BASiC Semiconductor Co., Ltd. ("BASiC Semiconductor" or the "Company") resubmitted its listing application to the Hong Kong Stock Exchange on December 4, seeking a main board IPO under Chapter 18C with CITIC Securities, Guojin Securities, and BOCI acting as joint sponsors.
The Company's core products—silicon carbide power modules and discrete devices—have consistently recorded negative gross margins during the reporting period, trapped in a "more sales, bigger losses" dilemma. Over three and a half years, BASiC Semiconductor accumulated nearly RMB 1 billion in net losses. While industry-wide price wars contributed to this situation, the root cause appears to be its strategic choice of adopting the capital-intensive IDM model, which brings high depreciation, R&D, and operational costs, compounded by aggressive low-price strategies to capture market share.
Persistent losses have severely strained BASiC Semiconductor's financial health. Its debt-to-asset ratio surged from 38.41% to 86.61% during the reporting period, with current liabilities exceeding current assets since 2023—indicating chronically negative working capital. The core business fails to generate positive operating cash flow, forcing continuous reliance on external financing for survival.
**Controlling Shareholders Cash Out While Chairman Collects RMB 50M Paycheck** As a Chinese third-generation semiconductor power device specialist, BASiC Semiconductor focuses on R&D, manufacturing, and sales of silicon carbide power devices. Its product portfolio serves industries including new energy vehicles, renewable energy systems, and industrial automation.
The Company boasts elite academic credentials—founder Wang Zhihan and CEO Wei Wei both hold electrical engineering bachelor's degrees from Tsinghua University and PhDs in power electronics from Cambridge University. This academic pedigree helped secure early support from Tsinghua University's Shenzhen Research Institute and venture capital from its affiliate Leaguer Innovation.
BASiC Semiconductor has completed 12 financing rounds raising over RMB 1.1 billion, with a post-money valuation reaching RMB 5.16 billion after its August Series D round. Notably, pre-IPO shareholders conducted multiple cash-out transactions through entity Basic Original—including a RMB 101 million share transfer from Anxin Capital in April 2025 and subsequent disposals totaling RMB 79.5 million.
Meanwhile, Chairman Wang Zhihan awarded himself RMB 50.17 million in total compensation (including share-based payments) over 3.5 years, including 71.96% of the Company's 2022 equity incentives worth RMB 51.1 million.
**Loss-Making Core Products Drive RMB 1B Deficit** Despite revenue growth at a 59.95% CAGR from 2022-2024, BASiC Semiconductor's silicon carbide power modules—which became its top revenue contributor in 2023—suffered plunging ASPs (-74.08% YoY in 2023) and persistent negative gross margins (-27.9% in 2024). Silicon carbide discrete devices fared worse, with gross losses widening to -194% in H1 2025—losing RMB 7.3 per unit sold.
This resulted in cumulative net losses of RMB 9.98 billion over 3.5 years, exceeding annual revenue in 2022-2023 and H1 2025. While industry peers like STMicroelectronics and onsemi maintained robust profitability, and domestic competitors including Times Electric and Sanan Optoelectronics returned to profits in 2024, BASiC Semiconductor's losses stand out starkly.
**Precarious Financial Position With Chronic Funding Shortages** The Company's debt-to-asset ratio skyrocketed from 38.41% to 86.61%, far exceeding industry averages. Current ratios fell below 1 since 2023, with working capital remaining negative. Cash reserves failed to cover interest-bearing debt since 2023, while operating cash flow stayed negative throughout the period.
Despite a RMB 150 million Series D financing in April 2025, BASiC Semiconductor still faced a RMB 90 million funding gap against RMB 272 million in short-term borrowings as of June 2025. Its production facilities also showed concerning underutilization—Wuxi power module plant ran at just 40.8% capacity in H1 2025, while the newly operational Guangming wafer fab reached only 65.9% utilization.
Proceeds from the IPO would fund capacity expansion, R&D, and global distribution network development over the next 4-5 years—making this listing critical for the Company's survival given its unsustainable financial trajectory.
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