New Stock News | Basic Semiconductor Second Listing on Hong Kong Stock Exchange focuses on the research, development, manufacturing, and sales of silicon carbide power devices.

According to the disclosure by the Hong Kong Stock Exchange on December 4th, Shenzhen Basic Semiconductor Limited (referred to as "Basic Semiconductor") has submitted an application for listing on the main board of the Hong Kong Stock Exchange. CITIC SEC, Sinolink (Hong Kong) Limited, and China International Capital Corporation are acting as joint sponsors for the company. The company had previously submitted a listing application to the Hong Kong Stock Exchange on May 27th of this year. According to the prospectus, Basic Semiconductor is an enterprise in China's third-generation semiconductor power device industry, focusing on the research and development, manufacturing, and sales of silicon carbide power devices. The prospectus mentions that Basic Semiconductor is the only enterprise in China that integrates silicon carbide chip design, wafer manufacturing, module packaging, and gate driver design and testing capabilities, as confirmed by Frost & Sullivan. Basic Semiconductor is one of the first enterprises in China to mass produce and deliver silicon carbide solutions for new energy vehicles, with new energy vehicles being the largest end-market for silicon carbide semiconductors. Silicon carbide is a leading third-generation semiconductor material with excellent performance, making it a key material for the future development of the power device industry. Basic Semiconductor has built a comprehensive product portfolio, including silicon carbide discrete devices, automotive-grade and industrial-grade silicon carbide power modules, and power semiconductor gate drivers. The company's solutions serve multiple industries, including new energy vehicles, renewable energy systems, energy storage systems, industrial control, data and server centers, and rail transit, among others. According to Frost & Sullivan data, based on 2024 revenue, Basic Semiconductor ranks sixth in the Chinese silicon carbide power module market with a market share of 2.9%, ranking third among Chinese companies. In terms of revenue in 2024, Basic Semiconductor ranks ninth in the Chinese silicon carbide discrete device market and the power semiconductor gate driver market, with market shares of 2.7% and 1.7%, respectively. These markets are highly concentrated, dominated by a few major international players. Basic Semiconductor's automotive-grade silicon carbide power modules have been applied to mass-produced flagship models of leading automobile manufacturers, making the company one of the first enterprises in China to mass produce and deliver silicon carbide solutions for new energy vehicles, with new energy vehicles being the largest end-market for silicon carbide semiconductors. Given that the assessment cycle for silicon carbide solutions is typically long and the replacement cost is high, Basic Semiconductor has established a high entry barrier, cultivated long-term cooperation with customers, and maintained a good track record of design-in for more than 50 models from over 10 automotive manufacturers. The company's products have gained wide market recognition. As of June 30, 2025, the cumulative shipment volume for energy vehicle products exceeded 110,000 units. The sales volume of Basic Semiconductor's silicon carbide power modules increased from over 500 units in 2022 to over 30,000 units in 2023, further increasing to over 61,000 units in 2024. The sales volume of Basic Semiconductor's silicon carbide power modules increased from over 6,000 units in the six months ended June 30, 2024, to over 25,000 units in the six months ended June 30, 2025. Financial Information Revenue For the fiscal years 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded revenues of 117 million yuan, 221 million yuan, 299 million yuan, and 104 million yuan, respectively. Annual/Interim Loss For the fiscal years 2022, 2023, 2024, and the six months ended June 30, 2025, the company reported annual/interim losses of 242 million yuan, 342 million yuan, 237 million yuan, and 177 million yuan, respectively. Research and Development Expenditure The company incurred research and development expenses of 59.404 million yuan, 75.827 million yuan, 91.087 million yuan, and 53.969 million yuan for the six months ended June 30, 2022, 2023, 2024, and 2025, respectively. Industry Overview From 2020 to 2024, the global silicon carbide power device industry experienced significant growth. The market size increased from 45 billion yuan in 2020 to 227 billion yuan in 2024, with a compound annual growth rate of 49.8%. It is expected that from 2025 to 2029, the global silicon carbide power device industry market size will continue to rise, with a compound annual growth rate of 40.5%. The market size is expected to grow rapidly, reaching approximately 110.6 billion yuan by 2029. The penetration rate of silicon carbide in the global power device market has also significantly increased. This ratio increased from 1.4% in 2020 to 6.5% in 2024 and is expected to reach 20.1% by 2029. From 2020 to 2024, the sales revenue of the Chinese silicon carbide power device market increased from 11 billion yuan in 2020 to 69 billion yuan in 2024, with a compound annual growth rate of 59.7%. It is estimated that from 2025 to 2029, this figure will grow at a compound annual growth rate of 47.1%, and the market size is expected to reach 428 billion yuan by 2029. The penetration rate of silicon carbide in the Chinese power device market also increased significantly from 0.9% in 2020 to 5.4% in 2024, and is expected to reach 19.0% by 2029. It is expected that the global silicon carbide discrete device market will significantly grow in the next ten years. From 2020 to 2024, the compound annual growth rate of this market is expected to be 32.2%, with sales revenue increasing from 16 billion yuan in 2020 to 50 billion yuan in 2024. This strong growth momentum is expected to continue in the next period, with a compound annual growth rate of 45.0% from 2025 to 2029, and sales revenue is expected to reach 29.4 billion yuan in 2029. Against this global backdrop, the Chinese silicon carbide discrete device market is also expected to grow significantly. From 2020 to 2024, the market in China grew at a compound annual growth rate of 65.4%, with sales revenue increasing from 3 billion yuan in 2020 to 19 billion yuan in 2024, contributing 38.4% to the global market in 2024. It is expected that this growth momentum will continue in the next stage, with a compound annual growth rate of 53.6% from 2025 to 2029, and sales revenue reaching 14.9 billion yuan in 2029, contributing 50.5% to the global market. Board of Directors Information Basic Semiconductor's board of directors consists of four executive directors (including one employee director) and three independent non-executive directors. Directors serve a term of three years and can be re-elected at the end of their term. Equity Structure As of the last practicable date, Dr. Wang Zhihan, Qingtongjian Holdings, Yinglun Bozhi, Qingtongjian Technology, Basic Principles, Basic Innovation, Basic Creativity, Basic Entrepreneurship, and Basic Originality are all controlling shareholders of Basic Semiconductor. Qingtongjian Technology: (a) Dr. Wang owns directly 40.85% equity; (b) Qingtongjian Holdings (controlled by Dr. Wang as its general partner) owns 27.35% equity; (c) Yinglun Bozhi owns 19.57% equity, with Dr. Wang owning 13.00% and Dr. Wang's mother, Ms. Wang Yongmiao, owning 25.00% equity; and (d) Ms. Wang Yongmiao owns 12.23% equity. According to the joint actors agreement between Dr. Wang and Yinglun Bozhi, they agree to take consistent actions regarding their shareholder rights in Qingtongjian Technology (including voting and proposing resolutions), and in case of disagreement, Dr. Wang's opinion shall prevail. Intermediary Team Joint Sponsors: CITIC SEC (Hong Kong) Limited, Sinolink (Hong Kong) Limited, China International Capital Corporation (Asia) Limited Chinese Legal Advisor: JunHe LLP Legal Advisors to Joint Sponsors: Gallant Y.T. Ho & Co., JunHe LLP Auditors and Reporting Accountants: Ernst & Young Certified Public Accountants Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Wanbo Capital Limited