Sg Micro Corp (300661.SZ), a leading domestic analog chip manufacturer, has filed for an IPO in Hong Kong to expand its global footprint and financing channels.
Amid the dual opportunities of global semiconductor industry upgrades and domestic substitution, Sg Micro Corp has strengthened its position in the analog IC market. Its market share and stock price have risen steadily, with financial reports showing annual interest income from wealth management products exceeding RMB 18 million from 2022 to 2024.
Despite ample liquidity, the company faces challenges such as inventory management and supplier dependence. Over 90% of its procurement comes from its top five suppliers, while inventory worth RMB 1.1 billion accounts for nearly 30% of its current assets. Listed on the Shenzhen Stock Exchange in 2017, Sg Micro Corp had a market cap of RMB 44.93 billion as of November 6, 2025.
01. Over 40 Billion Chips Shipped, Annual Revenue Expected to Exceed RMB 4 Billion Founded in 2007, Sg Micro Corp specializes in high-performance analog ICs, which are critical for signal processing and power management in electronic systems.
From 2020 to 2024, the global semiconductor market grew from RMB 3 trillion to RMB 4.2 trillion, with a CAGR of 8.6%. Analog ICs accounted for 16% of the total IC market in 2024.
Sg Micro Corp’s revenue grew at a 26.2% CAGR from 2014 to 2024, outpacing China’s analog IC market growth of 9.7%. By 2024, it ranked first among domestic analog IC firms and among the top 15 globally. The company offers 6,600 products across 36 categories, with cumulative shipments exceeding 40 billion units.
Financially, Sg Micro Corp reported revenues of RMB 3.19 billion, RMB 2.62 billion, RMB 3.35 billion, and RMB 1.82 billion (H1 2025, up 15.37% YoY) from 2022 to H1 2025. Gross profits were RMB 1.69 billion, RMB 1.18 billion, RMB 1.58 billion, and RMB 819 million (H1 2025, up 10.61% YoY). Full-year 2025 revenue is projected to exceed RMB 4 billion, maintaining over 20% growth.
02. Falling Product Prices, Rising R&D and Sales Costs Due to slowing global demand and intensified competition, average selling prices (ASPs) for Sg Micro Corp’s power management ICs dropped 18.72% from 2022 to 2024, with a further 19.14% decline in H1 2025.
Despite this, the company remained profitable, with net profits of RMB 858 million, RMB 270 million, RMB 491 million, and RMB 194 million (H1 2025, up 11.95% YoY), supported by strong R&D investments.
R&D expenses totaled RMB 626 million, RMB 717 million, RMB 871 million, and RMB 508 million (H1 2025), accounting for 19.63%–27.90% of revenue. The company employs 1,219 R&D personnel, 55.4% of whom hold master’s degrees or higher.
Sales and marketing expenses also rose, reaching RMB 169 million, RMB 199 million, RMB 234 million, and RMB 132 million (H1 2025), with 92.9% of revenue coming from distributors.
03. Heavy Reliance on Top Suppliers, High Inventory Levels Sg Micro Corp operates on a fabless+ model, outsourcing manufacturing to third parties. Purchases from its top five suppliers accounted for over 90% of total procurement from 2022 to H1 2025.
While this model reduces capital expenditure, it exposes the company to supply chain risks. Wafer and packaging/testing costs made up 82.9%–87.7% of total sales costs.
Inventory levels stood at RMB 702 million, RMB 901 million, RMB 1.17 billion, and RMB 1.16 billion during the reporting periods, tying up nearly 30% of current assets. Inventory write-downs reduced sales costs by RMB 174 million, RMB 109 million, RMB 129 million, and RMB 84.5 million, respectively.
04. RMB 1.22 Billion in Wealth Management Products As of June 30, 2025, Sg Micro Corp held RMB 1.04 billion in cash, RMB 447 million in restricted cash, and RMB 1.22 billion in short-term wealth management products. Its debt-to-asset ratio was 21.8%.
From 2022 to 2024, the company invested RMB 3.85 billion, RMB 2.33 billion, and RMB 3.17 billion in wealth management products, generating annual returns of over RMB 18 million.
05. Zero-Pay Director Plans Share Sale for Debt Repayment Controlling shareholders, including CEO Zhang Shilong, hold 37.09% of Sg Micro Corp. Zhang’s salary remained flat at RMB 1.4 million, RMB 1.2 million, and RMB 1.35 million from 2022 to 2024.
Non-executive director Lin Lin, who holds a 5.10% stake, announced plans to sell up to 1.28% of shares (worth ~RMB 575 million) to repay debts. Lin received no salary but benefited from RMB 369 million in dividends during the reporting period.
As of September 30, 2025, Sg Micro Corp had 110,773 A-shareholders, with the top 10 holding 46.72% of tradable shares.
Underwriters: CICC Hong Kong Securities, Huatai Financial Holdings (Hong Kong) Legal Advisors: Cooley HK, JunHe LLP Auditor: Ernst & Young Industry Consultant: Frost & Sullivan
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