Core Viewpoint - Zhuohai Technology Co., Ltd. has submitted an IPO prospectus to the Beijing Stock Exchange, aiming to capitalize on the growing semiconductor front-end measurement equipment market, which is projected to reach 12.77 billion yuan by 2027, with a compound annual growth rate (CAGR) of 26.69% [1][3]. Company Overview - Established in 2009 and headquartered in Wuxi, Jiangsu Province, Zhuohai Technology specializes in the research, repair, and sales of semiconductor front-end measurement equipment, recognized as a national-level specialized and innovative "little giant" enterprise [1]. - The company focuses on critical measurement and defect detection for semiconductor manufacturing equipment, which constitutes approximately 13% of the semiconductor equipment market [1]. Market Dynamics - The front-end measurement and repair equipment market in mainland China grew from 1.48 billion yuan in 2019 to 4.98 billion yuan in 2023, with a CAGR of 35.44% [1]. - The introduction of the "wafer origin" policy in China is expected to accelerate the domestic substitution process in the semiconductor industry [5]. Competitive Landscape - Currently, domestic self-developed brands hold only about 5% of the new equipment market, which is dominated by international giants such as KLA, AMAT, and Hitachi [5]. - Zhuohai Technology's market share in the repair equipment sector has increased from 2.07% in 2018 to 7.39% in 2023, ranking third globally [5]. Financial Performance - Zhuohai Technology's revenue for 2022, 2023, and 2024 was 314 million yuan, 381 million yuan, and 465 million yuan, respectively, with net profits of 119 million yuan, 132 million yuan, and 104 million yuan [8]. - The gross profit margin for the main business decreased from 60.58% in 2022 to 46.56% in 2024, primarily due to the semiconductor cycle impacting profit margins [8]. Revenue Breakdown - In 2024, revenue from repair equipment accounted for 92.24% of total revenue, with a year-on-year growth of 22.3% and a gross margin of 46.49% [9][10]. - Self-developed equipment generated 12 million yuan in revenue, representing 2.62% of total revenue, while component sales accounted for approximately 3.39% [10][11]. R&D and Challenges - Zhuohai Technology's R&D expenses as a percentage of revenue were 4.81%, 7.46%, and 7.25% from 2022 to 2024, significantly lower than peers like Zhongke Feimeng and Jingce Electronics [12]. - The reliance on international retired equipment for repair services poses risks, as procurement costs have risen, leading to a 14.01% decline in gross margin for some equipment models in 2024 [12].