Shenzhen Weizhao Semiconductor Co., Ltd. has submitted a new application for a main-board listing on the Hong Kong Stock Exchange, with GF Securities acting as the sole sponsor. It is the company’s second attempt this year. Its first prospectus, filed on Jan. 12, 2026, lapsed automatically six months later.
Weizhao Semiconductor, a supplier of power semiconductor devices, carries the title of a national-level specialized and sophisticated "little giant" enterprise. Since its establishment, it has completed several fundraising rounds. Its shareholder roster includes Intel Asia Pacific, OPPO Guangdong, Xiaomi Hubei and CATL New Energy, among other industry investors. Its post-money valuation rose by more than 500% in roughly two and a half years to about 2.9 billion yuan.
One month before the latest filing, the China Securities Regulatory Commission asked the company, in supplemental materials for overseas issuance and listing registration, to provide a clear conclusion on whether the pricing for new shareholders entering within the past 12 months was fair and reasonable and whether any benefit transfer existed. That request pushed the company into the spotlight.
Profit turned negative as margins narrowed
The prospectus shows that the global semiconductor sector was still going through an inventory adjustment cycle in the first half of 2026. Weizhao, which focuses on low- and mid-voltage MOSFETs, was not spared.
In the first five months of 2026, the company recorded a net loss of 510,000 yuan, versus a profit of 26.529 million yuan in the same period a year earlier. Overall gross margin fell from 22.4% in the first five months of 2025 to 17.9% in the same period of 2026. The prospectus attributed the decline to "market-driven pricing adjustments."
A bigger issue appears in the product mix. In the first five months of 2026, the revenue share of its higher-margin WLCSP, or wafer-level chip-scale packaging, products dropped from 46.3% to 27.4%. The filing said WLCSP revenue fell because smartphone makers adopted more conservative production and procurement plans. It also cited higher memory chip prices that raised handset costs, slower-than-expected recovery in end demand, customer inventory adjustments and industry price competition.
At the same time, revenue from non-WLCSP products rose 52.6% to 246 million yuan, but their gross margin was only 16.6%. As revenue tilted away from higher-margin WLCSP products toward traditional packaged products with lower margins, the company ended up increasing sales without increasing profit.
Six regulatory questions centered on pricing and related-party checks
In June 2026, the CSRC raised six questions to Weizhao Semiconductor in supplemental filing materials tied to its overseas listing registration.
Two of them stood out. First, the regulator asked the company to explain whether the pricing for new shareholders entering in the past 12 months was reasonable, why different investors paid different prices, and whether any benefit transfer was involved. Second, it asked the company to explain the large difference in grant prices between two equity incentive plans, "Weizhu Yexin" and "Zhoushan Jicheng," and to verify whether incentive recipients had any ties with shareholders, directors, supervisors or senior executives.
Phoenix Weekly Finance reported that before the IPO, Li Weicong was Weizhao Semiconductor’s founder, executive director, chairman and general manager. He directly held 39.19% of the company and indirectly controlled 13.06% and 9.53% through two entities he controls, Zhoushan Tuowei and Zhoushan Jicheng. Combined, Li held about 61.78% of the company and had absolute control.
According to the report, Zhoushan Jicheng is a platform controlled by Li Weicong as general partner and mainly serves core management and early key staff, while Weizhu Yexin is an employee shareholding platform with broader coverage.
A chairman of a marketing consulting company that has long tracked the semiconductor supply chain told Phoenix Weekly Finance: "This means there is a risk that the above platforms could affect the granting and implementation of some equity incentives, which may also be one reason why the CSRC questioned the huge pricing gap between the two rounds of equity incentives." The same person said the current information shows a control relationship between Zhoushan Jicheng and Li Weicong, while Weizhu Yexin, as an employee platform, still needs to be checked for related parties. The CSRC’s request for a legal opinion, he said, is intended to ensure objective selection criteria and procedural compliance.
On the pricing of new shareholder subscriptions and related matters, Phoenix Weekly Finance sent a written interview request to Weizhao Semiconductor’s board. As of publication, the company had not replied.
The CSRC also asked the company to explain the full details and termination terms of any special shareholder rights arrangements; clarify whether its business involves sectors restricted by the negative list for foreign investment access; verify whether shares held by shareholders planning to participate in full circulation are subject to pledges, freezes or other title defects; and list, item by item, the amounts and proportions of proceeds intended for domestic and overseas investment projects.
As of publication, Weizhao Semiconductor had not publicly responded to the CSRC inquiry.
Distributor count fell from 658 to 103 in three years
The prospectus shows that from 2023 to the first five months of 2026, Weizhao appointed 33, 33, 30 and 7 new distributors, respectively. Over the same periods, it terminated partnerships with 17, 539, 47 and 39 distributors. By the end of May 2026, the number of distributors had dropped to 103 from 658 three years earlier.
For the disappearance of more than 500 distributors within two years, the prospectus said most partnerships were ended because those distributors failed to meet performance targets, while a smaller portion were terminated for violating contract terms and regional sales restrictions by selling beyond designated territories. The company also said terminated distributors generally held low inventory levels.
Weizhao remains heavily reliant on distributor channels. According to the prospectus, sales generated through distributors were 524 million yuan, 507 million yuan, about 697 million yuan and 297 million yuan from 2023 to the first five months of 2026, accounting for 91.0%, 81.3%, 85.7% and 84.1% of revenue in each period.
The company said in the filing that "any decline in sales from distributors or the loss of distributors may adversely affect the company’s business, financial condition and operating results."
Customer and supplier concentration kept rising
While the sales channel was being reshaped, customer concentration continued to climb. Revenue contribution from the top five customers reached 48.7%, 53.8%, 57.6% and 67.9% from 2023 to the first five months of 2026. The largest customer alone accounted for 13.8% of revenue in 2023 and 29.7% in the first five months of 2026.
Supplier concentration also stayed high. Purchases from the top five suppliers accounted for 80.5%, 81.1% and 72.6% of total procurement in 2023, 2024 and 2025, and were still 70.1% in the first five months of 2026.
The report said this double concentration on both the upstream and downstream sides could leave the company exposed to a greater pass-through risk during industry swings.
The same consulting company chairman told Phoenix Weekly Finance that rising customer concentration is common in the semiconductor industry, and onboarding top-tier customers often means products have entered the mainstream supply chain. Given the sector’s characteristics, he said, customers for power semiconductors are usually brand manufacturers or contract manufacturers in consumer electronics and automotive electronics, while shareholders sit in different parts of the industrial chain, so direct links are less likely.
He added, however, that one issue still deserves attention: Moqin Intelligence, a unit under Huaqin Technology, holds 2.12% of Weizhao Semiconductor. Huaqin Technology is described as a leading global ODM manufacturer, and whether that relationship extends to the customer side still requires further clarification from the company.
The article was originally published by the WeChat account Phoenix Weekly Finance and written by Xu Mengyi.