New Stock News | Xihua Technology Submits Application to Hong Kong Stock Exchange, Ranked Second in the Global Scaler Industry

According to the disclosure by the Hong Kong Stock Exchange on December 3, Shenzhen Xihua Technology Co., Ltd. (referred to as Xihua Technology) has submitted its listing application to the Hong Kong Stock Exchange Main Board, with the Industrial and Commercial Bank International as its sole sponsor. The prospectus shows that Xihua Technology is a provider of end-side AI chips and solutions. The company's intelligent display chip and solutions mainly include AIScaler and STDI chips; while the intelligent sensing chip and solutions mainly include TMCU, general MCU, touch chip, and intelligent cabin solutions. The company's products have been adopted by many mainstream automotive OEMs and globally renowned consumer electronics brands. The mass-produced chip product portfolio can meet the different needs of customers in consumer electronics, automotive industry, and emerging markets such as intelligent personalization. Xihua Technology has leading research and development capabilities, mature mass production experience, and cutting-edge technological strength in the fields of image and video processing, perception, SoC design, and automotive product development. Leveraging the end-side AI advantage technology in display, perception, and control, the company empowers global innovation in intelligent devices. The Scaler chip is widely used in image processing chips for intelligent smartphone displays and automotive cockpit displays. According to Frost & Sullivan's report, Xihua Technology has developed the world's first ASIC architecture scaler, namely AIScaler, mastering key technologies in lossless visual compression, image quality enhancement, and high-speed interface transmission. By strategically entering the smartphone display market, the company's AIScaler market share has grown rapidly and has become a global leading product. By 2024, Xihua Technology's AIScaler shipments are expected to be approximately 37 million units. According to Frost & Sullivan's report, in 2024, by shipment volume, Xihua Technology ranked second in the global scaler industry and first in the ASIC scaler industry. According to the same source, Xihua Technology's latest generation of automotive-grade TMCU maintains its global leading position in the specifications and performance of intelligent sensing control. Financial Information Revenue For the fiscal years 2022, 2023, 2024, and the nine months ended September 30, 2025, the company recorded revenues of RMB 86.79 million, RMB 150 million, RMB 244 million, and RMB 240 million, respectively. Gross Profit For the fiscal years 2022, 2023, 2024, and the nine months ended September 30, 2025, the company recorded gross profits of RMB 30.91 million, RMB 32.26 million, RMB 69.32 million, and RMB 53.05 million, respectively. Gross Profit Margin For the fiscal years 2022, 2023, 2024, and the nine months ended September 30, 2025, the company's gross profit margins were 35.7%, 21.5%, 28.4%, and 22.1%, respectively. Industry Overview Intelligent display chips are the core control and processing units in display systems, responsible for receiving, processing, and outputting image signals, and driving display panels to complete image presentation. Functionally, intelligent display chips mainly include Scaler chips, display driver chips, and other intelligent display chips. Scaler chips are responsible for analyzing, scaling, and optimizing video signals to provide high-quality image inputs for terminal displays; display driver chips convert digital signals into voltage or current signals that drive pixel illumination, making them the core components for visualizing images; other intelligent display chips include timing control chips (TCON), local dimming chips, and high-speed serial transmission chips (SerDes), which mainly handle signal coordination and optimization. Scaler Market Size In terms of market size, the global Scaler market continues to grow as emerging display technologies penetrate into medium and large OLED displays, and the expansion of the smartphone repair and recycling market. The global Scaler shipment volume increased from approximately 114 million units in 2020 to approximately 160 million units in 2024, with a compound annual growth rate of 8.7% during this period. It is expected that with the increasing demand for high-end display applications, continued evolution of video interface standards, and the maturing ecosystem of terminal repair, the global Scaler shipment volume will grow at a compound annual growth rate of 10.3% from 2025 to 2029, reaching approximately 261 million units. In terms of market structure, the current global Scaler market is mainly dominated by general-purpose FPGA products, but with the introduction of specialized ASIC products, their market share is expected to rapidly increase due to their higher energy efficiency, stability, and cost advantages. It is expected to increase from 35.6% in 2024 to 44.3% in 2029. In the downstream application fields, the demand for Scalers mainly comes from smartphones, automotive, and other fields. In the smartphone field, as the global smartphone recycling system improves and the prices of new phones increase while repair costs decrease, the smartphone Scaler market will steadily expand, with