Another semiconductor "little giant" company, Vichip Semiconductor, seeks a Hong Kong IPO.

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According to the Hong Kong Stock Exchange disclosure on July 14, Shenzhen Weizhao Semiconductor Co., Ltd. (hereinafter referred to as “Weizhao Semiconductor”) submitted its listing application to the main board of the Hong Kong Stock Exchange, with GF Securities as the sole sponsor.

The prospectus shows that the company focuses on the R&D, design, and sales of high-performance power semiconductor devices and has been recognized as a national “Little Giant” enterprise for specialization and innovation.

Based on data from CIC, ranked by 2025 revenue, Weizhao Semiconductor is the top manufacturer of WLCSP MOSFET products in China, with a market share of 10.5%. At the same time, it ranks sixth among non-IDM power semiconductor device suppliers in China.

On the capital side, Weizhao Semiconductor underwent multiple rounds of financing before listing, attracting many well-known industrial capitals. As of the last practicable date, the company’s founder, executive director, and general manager Li Weicong and his controlled entities together hold 61.78% of the company shares, making them the controlling shareholder. Among external investors, OPPO Guangdong holds 5.05% of the shares, Intel Asia Pacific holds 3.90%, and Ningde New Energy holds 1.33%.

Weizhao Semiconductor mainly provides medium-low and high-voltage power semiconductor devices, with application fields including consumer electronics, automotive electronics, and industrial applications. Notably, the company achieved a fundamental shift in its business model in 2024.

From its founding in 2012 to 2023, the company mainly relied on a light-asset, fabless model. By the end of 2024, with the commencement of mass production at its own Zhuhai factory, Weizhao Semiconductor shifted to a “outsourced standard manufacturing + internal core process” hybrid model.

Under this model, the company outsources the front-end wafer manufacturing, but key back-end processing steps such as wafer coating, back grinding and thinning, back gold, etc., are brought under internal control. At the same time, the packaging and testing of core WLCSP products are also done internally. This transformation directly optimized production costs, and from 2024 to 2025, the overall unit cost of internally manufactured WLCSP products dropped by about 23.4%.

In terms of financial performance, the company’s revenue has continued to grow during the track record period. In 2023, 2024, and 2025, the company achieved revenues of 575 million yuan, 624 million yuan, and 814 million yuan respectively. Corresponding net profits were 13.977 million yuan, 19.353 million yuan, and 50.516 million yuan, showing an annual upward trend.

However, entering 2026, Weizhao Semiconductor faces pressure from shrinking gross margin in its main business. In the first five months of 2026, the company recorded revenue of 353 million yuan, a slight increase from 347 million yuan in the same period in 2025. But net profit turned from positive to negative, recording a loss of 510,000 yuan, whereas it was a profit of 26.529 million yuan over the same period last year.

Excluding share-based payment expenses and listing expenses, its adjusted net profit for the first five months of 2026 stood at 28.035 million yuan. Although adjusted net profit remains positive, the company’s overall gross margin dropped from 22.4% in the first five months of 2025 to 17.9% in the same period in 2026. The prospectus attributes the decline in gross margin mainly to market-driven pricing adjustments.

Looking at the product structure, the core WLCSP devices’ proportion of income declined in the first five months of 2026. From 2023 to 2025, WLCSP products accounted for between 28.0% and 39.4% of income. But in the first five months of 2026, the proportion fell to 27.4%.

During the same period, non-WLCSP products, mainly used in broader scenarios such as industrial and automotive applications, generated revenue of 246 million yuan, accounting for 69.6%. Company revenue growth was primarily driven by downstream demand in industrial-grade drone systems and energy storage applications, while sales to smartphone manufacturers and automotive electronics decreased.

In addition, the company’s customer concentration continues to rise. In 2023, 2024, 2025, and the first five months of 2026, total income contributed by the top five customers accounted for 48.7%, 53.8%, 57.6%, and 67.9% respectively of total revenue.

Income from the largest customer has increased from 13.8% in 2023 to 29.7% in the first five months of 2026. This deepening dependence on a few large customers may further weaken the company’s bargaining power in the industry chain.

Overall, Weizhao Semiconductor has effectively strengthened cost control and established a leading position in niche markets through its transformation to the hybrid manufacturing model. However, as the company faces pricing pressures brought by macro cycles, passive switches in product structure, and high concentration among major customers, it still needs to prove to the capital market its basic profitability and risk resilience.

Risk Warning and DisclaimerThe market has risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment goals, financial situation, or needs of individuals. Users should consider whether any opinions, viewpoints or conclusions in this article suit their particular circumstances. Investing based on this is at your own risk. ```