Nexchip Semiconductor Corporation (Nexchip) has updated its prospectus in preparation for a listing on the Hong Kong Stock Exchange.
Nexchip went public on the Shanghai STAR Market in May 2023, becoming the first pure-play wafer foundry in Anhui Province to enter the capital markets. At the close of trading today, Nexchip's share price was 28.31 yuan, giving the company a market capitalization of 56.8 billion yuan. A successful Hong Kong listing would establish an "A+H" share structure for the company.
Established in May 2015, Nexchip was founded as a joint venture between Hefei City Construction and Investment Holding (Group) Co., Ltd. and UMC Innovation Investment Holdings Co., Ltd. The company primarily engages in 12-inch wafer foundry services, focusing on the research, development, and application of advanced process technologies to provide customers with various process platforms and multiple process nodes.
In terms of process nodes, Nexchip has achieved mass production for platforms ranging from 150nm to 40nm. Its 28nm OLED products are undergoing ongoing verification, while the development of its 28nm logic process platform has been completed. Regarding process platform applications, the company possesses the technical capability for wafer foundry services across platforms including DDIC, CIS, PMIC, Logic, and MCU. Its products are primarily used in consumer electronics, automotive electronics, industrial control, artificial intelligence, the Internet of Things, and memory storage.
According to the prospectus, Nexchip's revenue for 2023, 2024, and 2025 was 7.183 billion yuan, 9.12 billion yuan, and 10.388 billion yuan, respectively. Gross profit for the same periods was 1.461 billion yuan, 2.3 billion yuan, and 2.358 billion yuan, with corresponding gross margins of 20.3%, 25.2%, and 22.7%.
The company's profit for the years 2023, 2024, and 2025 was 119 million yuan, 482 million yuan, and 466 million yuan, respectively. This resulted in net profit margins of 1.7%, 5.3%, and 4.5% for each year. Notably, the profit for 2025 decreased by 3.3% year-on-year, and the net profit margin declined by 0.8 percentage points.
As of December 31, 2025, Nexchip held cash and cash equivalents totaling 2.276 billion yuan.
The company's executive directors are Cai Guozhi and Zhu Caiwei. Non-executive directors are Lu Qinhang, Chen Xiaobei, Guo Zhaozhi, and Qiu Wensheng. The independent non-executive directors are Professor An Guangshi, Professor Lin Zhiting, and Chen Ting.
The major shareholders as of December 31, 2025, are as follows: Hefei City Construction and Investment Holding (Group) Co., Ltd. holds a 23.34% stake; Hefei Chip Screen Industry Investment Fund holds 16.37%; UMC Innovation Investment Holdings Co., Ltd. holds 13.07%; and Huaqin Co., Ltd. holds 6%. Other significant shareholders include China Merchants Bank Co., Ltd. - Huaxia SSE STAR Market 50 Constituents ETF holding 1.95%, and Industrial and Commercial Bank of China Limited - E Fund SSE STAR Market 50 Constituents ETF holding 1.82%.
HONG KONG SECURITIES CLEARING COMPANY LIMITED holds a 1.25% stake. CITIC Securities Co., Ltd. - Harvest SSE STAR Market Semiconductor Chip ETF holds 1.13%. SME Development Fund holds 0.66%. Yinhua Fund - China Life Insurance Company Limited - Participating Policy - Yinhua Fund China Life Shares Growth Equity Portfolio Single Asset Management Plan holds 0.65%.
Hefei Chip Screen and Hefei Construction & Investment are considered acting-in-concert parties.
For comparison, the shareholding structure as of June 30, 2025, showed UMC Innovation Investment Holdings Co., Ltd. holding 19.08%, and Midea Innovation Investment Co., Ltd. holding 2.44%. China Merchants Bank Co., Ltd. - Huaxia SSE STAR Market 50 Constituents ETF held 2.21%, and Industrial and Commercial Bank of China Limited - E Fund SSE STAR Market 50 Constituents ETF held 1.66%.
Beijing Juchuang North Technology Co., Ltd. held 1.32%. Anhui Chuanggu Equity Investment Fund Management Co., Ltd. - Hefei Zhong'an Zhixin Equity Investment Partnership held 0.97%. CITIC Securities Co., Ltd. - Harvest SSE STAR Market Semiconductor Chip ETF held 0.95%. HONG KONG SECURITIES CLEARING COMPANY LIMITED held 0.91%.
A comparison reveals that Midea Innovation Investment has exited the list of major shareholders, while Huaqin Co., Ltd. has become the fourth-largest shareholder.
This change resulted from a share transfer agreement signed between Nexchip and Huaqin on July 29, 2025, announced on August 29, 2025. Under this agreement, UMC Innovation transferred 120,368,109 shares, representing 6.00% of Nexchip's total shares, to Huaqin at a price of 19.88 yuan per share. This transaction amounted to a total investment of approximately 2.386 billion yuan by Huaqin, making it the third-largest shareholder.
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