Megachip Integrated Science and Technology Innovation Board IPO has been filed for and has not generated profits in nearly three years, with losses exceeding 2.3 billion.

On June 17th, Shanghai Zhaoxin Integrated Circuit Co., Ltd. (referred to as Zhaoxin Integrated) has had its IPO application accepted by the Shanghai Stock Exchange's Sci-Tech Innovation Board. Guotai Haitong and Orient are the sponsoring institutions, with plans to raise 4.169 billion yuan. The prospectus shows that Zhaoxin Integrated's main business is the research, design, and sales of high-end general-purpose processors and supporting chips. The company fully masters the core technology of general-purpose processor and supporting chip design and development, covering key areas such as processor core microarchitecture and implementation technology. Currently, it is a leading domestic CPU design enterprise that can simultaneously target desktop PCs, servers, workstations, embedded systems, etc., and continuously be compatible with the x86 instruction set. The company is dedicated to providing customers with high-performance, reliable, and superior general-purpose processors and supporting chip products. It continuously builds computing solutions for various application scenarios from cloud to edge to end, serving important industries such as government affairs, finance, education, energy, communication, transportation, industrial, medical, etc. In terms of industry competition, on a global scale, x86 architecture processors, relying on a mature and mainstream ecological system, still dominate the main market share in computing fields such as desktop PCs and servers, with Intel and AMD being the main players, forming a duopoly competitive landscape. Domestic CPU manufacturers such as Zhaoxin Integrated, Hygon Information Technology, Loongson Technology Corporation, Huawei HiSilicon, Phytium Information, and GuoTai Chinathink Technology have adopted different technological paths due to differences in product positioning and technology sources. Among them, Zhaoxin Integrated and Hygon Information Technology's products are compatible with the x86 instruction set, while Huawei HiSilicon and Phytium Information's products are compatible with the ARM instruction set; Loongson Technology Corporation and GuoTai Chinathink Technology's products respectively use LoongArch and SW-64 instruction sets. On the level of ecological system construction, the company closely cooperates and innovates with domestic industry chain partners to constantly improve and prosper its autonomous ecosystem. Processor products support domestic commercial operating systems such as Kylin and Zhongke Fande, as well as domestic open source operating systems like Euler and Dragonix. The company has formed over 200,000 software and hardware adaptation and optimization projects in collaboration with more than 3,000 partners in basic software, middleware, application software, and various mainstream boards, peripherals, etc. After the funds raised from this offering are in place, the company will invest in the following projects in order of priority: In terms of finances, in the fiscal years 2022, 2023, and 2024, Zhaoxin Integrated is expected to achieve operating revenues of approximately 340 million yuan, 555 million yuan, and 889 million yuan respectively; during the same period, the company is anticipated to achieve net profits of approximately -727 million yuan, -676 million yuan, and -951 million yuan respectively.