Jingzheng Shares Listed on Hong Kong Exchange, Becoming an A+H Listed Semiconductor Company

Just now, Junzheng Shares rang the bell on the Hong Kong Stock Exchange, with an opening price of HK$100 per share and an initial market capitalization of approximately HK$51.5 billion. The company was first listed on the ChiNext Board of the Shenzhen Stock Exchange on May 31, 2011, under the stock code "300223," with an issue price of RMB 43.80 per share, issuing 20 million shares and raising RMB 876 million, earning it the title of "China's First Embedded CPU Stock." With this Hong Kong listing, Junzheng Shares has officially become a semiconductor company listed in both A and H markets.

Most chip companies focus on specialization—those in storage concentrate solely on storage, those in computing focus exclusively on computing, and those in analog深耕 analog, each sticking to their own niche. But Junzheng Semiconductor has taken a different path, simultaneously developing storage, computing, and analog product lines to build a platform-based chip company.

This platform-based confidence stems from the acquisition completed in 2020. That year, Junzheng completed the acquisition and financial consolidation of Beijing Silicon Integrated, thereby gaining indirect control over U.S.-based ISSI (Integrated Silicon Solution, Inc.). As a result, the previously small but refined company, originally focused on embedded CPUs, transformed into a chip platform spanning three major sectors. Now, as it prepares to list in Hong Kong, we can analyze its business strategy through the data in its prospectus.

Let’s first look at the overall performance. Junzheng’s revenue was RMB 4.531 billion in 2023, dropped to RMB 4.213 billion in 2024 amid industry downturn, and rebounded to RMB 4.741 billion in 2025. In the first quarter of 2026, it surged to RMB 1.560 billion, a 47.1% increase compared to RMB 1.060 billion in the same period last year.

Revenue has rebounded, and profit recovery has been even stronger. In 2023, net profit was RMB 516 million with a net profit margin of 11.4%; in 2024, it dropped to RMB 364 million, with a net profit margin of just 8.6%; in 2025, it barely recovered to RMB 375 million, but the net profit margin further declined to 7.9%. However, in the first quarter of 2026, net profit surged to RMB 320 million—more than triple the RMB 74 million recorded in the same period last year—with the net profit margin jumping to 20.5%, surpassing even the peak levels seen in 2023. The latest financial report shows that net profit for the first half of the year is expected to increase by over 531% to RMB 1.28 billion.

Gross profit margin has also rebounded: 35.5% in 2023, 35.0% in 2024, dropped to 32.8% in 2025, then surged to 42.6% in the first quarter of 2026. Gross profit rose from RMB 371 million in Q1 2025 to RMB 664 million, an increase of 79%.

Looking at the three product lines, memory chips remain the absolute mainstay, accounting for approximately 60% of revenue. From 2023 to 2025, revenue from memory chips amounted to RMB 2.912 billion, RMB 2.590 billion, and RMB 2.911 billion, respectively; in the first quarter of 2026, it reached RMB 1.018 billion. Sales volumes have also continued to grow, rising from 416 million units in 2023 to 602 million units in 2025, with an additional 191 million units sold in the first quarter of 2026. However, prices experienced significant fluctuations: the average price was RMB 7.0 per unit in 2023, dropped to RMB 5.4 in 2024, further declined to RMB 4.8 in 2025, and finally rebounded to RMB 5.3 in the first quarter of 2026.

Revenue from the computing chip has been more volatile. It was RMB 1.108 billion in 2023, dropped to RMB 1.090 billion in 2024, then rebounded to RMB 1.293 billion in 2025; and reached RMB 403 million in the first quarter of 2026. Sales volume increased from 75.5 million units in 2023 to 121 million units in 2025. The average price fell sharply and rose sharply as well: RMB 14.7 per unit in 2023, RMB 11.7 in 2024, RMB 10.7 in 2025, then suddenly jumped to RMB 15.1 in the first quarter of 2026.

