Pioneer Microchip IPO submission registration completed, mass production supply of 7nm and below domestic etching equipment key components achieved.

On August 23, Jiangsu Pioneer Precision Technology Co., Ltd. (referred to as Pioneer Precision Technology) applied for a change in the IPO review status of the Shanghai Stock Exchange's Sci-Tech Innovation Board to "submitted for registration." Huatai United Securities is its sponsoring institution, with plans to raise 587 million yuan. In the field of semiconductor manufacturing equipment, etching equipment and thin film deposition equipment are widely recognized as the two core equipment with technical difficulties second only to photolithography equipment, and are also the two major equipment in chip production line investment that are equally important as photolithography equipment in terms of value and quantity. They are crucial equipment for domestic chips to advance towards 7nm and beyond advanced processes, and are the two types of equipment that are being suppressed, restricted, and bottlenecked in the process of upgrading the core equipment of domestic semiconductor manufacturing to advanced processes. These two types of equipment together account for approximately 40% of the semiconductor equipment market. According to the prospectus, Pioneer Precision Technology is a precision manufacturing expert in key components of semiconductor etching and thin film deposition equipment in the domestic market. Especially in the field of etching equipment, the company is one of the few domestic suppliers that have already mass-produced key components for 7nm and below domestically-produced etching equipment, directly competing with international manufacturers. While focusing on the semiconductor field, Pioneer Precision Technology fully leverages its solid foundation in precision components technology and innovative capabilities, actively exploring and developing new products in other fields such as photovoltaics and medical. With over 15 years of technological accumulation and independent research and development of product processes, the company has established five core technology platforms: precision mechanical manufacturing technology, surface treatment technology, welding technology, design and development technology of high-end devices, and customized tooling development technology. Since its establishment, Pioneer Precision Technology has closely cooperated with Chinese equipment industry leaders NAURA Technology Group and Advanced Micro-Fabrication Equipment Inc. China, assisting clients in the research and development, finalization, mass production, and iteration to advanced processes of many equipment through the supply of core components. In addition to NAURA Technology Group and Advanced Micro-Fabrication Equipment Inc. China, the company has also established long-term stable strategic cooperation relationships with other leading equipment customers in the industry, such as Piotech Inc., Hwatsing Technology, Semiconductor Manufacturing International Corporation, and Yitang Co., Ltd. The funds raised in this round will mainly be used for investment in the following projects: Financially, for the fiscal years 2021, 2022, 2023, and January to March 2024, Pioneer Precision Technology achieved operating revenues of approximately 424 million yuan, 470 million yuan, 558 million yuan, and 216 million yuan respectively, with net profits of 105 million yuan, 105 million yuan, 80.275 million yuan, and 46.7848 million yuan during the same period.