Author | Cui Yuanwei Editor | Chen Junda
ChipInsights reported on November 10 that Jiangsu-based semiconductor packaging and testing company Jiangsu Xinde Semiconductor Technology (JSSI) listed on the HKEX today. Based on the final offering price of HK$8.88 per share (approx. CNY 7.6), the total fundraising amount for this IPO is approximately HK$946 million (approx. CNY 800 million). After deducting underwriting commissions and related issuance expenses, the company raised a net amount of approximately HK$882 million (approx. CNY 750 million) through this global offering. The offering price was HK$8.88 per share (approx. CNY 7.6). The stock opened up 20.50% at HK$10.70 per share (approx. CNY 9.1). As of 9:38 AM today, its stock price stood at HK$11.59 per share (approx. CNY 9.9), up 30.52% from the offering price, with a total market capitalization reaching HK$12.351 billion (approx. CNY 10.51 billion).
JSSI was established in September 2020 and is headquartered in Nanjing, Jiangsu. Its main business includes packaging design, customized packaging products, and packaging product testing. The company's products cover QFN, BGA, LGA, WLP, and 2.5D/3D packaging types, applied in fields such as consumer electronics, communications, industrial and medical, automotive electronics, and data centers. According to Frost & Sullivan, based on 2025 revenue from semiconductor advanced packaging and testing, the company ranked 7th among general-purpose OSAT companies in China, with revenue of approximately CNY 700 million and a market share of 0.6%.
Based on 2025 revenue from traditional semiconductor packaging and testing, JSSI ranked 8th among general-purpose OSAT companies in China, with revenue of approximately CNY 270 million and a market share of 0.1%.
The prospectus discloses that the shareholder lineup of JSSI includes the founding team, local state-owned capital funds, financial investment institutions, as well as investment entities related to Xiaomi, OPPO, and MediaTek. Notably, the company's founder, Zhang Guodong, has a liberal arts background but has focused his career on the semiconductor industry for many years, forming a cross-disciplinary professional experience. He graduated with a bachelor's degree in English, then joined Advanced Semiconductor Engineering (ASE) subsidiary JCET Advanced, beginning to accumulate experience in the advanced packaging field. He worked there for many years, rising from customer engineering and technical positions to director, until leaving in 2020.
In this HKEX IPO, JSSI plans to use approximately 69.5% of the proceeds to build production bases, establish new production lines, and procure equipment. Of this, approximately 45.7% will be used for equipment procurement required to expand 2.5D/3D and substrate packaging capabilities, supporting the development of advanced packaging technology and enhancing production capacity. Approximately 17.6% of the funds will be used to enhance the company's packaging R&D capabilities, of which about 8.8% will cover salary expenses for the R&D department and the recruitment of R&D technical personnel over the next five years.
01.Three Consecutive Years of Losses; 2.5D/3D Advanced Packaging Has Not Yet Achieved Scale Revenue
According to the prospectus, JSSI achieved a compound annual growth rate (CAGR) of 41.0% in revenue from 2023 to 2025. From 2023 to 2025, the company realized operating revenues of CNY 509 million, CNY 827 million, and CNY 1.012 billion respectively. In the first four months of 2026, its revenue was CNY 360 million, an increase of approximately 17.4% compared to CNY 306 million in the same period of 2025. During the same period, the company's net profit was approximately -CNY 359 million, -CNY 377 million, and -CNY 483 million. In the first four months of 2026, the loss during the period reached CNY 162 million, remaining roughly flat compared to CNY 164 million in the same period of 2025. Its R&D expenditures were CNY 76.623 million, CNY 93.764 million, and CNY 86.166 million respectively during these periods, and CNY 29.846 million in the first four months of 2026.
JSSI provides various packaging products tailored to different market needs, primarily including QFN, BGA, LGA, WLP, and 2.5D/3D.
