Xinde Semiconductor passes HKEX hearing, plans to raise funds to expand advanced packaging capacity

On October 21, the Hong Kong Stock Exchange disclosed that Jiangsu Xinde Semiconductor Technology Co., Ltd. passed its listing hearing.

According to the plan, the net proceeds from this IPO will be used to build production bases and establish new production lines, as well as to purchase production-related equipment, so as to enhance manufacturing capacity and meet growing market demand; to enhance R&D capabilities in advanced packaging technology and improve technical competitiveness in the semiconductor packaging and testing industry, with particular focus on advancing the packaging and testing technology of the CAPiC platform, covering LDFO, X-SiP, TXV and 2.5D/3D integration; to enhance commercialization capabilities and expand the customer collaboration ecosystem; and for working capital and other general corporate purposes.

Xinde Semiconductor is a provider of semiconductor packaging and testing technology solutions, principally engaged in developing packaging designs, providing customized packaging products and packaging product testing services. According to Frost & Sullivan, in the "post-Moore era," where transistor density growth is approaching its scale limits, reliance on new semiconductor packaging architectures (such as miniaturization, thinning, high efficiency, heterogeneous integration and other advanced packaging technologies) as the key link connecting chip design and application has become a key driver for improving chip performance, efficiency and functional flexibility. The company is one of the enterprises in China with advanced packaging technology capabilities, able to drive breakthroughs in innovative semiconductor technologies in the "post-Moore era" and support the development wave of the "AI+ era."

Since its establishment in September 2020, the company has expanded into the advanced packaging field, accumulated packaging technology experience, and possesses mass production capabilities for advanced packaging, covering QFN, BGA, LGA, WLP and 2.5D/3D, among others. The company is one of the few advanced packaging product providers in China to be among the first to have all of the above technical capabilities. The company has established the "Chip and Advanced Packaging Technology Platform (CAPiC)" covering all technical branches of the advanced packaging field, in order to advance technical knowledge and continue R&D of technologies.

The company's packaging products have been recognized by a number of well-known customers, driving strong revenue growth during the track record period. The company's revenue increased from RMB509.1 million in 2023 to RMB827.4 million in 2024, and further increased to RMB1,012.2 million in 2025. The company recorded losses for the year of RMB358.9 million, RMB376.6 million and RMB483.1 million in 2023, 2024 and 2025, respectively. For the three years ended December 31, 2023, 2024 and 2025, the company's gross loss margin improved, at 38.4%, 20.1% and 18.0%, respectively, reflecting the company's commitment to maintaining sustainability and achieving profitability.

The company's position in the packaging industry benefits from continuous investment in and progress in technological innovation. The company has registered and is applying to register self-developed intellectual property. As of the latest practicable date, the Group had a total of 225 patents in China, including 39 invention patents and 186 utility model patents, covering key areas such as packaging structures, methods, equipment and testing systems. The company also has three PCT patent applications.

The company operates under the OSAT model, which enables it to concentrate resources on packaging design, production and testing services, while customers focus on semiconductor chip design and wafer manufacturing. As semiconductor manufacturing is a capital-intensive industry, the OSAT model enables the company to effectively allocate capital to R&D and facilities for packaging production and testing, while providing flexibility to adapt to market changes and broaden its product range. The company's OSAT model supports advanced packaging R&D and specialized facilities, helping customers obtain new technologies without the need for substantial in-house development.

The company invests resources in the R&D of packaging technologies and products. As of December 31, 2025, the company had an R&D department consisting of 283 full-time employees. The R&D program is led by 27 core members, all of whom are experienced semiconductor industry experts, of whom more than 26% hold a master's degree or above. For the years ended December 31, 2023, 2024 and 2025, the company incurred R&D expenses of RMB76.6 million, RMB93.8 million and RMB86.2 million, respectively.

The company believes that patents, trademarks, trade secrets and other intellectual property rights are crucial to its business operations. As of the latest practicable date, the Group had 225 registered patents in China, including 39 invention patents and 186 utility model patents; it also had three PCT patent applications. As of the latest practicable date, the company had 21 registered trademarks and nine registered copyrights in China.

During the track record period, the company generated revenue by providing packaging products and testing services and others. For the years ended December 31, 2023, 2024 and 2025, the company recorded total revenue of RMB509.1 million, RMB827.4 million and RMB1,012.2 million, respectively.

For the years ended December 31, 2023, 2024 and 2025, the company recorded losses of RMB358.9 million, RMB376.6 million and RMB483.1 million, respectively. These losses mainly arose from depreciation and amortization of production equipment, financing cost expenses attributable to shareholders' redemption right interests, and share payments to employees. Despite recording operating losses, the gross loss margin improved from 38.4% in 2023 to 18.0% in 2025. The company aims to achieve profitability through strategies focused on increasing revenue, improving gross profit margin and enhancing operating efficiency.