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On March 28th, the Shanghai Stock Exchange accepted the second IPO project on the Science and Technology Innovation Board this year - Angruiwei, which is also the first unprofitable enterprise accepted by the exchange this year. It is reported that Angruiwei is mainly engaged in the field of chips.

Since the beginning of this year, the China Securities Regulatory Commission has repeatedly expressed its encouragement for high-quality unprofitable technology companies to go public, calling on all parties in the market to rationally view the risks in the growth of technology companies and provide tolerance and understanding.

Several securities firms and investment banks have also expressed their close attention to the listing cases of unprofitable companies and suggested that regulators enhance the inclusiveness of listing for unprofitable high-tech companies.

Despite the frequent regulatory hype surrounding IPO policies this year, the threshold for listing review remains strict, and the number of applications accepted is very limited. As of March 29th, a total of 7 IPO projects have been accepted in the IPO market for the first quarter of this year. More than half of them are projects from the Beijing Stock Exchange, while the Shanghai and Shenzhen Stock Exchanges each accept 2 and 1 orders.

This year's first unprofitable IPO company

On March 28th, the Angruiwei IPO project became the first unprofitable project accepted by the exchange in this year's IPO market. According to public information, Angruiwei plans to go public on the Science and Technology Innovation Board, with an expected fundraising of 2.067 billion yuan, sponsored by CITIC Securities.

According to the prospectus, Angruiwei is an integrated circuit design enterprise engaged in the fields of RF and analog. Its core product line mainly includes 5G/4G/3G/2G full range RF front-end chip products for intelligent mobile terminals, as well as RF SoC chip products for the Internet of Things.

In recent years, performance data shows that Angruiwei's operating revenue from 2022 to 2024 was RMB 923 million, RMB 1.695 billion, and RMB 2.101 billion respectively; After deducting non recurring gains and losses, the net profit attributable to the shareholders of the parent company was -474 million yuan, -301 million yuan, and -110 million yuan, respectively, with the loss amount narrowing year by year.

The last time the exchange accepted unprofitable IPO companies was in November 2024. At that time, the Science and Technology Innovation Board accepted the IPO project of Xi'an Yicai, becoming the first unprofitable enterprise accepted since the release of the "Eight Articles of the Science and Technology Innovation Board" last year.

Xi'an Yicai is mainly engaged in the research and development, production, and sales of 12 inch silicon wafers. From 2021 to 2023, the net profit after deducting non attributable expenses was -348 million yuan, -416 million yuan, and -692 million yuan, respectively. In the first three quarters of 2024, it was -606 million yuan.

For the listing of unprofitable enterprises, some investment banking professionals from securities firms have expressed to Chinese journalists that they hope regulators can enhance the inclusiveness of IPO listings for unprofitable high-tech enterprises, allow unprofitable enterprises with high growth or "bottleneck" technologies to enter the capital market, and improve the support of the capital market for new quality productivity.

On March 6th, Wu Qing, Chairman of the China Securities Regulatory Commission, stated that efforts will be made to accelerate the improvement of support mechanisms specifically for technology enterprises. Adhere to the combination of an efficient market and a proactive government, focus on areas where technological innovation is active and reflects the direction of new quality productivity, and make good use of systems such as the "green channel" and the listing of unprofitable enterprises.