New Stock News | Xi Hua Technology Once Again Submits Documents to Hong Kong Stock Exchange AI Scaler's Revenue has Ranked First in China for Four Consecutive Years Since 2022

According to the disclosure by the Hong Kong Stock Exchange on June 5th, Shenzhen Xihua Technology Co., Ltd. (referred to as Xihua Technology) has submitted an application to list on the main board of the Hong Kong Stock Exchange, with Agricultural Bank of China International being the sole sponsor. The company had previously submitted a listing application to the Hong Kong Stock Exchange on December 3, 2025. Company Profile The prospectus shows that Xihua Technology is a provider of end-side AI chip products. Its display chip products include AI Scaler and scaler touch and display driver integrated chips (STDI chips); and its sensing chip products include touch microcontroller units (TMCU), general microcontroller units (MCU), touch integrated circuits (touch chips), and intelligent cabin control units (SCCU). According to a Frost & Sullivan report, the company's AI Scaler revenue has ranked first in China for four consecutive years since 2022. The revenue breakdown by product category is as follows: The company's products have been adopted by multiple mainstream automotive OEMs (through their Tier 1 suppliers) and well-known consumer electronics brands (through electronic system integrators and solution providers). The company's mass-produced chip product portfolio can meet the diverse needs of customers in the consumer electronics, automotive, and personal intelligence industries. With its end-side AI advantage technology in display, perception, and control directions, the company empowers global intelligent device innovation. The Scaler chip is widely used in image processing for smartphone displays and automotive cabin displays. According to a Frost & Sullivan report, the company has developed the world's first dedicated Application-Specific Integrated Circuit (ASIC) architecture for scaler, namely AI Scaler, mastering key technologies in visual lossless compression, image enhancement, and high-speed interface transmission. Starting from the smartphone screen application market, the company's market share for AI Scaler has steadily increased, and it has now become a flagship product. In 2025, the company's AI Scaler shipments were approximately 47 million units. According to Frost & Sullivan, in 2025, based on shipments, the company ranked first in the global scaler industry and in the ASIC scaler industry. The global ASIC scaler market is a specialized category within the global scaler market, which itself is a segment of the overall display chip market. Based on the same source, the company's latest generation of automotive-grade TMCU maintains a leading position in performance specifications in the Chinese sensing control market. With outstanding sensing accuracy and anti-interference capabilities, the company's TMCUs have been successfully applied to a large number of mass-produced vehicle models by mainstream automotive OEMs and have gained recognition from the global automotive industry. Financial Information Revenue: During the previous reporting periods, the company achieved strong revenue growth. In the fiscal years 2023, 2024, and 2025, the company recorded revenues of approximately RMB 150 million, RMB 244 million, and RMB 346 million respectively, with a compound annual growth rate of 51.9% from 2023 to 2025. Loss: In the fiscal years 2023, 2024, and 2025, the company incurred annual losses of approximately RMB 153 million, RMB 80.82 million, and RMB 94.546 million respectively. Gross margin: In the fiscal years 2023, 2024, and 2025, the company's gross margins were 21.5%, 28.4%, and 21.0% respectively. Industry Overview Benefiting from the continuous technical iteration and progress in the electronics industry, the global semiconductor chip market has maintained steady expansion, with the market size increasing from RMB 3.6 trillion in 2021 to RMB 4.8 trillion in 2025. Looking ahead, driven by the growth in demand for high-performance electronic components and systems in consumer electronics, automotive, Siasun Robot & Automation, and industrial applications, the global semiconductor chip market is expected to continue to expand. By 2030, the market is projected to reach RMB 7.7 trillion, with a compound annual growth rate of 9.2% from 2026 to 2030. From a functional positioning perspective, semiconductor chips are typically divided into four major categories: integrated circuits, optoelectronic devices, discrete devices, and sensors. Integrated circuits perform key functions such as information processing and transmission, computing control, data storage, and power management, constituting the technological backbone of intelligent and high-performance electronic systems. In 2025, integrated circuits accounted for approximately 88% of the global semiconductor market. Integrated circuits can be further subdivided into logic integrated circuits, analog integrated circuits, memory integrated circuits, and microprocessors. The company's operations in the display chip market and sensing chip market mainly fall under the integrated circuits and sensor categories. In the display chip market, scalers and STDIs are classified as microprocessors, while TDDIs belong to analog integrated circuits. In the sensing chip market, touch chips and TMCU products are categorized as sensors and microprocessors. In terms of market size, the global scaler market continues to grow due to the expansion of emerging display technologies and the smartphone repair market. Shipments are expected to increase from approximately 1.41 billion units in 2021 to around 2.29 billion units in 2025, and with continuous upgrades in displays, it is projected to reach 4.98 billion units by 2030. During the same period, the market share of ASIC scalers is expected to increase from 37.6% to 45.7%. In terms of downstream applications, scaler demand mainly comes from smartphones, automotive, and other sectors. In the smartphone sector, scalers are mainly used for signal protocol conversion between different screen models in the aftermarket repair and refurbishment market, with shipments expected to increase from approximately 1.08 billion units in 2025 to around 1.41 billion units in 2030. In the automotive sector, driven by the popularity of intelligent cabins and multi-screen display systems, shipments are expected to increase from 55.6 million units in 2025 to 254 million units by 2030. In the industrial and other application fields (including industrial displays and projectors), shipments are expected to increase from approximately 65 million units in 2025 to around 103 million units by 2030. Display driver chips convert control signals into pixel drive signals, achieve final image output through precise control of voltage and current, and determine display quality. Based on architecture design and level of functional integration, display driver chips are typically categorized as DDIC, TDDI, and STDI. DDIC belongs to traditional display driver chip products and is widely used in terminals requiring display functions, including smartphones, personal computers, vehicle display systems, and industrial equipment. The global display driver chip market reached RMB 76.1 billion in 2025, and with the push from AI integration and continued display upgrades, it is expected to grow at a compound annual growth rate of 3.2% to reach RMB 89 billion from 2026 to 2030. From a downstream application perspective, smartphones remain the largest terminal market for display driver chips, with market size expected to reach RMB 42 billion by 2030. As vehicle display penetration rates increase and screen upgrades drive demand, the automotive sector is gradually becoming a key growth area, with an expected compound annual growth rate of 4.5% from 2026 to 2030, reaching RMB 8.1 billion by 2030. Meanwhile, due to the expansion of industrial control and display system applications, the industrial sector is also expected to steadily expand, with an estimated compound annual growth rate of 3.4% to reach RMB 4.6 billion by 2030. With the expansion of smartphones, TWS earphones, automotive electronic devices, and other smart terminals, the global touch chip market is experiencing steady growth. Global shipments increased from 3.5 billion units in 2021 to 3.9 billion units in 2025, and are expected to further increase to 5.7 billion units by 2030, with a compound annual growth rate of 7.7% from 2026 to 2030. From a downstream perspective, smartphones are still the largest application market for touch chips, with shipments expected to increase from 1.7 billion units in 2025 to an anticipated 2.3 billion units by 2030. The TWS earphone market is expected to grow from 700 million units in 2025 to 900 million units by 2030. Automotive electronic devices are becoming a rapidly growing area, with shipments expected to increase from 300 million units in 2025 to 400 million units by 2030. Concurrently, other applications such as smart speakers, AR/VR devices, and smart home devices are also expected to continue expanding. Board of Directors The Board of Directors will consist of 7 directors, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors. The Board of Directors is responsible for the management and operation of the company and has general authorization in this regard. Directors serve a term of three years and are eligible for re-election at the end of their term. Ownership Structure Xichuang Lekang Limited Partnership, Xichuang Leye Holdings Platform, Xichuang Lejia Holdings Platform, and Xichuang Lexin Holdings Platform are all controlled by Xichuang Technology (the general partners of the aforementioned parties). Xichuang Technology is controlled by Mr. Chen. As of the latest practicable date, the remaining equity of Shenzhen Aika Siasun Robot & Automation Co., Ltd. is owned by an independent third party Zheng Run with a 49% stake. On the latest practicable date, the remaining equity of Shenzhen Vision Chip Alliance Semiconductor Technology Co., Ltd. is owned by an independent third party Shenzhen Xinlian Shenguang Electronics Technology Co., Ltd. with a 49% stake. Advisory Team Sole Sponsor: ABC International Finance Limited Company Legal Counsel: For Hong Kong and U.S. law: Baker McKenzie; for Chinese law: Shanghai Jintian Cheng (Shenzhen) Law Firm; for international sanctions law: Trade law firm Legal Counsel for Exclusive Sponsor: For Hong Kong law: Tianyuan Law Firm (Limited Liability Partnership); for Chinese law: Hankun Law Firm Auditors and Reporting Accountants: Ernst & Young Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch