Group 1 - Xi'an Yiswei Material Technology Co., Ltd. (referred to as "Xi'an Yicai") completed its initial public offering and listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board on October 28, 2025, with stock code 688783.SH [1] - KPMG acted as the reporting accountant for Xi'an Yicai's listing project, providing professional services [1] Group 2 - Xi'an Yicai is a provider of 12-inch electronic-grade silicon wafer products and services, primarily engaged in the research, development, manufacturing, and sales of 12-inch silicon single crystal polished wafers and epitaxial wafers [3] - The products are widely used in storage chips, logic chips, image sensors, display driver chips, and power devices required in fields such as electronic communications and new energy vehicles [3]

Core Viewpoint - Xi'an Yiswei Materials Technology Co., Ltd. (referred to as Xi'an Yicai) successfully listed on the Sci-Tech Innovation Board, raising a total of 4.636 billion yuan through the issuance of 537.8 million shares at an initial price of 8.62 yuan per share, with a first-day stock price surge of 361.48% to 39.78 yuan per share, closing at 25.75 yuan, representing a 198.72% increase, resulting in a total market capitalization of 103.973 billion yuan [1][3][12]. Group 1 - Xi'an Yicai is one of the first companies registered under the newly established Sci-Tech Growth Tier on the Sci-Tech Innovation Board, alongside He Yuan Bio and Biotech [3]. - The company is the first unprofitable enterprise to be accepted for listing on the Sci-Tech Innovation Board since the introduction of the "Sci-Tech Eight Articles" by the China Securities Regulatory Commission in June 2024 [3]. - Xi'an Yicai reported net losses of 533 million yuan, 683 million yuan, and 738 million yuan for the years 2022 to 2024, respectively, but showed a 46% year-on-year revenue growth in the first half of 2025, reaching 1.3 billion yuan, with a reduced net loss of 340 million yuan [3][12]. Group 2 - The management team of Xi'an Yicai has a notable "BOE System" background, with key figures having previously held executive positions at BOE Technology Group [7][8]. - The company focuses on the research, manufacturing, and sales of 12-inch silicon single crystal polished wafers and epitaxial wafers, which are essential for various semiconductor applications [10]. - Xi'an Yicai aims to challenge the global oligopoly in the 12-inch silicon wafer market, which is currently dominated by Japanese companies [10][11]. Group 3 - The company plans to use the funds raised from the IPO for the construction of the second phase of the Xi'an Yiswei Silicon Industry Base, with total investments for the first and second factories amounting to 11 billion yuan and 12.5 billion yuan, respectively [12]. - Xi'an Yicai is projected to become the largest 12-inch silicon wafer manufacturer in mainland China and the sixth globally, with a market share of approximately 6% in monthly shipments and 7% in production capacity by the end of 2024 [11][12]. - The company anticipates a prolonged period of gross margin losses, typically lasting 4 to 6 years for new market entrants, with expectations of achieving profitability around 2027 [12].