The simulation chip line is the most stable. Revenue increased from RMB 409 million in 2023 to RMB 472 million in 2024, RMB 506 million in 2025, and reached RMB 132 million in the first quarter of 2026. Sales volume rose from 179 million units to 250 million units. Prices remained steady at RMB 2.3, RMB 2.2, and RMB 2.0 per unit from 2023 to 2025, and held at RMB 2.1 in the first quarter of 2026.

Notably, Junzheng’s customer and supplier concentrations have been declining. The revenue share from the top five customers decreased from 54.5% in 2023 to 50.3% in the first quarter of 2026, with the largest customer’s share dropping from 21.0% to 15.6%; the procurement share from the top five suppliers fell from 58.3% to 41.6%, and the largest supplier’s share declined from 26.5% to 12.3%. This indicates that the company’s scale is expanding, reducing its reliance on any single major customer or supplier.

In terms of R&D investment, the company spent RMB 708 million, RMB 681 million, and RMB 712 million in 2023, 2024, and 2025 respectively—absolute amounts remained largely stable, while the percentage of revenue declined from 15.6% to 15.0%. In the first quarter of 2026, R&D expenditure amounted to RMB 172 million, representing 11.0% of revenue; the lower ratio is due to rapid revenue growth. As of March 31, 2026, the company employed 822 R&D personnel, accounting for 65.7% of total employees.

Your current structure took shape after the acquisition of ISSI in 2020. Prior to the acquisition, the company primarily focused on computing chips; after the acquisition, it added memory and analog chip product lines. With this, the three brands—ISSI (memory), Ingenic (computing), and Lumissil (analog)—completed your full product portfolio.

Storage chips (ISSI brand), including DRAM, SRAM, NOR Flash, and NAND Flash, are all designed for demanding applications such as automotive electronics and industrial medical systems. By 2025 revenue, Jintian ranks seventh globally and second among Chinese companies in niche DRAM; second globally and first in China for SRAM; and seventh globally and third in China for NOR Flash. These are not ordinary consumer-grade storage products—they must operate reliably in temperature ranges from -40°C to 85°C, with significantly higher requirements for data retention, endurance, and defect rates. ISSI’s more than thirty years of expertise has provided Jintian with access to the automotive-grade supply chain.

The computing chip (Ingenic brand) is based on Ingenic's proprietary CPU core. In 2005, the company launched the Xburst series, built on the MIPS architecture; in 2014, it began focusing on RISC-V and introduced the Victory series, which is now used across its computing chip product line. The computing chips are divided into three product lines: intelligent vision SoCs, embedded MPUs, and AI-MCUs. Among these, Ingenic’s IP-Cam SoCs rank second globally, representing semiconductor devices that integrate an ISP, video encoding logic, and other dedicated modules on a single chip to provide integrated processing power for network cameras.

The simulation chip (Lumissil brand) primarily consists of LED driver chips and combo chips. LED driver chips are widely used in automotive external and internal lighting systems, and in non-automotive markets, they can be applied to high-end gaming devices and home appliances. Combo chips integrate an MCU, LED driver, touch sensor, and LIN/CAN bus into a single chip, specifically designed for automotive ambient lighting and touch applications.

How do the three components work together? For example, in an automotive electronics system, ISSI’s memory chips store data and code, Ingenic’s computing chips handle vision and AI tasks, and Lumissil’s analog chips manage power and communication. Customers can select memory, computing, and analog components from the same supplier ecosystem, reducing multi-supplier management costs and enabling better hardware-software collaboration—this is the value of platformization.

Junzheng’s memory chips have taken a path of avoiding direct competition. Instead of competing with Samsung and SK Hynix in standard DRAM, it focuses on niche markets—such as automotive-grade, industrial control, and aerospace applications—where reliability requirements are extremely stringent. These markets feature long order cycles and high customer loyalty; once integrated into a supply chain, they are very difficult to replace.

