Core Viewpoint - Shenzhen Hengyun Chang Vacuum Technology Co., Ltd. is set to be reviewed for its IPO application on November 14, aiming to raise 1.469 billion yuan on the Shanghai Stock Exchange's Sci-Tech Innovation Board [1] Group 1: Financial Performance - The company's revenue is projected to grow from 158 million yuan in 2022 to 541 million yuan in 2024, with net profit increasing from approximately 26.39 million yuan to 143 million yuan during the same period [3] - However, a significant downturn is expected in 2025, with revenue growth slowing to only 4.06% in the first half and a projected decline of 9.58% to 4.69% for the entire year [9][11] - The company reported a substantial drop in revenue and net profit in the third quarter of 2025, with revenue decreasing by 27.29% and net profit declining by 46.16% year-on-year [9] Group 2: Compliance and Regulatory Concerns - Hengyun Chang was included in the second batch of IPO companies for on-site inspections just 20 days after submitting its application, raising questions about its compliance [5][6] - The focus of the inspection may be on the effectiveness of internal controls under the highly centralized authority of the actual controller and the complex relationship with its major customer, Tuojing Technology [8] Group 3: Customer Dependency - The company heavily relies on a single customer, Tuojing Technology, which accounted for over 62% of its sales from 2022 to the first half of 2025 [12][13] - Tuojing Technology also holds 3.42% of Hengyun Chang's shares, indicating a close financial relationship [14] Group 4: Governance Issues - The actual controller, Le Weiping, has a significant control over the company, holding 23.08% directly and controlling 72.87% of the voting rights through various entities [19] - The governance structure raises concerns about the effectiveness of internal controls and the potential for conflicts of interest due to familial ties within the management [20] Group 5: Fundraising Necessity - The IPO aims to raise 1.55 billion yuan, with 250 million yuan allocated for working capital, despite the company having 427 million yuan in cash and 340 million yuan in structured deposits as of June 30, 2025 [21][23] - This raises questions about the necessity of raising additional funds when the company appears to have sufficient liquidity [24] Group 6: Revenue Recognition Concerns - There was an unusual spike in revenue recognition in June 2025, with 26.44% of the first half's revenue recognized in that month, significantly higher than previous years [25] - The sales to Tuojing Technology in June accounted for 75.45% of total revenue, followed by a sharp decline in subsequent months, indicating potential volatility in revenue streams [27][29] Group 7: Competitive Landscape - Hengyun Chang claims to have advanced technology in the semiconductor sector, but it faces increasing competition from other companies that are catching up in terms of product development and market share [30][31] - The domestic market for plasma RF power systems is still underdeveloped, with Hengyun Chang holding a 6.1% market share, the highest among domestic manufacturers [31]

Core Viewpoint - Hengyun Chang Vacuum Technology Co., Ltd. is a leading domestic semiconductor equipment core component enterprise focusing on plasma radio frequency power systems, facing challenges in its IPO process due to being included in the inspection list by the China Securities Association, despite its continuous performance growth [1][3]. Group 1: Company Performance and Market Position - Hengyun Chang's core products are crucial in chip manufacturing processes, successfully breaking the long-standing monopoly of American giants MKS and AE, with its second-generation Bestda series supporting 28nm processes and the latest Aspen series supporting 7 to 14nm advanced processes [2]. - The company reported a compound annual growth rate (CAGR) of 84.91% in revenue and 156.72% in net profit from 2022 to 2024, indicating explosive growth [4]. - However, the company has a high dependency on its largest customer, Tuojing Technology, which accounted for over 50% of total revenue for two consecutive years, reaching 63.13% in 2024, raising concerns about operational risks [4]. Group 2: Technological Challenges - Hengyun Chang acknowledged a technological lag compared to international leaders, particularly in impedance matching and multi-frequency power supply capabilities, which are critical for advanced semiconductor manufacturing [2]. - The company is addressing the challenges posed by the low domestic localization rate of plasma radio frequency power systems, which is projected to be less than 12% in 2024, highlighting the dependency on international suppliers [2]. Group 3: Financial and Operational Concerns - The company's gross profit margin increased from 41.65% in 2022 to 48.71% in 2024, surpassing that of industry leader MKS, despite its products only matching the performance of MKS's next-generation products [4]. - There are concerns regarding the rapid increase in inventory and the significant amount of returns, amounting to 29.35 million yuan in 2024, attributed to changes in the photovoltaic market rather than product quality issues [5][6]. - The planned fundraising of 1.55 billion yuan for various projects has raised questions about its necessity, given the company's substantial cash reserves of 427 million yuan at the end of 2024 [7].