By business segment, the revenue of these five categories of packaging products from JSSI all showed a growth trend. In 2025, the company's QFN revenue reached CNY 313 million, accounting for 31.1% of total revenue. In the first four months of 2026, its revenue was CNY 124 million, with the proportion increasing to 34.5%, making it the single largest contributor to the company's revenue. Its gross margin narrowed from -37.1% in 2023 to -7.0% in 2025, turning positive at 2.8% in the first four months of 2026. The company's BGA revenue is close to that of QFN. In 2025, its revenue was CNY 306 million, accounting for 30.3% of total revenue. However, its gross margin fluctuated, being -10.9%, 6.7%, and -10.9% from 2023 to 2025 respectively. In the first four months of 2026, the gross margin dropped to -16.3%. The prospectus explains that this is mainly due to price pressure caused by market competition and customer bargaining power.
The company's LGA and WLP businesses currently have the most severe gross losses. In the first four months of 2026, their gross margins were -41.2% and -33.9% respectively. JSSI attributes this to significant depreciation and amortization expenses incurred during the ramp-up phase of production bases. Although the company's 2.5D/3D packaging products achieved a 100% gross margin in 2025, the prospectus states that the revenue from this business was only CNY 244,000, primarily derived from non-recurring engineering and engineering batches, and has not yet formed scalable commercial revenue.
According to the prospectus, classified by downstream application scenarios, consumer electronics has been the largest source of revenue for JSSI in recent years, but its revenue proportion decreased from 67.8% in 2024 to 54.3%. The communications business has become a new growth engine for the company. From 2023 to 2025, its communications revenue grew from CNY 120 million to CNY 406 million, more than doubling, with the proportion increasing from 23.6% to 40.2%.
The prospectus states that this was mainly driven by the growing demand for communications infrastructure and equipment markets, leading to increased penetration among customers in the communications supply chain. In terms of profitability, there remains a clear gap between JSSI and top domestic packaging and testing companies. From 2023 to 2025, the overall gross margins of JSSI were -38.4%, -20.1%, and -18.0% respectively. Although the magnitude of gross loss narrowed year by year, the company has not yet turned profitable. During the same period, JCET's overall gross margins were 13.65%, 13.06%, and 14.15%; Tongfu Microelectronics' were 11.67%, 14.84%, and 14.59%; and HT-Tech's were 8.91%, 12.07%, and 13.26%.
The prospectus explains that the company's sustained negative gross margin is mainly influenced by five factors: heavy upfront capital investment, insufficient utilization of production equipment, market competition and price pressure, changes in product revenue structure, and the ramp-up phase of new production facilities and products. According to the HKEX prospectus of JSSI , as of April 30, 2026, the company had 277 R&D personnel, accounting for approximately 11.5% of the total workforce of 2,415 employees. In terms of technology layout, JSSI takes the CAPiC die and advanced packaging technology platform as its core, forming a technical system covering fan-out packaging, Through-Silicon Via (TSV), Through-Glass Via (TGV), and chip stacking. The platform includes six types of technologies: FOCT-R, FOCT-S, SETiS/RETiS, TMV-POP, TGV-POP, and eWLB-F/eWLB-M, primarily targeting Chiplet and 2.5D/3D advanced packaging.
As of April 30, 2026, JSSI held 225 registered patents in China, including 39 invention patents and 186 utility model patents, along with 3 PCT patent applications. These patents cover key areas such as packaging structures, methods, equipment, and testing systems.
02.Top Five Customers Account for Over 50% of Revenue; Novatek is a Customer
The technology and product application fields of JSSI widely cover multi-core general-purpose processors, high-speed computing processors, and RF modules. Currently, the company primarily adopts a direct sales model, with customers mainly consisting of enterprises in the semiconductor industry chain, including Beijing-based display chip design leader Novatek, Chongqing-based RF front-end chip "Little Giant" Rishichuangxin, and Shanghai-based communication and chip design service provider XinZhan Technology.
According to the prospectus, the revenue proportion of the top five customers has risen year by year, from 50.4% in 2023 to 54.6% in 2025. In the first four months of 2026, this proportion increased to 55.0%. It is worth noting that Customer A established cooperation with JSSI in 2021 and has been the largest customer from 2023 to 2025, with a revenue proportion exceeding 20% each year. Based on the prospectus and public information, Customer A is inferred to be Shanghai multimedia SoC chip company Amlogic.
