First in the year! Xinmi Technology voluntarily withdrew its IPO filing after being selected for an on-site inspection, failing to clear the Sci-Tech Innovation Board IPO “failure” in less than a year

What new trends in review are reflected by the rapid withdrawal after on-site inspection by AI?

“Science and Technology Innovation Board Daily” April 2nd News (Reporter Chen Junqing) Recently, the Shanghai Stock Exchange official website showed that due to Shanghai Xinmi Technology Co., Ltd. (hereinafter referred to as “Xinmi Technology”) voluntarily withdrawing its application for issuance and listing, the SSE decided to terminate its review of the initial public offering and listing on the Sci-Tech Innovation Board.

From its listing process, in June 2025, Xinmi Technology submitted an IPO application to the SSE Sci-Tech Innovation Board, with Guojin Securities as its sponsor. In July of the same year, the company’s Sci-Tech Innovation Board IPO project was selected for on-site inspection. Subsequently, after the exchange issued the first round of review inquiry letters, Xinmi Technology did not disclose response documents to the inquiries. With this voluntary withdrawal of the application materials, Xinmi Technology also becomes the first company this year among IPO applicants selected for on-site inspection to terminate the listing process.

Its official website shows that Xinmi Technology was established in January 2020, located in the Lingang New Area of Shanghai. It is a company focused on high-end sealing materials and product solutions. According to the introduction, Xinmi Technology’s products include all types of perfluorinated seals required for strict process steps in integrated circuit manufacturing, including static seals, pipeline seals, pendulum valve seals, gate valves, and various special seals, used in core process equipment for semiconductor wafer front-end manufacturing.

According to Frost & Sullivan statistics, in 2023 and 2024, Xinmi Technology’s sales scale of semiconductor-grade perfluoroether rubber seals ranked third in the Chinese market, and first among Chinese companies.

In terms of performance, Xinmi Technology has shown rapid growth in revenue and profit in recent years, but its scale remains relatively small. The prospectus shows that at the end of each period from 2022 to 2024, the company’s revenue was 41.59 million yuan, 130 million yuan, and 208 million yuan, respectively; net profit attributable to parent was 1.73 million yuan, 36.39 million yuan, and 68.94 million yuan. In 2024, revenue from the perfluoroether rubber seal business accounted for 93.84%.

Regarding profitability, the company’s main business gross profit margins were 41.57%, 54.82%, and 62.16%, respectively, increasing year by year. These changes were mainly influenced by factors such as increased capacity utilization, decreased upstream raw material procurement prices, and changes in product structure and models.

It is noteworthy that Xinmi Technology faces high customer concentration risk on both sales and procurement sides. During the reporting period, the sales revenue of the company’s top five customers accounted for 79.18%, 78.82%, and 77.06% of the main business revenue in the same period; the company’s procurement of perfluoroether rubber raw materials is mainly through imports. The procurement amounts from the top five suppliers accounted for 88.00%, 94.38%, and 90.62% of total procurement.

The localization rate of semiconductor-grade perfluoroether rubber seals is low, and industry concentration is high. According to Frost & Sullivan statistics, the localization rate of semiconductor-grade perfluoroether rubber seals in 2024 was less than 10%. The prospectus shows that Xinmi Technology has been certified by major domestic semiconductor manufacturers since 2021 and has achieved mass and stable supply, including nine of the top ten wafer manufacturers in mainland China and four of the top five semiconductor equipment manufacturers.

In terms of financing history, business registration information shows that Xinmi Technology has completed six rounds of financing so far. Its shareholders include industry partners such as SMIC, as well as institutions like Shen Chuangtou, Juyuan Venture Capital, and Zhongnan Hongyuan.

Xie Changjie directly owns 20.26% of Xinmi Technology’s shares, making him the company’s largest shareholder; he also indirectly controls 26.72% of the company’s voting rights, totaling 46.98%, making him the controlling shareholder and actual controller of the company.

According to reports, Xie Changjie was born in 1980, graduated from Fudan University with a bachelor’s degree in Environmental Science. He has served as an equipment engineer at SMIC Shanghai, a sales engineer at Deyi International Trade Shanghai, a sales engineer at Dachang Yanghang Shanghai, a sales manager at Qiyang Semiconductor Technology Shanghai, an executive director and general manager of Shanghai Teyu Semiconductor Technology Consulting Co., Ltd.; from February 2021 to March 2022, he served as executive director and general manager of Xinmi Technology; since March 2022, he has been chairman and general manager of the company.

(Science and Technology Innovation Board Daily Reporter Chen Junqing)