Core Viewpoint - Xi'an Yiswei Materials Technology Co., Ltd. (referred to as Xi'an Yicai) has successfully listed on the Sci-Tech Innovation Board, marking a significant milestone as one of the first companies registered under the new Sci-Tech Growth Tier, aimed at supporting technology firms that are not yet profitable but have substantial technological breakthroughs and commercial prospects [1][3]. Group 1: Company Overview - Xi'an Yicai's initial public offering (IPO) price was set at 8.62 yuan per share, with a total of 537.8 million shares issued, raising approximately 4.636 billion yuan [1]. - On its first trading day, the stock price surged by 361.48% to 39.78 yuan per share, closing at 25.75 yuan, representing a 198.72% increase, resulting in a total market capitalization of approximately 103.973 billion yuan [1]. - The company is currently in a phase of continuous losses, with projected net profits of -533 million yuan, -683 million yuan, and -738 million yuan for the years 2022 to 2024, respectively [3]. Group 2: Management and Background - The management team of Xi'an Yicai has a notable "BOE System" background, with key figures having held executive positions at BOE Technology Group [7][8]. - The founder of BOE, Wang Dongsheng, has been instrumental in the establishment of Xi'an Yicai, serving as the chairman of its parent company, Yiswei Group, and has a significant influence on the company's strategic direction [7][8]. Group 3: Market Position and Strategy - Xi'an Yicai is positioned as a leading manufacturer of 12-inch silicon wafers in China and ranks sixth globally, with a market share of approximately 6% in monthly shipments and 7% in production capacity [11]. - The company aims to challenge the current oligopolistic market dominated by Japanese firms, with a focus on expanding production capacity to meet the growing demand driven by advancements in artificial intelligence and the recovery of the consumer electronics market [10][11]. - The total investment for Xi'an Yicai's first and second factories is projected to be 110 billion yuan and 125 billion yuan, respectively, with the second factory expected to commence production in 2024 [11]. Group 4: Financial Projections and Challenges - The company anticipates a prolonged period of gross margin losses, typically lasting 4 to 6 years for new market entrants, with expectations of achieving profitability around 2027 [12]. - Xi'an Yicai's management has committed to extending the lock-up period for their shares if the company fails to achieve profitability by 2027 or if the net profit declines by more than 50% compared to the previous year [12].

Market Performance - On October 27, 2025, A-shares saw all three major indices rise, with the Shanghai Composite Index closing at 3996.94 points, up 1.18% [1] - The Shenzhen Component Index closed at 13489.4 points, up 1.51%, and the ChiNext Index closed at 3234.45 points, up 1.98% [1] - The total trading volume in the Shanghai and Shenzhen markets was 2.34 trillion yuan, an increase of 360 billion yuan from the previous trading day [1] - Hong Kong's stock indices also experienced gains, with the Hang Seng Index rising 1.05% to 26433.7 points and a total trading volume of 2670.77 million HKD [1] - In the U.S. market, the S&P 500 Index rose 1.59% to 5954.5 points, while the Nasdaq Composite Index increased by 1.63% to 18847.28 points [1] New Stock Listings - Xi'an Yicai, listed on the Sci-Tech Innovation Board with a stock code of 688783, had an issue price of 8.62 yuan per share and specializes in 12-inch electronic-grade silicon wafer products [3] - The company’s products are widely used in sectors such as electronic communications, new energy vehicles, and artificial intelligence [3] - Bibet, also listed on the Sci-Tech Innovation Board with a stock code of 688759, had an issue price of 17.78 yuan per share and focuses on innovative drug development [3] New Stock Subscription - Delijia, with a stock code of 603092, has an issue price of 46.68 yuan per share and a price-to-earnings ratio of 34.98 times [4] - The company specializes in the research, production, and sales of high-speed heavy-load precision gear transmission products, primarily for wind turbine applications [4] Regulatory News - The China Securities Regulatory Commission (CSRC) released 23 measures aimed at enhancing the protection of small and medium investors in the capital market [5] - These measures focus on improving investor protection during the issuance and delisting processes, creating a fair trading environment, and enhancing customer service levels [5] - The CSRC also issued a work plan to optimize the Qualified Foreign Institutional Investor (QFII) system, aiming to attract long-term foreign capital and improve the investment environment [6]

