Core Viewpoint - Xi'an Yiswei Material Technology Co., Ltd. (referred to as "Xi'an Yicai") has officially listed on the Sci-Tech Innovation Board with an issue price of 8.62 yuan per share, raising a total of 4.636 billion yuan, but faces deep market skepticism regarding its profitability and operational stability due to ongoing massive losses, low gross margins, soaring debts, and risks associated with performance guarantees [2] Financial Challenges: Massive Losses, Low Margins, High Debt - From 2021 to 2024, the company's revenue is projected to grow from 208 million yuan to 2.121 billion yuan, with a compound annual growth rate (CAGR) of 117.6%, yet net losses are expected to widen from 521 million yuan to 738 million yuan, resulting in cumulative losses of 2.465 billion yuan over four years [3] - The gross margin has been persistently low, with figures of -100.67%, 9.85%, 0.66%, and 5.49% from 2021 to 2024, significantly below the average of over 20% for comparable companies in Taiwan and abroad [3] - The company faces high depreciation costs due to its heavy asset model, with fixed asset depreciation expected to reach 420 million yuan in 2024, accounting for 19.8% of revenue [3] Inventory Impairment Risks - The inventory turnover rate has decreased from 2.02 times to 1.59 times from 2021 to 2024, with inventory impairment losses reaching 98 million yuan, 267 million yuan, 332 million yuan, and 187 million yuan, representing over 10% of revenue [4] - The company has a high customer concentration, with the top five customers contributing over 60% of revenue, and a dependency of 35% on a domestic storage IDM manufacturer, posing a risk if orders are reduced [4] Debt Levels - From 2022 to 2024, total liabilities surged from 3.63 billion yuan to 8.91 billion yuan, with a CAGR of 56.67%, significantly outpacing revenue growth [4] - In 2024, short-term debt is projected at 962 million yuan and long-term debt at 6.044 billion yuan, raising concerns about balancing interest expenses with R&D investments [4] Market Challenges: Intensifying Competition, Price Declines, Technical Bottlenecks - The global silicon wafer market is dominated by five major manufacturers, holding 85% of the market share, while Xi'an Yicai's market share is only 6%, with its products primarily in mature processes [6] - Price pressures are evident, with silicon wafer prices dropping from 479.89 yuan to 361.58 yuan from 2022 to 2024, a cumulative decline of nearly 30% [6] - The company assumes a price rebound of 5% in 2025, which contradicts industry trends, raising doubts about the feasibility of this assumption [6] Technical Limitations - Despite a cumulative R&D investment of 576 million yuan, accounting for 12.39% of revenue, the company still faces shortcomings in advanced process applications [7] - Key equipment such as crystal pullers and polishing machines remain reliant on international suppliers, which could impact production if supply is disrupted [7] - The deep binding of CITIC Securities as both a sponsor and shareholder, holding 4.25% of Xi'an Yicai's shares, raises questions about the company's independence [7]