7][11]. - Post-IPO, the combined voting rights of the actual controllers may drop to approximately 20.35%, raising concerns about potential changes in control [1][11].

Group 1 - The core viewpoint of the article highlights that Xiamen Youxin Chip Co., Ltd. is preparing for its IPO on the Sci-Tech Innovation Board, with a focus on optical communication chips, which are expected to benefit from the construction of AI data centers [1][33] - The company was established in February 2003 and transformed into a joint-stock company in May 2024, headquartered in Xiamen Software Park [3] - The actual controller of the company has changed twice, with the current control held by the father-son duo, Ke Binglan and Ke Tenglong, who control 27.13% of the voting rights [5][6] Group 2 - Youxin Chip specializes in the research, design, and sales of optical communication front-end transceiver chips, operating under a Fabless model [9][10] - The main products include laser driver chips, transimpedance amplifier chips, limiting amplifier chips, and optical transceiver chips, with a focus on products with speeds of 10Gbps and below [12][21] - The company has established good relationships with major optical module manufacturers, with over 60% of its revenue coming from the top ten customers [15][21] Group 3 - The company's revenue has fluctuated in recent years, with reported revenues of 339 million yuan in 2022, 313 million yuan in 2023, and projected revenues of 411 million yuan in 2024 [19] - The gross profit margin has been declining, with figures of 55.26%, 49.14%, 46.75%, and 43.48% over the past four years, primarily due to price reductions and rising costs [22] - The company faces high accounts receivable pressure, with balances reaching 645.3 million yuan, 134 million yuan, 115 million yuan, and 129 million yuan over the past four years, representing 19.03%, 42.67%, 27.93%, and 54.25% of revenue respectively [24] Group 4 - The optical communication chip market is expected to grow significantly, with the global market for telecom-side optical communication chips projected to reach $1.85 billion in 2024 and the data center-side market expected to reach $2.09 billion [26][27] - Youxin Chip holds a market share of approximately 28% in the 10Gbps and below segment, ranking first in China and second globally [25][29] - The company is positioned to benefit from the ongoing AI data center construction wave, although it has faced challenges due to the semiconductor cycle affecting its performance in 2023 [33]