Core Viewpoint - Xiamen Youxun Chip Co., Ltd. is preparing for an IPO on the Sci-Tech Innovation Board, facing challenges related to control stability and historical equity issues [3][11]. Group 1: Company Background and Control Issues - The founder of Youxun, Ke Binglan, has a diverse background, including roles as a communication soldier, university lecturer, lawyer, and state-owned enterprise executive before founding the company in 2003 [2][5]. - The company has experienced a long period without a clear controlling shareholder until late 2022 when Ke Binglan and his son, Ke Tenglong, became the actual controllers, although their combined voting rights remain low [3][8]. - The company's voting rights are fragmented, with no single shareholder holding more than 30%, leading to potential risks in control stability post-IPO [9][11]. Group 2: Historical Equity and Governance Issues - Youxun has faced historical equity issues, including unregistered equity transfers and shareholding arrangements that could attract scrutiny from regulators [4][14]. - The initial shareholding structure was complicated, with the largest shareholder, Ping Xu, holding 60% of the shares at the company's inception, which created governance challenges [12][13]. - The transfer of shares has been slow, with significant delays in registering changes, leading to a lack of clarity in ownership [16][18]. Group 3: Financial Performance and Market Strategy - Youxun's revenue fluctuated from 339 million yuan in 2022 to 411 million yuan in 2024, with net profits of 81.4 million yuan, 72.1 million yuan, and 77.9 million yuan during the same period [30]. - The company adopted a "price-for-volume" strategy to reverse declining sales, resulting in a drop in product prices while increasing sales volume [35][36]. - The average procurement price of wafers increased by 40.19% from 6,815.7 yuan per piece to 9,555.07 yuan per piece, impacting profit margins [36]. Group 4: Supply Chain and Inventory Management - Youxun operates under a Fabless model, relying heavily on external suppliers, with over 86% of procurement coming from the top five suppliers [38]. - The company has a high inventory level, with a book value of 175 million yuan at the end of 2024, and a low inventory write-down ratio compared to peers [42][43]. - The company maintains a strong cash position, with a liquidity ratio of 6.23 and a debt ratio of 11.3%, indicating good financial health [46]. Group 5: Dividend Policy - Youxun has implemented cash dividends totaling 58 million yuan over the past two years, reflecting its strong cash flow and commitment to returning value to shareholders [47].