New Stock Preview | Income Rapidly Rises, ChipCore Semiconductor Seizes the Opportunity to Submit its Application, When Will the High-End Packaging and Testing New Star WINOX Release its Financial Statements?

In recent years, with the rapid development of emerging technologies such as AI, 5G, IoT, and automotive electronics, there has been a strong demand for high-performance, low-power chips, which has driven continuous growth in the semiconductor market. The entire market is rapidly expanding, and the resources needed in various subfields have increased significantly, leading to further specialization in vertical industries, becoming a major trend in industrial development. Currently, although traditional semiconductor giants still maintain a certain degree of IDM operating model, more and more semiconductor companies are adopting the fabless model to invest more resources in complex chip design, and outsource their manufacturing and packaging testing processes to third parties. Data shows that the global semiconductor packaging and testing market is expected to reach 649.4 billion RMB by 2024, and is projected to further increase to 933 billion RMB by 2029, with a high compound annual growth rate of 7.5%. As the market flourishes, GMTEight has noted that Jiangsu Xinde Semiconductor Technology Co., Ltd., a company mainly providing semiconductor packaging and testing solutions, has recently submitted an application for listing on the Main Board of the Hong Kong Stock Exchange. According to the company's prospectus, Xinde Semiconductor was established in September 2020 and has accumulated rich packaging technology experience and advanced production capacity for packaging products including QFN, BGA, LGA, WLP, and 2.5D/3D. Benefiting from its technical and production capabilities, Xinde Semiconductor's packaging products have been recognized by many well-known customers, driving the company's continuous revenue growth. However, for Xinde Semiconductor looking to go public, it appears that the company's profitability still needs to be strengthened, and whether it can attract investors in the Hong Kong stock market remains to be seen, with GMTEight keeping a close eye on it. Revenue expansion and profit enhancement needed In the "post-Moore's Law era" where transistor density growth approaches its scale limit, relying on new semiconductor packaging architectures has become a key factor in improving chip performance, efficiency, and flexibility. According to Frost & Sullivan, Xinde Semiconductor is one of the few domestic advanced packaging product providers that have pioneered all capabilities of QFN, BGA, LGA, WLP, and 2.5D/3D. Currently, the company has established a "Crystal Grain and Advanced Packaging Technology Platform (CAPiC)" covering all branches of advanced packaging technologies to advance technical knowledge and ongoing research in cutting-edge technologies. In terms of financial performance, from 2022 to 2024, Xinde Semiconductor's revenues were 269 million RMB, 509 million RMB, and 827 million RMB, maintaining a high growth trajectory. In the first half of this year, the company's revenue reached 475 million RMB, a 20% increase year-on-year. Analyzing the revenue structure, the vast majority of Xinde Semiconductor's revenue comes from providing packaging products and testing services, with this business accounting for over 99% of its revenue in the reporting period. In addition, a small portion of the revenue comes from waste and material sales. Further breakdown of the packaging testing services provided by Xinde Semiconductor reveals that revenues from providing QFN and BGA products have always been the largest, accounting for 31.1% and 31.8% respectively in the first half of 2025. During the reporting period, revenues from providing LGA and WLP products continued to increase, with their respective shares increasing from 17.9% and 10.6% in 2022 to 18.2% and 18.5% in 2024; in the first half of this year, the respective revenue shares for these two businesses were 20.1% and 17%. In terms of regional segmentation, the vast majority of Xinde Semiconductor's revenue comes from the domestic market, with the domestic market revenue accounting for 93.9%, 96.1%, 97.6%, and 97.9% from 2022 to the first half of 2025. In the first half of this year, the company's revenue from other countries in Asia and the United States has shrunk to a total of 9.899 million RMB, accounting for only 2.1%. Although the overall revenue performance is impressive, as mentioned earlier, Xinde Semiconductor's profitability indicators still have room for improvement. From 2022 to the first half of 2025, Xinde Semiconductor's gross profit was -215 million RMB, -196 million RMB, -167 million RMB, and -77.405 million RMB, while net profit was -360 million RMB, -359 million RMB, -377 million RMB, and -219 million RMB, and the company has yet to achieve profitability. However, the good news is that Xinde Semiconductor's gross loss amount is narrowing year by year. Can the rising star in high-end packaging and testing catch up? In the realm of semiconductor packaging and testing in China, there are approximately 150-200 OSAT (Outsourced Semiconductor Assembly and Test) companies. Most of these OSAT companies have relatively small overall revenue, with the proportion of revenue from advanced packaging testing being relatively low. In addition, due to the diversification of semiconductor products, two types of OSAT companies have emerged in the market, including general-purpose OSAT products and specific application OSAT products. Based on the revenue in 2024, Xinde Semiconductor ranks seventh in China's general-purpose semiconductor OSAT market, with a market share of approximately 0.6%. Furthermore, Xinde Semiconductor is the latest player among the top eight companies in this field. It is commendable that in just over five years since its establishment, Xinde Semiconductor has shown strong growth performance in its subfields. However, compared horizontally with its industry peers, it is evident that there is still a significant gap between it and the industry leaders. According to data from last year, the combined market share of the top three participants in the domestic general-purpose semiconductor OSAT market exceeded 50%, indicating a dominant position. As a newcomer to the industry, Xinde Semiconductor has made research and development a key lever to deepen its competitive advantages and achieve catching up in the industry. According to the company, Xinde Semiconductor's research and development strategy covers five key dimensions: high-performance 2.5D/3D packaging solutions, high-precision optical sensor solutions, automotive-grade packaging technology, innovative glass substrate technology, and iterative research and development of existing technologies to build a comprehensive technology layout. In terms of market strategy, Xinde Semiconductor plans to strategically expand into overseas markets. The company's next step is to focus on entering the markets in Taiwan, South Korea, Japan, Southeast Asia, the United States, and Germany, with the goal of establishing a solid business foundation in these countries and regions, ultimately growing into a globally competitive packaging and testing enterprise in the future. As Xinde Semiconductor officially makes a push to the Hong Kong Stock Exchange, this rising star in the packaging and testing field is sure to attract more attention in the future. For Xinde Semiconductor, this will undoubtedly present both opportunities and challenges. The next focus will be on whether Xinde Semiconductor's revenue can further expand, and when economies of scale will bring about profit elasticity, these questions are expected to be the core concerns of investors and require answers from the company.