New Stocks Outlook | Can Dragonext Semiconductor's move to Hong Kong from intelligent vision to AI and HPC open up a second growth curve?

In the wave of A-share technology companies seeking H-share "secondary listings" to expand international capital channels, another star company in the semiconductor field has taken a key step. Recently, LongXun Semiconductor (688486.SH), which is already listed on the Shanghai Stock Exchange Sci-Tech Innovation Board, has officially started its H-share IPO process. As a typical fabless chip design company, LongXun Semiconductor focuses on the research and development and sales of integrated circuits, with its product matrix firmly locked in the high-growth sectors of intelligent video chips and high-speed interconnect chips. According to a Frost & Sullivan report, in the global video bridging chip market in 2024, LongXun Semiconductor ranks fifth in terms of revenue globally, leading the way among mainland Chinese manufacturers. With its core competencies in SerDes, high-speed interface protocol processing, and high-definition audio and video processing, the company is aiming to expand from traditional strongholds such as intelligent visual terminals and intelligent car systems to the vast expanse of AI and high-performance computing (HPC). Facing the cyclical fluctuations in the semiconductor industry, a complex geopolitical environment, and the evolution of technological paradigms, can LongXun Semiconductor, with its fully self-developed technological base, pioneer a new era of multimodal data interconnectivity in the broader international capital market? Steady growth in performance, building technological barriers in audio-video interconnectivity LongXun Semiconductor adopts the industry-standard fabless business model, allowing it to concentrate valuable resources on the highest value-added research and development design and sales processes, enabling rapid response to market demands and sustained innovation capabilities. Currently, the company's products are mainly divided into two categories: 1. Intelligent video chips: as the company's core business, this product line covers video bridging chips that convert and process video signals between different interfaces or protocols (such as HDMI, DisplayPort, MIPI, etc.); 2. Interconnect chips: used for high-speed data interconnection between units such as CPU, GPU, storage, and display. During the reporting period, the company's revenue showed strong growth momentum, with revenues of RMB 241 million, 323 million, and 466 million in 2022, 2023, and 2024 respectively, with a compound annual growth rate (CAGR) of 39.1%. Revenue reached 389 million in the first nine months of 2025, a 16.7% growth compared to the same period in 2024. During the same period, the company's profits were RMB 69.21 million, 103 million, and 144 million, respectively; in the first nine months of 2025, the company's net profit increased by 32.5% to 125 million compared to the same period the previous year. It is worth noting that LongXun Semiconductor's profitability is at a high level within the industry, with gross profit margins of 58.8%, 53.6%, and 54.3% in 2022, 2023, and 2024 respectively, mainly attributed to its continuously optimized product portfolio and its independent control over core technologies. In the highly competitive and concentrated mixed-signal chip market, LongXun Semiconductor has established a significant leading position. Based on 2024 revenue figures, the company ranks first in the video bridging chip sector in mainland China and among the top five globally, becoming an important force in breaking overseas monopolies and promoting the process of indigenous controllability. In terms of technology, LongXun Semiconductor's proprietary ClearEdge technology platform integrates three basic technological pillars: high-bandwidth SerDes, high-speed protocol processing and data encryption, high-definition video processing, and display driver. Among them, SerDes technology, as the "power engine" of high-speed connections, can now stably support a transmission rate of 20Gbps per channel and is progressing towards 32Gbps, which is crucial for large-scale AI training and ultra-high-definition video transmission. Through this vertically integrated strategy, the company has built a rich product matrix with over 200 chip models covering a wide range from basic function chips to advanced system-level solutions. This platform-based design approach allows LongXun Semiconductor's technological capabilities to be quickly reused and expanded in different application scenarios such as intelligent visual terminals, intelligent car systems, and AR/VR, significantly reducing the development cycle of new products and effectively reducing development costs. In terms of downstream application distribution, intelligent visual terminals remain the company's mainstay, contributing 79.3% of total revenue in the first nine months of 2025. The company's chips in this field are widely used in drones, Siasun Robot&Automation, commercial displays, and video conferencing systems, achieving lossless transmission of visual details by supporting mainstream interface protocols such as HDMI 2.1 and DP 2.1. Meanwhile, the intelligent car system has become one of the company's strongest growth engines, with its revenue share rapidly increasing from 8.0% in 2022 to 18.0% in 2024, with a high compound annual growth rate of 109.2%. Currently, the company has had 14 chips pass the rigorous AEC-Q100 automotive-grade certification and these products are widely integrated into cockpit displays and autonomous driving perception systems for leading European luxury car manufacturers and domestic leading new energy brands. This cross-industry scenario adaptation capability helps mitigate the operational risks of a single market and provides space for the company to further penetrate the global supply chain. Seeking new growth in policy dividends and technological iterations Currently, the global semiconductor industry is in a complex environment of accelerated technological iterations, intensified market competition, and profound adjustments in geopolitical scenarios. For LongXun Semiconductor, seeking an "A+H" dual capital platform is not only a development requirement but also a strategic layout aimed at addressing future uncertainties. Behind the high growth potential, LongXun Semiconductor still faces potential risks such as cyclical fluctuations in the semiconductor industry, international trade restrictions, and highly concentrated supply chains. To counter these risks, the company is actively establishing a "dual-track" supply system covering domestic and international sources, and strategically collaborating with leading global wafer foundries to hedge potential disruptions. According to Frost & Sullivan's report, the global semiconductor market size has grown from RMB 30 trillion in 2020 to RMB 42 trillion in 2024 and is expected to continue strong growth in the coming years, reaching a scale of RMB 71 trillion by 2029. Behind this global growth wave, the Chinese government has elevated the integrated circuit industry to a national strategic height, with a series of policy documents such as the "14th Five-Year Plan for Digital Development" and the earlier "National Integrated Circuit Industry Development Promotion Outline" explicitly stating the need to enhance domestic self-sufficiency in core electronic components and key basic materials and improve the supply chain system of key industries such as integrated circuits. This long-term and multi-dimensional national strategic support has created unprecedented development opportunities and market space for local chip design companies like LongXun Semiconductor with core R&D capabilities. With the proceeds from the Hong Kong listing, LongXun Semiconductor's use of funds is aimed at strengthening research and development, expanding overseas business networks, and strategic acquisitions in the global semiconductor industry, indicating that the company's management is seeking to use the leverage of the capital market to strengthen its core technological barriers, diversify risks further through internationalization, and enhance global brand influence. Furthermore, at the dawn of the Hong Kong IPO, LongXun Semiconductor's future growth space also points to high-value application scenarios such as AI, intelligent car systems, and AR/VR. The company plans to focus on improving research and development capabilities, enriching the product matrix, and accelerating the commercialization process of high-speed protocol chips such as PCIe/CXL, SATA, and USB in the AI PC and server markets with the net proceeds. As intelligent cabins evolve towards multi-screen interaction and panoramic perception in autonomous driving, and as spatial computing devices demand real-time rendering and low-power transmission, LongXun Semiconductor, with nearly twenty years of technological accumulation, is striving to redefine its "data expressway" standard in a wider global competition through self-developed next-generation technologies such as ADP Link-II. Faced with fierce domestic and international market competition and the constantly evolving regulatory environment, whether LongXun Semiconductor can successfully overcome the challenges of technological iterations and globalized supply chain balance, release its scarcity value as the underlying infrastructure for smart interaction in the capital market, remains to be seen.