Shengke Nano's IPO has been approved by the Shanghai Stock Exchange, focusing on the third-party testing and analysis market in the semiconductor industry chain.

On November 22, Shengke Nano (Suzhou) Co., Ltd. (referred to as Shengke Nano) passed the listing committee at the Shanghai Stock Exchange IPO. The sponsoring institution is Huatai United Securities, with a planned fundraising of 297 million yuan. The prospectus discloses that Shengke Nano is a well-known third-party semiconductor testing and analysis laboratory in the industry, dedicated to providing professional and efficient third-party testing and analysis experiments for the semiconductor industry chain. The company mainly serves the research and development stages of semiconductor customers, providing testing experiments such as sample failure analysis, material analysis, and reliability analysis. During the reporting period, the company's main business composition is as follows: With the development of the semiconductor industry, the domestic semiconductor third-party laboratory testing and analysis market environment is becoming increasingly mature. Local semiconductor third-party testing and analysis laboratories are gradually occupying the market, and the market competition is becoming more intense. At the same time, many strong comprehensive testing institutions in China have actively expanded their presence in the semiconductor third-party testing and analysis industry through independent investment, external acquisition, etc., realizing the broad market space. As semiconductor customers have high requirements for the timeliness of testing and analysis services, third-party laboratory testing and analysis institutions have a certain service radius. Therefore, the regional characteristics of semiconductor third-party testing and analysis laboratories are also quite obvious, with a low overall market concentration and a competitive landscape characterized by many institutions with small individual scales. Since its establishment, Shengke Nano has been continuously expanding the radius of testing and analysis services and forming a layout of domestic and foreign businesses. Currently, in addition to laboratories in Singapore and Suzhou, the company has established laboratories in Nanjing, Fujian, Shenzhen, and Qingdao, and a market service team in Malaysia. Financially, in 2021, 2022, 2023, and the first half of 2024, Shengke Nano achieved operating revenues of approximately 168 million yuan, 287 million yuan, 394 million yuan, and 185 million yuan, respectively. During the same period, the company realized net profits of approximately 27.50 million yuan, 65.59 million yuan, 98.53 million yuan, and 29.93 million yuan, respectively. Combining the operating conditions and development trends, the company has made preliminary calculations for its performance in 2024, as follows: Shengke Nano pointed out in the prospectus that the continuous growth in downstream customer testing and analysis demand provides good guarantees for the company's revenue growth. The company maintains good cooperation with key customers, actively explores new customers, and has achieved good results. Since 2024, the company has continued to strengthen cooperation with key customers such as Customer A, Customer H, Customer F, Applied Materials, Huahong Group, Customer L, China Resources Microelectronics Electronics, etc. As of October 31, 2024, the total amount of orders on hand amounted to approximately 113 million yuan, representing a 24.68% increase compared to the same period last year. At the same time, the company is deeply involved in the research and development of new projects with the above-mentioned key customers, and it is expected that these key customers will bring more incremental business opportunities in the future. On the other hand, the company actively explores other customers and has achieved good results. Since 2024, it has had in-depth discussions and established cooperation with customers M, ZTE Corporation, Yitang Semiconductor, TongFu Microelectronics, Chinese Academy of Sciences Microelectronics Institute, Customer N, BYD Company Limited Semiconductor, Qingfang Technology, Goertek Inc., etc., further ensuring the sustainability of the company's future revenue growth. It is worth noting that the prospectus warns of the risks of declining operational performance and gross profit margin. From 2021 to 2023, the company seized the opportunity of rapid development in the industry, relied on its own technological strength and industry position, continued to develop key customers, and achieved high-speed growth in operating income and net profit. At the beginning of the reporting period, the overall scale of the company was relatively small, and in recent years, the revenue has increased significantly, resulting in a relatively high growth rate in past performance. Currently, the company's business scale has increased much more than at the beginning of the reporting period, so it is expected that the growth rate of future performance may be lower than that in the reporting period. At the same time, if the company cannot continue to enhance its technological strength, service quality, and customer development capabilities to cope with market competition, it may lead to a decrease in order volume or service prices, resulting in a slowdown in performance growth and a decline in gross profit margin. In the first half of 2024, the company established laboratories in Shenzhen and Qingdao, purchased new equipment and recruited additional personnel, leading to an increase in depreciation of fixed assets and personnel costs. According to past experience and current operating conditions, new laboratories typically experience a period of losses in the early stages of operation and can achieve profitability within 1-2 years after production due to market expansion and capacity release. Therefore, the new laboratories in the first half of the year may have a negative impact on the company's performance in the short term, with a 7.06% decrease in net profit after deducting non-recurring gains and losses compared to the first half of 2023. The new laboratories are expected to have a negative impact on the full-year net profit for 2024 as well. In addition, the company is currently advancing the construction of the Suzhou headquarters center project and the investment projects raised in this fundraising, predicting an annual increase in depreciation of fixed assets of approximately 16 million yuan and 35 million yuan, respectively. Due to the need for a certain period of time for market expansion and new capacity release, if the company cannot quickly expand its revenue scale or transfer costs to downstream, it may have an adverse impact on the company's future performance and gross profit margin.