Core Viewpoint - Jiangsu Xinde Semiconductor Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for expanding production capacity and enhancing advanced packaging technology research [1][2]. Company Overview - Xinde Semiconductor specializes in semiconductor packaging technology solutions, offering customized packaging products and testing services, with a product portfolio that includes QFN, BGA, LGA, WLP, and 2.5D/3D products [2]. - The company has completed over 2 billion RMB in financing over the past five years, attracting notable investors such as Xiaomi and OPPO [2]. Financial Performance - The company has reported negative gross and net profit margins for the past three years, with a debt-to-asset ratio exceeding 100% [2][7]. - In terms of operating performance, Xinde Semiconductor has experienced continuous losses from 2022 to 2025, with net losses of approximately 3.60 billion RMB, 3.59 billion RMB, 3.77 billion RMB, and 2.19 billion RMB respectively [4]. - The gross margins for the years 2022 to 2025 are reported as -79.82%, -38.43%, -20.13%, and -16.3% [5][6]. Market Potential - The semiconductor market is projected to grow significantly, with global and Chinese market sizes expected to reach 43,710 billion RMB and 16,022 billion RMB in 2024, respectively, and further increase to 65,480 billion RMB and 28,133 billion RMB by 2029 [3]. Use of IPO Proceeds - The funds raised from the IPO will primarily be used for building a production base, establishing new production lines, procuring production-related equipment, enhancing advanced packaging technology research, and improving the company's commercialization capabilities [1][2]. Challenges and Risks - The company faces challenges related to high production costs, including depreciation of production equipment and financing expenses, which contribute to its ongoing losses [4][5]. - The high asset-to-debt ratio reflects the capital-intensive nature of the advanced packaging sector, necessitating continuous investment in production capacity and technology upgrades [7]. Future Outlook - Xinde Semiconductor plans to attract a broader range of industry clients by continuously launching advanced packaging solutions and deepening cooperation with existing clients [9].