The supplier concentration of JSSI is relatively lower than that of its clients. The prospectus discloses that from 2023 to 2025 and in the first four months of 2026, purchases from the top five suppliers accounted for 30.9%, 33.9%, 32.2%, and 32.5% of total purchases respectively. Overall, it maintained around30%, indicating a relatively dispersed supplier structure.
The prospectus also mentions that most of the raw materials can be procured from multiple suppliers, avoiding complete reliance on a single supplier. The company promotes price competition by expanding its supplier base while maintaining product quality.
03.Founder Served as Director of JCET Advanced; Xiaomi Participated in Investment
JSSI was established in September 2020 with an initial registered capital of CNY 110 million, jointly funded by Xinlianxin, Nanjing Yuanjun, and employee shareholding platform Nanjing Ningtaixin. Among them, Ningtaixin is currently directly held by the founding team. The company's founder and Chairman of the Board, Zhang Guodong, graduated from Southeast University with a major in English in 2001. He subsequently entered the semiconductor industry, joining Jiangyin JCET Advanced Packaging Co., Ltd. in April 2004, where he worked for over 16 years. During this time, he gradually shifted from customer engineering and technical roles to management roles, serving as a director of JCET Advanced before leaving.
After leaving JCET Advanced in November 2020, Zhang Guodong started his own business. Since June 2021, he has served as the Chairman of the Board and Executive Director of JSSI , responsible for the company's overall decision-making, management, R&D, marketing, and strategic planning. Since February 2023, he has also served as the Chairman of Yangzhou Xinpai Integrated Circuit Co., Ltd.
In terms of equity structure, JSSI has formed a shareholder pattern centered on the founding team, with participation from local state-owned capital, industrial capital, and financial investment institutions. Founder Zhang Guodong, co-founder Pan Mingdong, Deputy General Manager Liu Yi, and employee shareholding platforms (Ningtaixin, Ningpuxin) act as parties acting in concert. Together, they hold and control approximately 22.45% of JSSI 's shares after listing, constituting the single largest shareholder group. After the completion of the global offering, Chenyi Fund, the largest institutional shareholder, holds a stake of 6.76%, ranking as the second-largest shareholder and core institutional investor.
Shareholders or shareholder groups include interests related to Nanjing Innovation Investment Group (approx. 6.10%), interests related to Nanjing Yushan (approx. 5.29%), Xiaomi Changjiang Industry Fund (approx. 2.61%), OPPO (approx. 1.14%), and MediaTek (approx. 0.31%).
This H-share issuance introduced three cornerstone investors. The total cornerstone allocation was approximately HK$31,299 (approx. CNY 27,000). Calculated at the maximum offer price of HK$9.60 (approx. CNY 8.2), the subscription amounted to approximately 3.2603 million H-shares, accounting for about 30.59% of the offered shares and about 4.07% of the H-shares. Investors include GF Fund Management, Guohui Hong Kong, and Maxwell.
04.Conclusion: AI Chips Drive Advanced Packaging; Heavy Asset Investment Awaits Returns
Semiconductor packaging and testing is a typical capital-intensive industry. Factory construction, equipment purchase, and capacity ramp-up require substantial capital investment, and companies usually need a long time to achieve economies of scale.
Looking at gross margins across different links in the industry chain, the profit margin in the packaging and testing sector is relatively limited. Taking listed company data from 2025 as an example, chip design companies Montage Technology and Hygon Information achieved gross margins of 62.28% and 57.78% respectively. Among wafer manufacturing firms, SMIC and Hua Hong Grace recorded gross margins of 21.9% and 18.72% for related businesses. Meanwhile, the overall gross margins of JCET, Tongfu Microelectronics, and HT-Tech were 14.15%, 14.59%, and 13.26% respectively. This reflects that while packaging and testing enterprises bear significant equipment investment and production costs, their profit space remains relatively constrained.
As demand for AI chips grows, the importance of advanced packaging becomes increasingly prominent, and production capacity is gradually becoming a key factor affecting AI chip delivery and performance improvement. For packaging and testing enterprises, the growth in AI demand brings new market opportunities. When AI demand propagates through the supply chain, the release of capacity will dilute high depreciation costs. Relying on early heavy asset layouts and boosted by incremental AI business, the packaging and testing industry will reach a turning point from scale expansion to profit realization.