In-depth Analysis of the Risk of Financial Data Deviation in Jiangsu Zhanxin Semiconductor's IPO

Jiangsu Zhanxin Semiconductor Technology Co., Ltd. was established in March 2018 and is a national-level specialized, sophisticated, unique, and new “little giant” enterprise focusing on high-reliability analog chips and micro-module products. It mainly serves the military electronics industry chain, supplying supporting high-reliability integrated circuits and micro-module products, including power management chips (DC/DC conversion chips, linear regulators, etc.), micro-module products, and discrete device products [1][2].

According to the official website of the Shenzhen Stock Exchange, the company’s GEM IPO was accepted on December 17, 2025 [1][3]. This IPO plans to raise 889.5 million yuan, which will be invested in R&D and industrialization projects of high-reliability power management chips and signal chain chips, headquarters and R&D center construction projects, testing center construction projects, and supplementary working capital [2].

From the financial data disclosed in the prospectus, the company experienced significant deviation between revenue and net profit from 2022 to the first half of 2025 [1][2]:

Period	Revenue (100 million yuan)	Net Profit (100 million yuan)	Net Profit Margin	Deviation Characteristics
2022	3.67	1.48	40.3%	Base period
2023	4.66	1.79	38.4%	Revenue +27%, Net Profit +21%
2024	4.13	0.95	23.0%	Revenue -11.4%, Net Profit -47%
H1 2025	3.40	1.24	36.5%	Significant performance rebound

: While revenue decreased by 11.4% year-on-year, net profit plummeted by 47% year-on-year, and net profit margin dropped sharply from 38.4% to 23.0%, a decrease of 15.4 percentage points [1][2]. This phenomenon of a slight decline in revenue but a sharp drop in net profit reveals that the company faces great pressure in cost control or expense management.

Notably, the company maintained high R&D investment during the performance decline period [2]:

• 2022 R&D expenses: 0.39 billion yuan (accounted for 10.6% of revenue)
• 2023 R&D expenses: 0.66 billion yuan (14.2% of revenue)
• 2024 R&D expenses: 0.91 billion yuan (22.0% of revenue)

: In 2024, while revenue decreased by 11.4%, R&D expenses increased by 37.9% year-on-year. This “counter-cyclical” R&D investment strategy reflects the company’s emphasis on technology accumulation, but it also intensified short-term performance pressure.

According to the financial chart data from search results, the company’s accounts receivable showed a significant growth trend from the end of 2022 to June 2025, while the invoice receivable amount was relatively stable [4]. This may reflect:

• Extended payment collection cycle and decreased accounts receivable turnover efficiency
• Long payment process for military customers, leading to account period pressure
• Decline in revenue quality, with a gap between actual cash inflow and book revenue

The prospectus clearly discloses that the 2024 performance fluctuation was mainly affected by external industry factors [1][2]. The military electronics industry has the following characteristics:

• Procurement cyclicality of downstream customers
  : Military equipment procurement is affected by factors such as national defense budget and equipment upgrade cycle, showing large volatility
• Industry policy sensitivity
  : Affected by adjustments in national defense expenditure and changes in equipment procurement policies
• Supply chain autonomy pressure
  : In recent years, the process of domestic substitution in military electronics has accelerated, putting forward higher requirements for enterprises’ R&D capabilities

The deviation phenomenon reflects that the company faces multiple pressures in terms of cost structure:

• Rising test and screening costs
  : High-reliability chips require strict test and screening procedures, with a relatively high cost proportion
• Raw material price fluctuations
  : Price fluctuations in upstream links such as wafer manufacturing and packaging testing are transmitted to the cost side
• Increasing labor costs
  : Fierce competition for technical talents leads to continuous rise in salary costs

The company’s customer and supplier concentration are both at a high level [2]:

:

• 2022: 68.58%
• 2023:63.82%
  -2024:55.61%
  -H12025:63.94%

:
-2022:77.71%
-2023:67.30%
-2024:73.89%
-H12025:73.86%

This “double concentration” pattern means that the company has a high degree of dependence on major customers and suppliers, and any changes in major customers or suppliers may have a significant impact on the company’s operations.

####1. Short-term Risk Rating: ★★☆☆☆ (Yellow Warning)

• High deviation risk
  : The decline in net profit in 2024 far exceeded the decline in revenue, leading to a decrease in profit quality
• Payment collection risk
  : Growth in accounts receivable may bring bad debt risks and cash flow pressure
• Performance volatility
  : The cyclical nature and policy sensitivity of the military industry lead to reduced performance predictability

####2. Medium-term Risk Rating: ★★☆☆☆ (Yellow Attention)

• Customer dependence risk
  : The revenue share of the top five customers has remained above 55% for a long time, with high customer concentration
• Supplier dependence risk
  : The concentration of suppliers in the chip manufacturing link exceeds70%, leading to supply chain vulnerability
• Industry policy risk
  : The military electronics industry is greatly affected by changes in national defense policies and international situations

####3. Long-term Potential Assessment: ★★★☆☆ (Positive Factors)

• Significant performance rebound in H12025
  : Net profit margin recovered to36.5%, close to the2023 level
• Continuous high R&D investment
  : R&D expenses have grown by more than50% annually, which is expected to form a technical moat
• Domestic substitution dividend
  : Benefiting from the policy support for independent and controllable national defense electronics, the market space is broad
• Segment track advantage
  : Ranks among the top echelons of domestic private supporting enterprises in military electronics

The financial data deviation in Jiangsu Zhanxin Semiconductor’s IPO is mainly reflected in

and . The severe deviation in 2024 reflects the cyclical nature of the military electronics industry where the company is located and the impact of external shocks, but it also exposes the company’s weak links in cost control and expense management.

From a positive perspective, the company’s performance has rebounded significantly in H12025, and continuous high R&D investment is in line with the development logic of the military electronics industry. Investors need to pay attention to the subsequent changes in the following key indicators:

and .

: IPO investment itself has high uncertainty, and coupled with the particularity of the military electronics industry, investors should conduct dynamic assessments based on the company’s subsequent disclosure of review inquiry responses and the latest financial data.

[1] Securities Times - “Jiangsu Zhanxin IPO: Empowering the Military Electronics Industry Chain to Develop towards High Quality and High Level with Independent Innovation” (https://www.stcn.com/article/detail/3546593.html)

[2]36Kr - “Jiangsu Analog Chip ‘Little Giant’ Rushes for IPO, Led by南航 Alumni, Plans to Raise Nearly 900 Million Yuan” (https://m.36kr.com/p/3600978584782083)

[3] Beijing Business Daily - “Jiangsu Zhanxin Impacts IPO” (https://xinwen.bjd.com.cn/content/s69442597e4b0687a288e84bf.html)

[4] Sina Finance - Jiangsu Zhanxin Semiconductor Financial Data Chart (https://n.sinaimg.cn/spider20251226/308/w2992h2116/20251226/6f95-d292342c65cbbd99773ebab604a876f7.png)