On the evening of October 19, Xi'an Yiswei Material Technology Co., Ltd. (688783, hereinafter referred to as Xi'an Yiswei) disclosed the online lottery results for its initial public offering (IPO), with approximately 161,300 winning numbers, each allowing the purchase of 500 shares of Xi'an Yiswei. This signals the imminent listing of Xi'an Yiswei on the STAR Market. The company plans to publicly issue 537.8 million shares at an issue price of 8.62 yuan, aiming to raise 4.636 billion yuan. After deducting issuance costs of 129 million yuan, the net proceeds will amount to 4.507 billion yuan. This net fundraising amount is the largest IPO in Shaanxi this year and ranks as the second-largest IPO in A-shares for the year, second only to Huaneng New Energy.
Despite lacking profitability, Xi'an Yiswei is one of the first unprofitable enterprises to begin issuing shares under the STAR Market’s deepening reform "1+6" policy and is likely to become one of the first new listings on the technology growth tier, reflecting the Shanghai Stock Exchange's increasing inclusivity towards unprofitable "hard technology" enterprises. The number of valid online subscriptions for Xi'an Yiswei indicates strong investor interest, with nearly 80% of those who opened accounts on the technology growth tier participating in the subscription. Notably, a significant number of local state-owned enterprises also participated in strategic allocations.
Xi'an Yiswei focuses on the R&D, production, and sales of 12-inch silicon wafers. However, its financial reports reveal an underwhelming performance. From 2022 to the first half of 2025, the company's revenues will be 1.055 billion yuan, 1.474 billion yuan, 2.121 billion yuan, and 1.302 billion yuan, respectively. The net profit attributable to shareholders after deducting non-recurring gains and losses will be -416 million yuan, -692 million yuan, -763 million yuan, and -345 million yuan, indicating that the company has not yet achieved profitability. Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, analyzed that as a company focusing on semiconductor materials (primarily silicon wafers), it plays a crucial role in the domestic substitution chain. Its financial performance does exhibit some "unpleasant" aspects, with negative or marginal profits over the past three years and a gross margin lower than that of industry leaders. Furthermore, high R&D expenditures have yet to yield results, indicating that the company is still in a technology catch-up phase and has not yet formed economies of scale. The company also has a high customer concentration, relying on a few domestic wafer manufacturers, which limits its bargaining power.
However, the IPO of Xi'an Yiswei essentially represents a financing window under the context of "cyclic bottom + domestic substitution + policy support." While the company's current financial performance is poor, it falls under "strategic losses," with the market placing greater emphasis on its mass production capability of 12-inch silicon wafers and the potential for increased domestic market share. The IPO pricing is not considered expensive but lacks significant bubbles.
Investment advisor Qu Fang from Wanlian Securities is optimistic about Xi'an Yiswei, stating that as the "foundation" for chip manufacturing, the performance and supply capacity of silicon wafers directly influence the competitiveness of the semiconductor supply chain. For a long time, the 12-inch silicon wafer market has been monopolized by a handful of global giants. In this context, Xi'an Yiswei's insistence on independent R&D has led to self-innovation in key materials, making significant contributions to the domestic semiconductor localization process. With the support of capital markets, Xi'an Yiswei is expected to accelerate the realization of its long-term strategic goal of becoming a leader in the global 12-inch silicon wafer industry, further strengthening the independent innovation capability of China's semiconductor supply chain. In the long term, the company is expected to enter a period of stable profitability.
As of now, institutional shareholders have nearly 60, with Xigao Investment being the third-largest shareholder despite the lack of profitability. Since its inception, Xi'an Yiswei has attracted significant capital interest. Currently, the company has nearly 60 institutional shareholders, with total financing exceeding 10 billion yuan. In 2019, Xi'an Yiswei's predecessor, Yiswei Technology, completed a 505 million yuan Series A financing, with Beijing Chip动力 Capital, Tianjin Blessing Capital, and Sanhang Capital being early investors. That same year, Yiswei Technology was renamed Xi'an Yiswei Material. In July 2021, Xi'an Yiswei Material's Series B financing raised over 3 billion yuan, with Longxia Jinshi, CITIC Securities, and Jinshi Investment leading the round, along with follow-on investments from IDG Capital, Zhongwei Capital, and other institutions. A year later, the company experienced another financing peak, completing nearly 4 billion yuan in Series C financing, led by the China National Building Material New Materials Fund, with Chongqing Rich Holding, Financial Street Capital, Chang'an Huitong, Shangqi Capital, Hongsheng Capital, Xi'an Hi-tech Jin控, and others as follow-on investors. According to the prospectus, in May 2023, eight investors, including phase II funds, subscribed to newly issued shares worth 230 million yuan, corresponding to a pre-financing valuation of 17.705 billion yuan, completing Series C2 financing. In June 2024, five institutions, including Photon Strong Chain and Xinhua Semiconductor, entered by acquiring all shares held by original shareholder Yida Xinye, with the company being valued at nearly 24 billion yuan based on the share transfer price, representing a premium of about 20% over the post-Series C2 valuation. The prospectus shows that before the issuance, the Shaanxi Integrated Circuit Fund (managed by Xi'an High-tech Jin控 under Xigao Investment) held a 9.06% stake, making it the third-largest shareholder. According to disclosures from Xi'an High-tech District, Xigao Investment has been a "angel investor" in Xi'an Yiswei, fully supporting its development from the beginning of the project, investing heavily through the Shaanxi Integrated Circuit Fund and continuously following up.
Qu Fang analyzed that the National Integrated Circuit Industry Investment Fund (Phase II) and the Shaanxi Integrated Circuit Fund—both part of the "national team"—have become major shareholders, reflecting trust in the company's long-term value. Following the company's listing, as its market capitalization experiences explosive growth, shareholders including Xigao Investment, Chang'an Huitong, Beijing Chip动力 Fund, Longxia Jinshi, CITIC Securities, and Jinshi Investment will enter a "harvest period."
From another angle regarding performance, it can be said that the company's main financial indicators are gradually improving. During the reporting period, the company's revenue increased from 1.055 billion yuan in 2022 to 2.121 billion yuan in 2024, achieving a compound annual growth rate of 41.83%. Additionally, the company's net cash flow from operating activities has been positive since 2022. With the semiconductor industry gradually rebounding, the company is expected to exhibit a stable upward trend in performance, with revenue continuing to grow rapidly in the first half of 2025 and losses narrowing year-on-year. The company anticipates achieving consolidated profitability by 2027. Some market participants believe that in the short term, as the "second-largest IPO in A-shares for 2025," combined with the semiconductor domestic substitution focus, initial trading is likely to be fuelled by speculation. However, investors need to be cautious of the company's large float, as a deterioration in market sentiment could lead to a downward risk.
From a medium- to long-term perspective, Bai Wenxi believes that the progress and yield improvement of Xi'an Yiswei’s 12-inch silicon wafers in clients such as Yangtze Memory Technologies and SMIC need to be observed. If breakeven can be achieved on a monthly basis by 2026, the stock price may rise. If global silicon wafer prices rebound in 2026 and the company’s losses narrow, it could experience a "Davis Double." Looking further ahead, if it can capture a domestic market share of over 10% in the 12-inch silicon wafer sector (currently <5%), it could see a substantial increase in market capitalization. Bai Wenxi analyzed that Xi'an Yiswei's IPO is another instance of financing under the narrative of "domestic substitution." For investors, short-term gains appear promising; mid-term requires cautious optimism, while long-term prospects may face industry ceilings. In this sense, the future growth potential of Xi'an Yiswei depends on time and technology, while investors’ wealth calls for calmness and rationality to safeguard.