This path perfectly aligns with the surge in automotive intelligence. According to Frost & Sullivan, global passenger vehicle shipments are projected to reach 90.9 million units in 2025, with electric vehicle penetration rising from 24.3% in 2025 to 44.6% in 2030; meanwhile, intelligent vehicle system penetration is expected to increase from 63.5% in 2025 to 93.3% in 2030. As vehicles become increasingly intelligent, storage demands are evolving—vehicles with L2+ autonomous driving generate over 1TB of data daily, requiring storage chips to withstand intense read/write operations under extreme conditions.

Edge AI represents an incremental logic for computing chips. According to Frost & Sullivan’s prospectus, edge AI device shipments are projected to reach 1.9 billion units by 2030. Juniper’s computing chips are perfectly positioned to capitalize on this trend: in the first quarter of 2026, revenue from computing chips surged by 49.1%, partly driven by growing demand in security surveillance, AIoT, and edge AI devices. Additionally, the robotics market is expected to expand at a compound annual growth rate of 10.5% from 2025 to 2030. Juniper’s chips are already integrated into vacuum robots, industrial robots, and service robots; as robots evolve toward greater intelligence, demand for motor control, power analog components, and low-power memory will only increase.

In terms of forward-looking布局, Junzheng has also made inroads. Samples of 1x-nm high-density LPDDR4 products have been delivered, with ramp-up scheduled for the second half of 2025 and mass production expected in the first quarter of 2026; LPDDR5 is currently in planning. Significant investment is being made in 3D DRAM to address the high-bandwidth, large-capacity memory demands of AI servers and edge computing. In the NAND Flash segment, Junzheng has established product lines for serial NAND and parallel NAND in the 2D NAND space, while development of high-bandwidth 8IO serial NAND Flash is underway. In the 3D NAND space, eMMC and UFS solutions are available to meet the requirements of automotive cockpit and autonomous driving applications.

For this Hong Kong listing, Junzheng Shares has set the offering price at HK$100 per H-share, with an expected fundraising amount of HK$3.13 billion. How will these funds be allocated? Half will be invested in R&D to enhance technological innovation and product development across three core product lines; one-quarter will be reserved for strategic investments and acquisitions, targeting companies in the chip design sector and throughout the semiconductor value chain, including IP or EDA suppliers, wafer manufacturers, and packaging and testing service providers; 15% will expand the sales network; and 10% will be used for working capital and other general corporate purposes.

This allocation reveals two intentions of Junzheng: first, Junzheng does not intend to rely solely on past achievements, with R&D remaining the top priority; second, acquisitions carry significant weight in its strategy. After all, the acquisition of ISSI in 2020 completely transformed the company’s trajectory, and holding ample resources clearly indicates readiness for the next “ISSI” to emerge.

Junzheng, which is already listed on the A-share market, why pursue a listing in Hong Kong? Beyond gaining an additional financing channel, Hong Kong’s high level of internationalization helps enhance global brand recognition for Junzheng, whose products are sold in over 50 countries and regions across Asia, the Americas, and Europe, and facilitates future cross-border transactions and collaborations.

However, this path is not without risks. The semiconductor industry is highly cyclical; in 2024, the average price decline of memory chips directly pressured revenue. Junzheng operates as a fabless company, so when upstream wafer capacity tightens, its bargaining power is constrained. The consumer market for computing chips is intensely competitive, with price wars being the norm. Additionally, Junzheng’s gross margin surged to 42.6% in the first quarter of 2026, partly due to luck—it had previously purchased inventory of key raw materials like KGD at low prices before their costs rose, helping the company temporarily control expenses. Such inventory advantages are not sustainable; whether gross margins can remain stable going forward depends on genuine product competitiveness and underlying market supply and demand dynamics.

But from an industry perspective, Zhongxing’s strategic logic is sound: rather than being a lone fighter in a single niche, it aims to be a platform player offering system-level solutions. In today’s semiconductor industry, where specialization is increasingly fragmented, whether this “counter-consensus” integration approach can succeed may be the most compelling question left for the industry to observe following Zhongxing’s Hong Kong listing.

This article is from the WeChat public account "Semiconductor Industry纵横" (ID: ICViews), authored by the ICVIEWS editorial team.