Da Puwei's IPO has been accepted by the Shenzhen Stock Exchange, becoming the first unprofitable company on the ChiNext board to receive approval.

On June 27, Shenzhen Dapu Microelectronics Co., Ltd. (referred to as Dapu Micro) IPO on the Shenzhen Stock Exchange's Growth Enterprise Board has been accepted, becoming the first non-profit enterprise to be accepted on the board. Guotai Haitong is its sponsor, with a planned fundraising of 1.8785 billion yuan. The prospectus shows that Dapu Micro is mainly engaged in the research and sales of data center enterprise-level SSD products, and is a leading provider of semiconductor storage products in the industry, with the rare self-developed ability in enterprise-level SSD main control chip + firmware algorithm + module full-stack technology and mass production capability. Dapu Micro focuses on data center enterprise-level SSD, with product generations covering PCIe 3.0 to 5.0, fully meeting the product needs of various customers. During the reporting period, the company's enterprise-level SSD cumulative shipment volume reached over 3,500PB, with over 70% of shipments equipped with self-developed main control chips. According to IDC data, in 2023, the company ranked fourth in the domestic enterprise-level SSD market with a market share of 6.4%, while international vendors still dominate the market. In terms of research and development, Dapu Micro's PCIe SSD series products have outstanding read/write speeds, durability, low latency, and average failure rates far below JEDEC (Solid State Technology Association) standards, with product performance at an international advanced level. At the same time, the company continues to focus on cutting-edge storage development, being one of the first companies globally to mass-produce enterprise-grade PCIe 5.0 SSD and large-capacity QLC SSD storage products, as well as one of the few companies in the world with supply capabilities for SCM SSD and computational storage SSD. The company has a team of main control chip and SSD module developers with cutting-edge storage technology and rich industry experience, continuously investing in R&D resources to ensure product competitiveness in the market. In terms of customers, the company's downstream customers and end users include top domestic and international internet companies such as Google, ByteDance, Tencent, Alibaba, JD.com, Baidu, Meituan, and Kuaishou, as well as top domestic server manufacturers such as Inspur, Super Fusion, ZTE, Huakun Zhenyu, and Lenovo, and China Telecom Corporation, China Mobile Limited, and China United Network Communications, three major communication operators, as well as well-known companies in the financial, power, and other industries. After deducting the issuance expenses, the company's raised funds will be prioritized and invested in the following projects: Financially, in the fiscal years 2022, 2023, and 2024, Dapu Micro achieved operating income of approximately 557 million yuan, 519 million yuan, and 962 million yuan respectively, with net profits of approximately -534 million yuan, -617 million yuan, and -191 million yuan respectively during the same period. Dapu Micro mentioned in the prospectus that during the reporting periods, the company has not yet achieved profitability, mainly due to high R&D investment, limited bargaining power in the early stage of development, fluctuations in the storage industry cycle, and substantial stock-based compensation expenses. If the company fails to achieve sales targets as planned, encounters a compressing profit margin due to downturns in the storage industry cycle, or faces fierce market competition leading to lower-than-expected product sales prices, there is a risk that the company may not achieve profitability for a certain period in the future. As of the end of 2024, the company's undistributed profits amount to -590,791,400 yuan, indicating unremedied losses, and it is estimated that there will be no profit distribution in the short term, which may affect investors' returns.