Another Unprofitable IPO on ChiNext: Yuexin Semiconductor Projects Break-even in Four Years

Deep News12-21 22:41

Another unprofitable IPO application has been filed on the ChiNext board—Yuexin Semiconductor Technology Co., Ltd. (referred to as "Yuexin Semiconductor"). This comes as Shenzhen Dapu Microelectronics Co., Ltd. (referred to as "Dapu Micro"), the first unprofitable IPO on ChiNext, is set to go through a listing review next week.

So far this year, the ChiNext board has accepted applications from three semiconductor and integrated circuit companies, two of which are currently unprofitable. However, unlike Dapu Micro, which expects to turn profitable as early as next year, Yuexin Semiconductor projects that it will not achieve overall profitability until 2029—four years from now.

Additionally, the company is still in a capacity ramp-up phase, meaning depreciation and R&D expenses are expected to remain high in the coming years. If Yuexin Semiconductor fails to achieve profitability within this period, it could trigger ChiNext’s financial "red line" post-listing, potentially facing delisting risks.

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