Xinhua Technology's application for an IPO on the STAR Market has been accepted, with plans to raise 1.32 billion yuan.

On February 25, Jiangsu Xinhu Semiconductor Technology Co., Ltd. (Xinhua Technology) submitted its application for listing on the Shanghai Stock Exchange Sci-Tech Innovation Board (STAR Market) IPO. CMSC is the sponsor institution, with plans to raise 1.32 billion yuan. According to the prospectus, Xinhua Technology is mainly engaged in the research, production, and sales of electronic-grade polysilicon for the semiconductor industry. The semiconductor manufacturing industry chain starts with electronic-grade polysilicon, then continues with the production of semiconductor silicon wafers and wafers, ultimately producing integrated circuit chips for end products. Since the 1980s, high-purity electronic-grade polysilicon has been monopolized by a few companies in Germany, the United States, and Japan, with less than five mature global manufacturers with the technology to supply on a large scale. China's domestic market supply capability is almost zero, severely hindering the development of the country's semiconductor industry. To address the challenges of localization and substitution, Xinhua Technology has pursued the strategic goal of "filling the domestic gap in the production of semiconductor-grade polysilicon" since its establishment. It has focused on technological innovation, research, and development of key technologies, and has successfully built production lines in Xuzhou with a capacity of 5,000 tons per year (expanded to 8,000 tons per year) and in Inner Mongolia with a capacity of 10,000 tons per year for electronic-grade polysilicon. This has enabled stable large-scale production of electronic-grade polysilicon for the semiconductor industry, breaking the dual monopoly of foreign companies in technology and the market, filling the gap in relevant domestic fields. The key indicators of the company's electronic-grade polysilicon have reached international advanced levels, successfully passing verification by mainstream customers domestically and abroad. The products have achieved full coverage in application areas from 12-inch silicon wafers, 6-8-inch silicon wafers to small-sized silicon wafers and silicon components, ensuring the normal operation and development of the domestic silicon wafer and silicon component industry. Currently, the company is continuing to increase investment to overcome the technical challenges of ultra-high-purity electronic-grade polysilicon. Ultra-high-purity electronic-grade polysilicon is a cutting-edge product within the electronic-grade polysilicon category globally, including ultra-high-resistance electronic-grade polysilicon and polysilicon for zone melting, with a purity level reaching 13N (i.e., 99.99999999999%). After deducting issuance expenses, the funds raised from this offering will be invested in the following projects: Financially, in the 2022, 2023, 2024, and January-September 2025 fiscal years, the company achieved operating income of 1.274 billion yuan, 946 million yuan, 1.1 billion yuan, and 1.336 billion yuan, respectively. During the same period, net profits were approximately 143 million yuan, 36.33 million yuan, 62.281 million yuan, and 77.5904 million yuan, respectively.