New stock news | Basic Semiconductor submits to the Hong Kong Stock Exchange for the third time, ranking sixth in the Chinese Silicon Carbide Power Module market by 2024 revenue.

According to the disclosure of the Hong Kong Stock Exchange on June 5th, Basic Semiconductor Co., Ltd. (referred to as "Basic Semiconductor") submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Sinolink (Hong Kong) Limited and BOCI Asia Limited as joint sponsors. The company had previously submitted listing applications to the Hong Kong Stock Exchange on May 27th, 2025 and December 4th, 2025 respectively. Company Overview The prospectus shows that Basic Semiconductor was established in 2016 and is engaged in research, development, manufacturing, and sales of silicon carbide power devices in China. The company mainly provides automotive grade and industrial grade silicon carbide power modules, silicon carbide discrete devices, and power semiconductor gate drivers. According to data from Frost & Sullivan, based on revenue in 2024, the company ranked sixth in the Chinese silicon carbide power module market with a market share of 2.9% and third among Chinese companies. Based on revenue in 2024, the company ranked ninth in the Chinese silicon carbide discrete devices market and power semiconductor gate driver market, with market shares of 2.7% and 1.7% respectively. The company focuses on the third-generation power semiconductor industry, characterized by the use of compound semiconductors such as silicon carbide and gallium nitride (GaN). With excellent properties such as high breakdown electric field strength, high thermal conductivity, and wide bandgap, the market is moving towards the direction of third-generation semiconductors. Silicon carbide has been widely used in high voltage and high current applications such as new energy vehicles, renewable energy systems, smart grids, and industrial motor drives, gradually replacing traditional silicon-based power semiconductor devices, driving innovation in power electronics technology, and supporting a more sustainable and efficient technological transformation. The company provides silicon carbide power modules, silicon carbide discrete devices, and power semiconductor gate drivers, each suitable for different application scenarios. The company is dedicated to providing integrated silicon carbide solutions with high frequency and high power density. The company mainly provides two types of power modules produced using transfer molding and potting processes. These modules' power capacities range from 200kW to as high as 500kW, suitable for various automotive application scenarios. Driven by the demand for high efficiency, compact design, excellent performance, and high reliability in new energy vehicles, the industry is transitioning from silicon-based insulated gate bipolar transistors (IGBTs) to silicon carbide power modules. To meet this trend, the company has developed a series of silicon carbide power module products specifically designed for main drive inverters. In addition, leveraging the professional technology accumulated in creating automotive grade silicon carbide power modules, the company has expanded its product portfolio to include industrial grade silicon carbide power modules. The company's industrial grade silicon carbide power modules feature low on-state losses and low switching losses. The company mainly offers two types of gate driver products, including gate driver integrated circuits (ICs) and gate driver boards, covering various power electronics application scenarios and meeting high-end application requirements. In addition, to meet the increasing power demand and the growing number of parallel module requirements in renewable energy applications (such as wind power generation, photovoltaic power generation, and energy storage systems), the company has launched a complete gate driver solution. The company's complete gate driver solution can provide a maximum power of up to 3MW, a maximum power per single channel of 4W, and a peak current of 60A. The competition in the Chinese silicon carbide power device market is fierce. From 2020 to 2024, the sales revenue of the Chinese silicon carbide power device market increased from RMB 1.1 billion in 2020 to RMB 6.9 billion in 2024, with a compound annual growth rate of 59.7%. It is estimated that this figure will grow at a compound annual growth rate of 47.1% from 2025 to 2029, and the market size is expected to reach RMB 42.8 billion in 2029. According to Frost & Sullivan, based on revenue in 2024, the major international manufacturers (the top three market participants) accounted for 54.6% and 50.0% of the market share in the Chinese silicon carbide power module market and silicon carbide discrete device market respectively. Financial Information Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 221 million, RMB 299 million, and RMB 311 million respectively. Loss: In the fiscal years 2023, 2024, and 2025, the company recorded annual losses of approximately RMB 342 million, RMB 237 million, and RMB 335 million respectively. Gross Margin: In the fiscal years 2023, 2024, and 2025, the company's gross margins were 59.6%, 9.7%, and 10.9% respectively. Industry Overview From 2020 to 2024, the global silicon carbide power device industry experienced significant growth. The market size increased from