New Stock News | Shangdingxin submitted an application to the Hong Kong Stock Exchange as a supplier of power semiconductors without a wafer factory. Its revenue last year was 1.22 billion yuan.

According to the disclosure by the Hong Kong Stock Exchange on April 3rd, Shenzhen Shangding Xintech Co., Ltd. (hereinafter referred to as "Shangding Xintech") has submitted an application to the main board of the Hong Kong Stock Exchange, with Jinliancapital as its exclusive sponsor. The prospectus shows that Shangding Xintech is a power semiconductor supplier without a wafer fab, specializing in the development and supply of customized power device products. The company customizes technology application solutions for customers, provides customized power devices to be installed on circuit boards of electrical equipment and products used by end users, aiming to achieve specific performance or optimize the functionality of such products. The products provided by Shangding Xintech during the historical period were mainly MOSFETs, followed by IGBTs, GaN MOSFETs, and SiC MOSFETs. These products are mainly designed, customized, and/or developed by the company's technical experts, specifically tailored to customer requirements for downstream products. The products provided by Shangding Xintech have a wide range of applications, including power converters and battery management systems. They are used in various applications such as consumer electronics, industrial control, automotive electronics, new energy and energy storage, medical devices, etc., and are widely used in applications such as sweeping robots, handheld power tools, drones, various consumer electronic adapters, LED lighting, outdoor energy storage, and other products. Power devices are a subclass of power semiconductors, which can be divided into several types based on their structure and function, namely FET, IGBT, and BJT. In addition, MOSFET is a subclass of FET known for its fast switching speed and high efficiency, especially in low voltage and high-frequency applications. IGBT similarly uses voltage to control, switch, and amplify current, but can handle higher voltages and currents than MOSFETs, making it suitable for high-power applications. Shangding Xintech stated that due to the widespread use of MOSFETs in consumer electronics, automotive applications, and renewable energy systems, there has been a significant increase in demand for them. As more industries adopt MOSFETs for their excellent performance in power management, their applications are expected to continue to expand. The Chinese MOSFET market is expected to grow at a compound annual growth rate of 13.9% from 2019 to 2023, and then expand at a compound annual growth rate of 6.0% from 2024 to 2029. Financially, Shangding Xintech's revenue in 2022, 2023, and 2024 is expected to be approximately RMB 167 million, RMB 113 million, and RMB 122 million respectively, with gross profit of approximately RMB 93.29 million, RMB 62.15 million, and RMB 69.21 million, and net profit of approximately RMB 53.609 million, RMB 31.017 million, and RMB 35.112 million respectively. According to the risk factors section described by Shangding Xintech in the prospectus, since the power semiconductor product market is cyclical, the company's past performance may not reflect its future growth. If growth cannot be effectively managed or business strategies executed, the company's operating performance and business prospects may be significantly adversely affected. In addition, an increase in production may lead to overcapacity and price decline, or conversely, may not meet unexpected demand for the company's products, which could impact operational performance.