Core Viewpoint - Xi'an Yiswei Material Technology Co., Ltd. (referred to as Xi'an Yicai) is set to undergo its IPO review by the Shanghai Stock Exchange, aiming to raise 4.9 billion yuan for its silicon industry base project, despite being an unprofitable company at the time of application [2][3]. Group 1: Company Overview - Established in 2016, Xi'an Yicai specializes in the research, development, manufacturing, and sales of 12-inch electronic-grade silicon wafers, which are essential for various applications in electronics and new energy vehicles [3]. - The company’s primary products include P-type silicon wafers, which dominate over 90% of the global 12-inch silicon wafer market [3]. Group 2: Financial Performance - Xi'an Yicai reported revenues of 10.55 billion yuan, 14.74 billion yuan, and 21.21 billion yuan from 2022 to 2024, with net losses of 5.33 billion yuan, 6.83 billion yuan, and 7.38 billion yuan during the same period [5]. - The company has accumulated losses of 19.54 billion yuan over the last three years, with a projected timeline to achieve profitability by 2027 [5][8]. Group 3: Product Sales and Pricing - The sales revenue from polished wafers was 4.19 billion yuan, 6.47 billion yuan, and 8.31 billion yuan from 2022 to 2024, with average prices declining by 7.08% and 18.91% in 2023 and 2024, respectively [4]. - Testing wafers generated sales of 4.75 billion yuan, 7.27 billion yuan, and 9.27 billion yuan during the same period, with average prices decreasing by 11.41% and 16.37% in 2023 and 2024 [4]. Group 4: Challenges and Industry Context - The company faces challenges due to the cyclical nature of the semiconductor industry, high investment intensity, and long customer certification periods, which hinder its ability to achieve profitability [5][6]. - Xi'an Yicai's gross profit margins were significantly lower than industry peers, with margins of 9.85%, 0.66%, and 5.49% from 2022 to 2024, compared to industry averages of 30.53%, 24.47%, and 14.91% [8]. Group 5: Debt and Financial Management - Long-term borrowings increased from 17.01 billion yuan to 58.68 billion yuan from 2022 to 2024, raising concerns about financial sustainability [11][12]. - The company’s financial expenses rose significantly, accounting for 6.54% of operating income in 2024, driven by increased borrowing costs [12]. Group 6: Governance and Shareholder Rights - Xi'an Yicai has undergone scrutiny regarding special shareholder rights and agreements, with commitments made to terminate certain rights to comply with regulatory requirements [14][15]. - The company has taken steps to ensure that any previously existing obligations related to shareholder rights are no longer applicable, aiming to mitigate potential risks to its capital structure [16].

Core Viewpoint - Xi'an Yiswei Material Technology Co., Ltd. is the first loss-making company accepted for listing after the "Kebatiaos" policy, drawing significant attention to its listing journey [1] Company Overview - Established in 2016 and headquartered in Xi'an High-tech Zone, the company was formerly known as Beijing Yiswei Technology Co., Ltd. and relocated to Xi'an in 2020 [3] - The core products include 12-inch silicon single crystal polishing wafers and epitaxial wafers, used in manufacturing storage chips, logic chips, image sensors, and power devices, with end markets covering smartphones, data centers, and smart vehicles [3] Industry Context - The semiconductor materials industry is characterized by a duopoly and the rise of new players, with high technical barriers and capacity expansion competition [3] - Five companies, including Shin-Etsu Chemical (Japan) and SUMCO (Japan), dominate 92% of the global 12-inch silicon wafer market, with Shin-Etsu and SUMCO accounting for over 50% [3] Financial Performance - The company's gross margins are significantly lower than its peers, with gross margins of 9.85%, 0.66%, and 5.49% from 2022 to 2024, compared to an average of 30.53%, 24.47%, and 14.91% for comparable companies [4][5] - The company is still in the capacity ramp-up phase, facing high depreciation and expense amortization [5] Future Projections - Xi'an Yiswei expects to achieve profitability after 2027, contingent on increasing the sales proportion of epitaxial wafers to 20%-30% and optimizing capacity utilization [6] - The company anticipates reaching a monthly shipment of 110,000 wafers by 2026 to break even, and 120,000 wafers to become profitable by 2027, based on optimistic assumptions of price stabilization and recovery [6] Customer and Supplier Concentration - The company has a high customer concentration, with the top five customers accounting for over 60% of total sales, which may weaken its negotiating position [8] - Supplier concentration is also high, with the top five suppliers accounting for 58.07%, 56.29%, and 60.67% of total purchases from 2022 to 2024 [8][10] R&D and Technical Workforce - As of 2024, the company has applied for 1,635 patents, with over 80% being invention patents, but shows slow progress in core technology iterations [12] - Approximately 12% of the workforce is dedicated to R&D, with over 50% of R&D personnel being part-time, raising concerns about the stability and continuity of R&D efforts [12][14]