Before its second attempt to go public on the Hong Kong Stock Exchange, the semiconductor "little giant" suddenly saw a sharp reversal in its financial performance.
Shenzhen Vsemiconductor Co., Ltd. (hereinafter referred to as "Vsemiconductor"), a power semiconductor device supplier honored as a national "Little Giant" enterprise specializing in refined, specialized, and innovative production, has recently submitted a new listing application to the Main Board of the Hong Kong Stock Exchange, with GF Securities acting as the sole sponsor.
This marks the company's second attempt to list on the Hong Kong stock market within the year. Its first prospectus submitted on January 12, 2026, automatically became invalid after six months.
Since its establishment, Vsemiconductor has completed multiple rounds of financing, with an impressive list of shareholders including industry capital players such as Intel APAC, OPPO Guangdong, Hubei Xiaomi, and CATL New Energy. Its post-investment valuation has surged by over 500% in just two and a half years to approximately RMB 2.9 billion.
One month before submitting the application, the China Securities Regulatory Commission (CSRC), in its supplementary materials for overseas issuance and listing filing, required Vsemiconductor to issue a clear and conclusive opinion on issues including the fairness and reasonableness of the share subscription prices of new shareholders added in the latest 12 months and the existence of any benefit transfer, pushing this "Little Giant" enterprise into the spotlight of public opinion.
A chairman of a marketing consulting firm that has long focused on the semiconductor industry chain told Phoenix Weekly Finance that the prospectus does not disclose any direct association between the top five customers and the company's shareholders. However, it is worth noting that Moqin Intelligent (a subsidiary of Huaqin Technology) holds a 2.12% stake. As a leading global ODM (Design + Manufacturing) vendor, whether Huaqin Technology's related relationships extend to the customer level may require further clarification from the company.
Industry Headwinds: The High-Gross-Margin "Ace" Loses Momentum
In the first half of 2026, the global semiconductor industry was still in the painful phase of inventory adjustment. Focusing on the medium and low-voltage MOSFET (Metal-Oxide-Semiconductor Field-Effect Transistor) segment in the power semiconductor sector, Vsemiconductor was not immune to the industry downturn.
According to the prospectus, in the first five months of 2026, the company's net profit turned from a profit to a loss, recording a deficit of RMB 510,000, compared with a profit of RMB 26.529 million in the same period of the previous year. Meanwhile, Vsemiconductor's overall gross margin dropped from 22.4% in the first five months of 2025 to 17.9% in the same period of 2026. The prospectus attributes this decline to "market-driven pricing adjustments."
However, the deeper reason may lie in the passive shift of product structure. In the first five months of 2026, the revenue proportion of the company's high-gross-margin WLCSP (Wafer-Level Chip Scale Package) products dropped from 46.3% to 27.4%. The prospectus attributes the decline in WLCSP revenue to: smartphone manufacturers adopting more conservative production and procurement plans — rising storage chip prices have pushed up the cost of complete devices, terminal consumption recovery is slower than expected, customer inventory adjustments are superimposed with industry price competition.
Data shows that during the same period, although Vsemiconductor's non-WLCSP product revenue increased by 52.6% to RMB 246 million, the gross margin of these products was only 16.6%. When the company's revenue structure shifts from high-gross-margin WLCSP products to lower-gross-margin traditional packaged products, the situation of "revenue growth without profit growth" emerges.
Six Regulatory Inquiries, Directly Targeting Suspected Benefit Transfer
In June 2026, the CSRC raised six key inquiries to Vsemiconductor in its requirements for supplementary materials for overseas issuance and listing filing.
Among them, the two most core inquiries directly point to suspected benefit transfer: First, the company was required to explain the reasonableness of the share subscription prices of new shareholders added in the latest 12 months, the reasons for the price differences between different shareholders, and issue a clear and conclusive opinion on whether there was any benefit transfer; second, the company was required to explain the reasons and reasonableness for the significant difference in the grant prices of the two equity incentives of "Weizhu Yexin" and "Zhoushan Integration", and verify whether there are related relationships between the incentive personnel and the company's shareholders, directors, supervisors, and senior executives.
Phoenix Weekly Finance noted that before the IPO, Li Weicong is the founder, executive director, chairman, and general manager of Vsemiconductor. He directly holds 39.19% of the shares of Vsemiconductor, and indirectly controls 13.06% and 9.53% of the shares of the company through the two entities Zhoushan Tuowei and Zhoushan Integration under his control. In total, Li Weicong holds approximately 61.78% of the shares of Vsemiconductor, enjoying absolute control.
