Core Viewpoint - Wuhan Xinxin's IPO process has revealed significant concerns, including the absence of a controlling shareholder and low fundraising of only 4.8 billion yuan, which is inadequate for a company competing with industry giants like TSMC and SMIC [1][2][10]. Financial Performance - As of September 30, 2024, the total assets of the company reached approximately 1,996.44 million yuan, an increase from 1,503.35 million yuan in 2023 and 1,152.44 million yuan in 2022 [6]. - The company's net profit for the first nine months of 2024 was approximately 138.13 million yuan, a decline from 393.76 million yuan in 2023 and 716.60 million yuan in 2022 [6]. - The company's revenue for the first nine months of 2024 was approximately 3,146.16 million yuan, compared to 3,814.54 million yuan in 2023 [6]. Control and Governance - The company has been highlighted for lacking a controlling shareholder, with many local state-owned enterprises being involved but not classified as acting in concert [1][10]. - The inquiry raised questions about the company's independence and governance structure, indicating potential issues with decision-making processes [12][13]. Market Position and Product Offering - The company's products primarily serve international markets, with higher profit margins from overseas operations compared to domestic ones [2][14]. - The company relies heavily on imported equipment and materials, raising concerns about supply chain vulnerabilities amid trade tensions [2][4]. Research and Development - Research and development expenses accounted for 7.88% of the company's revenue in the first nine months of 2024, up from 6.86% in 2023 [8]. Profitability and Margins - The gross profit margin for overseas wafer foundry services is significantly higher than that for domestic services, attributed to different application scenarios [15][16]. - The company reported a low overall profit margin, which may limit investor expectations post-IPO [2].