global shipments expected to increase from 103 million units in 2024 to 135 million units in 2029. In the automotive field, with the popularity of smart cabins and in-car entertainment systems, global shipments are expected to increase from 15.4 million units in 2024 to 73.9 million units in 2029. In industrial and other application fields, including industrial displays and projectors, driven by the demand for multi-format signal decoding, cross-device compatibility, and video source conversion, Scaler shipments are expected to increase from 41.5 million units in 2024 to 52.2 million units in 2029. Display Driver Chip Market Size In terms of market size, the global display driver chip market continues to grow steadily driven by fluctuations in smart terminal shipments and advances in display technology. In 2024, the global display driver chip market size was RMB 74.9 billion, and it is expected to grow at a compound annual growth rate of 1.4% from 2025 to 2029, reaching RMB 77.1 billion, as AI technology penetrates deeply into terminal devices, screen resolutions and refresh rates continue to rise, and new display technologies become popular. In terms of product structure, TDDI integrates touch control and display driver functions into a single chip, with significant advantages in power consumption, space utilization, and signal anti-interference performance, making it one of the fast-growing segments. From 2020 to 2024, affected by adjustments in the consumer electronics market, the market size decreased slightly from RMB 15.2 billion in 2020 to RMB 14.8 billion in 2024. In the future, as the trend of full-screen and highly integrated designs in smartphones and wearable devices continues, the global TDDI market size is expected to grow at a compound annual growth rate of 5.1% from 2025 to 2029, reaching RMB 18 billion. Touch Chip Market Size In terms of market size, the global touch chip market is steadily expanding under the continuous growth of smart terminals such as smartphones, TWS earphones, automotive electronics, and other intelligent devices. The global touch chip shipment volume increased from 3.1 billion units in 2020 to 3.7 billion units in 2024, with a compound annual growth rate of 4.5%. With the combined push from accelerated AI technology penetration, continuous upgrade of terminal interaction experience, and expansion of intelligent device shipments, the global touch chip market shipment volume is expected to grow at a compound annual growth rate of 8.9% from 2025 to 2029, reaching 5.6 billion units. In terms of downstream application areas, smartphones are still the largest application market for touch chips. In 2024, the shipment volume of touch chips in the smartphone field was 1.6 billion units, and it is expected that with the pull from new form factors such as AI smartphones, foldable screens, and full screens, the shipment volume will grow to 2.2 billion units by 2029; In the TWS earphone field, the shipment volume of touch chips in 2024 was 700 million units, and it is expected that with the rapid penetration of smart voice and touch control functions, the shipment volume will increase to 900 million units by 2029; In the automotive electronics field, driven by the popularity of intelligent cabins, multi-screen display systems, and human-machine interaction interfaces, the shipment volume of touch chips is expected to increase from 200 million units in 2024 to 400 million units by 2029; In emerging terminal devices such as smart speakers, smart glasses, AR/VR devices, as well as intelligent home devices, POS terminals, and industrial equipment in other fields, the continuous popularity of intelligent interaction and automation functions is expected to increase the shipment volume from 1.2 billion units in 2024 to 2.2 billion units by 2029. Board of Directors Information The company's board of directors is composed of 7 directors, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors. The board of directors is responsible for the management and operation of the company and has general authorization over these matters. Directors serve a term of three years and are eligible for re-election at the end of their term. Equity Structure As of November 26, 2025, Mr. Chen and Ms. Wang jointly control 65.51% of the company's voting rights at the shareholders' meeting, with (i) Mr. Chen directly holding 17.23%; (ii) Ms. Wang directly holding 15.59%; and (iii) Xichuang Lecong Limited Partnership, Xichuang Leye Holding Platform, Xichuang Lejia Holding Platform, and Xichuang Lexin Holding Platform each holding beneficial ownership of 23.09%, 7.98%, 1.59%, and 0.02%, respectively. The general partners of Xichuang Lecong Limited Partnership, Xichuang Leye Holding Platform, Xichuang Lejia Holding Platform, and Xichuang Lexin Holding Platform are all owned in full by Xichuang Technology, a company fully owned by Mr. Chen and Ms. Wang. Intermediary Team Sole Sponsor: ICBC International Finance Limited Company Legal Advisers: Baker McKenzie for Hong Kong and U.S. law; Shanghai Jintiancheng (Shenzhen) Law Firm for Chinese law Legal Advisers for the Sole Sponsor: Tianyuan Law Firm (Limited Liability Partnership) for Hong Kong law; Hankun Law Firm for Chinese law Auditors and Reporting Accountants: Ernst & Young Industry Consultants: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Advisers: Hopu Capital Limited