It is thought-provoking that Zhoushan Integration is a platform controlled by Li Weicong as a general partner, which mainly serves the core management team and early key employees, while Weizhu Yexin is an employee shareholding platform with a wider coverage.
"This means there is a risk that the granting and implementation of some equity incentives could be affected through the above platforms, which may be one of the reasons why the CSRC questioned the huge difference in the pricing of the two equity incentives," the chairman of the marketing consulting firm that has long focused on the semiconductor industry chain told Phoenix Weekly Finance. Based on the available information, Zhoushan Integration has a controlling relationship with Li Weicong, while Weizhu Yexin, as an employee platform, needs to be verified for the presence of related parties. The CSRC's requirement to issue a legal opinion on this matter is precisely to ensure that the selection criteria for incentive targets are objective and the procedures are compliant.
Regarding issues such as the reasonableness of the pricing for new shareholders' share subscription, Phoenix Weekly Finance sent a written interview letter to the board of directors of Vsemiconductor. As of press time, no response has been received from the company.
At the same time, the CSRC required the company to specify the complete and detailed content of the special shareholder rights arrangements and their termination clauses; explain whether the business involves fields restricted by the negative list for foreign investment access; verify whether there are any rights defects such as pledge or freezing on the shares held by shareholders intending to participate in the "full circulation" arrangement; and list the specific amount and proportion of the raised funds to be used for domestic and overseas investment projects item by item.
As of press time, Vsemiconductor has not yet made a public response to the CSRC's inquiries.
Major Dealer "Cleanup": Number Plunges by 80% in Three Years
The prospectus shows that from 2023 to the first five months of 2026, Vsemiconductor appointed 33, 33, 30, and 7 new dealers respectively; during the same period, it terminated its partnership with 17, 539, 47, and 39 dealers respectively. In terms of the number of dealers at the end of the period, by the end of May 2026, the number of Vsemiconductor's dealers had decreased from 658 to 103 within three years.
More than 500 dealers ceased operations within two years. In the prospectus, regarding the specific reasons for terminating cooperation, the company stated that "most of them failed to meet the performance assessment standards, and a small number violated contractual agreements and regional sales restrictions by selling beyond the designated regional scope without authorization." The company also added that the inventory levels of the terminated dealers are generally low.
In fact, Vsemiconductor's sales are highly dependent on dealer channels. The prospectus shows that from 2023 to the first five months of 2026, the company's sales revenue through dealers reached RMB 524 million, RMB 507 million, approximately RMB 697 million, and RMB 297 million respectively, accounting for 91.0%, 81.3%, 85.7%, and 84.1% of the revenue in each corresponding period.
The company admitted in the prospectus that "any decline in sales from dealers or loss of dealers may adversely affect the company's business, financial status, and operating performance."
While the sales channels are undergoing drastic adjustments, the customer concentration of Vsemiconductor has continued to rise. From 2023 to the first five months of 2026, the revenue contribution proportion of the company's top five customers reached 48.7%, 53.8%, 57.6%, and 67.9% respectively. Among them, the revenue proportion of the largest customer rose all the way from 13.8% in 2023 to 29.7% in the first five months of 2026.
Supplier concentration also remains at a high level. From 2023 to 2025, the purchase amounts of Vsemiconductor from its top five suppliers accounted for 80.5%, 81.1%, and 72.6% of the total purchase amount respectively, and still reached 70.1% in the first five months of 2026. This "double concentration" structure in both upstream and downstream links may expose the company to high transmission risks amid fluctuations in the industry cycle.
"In fact, the increase in customer concentration is common in the semiconductor industry, and the onboarding of leading customers usually means that products have entered the mainstream supply chain," the aforementioned chairman of the marketing consulting firm told Phoenix Weekly Finance. From the perspective of the industry characteristics of semiconductors, most power semiconductor customers are brand manufacturers or foundries in the consumer electronics and automotive electronics sectors, which belong to different links of the industry chain from shareholders, so the possibility of direct association is low.
However, he also emphasized that it is worth noting that Moqin Intelligent (a subsidiary of Huaqin Technology) holds a 2.12% stake in Vsemiconductor. As a leading global ODM (Design + Manufacturing) vendor, whether Huaqin Technology's related relationships extend to the customer level requires further clarification from the company.
This article is from the WeChat Official Account "Phoenix Weekly Finance", author: Xu Mengyi, published with authorization from 36Kr.