Core Viewpoint - Shenzhen Weizhao Semiconductor Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for a new production base, R&D enhancement, strategic investments, and general corporate purposes [1] Group 1: Company Overview - Weizhao Semiconductor specializes in high-performance power semiconductor devices, serving various sectors including consumer electronics, automotive electronics, and industrial applications [2] - The company operates under a "fab-lite" model, combining outsourced manufacturing with some in-house capabilities, and is noted for having key wafer manufacturing processes and advanced packaging testing capabilities [2] - The majority of Weizhao's revenue comes from medium and low-voltage power semiconductor devices, accounting for 93.1%, 90%, and 93.4% of revenue in 2023, 2024, and the first three quarters of 2025, respectively [2] Group 2: Financial Performance - Weizhao Semiconductor reported revenues of 575 million, 624 million, and 615 million CNY for the respective years, with net profits of 13.98 million, 19.35 million, and 40.25 million CNY [4] - The company experienced significant inventory write-downs, with a recorded amount of 30.98 million CNY in 2023, which was more than double its profit for that year [1][5] - Trade receivables increased from 79.5 million CNY at the end of 2023 to 142 million CNY by the end of the third quarter of 2025, indicating a decline in cash flow efficiency [5] Group 3: Market Position and Risks - Despite claims of being a leading player, Weizhao's market share in the domestic power semiconductor market is only 0.5% as of 2024, and just 2.1% in its core medium-voltage MOSFET segment [3] - The company relies heavily on distributors for sales, with 91%, 81.3%, and 85.7% of revenue coming from distributors during the reporting period, but the number of distributors has decreased significantly from 659 to 132 [3] - The concentration of revenue from major customers is increasing, with the top five customers accounting for 48.7%, 53.8%, and 57.4% of revenue over the reporting period [5]