Core Viewpoint - Shenzhen Xihua Technology Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange, despite reporting losses of 426 million yuan over the past four years and relying heavily on its top five customers for over 80% of its revenue [1][12]. Company Overview - Founded in August 2018, Xihua Technology is recognized as a national-level "little giant" enterprise, specializing in intelligent display chips and intelligent sensing control chips, with applications in smart cars, mobile phones, wearable devices, and robotics [1]. - The company has developed the world's first ASIC architecture AIScaler, which has become a leading product globally, with an expected shipment of approximately 37 million units in 2024 [3]. Financial Performance - From 2022 to the first nine months of 2025, Xihua Technology reported losses of 129 million yuan, 153 million yuan, and 80.82 million yuan, with a loss of 62.97 million yuan in the first three quarters of 2025 [12]. - The overall gross margin decreased from 35.7% in 2022 to 21.5% in 2023, rebounding to 28.4% in 2024, but dropping again to 22.1% in the first nine months of 2025 [12]. Revenue Breakdown - The main revenue source is intelligent display chips and solutions, accounting for over 85% of total revenue from 2022 to the first nine months of 2025. Revenue from intelligent sensing control chips increased from 1.9% in 2022 to 14.4% in the first nine months of 2025 [9][10]. Market Position - In 2024, Xihua Technology ranked second in the global Scaler market with an 18.8% market share, while the first-ranked company held a 20.6% share [13][14]. - The global Scaler market is highly concentrated, with the top five suppliers accounting for approximately 70.8% of the market share [13]. Supply Chain and Customer Dependency - Xihua Technology has a high dependency on its top five suppliers, which accounted for 81.8% to 76.6% of total procurement from 2022 to the first nine months of 2025 [16]. - The company also relies heavily on its top five customers, which contributed 89.9% to 82.2% of total revenue during the same period [16]. Future Outlook - The company is working to diversify its customer base and expand its procurement network to reduce dependency on a few suppliers and customers [17]. - The global Scaler market is expected to grow, with shipments projected to increase from 114.1 million units in 2020 to 159.5 million units in 2024, reflecting a compound annual growth rate of 8.7% [17].

Core Viewpoint - Xihua Technology has submitted a listing application to the Hong Kong Stock Exchange, with Agricultural Bank of China International as the sole sponsor [1] Company Overview - Xihua Technology is a provider of edge AI chips and solutions, with main products including smart display chips (such as AIScaler and STDI) and smart sensing control chips and solutions (such as TMCU, general-purpose MCU, touch chips, and smart cockpit solutions) [1] - The company's products have been adopted by several major automotive OEMs and globally recognized consumer electronics brands, addressing market demands in consumer electronics, automotive, and embodied intelligence [1] Market Position - According to a Frost & Sullivan report, Xihua Technology has developed the world's first ASIC architecture AIScaler, mastering key technologies such as visual lossless compression, image quality enhancement, and high-speed interface transmission [1] - The AIScaler has become a leading product globally, with an estimated shipment of approximately 37 million units in 2024 [1] - In 2024, Xihua Technology ranks second globally in the scaler industry and first in the ASIC scaler industry [1] - The latest generation automotive-grade TMCU maintains a leading position globally in the smart sensing control performance sector [1]

Core Viewpoint - Xihua Technology is a provider of edge AI chips and solutions, focusing on intelligent display and sensing control chips, with significant adoption by major automotive OEMs and global consumer electronics brands [3] Group 1: Company Overview - Xihua Technology has developed the world's first ASIC architecture scaler, known as AIScaler, which excels in visual lossless compression, image quality enhancement, and high-speed interface transmission [3] - The company's product offerings include AIScaler and STDI chips for intelligent display, as well as TMCU, general-purpose MCU, touch chips, and intelligent cockpit solutions for sensing control [3] Group 2: Market Position and Performance - According to a Frost & Sullivan report, Xihua Technology's AIScaler has rapidly gained market share and is now a leading product globally, with an estimated shipment of approximately 37 million units in 2024 [3] - In 2024, Xihua Technology is projected to rank second in the global scaler industry by shipment volume and first in the ASIC scaler sector [3] - The latest generation of the automotive-grade TMCU from Xihua Technology maintains a leading position in the global intelligent sensing control specifications performance [3]

Core Viewpoint - Xihua Technology is a provider of edge AI chips and solutions, focusing on intelligent display chips and smart sensing control chips, with significant adoption by major automotive OEMs and global consumer electronics brands [3] Group 1: Product Offerings - The company's intelligent display chip solutions include AIScaler and STDI chips, while its smart sensing control solutions comprise TMCU, general-purpose MCU, touch chips, and intelligent cockpit solutions [3] - Xihua Technology has developed the world's first ASIC architecture scaler, AIScaler, which excels in visual lossless compression, image quality enhancement, and high-speed interface transmission [3] Group 2: Market Position - According to a Frost & Sullivan report, Xihua Technology's AIScaler has rapidly gained market share in the smartphone display application market, becoming a leading product globally [3] - In 2024, Xihua Technology is projected to ship approximately 37 million units of AIScaler, ranking second in the global scaler industry and first in the ASIC scaler sector by shipment volume [3] Group 3: Competitive Advantage - The latest generation of Xihua Technology's automotive-grade TMCU maintains a global leading position in the specifications and performance of smart sensing control [3]