Core Viewpoint - The initiation of a new large-scale financing round by Xi Zhong Technology (688352) shortly after its IPO signals potential issues in capital planning or unforeseen operational challenges [5][6]. Financing Overview - Xi Zhong Technology completed its IPO in April 2023, raising a net amount of RMB 2.233 billion, while the current convertible bond issuance aims to raise up to RMB 850 million [5]. Project Overlap and Efficiency Concerns - There are overlaps between new and old fundraising projects, raising questions about "duplicate investment." The company claims technical differentiation to avoid this criticism, but the argument lacks convincing power due to the commonality of downstream capacities [6][7]. - The previous IPO funds were allocated for "Gold Bumping" capacity, while the current project focuses on expanding "CuNiAu Bumping" capacity, which the company argues is not a duplicate investment [6]. Execution Risks in New Technology Investments - The "Advanced Power and Flip Chip Packaging Technology Transformation Project" is framed as a routine capacity expansion, but it is fundamentally a high-risk technology R&D investment that may have been underestimated in the prospectus [8]. - The project involves processes that Xi Zhong Technology has not previously engaged in, introducing both technical and market risks [8]. Profitability Assumptions and Methodological Flaws - Xi Zhong Technology's explanation for declining gross margins in 2024 and Q1 2025 cites the "capacity ramp-up phase" at its Hefei plant, which is a reasonable manufacturing explanation [11]. - However, when estimating the profitability of the new project at the same location, the company uses historical data from its mature Suzhou plant, leading to a contradictory logic in its projections [11][12]. Anomalies in Non-Display Chip Testing Business - The financial data for Xi Zhong Technology's non-display chip testing business shows a decline in core process output while revenue increased, raising questions about the quality and sustainability of this growth [14]. - In 2023, the output of the core bumping process decreased from 144,300 units in 2022 to 141,000 units, yet total revenue from non-display chip testing rose from RMB 120 million to RMB 130 million [15]. Revenue Growth Explanations - The company has not provided clear explanations for the revenue growth despite declining output, which could be attributed to increased average selling prices, structural changes in service offerings, or aggressive revenue recognition policies [16].