Xi'an Yicai Science and Technology Innovation Board IPO "under inquiry" focuses on the research, production, and sales of 12-inch silicon wafers.

On December 24th, Xi'an Yiswei Material Technology Co., Ltd. (referred to as Xi'an Yis Material) applied for the change of status of Shanghai Stock Exchange Sci-tech Innovation Board listing review to "inquiry received." CITIC SEC is the sponsoring institution, intending to raise 4.9 billion yuan. The prospectus shows that during the reporting period, Xi'an Yis Material has been focusing on the research, development, production, and sales of 12-inch silicon wafers. Based on the capacity as of the end of the third quarter of 2024 and the average monthly shipments in 2023, the company is the largest 12-inch silicon wafer manufacturer in mainland China, with corresponding capacities and monthly shipment volumes accounting for approximately 7% and 4% of the global market, respectively. The company's products are widely used in the manufacturing of various types of chips such as NAND Flash/DRAM/NorFlash storage chips, CPU/GPU/mobile SOC/embedded MCU logic chips, power management, display drivers, CIS, and others, ultimately applied in smartphones, personal computers, data centers, IoT, smart cars, and other end products. As of the date of signing this prospectus, Xi'an Yis Material's first core manufacturing base has been established in Xi'an. The first factory of the project started production in 2023, and the second factory planned for this IPO has officially started production in 2024, with plans to reach full production in 2026. By the end of the third quarter of 2024, the company's standardized capacity has reached 650,000 wafers per month, accounting for approximately 7% of the global 12-inch silicon wafer capacity at the same time. According to SEMI statistics, global demand for 12-inch silicon wafers is expected to exceed 10 million wafers per month by 2026, with demand in mainland China exceeding 3 million wafers per month. Through technological innovation and efficiency improvements, the company has increased the capacity of the first factory from 500,000 wafers per month to over 600,000 wafers per month, and the combined capacity of the first and second factories in 2026 is expected to reach 1.2 million wafers per month, meeting 40% of mainland China's demand for 12-inch silicon wafers at that time, with the company's global market share projected to exceed 10%. In terms of finance, Xi'an Yis Material reported revenues of approximately 208 million yuan, 1.055 billion yuan, 1.474 billion yuan, and 1.434 billion yuan in 2021, 2022, 2023, and the first nine months of 2024, respectively. Meanwhile, the net profits for the same periods were -521 million yuan, -533 million yuan, -683 million yuan, and -589 million yuan respectively. It is worth noting that in the prospectus, Xi'an Yis Material mentioned that as a new "challenger" in the global 12-inch silicon wafer market, it faces challenges inherent in the semiconductor industry, such as high investment intensity, high technical thresholds, and long cycles for customer certification and mass production of refined wafers, especially during fluctuating semiconductor cycles. During the reporting period, the company has not yet achieved profitability after deducting non-recurring gains and losses, with the latest period still showing accumulated losses. During each reporting period, the company's operating revenues were 207.5 million yuan, 1,054.69 million yuan, 1,473.76 million yuan, and 1,433.79 million yuan, while the net profits attributable to the parent company's shareholders after deducting non-recurring gains and losses were -34.81 million yuan, -41.55 million yuan, -69.23 million yuan, and -60.63 million yuan, respectively, indicating that profitability has not been achieved yet. As of the end of September 2024, the company's accumulated losses on consolidated and parent company financial statements were -177.89 million yuan and -46.80 million yuan respectively, indicating unabsorbed losses that need to be filled.