RMB 4.5 billion in 2020 to RMB 22.7 billion in 2024, with a compound annual growth rate of 49.8%. It is expected that from 2025 to 2029, the global silicon carbide power device industry market size will continue to rise, with a compound annual growth rate of 40.5%. The market size is expected to grow rapidly, reaching approximately RMB 110.6 billion by 2029. The penetration rate of silicon carbide in the global power device market has also significantly increased. This ratio rose from 1.4% in 2020 to 6.5% in 2024, and is expected to reach 20.1% by 2029. From 2020 to 2024, the Chinese silicon carbide power device market grew from RMB 1.1 billion in 2020 to RMB 6.9 billion in 2024, with a compound annual growth rate of 59.7%. It is estimated that this figure will grow at a compound annual growth rate of 47.1% from 2025 to 2029, and the market size is expected to reach RMB 42.8 billion in 2029. The penetration rate of silicon carbide in the Chinese power device market also increased significantly from 0.9% in 2020 to 5.4% in 2024, and is expected to reach 19.0% by 2029. The global silicon carbide discrete device market is expected to expand at a compound annual growth rate of 45.0% from 2025 to 2029, reaching sales revenue of RMB 29.4 billion in 2029. The Chinese market is growing at a rate of 65.4% annually, from RMB 300 million in 2020 to RMB 1.9 billion in 2024, with a contribution rate of 38.4% to the global market in 2024. It is expected that by 2029, it will reach RMB 14.9 billion, contributing 50.5% to the global market. The global power semiconductor gate driver market is expected to grow at a compound annual growth rate of 5.5% from 2025 to 2029, reaching a size of RMB 18.2 billion in 2029. In comparison, from 2020 to 2024, the annual compound growth rate of the Chinese power semiconductor gate driver market was 8.2%, surpassing the global market, increasing from RMB 3.5 billion in 2020 to RMB 4.8 billion in 2024, and is expected to reach RMB 8.3 billion in 2029, with a compound annual growth rate of 11.4% from 2025 to 2029. Board Information The board consists of four executive directors (including one staff representative director) and three independent non-executive directors. Directors serve a term of three years and may be re-elected upon term completion. Equity Structure Dr. Wang directly owns 40.85% of the equity of Bronze Sword Technology; Bronze Sword Holdings (controlled by Dr. Wang as its general partner) owns 27.35% of the equity; Britannia Wisdom owns 19.57% of the equity, with Dr. Wang owning 13.00% and his mother, Ms. Wang Yongmiao, owning 25.00%; and Ms. Wang Yongmiao owns 12.23% of the equity. According to the joint action agreement between Dr. Wang and Britannia Wisdom, they agree to take joint actions regarding their shareholder rights in Bronze Sword Technology (including voting and resolution proposals), and in case of disagreements, Dr. Wang's opinion prevails. Basic Principle and Basic Innovation are controlled by Dr. Wang as the general partner. Dr. Wang and Ms. Chen respectively hold 1.875% and 35.6% of the partnership interests in Basic Principle, with virtually no limited partners holding 30% or more of the partnership interests. Dr. Wang directly holds 2.18% of the partnership interests in Basic Innovation and indirectly holds 17.59% of the partnership interests through his controlling interest in Bronze Sword Technology, with virtually no other limited partners holding 30% or more of the partnership interests. Except for Bronze Sword Technology, all limited partners of Basic Principle are independent third parties. The company currently has four employee stock ownership platforms, namely Basic Creation, Basic Innovation, Basic Creation, and Basic Entrepreneurship. Dr. Wang is the general partner of each employee stock ownership platform. Dr. Wang and Shenzhen Basic Creation No. 2 Holding Partnership Enterprise (Limited Partnership) ("Basic Creation No. 2") respectively hold 0.38% and 33.33% of the partnership interests in Basic Creation, with virtually no other limited partners holding 30% or more of the partnership interests. Basic Creation No. 2 is an employee stock ownership platform, with Dr. Wang as its general partner, holding 1% of the partnership interests, and virtually no limited partners holding 30% or more of the partnership interests. Dr. Wang and Dr. He Weiwei respectively hold 36.93% and 40.63% of the partnership interests in Basic Innovation, with virtually no other limited partners holding 30% or more of the partnership interests. Dr. Wang holds 68.94% of the partnership interests in Basic Entrepreneurship, with virtually no other limited partners holding 30% or more of the partnership interests. Dr. Wang holds 19.00% of the partnership interests in Basic Creation, with virtually no other limited partners holding 30% or more of the partnership interests. Advisory Team Joint Sponsors: Sinolink (Hong Kong) Limited, BOCI Asia Limited Company Legal Advisor: Hong Kong law-related: King & Wood Mallesons; Chinese law-related: King & Wood Mallesons; International sanctions: King & Wood Mallesons; Chinese litigation: JunZeJun Law Offices Legal Advisor of Joint Sponsors: Hong Kong law-related: Gallant Y.T. Ho & Co.; Chinese law-related: JunHe Law Offices Auditor and Reporting Accountant: Ernst & Young Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch