New Stock Preview | Lontium Semiconductor Corporation: China's mainland video bridging chip leader, A+H dual platform accelerates globalization.

The development of industries such as AI computing power, automotive intelligence, and XR hardware is accelerating synchronously, with high-speed mixed-signal chips serving as data transmission carriers for various devices, driving continuous growth in market demand. According to Frost & Sullivan's calculations, the compound annual growth rate of interconnect chips can reach 23.1% from 2026 to 2030. Against this backdrop, domestic chip design companies with self-developed underlying technologies are also seeing opportunities for international financing. Recently, Lontium Semiconductor Corporation (688486.SH), a company listed on the Sci-Tech Innovation Board, updated its prospectus and submitted a secondary listing application to the main board of the Hong Kong Stock Exchange, with China Securities Co., Ltd. acting as the exclusive sponsor. The funds raised in this round are intended for research and development upgrades, enriching product offerings and expanding downstream application scenarios, expanding overseas sales networks, industrial chain mergers and acquisitions, and supplementing daily operating funds. Leading Player in the Video Bridge Chip Market The prospectus shows that Lontium Semiconductor Corporation was founded in 2006 and listed on the Sci-Tech Innovation Board in 2023. It is a domestic high-speed mixed-signal chip design company using the fabless model, focusing on the research and development of data transmission and video processing chips in the fields of intelligent terminals and AI. The company's business is divided into two core segments: intelligent video chips and interconnect chips. It holds three self-developed underlying technologies: high-bandwidth SerDes, high-speed protocol encryption, and high-definition audio and video display drivers, enabling efficient data processing and format conversion between computing, storage, and display devices. The products cover four major application scenarios: intelligent visual terminals, automotive, AR/VR, and AI computing. Based on this integrated technological foundation, the chips integrate video processing, intelligent perception, and human-machine interaction functions, adapting to the requirements of various end-side AI devices. As of 2025, the company holds the largest market share in the domestic video bridge chip race, with a share of 4.1%, as per Frost & Sullivan data. High-definition audio and video as the core carrier of virtual and real interaction, are essential for unmanned aerial vehicles, autonomous driving, XR, and computing devices. Leveraging over twenty years of SerDes research and development, the company has expanded beyond traditional video products to develop PCIe/CXL/USB relay and switching interconnect chips, specialized to resolve transmission bottlenecks in AI servers, GPU clusters, and cross-data center scenarios. By the end of 2025, the company had launched a total of 169 intelligent video chips and 120 interconnect chips, building an end-to-end complete solution from data acquisition to terminal display. It also cooperates with leading global semiconductor companies on reference designs, building a collaborative industry ecosystem and iterating products based on end-user demand. Strong Growth in Performance, Rapid Increase in Accounts Receivable In terms of performance, from 2023 to 2025, Lontium Semiconductor Corporation achieved revenues of 323 million yuan, 466 million yuan, and 568 million yuan respectively. During the same period, the net profit attributable to the parent company was 103 million yuan, 144 million yuan, and 172 million yuan respectively, with a sales gross profit margin maintained at around 53%. The company continues to invest heavily in research and development, focusing resources on high-value-added chips such as PCIe/CXL and automotive standards, with economies of scale gradually emerging. From 2023 to 2025, revenue from intelligent chip business increased from 270 million yuan to 473 million yuan, while revenue from interconnect chips increased from 52 million yuan to 93 million yuan. However, it is worth noting that despite the continuous increase in revenue and profits, the company's operating cash flow remained stable over the three years, at 103 million yuan, 117 million yuan, and 112 million yuan, respectively. The growth elasticity did not increase in sync with revenue. It is notable that Lontium Semiconductor Corporation mainly operates through a distrib... --- Due to the character limit, the rest of the translation is cut off.