After more than two years of preparation, SJ Semiconductor Co., Ltd. (referred to as "SJ Semiconductor") has submitted its IPO prospectus, which was accepted by the Shanghai STAR Market at the end of October.

In recent years, SJ Semiconductor has experienced rapid growth, turning a profit in 2023 and achieving a net income of RMB 435 million in the first half of 2025—double its full-year 2024 earnings. The company's gross margin surged over threefold to 31.79% during the same period, reflecting economies of scale.

The company's growth is heavily reliant on major clients. In H1 2025, sales to its top five clients accounted for 90.87% of total revenue, with the largest client alone contributing 74.40%.

Financially, SJ Semiconductor appears well-capitalized, with RMB 6.506 billion in cash reserves as of June 2025. The IPO aims to raise RMB 4.8 billion for projects including 3D multi-chip integrated packaging and ultra-high-density interconnect packaging.

**No Controlling Shareholder, Valuation Up to RMB 48 Billion** Originally established in August 2014 as SMIC JV, a joint venture between Semiconductor Manufacturing International Corporation (SMIC, 688981.SH) and JCET Group (600584.SH), the company was renamed SJ Semiconductor in 2021 after SMIC divested its stake due to U.S. sanctions.

Currently, SMIC retains a minor stake (3.48%), while the largest shareholder is Wuxi Industrial Development Fund (10.89%), controlled by Jiangyin State-Owned Assets. Other notable shareholders include CMB-affiliated entities (9.95%), Shenzhen Yuanzhi No.1 (6.14%), and China Mobile’s investment arm (2.58%).

With 113 shareholders—including 38 private equity funds and 12 employee持股 platforms—SJ Semiconductor has no controlling shareholder. Its valuation for the IPO ranges between RMB 19.2 billion and RMB 48 billion.

**Key Executives from SMIC, Board Seats Allocated to Top Shareholders** CEO Cui Dong, a former SMIC executive, leads the company, alongside other senior managers with SMIC backgrounds. The board includes five directors nominated by the top five shareholders.

**Capacity Utilization Fluctuates, Gross Margin Triples** Specializing in wafer-level advanced packaging, SJ Semiconductor saw its revenue grow from RMB 1.633 billion in 2022 to RMB 3.178 billion in H1 2025, with net profit surging to RMB 435 million.

While its multi-chip integrated packaging segment now dominates (56.24% of revenue), capacity utilization rates remain volatile, ranging from 57.04% to 64.2% in H1 2025. Seasonal factors and inventory adjustments in consumer electronics contributed to fluctuations.

**R&D Spending and Client Concentration Risks** R&D expenses totaled RMB 367 million in H1 2025 (11.53% of revenue), down from 15.72% in 2022. Client concentration remains high, with the top five clients contributing over 90% of revenue.

Inventory and receivables have risen, reaching RMB 1.344 billion and RMB 1.323 billion, respectively, by mid-2025. Despite this, the company holds RMB 6.506 billion in cash, covering short-term debt five times over.

**Underwriters and Advisors** Lead underwriters: China International Capital Corporation (CICC) and CITIC Securities. Auditor: RSM China. Legal advisors: Shanghai Jintiancheng Law Firm and Haiwen & Partners.