According to Hong Kong Exchange disclosures, on August 31st, A-share STAR Market listed company Circuit Fabology Microelectronics Equipment Co.,Ltd. (SH688630, stock price 132.06 yuan, market cap 17.398 billion yuan) submitted its IPO (initial public offering) application documents to the Hong Kong Exchange for the first time, with China International Capital Corporation as its sole sponsor. This comes just over two months after Circuit Fabology Microelectronics Equipment disclosed its preparation work for H-share issuance and Hong Kong listing on June 27th.

The application documents show that Circuit Fabology Microelectronics Equipment is the world's largest PCB (printed circuit board) direct imaging equipment supplier. The proceeds from this Hong Kong IPO are intended to strengthen R&D capabilities, expand overall production capacity, make strategic investments and/or acquisitions, expand global sales operations and develop overseas sales and service networks, as well as for working capital and other general corporate purposes.

Review of the application documents reveals that Circuit Fabology Microelectronics Equipment's core technical personnel have continuously reduced their holdings and cashed out in recent months, and the company has experienced "revenue growth without profit growth" in 2024. Additionally, the company's inventory, inventory turnover days, net accounts receivable and notes receivable, and accounts receivable turnover days have all shown year-over-year/period-over-period increasing trends over the past three and a half years.

**Core Technical Personnel Recent Share Reductions**

Circuit Fabology Microelectronics Equipment was established in June 2015, located in the Integrated Circuit Industrial Base of Hefei High-tech Zone, Anhui Province. According to data from Frost & Sullivan cited in the application documents, Circuit Fabology Microelectronics Equipment is the world's largest PCB direct imaging equipment supplier by 2024 revenue, with a market share of 15%. As of June 30, 2025, Circuit Fabology Microelectronics Equipment is also the only company globally whose business simultaneously covers PCB, IC substrate, advanced packaging, and photomask application scenarios, and is one of only two domestic companies whose products cover advanced packaging applications.

The application documents show that Circuit Fabology Microelectronics Equipment specializes in the R&D, manufacturing, and sales of micro-nano direct-write lithography equipment. Its main products include PCB direct imaging equipment and automated line systems, semiconductor direct-write lithography equipment and automated line systems, as well as comprehensive after-sales maintenance and support services for the above products. As of the prospectus disclosure date, Circuit Fabology Microelectronics Equipment has provided nearly 100 types of PCB direct imaging equipment and semiconductor direct-write lithography equipment to over 600 customers, with clients including all of the world's top 10 PCB manufacturers and 70% of the world's top 100 PCB manufacturers.

During 2022, 2023, 2024, and the first half of 2025 (hereinafter referred to as the reporting period), Circuit Fabology Microelectronics Equipment's revenue from PCB direct imaging equipment and automated line systems accounted for 80.8%, 71.2%, 81%, and 72.6% respectively, while revenue from semiconductor direct-write lithography equipment and automated line systems accounted for 14.7%, 22.7%, 11.5%, and 21.1% respectively.

However, Circuit Fabology Microelectronics Equipment has recently experienced frequent share reductions by important shareholders. For example, core technical personnel He Shaofeng has continuously cashed out since early May. Data shows that from May 6th to August 11th, He Shaofeng executed 7 share reductions, totaling 240,000 shares. Based on the average reduction price, He Shaofeng accumulated cash-outs of 25.3687 million yuan in just over 3 months. Additionally, in February, three institutional shareholders - Ningbo Yage Venture Capital, Hefei Heguangke, and Hefei Naguangke - collectively reduced their holdings by 1.246 million shares.

Financially, during the reporting period, Circuit Fabology Microelectronics Equipment achieved revenues of approximately 652 million yuan, 829 million yuan, 954 million yuan, and 654 million yuan respectively, with annual/period profits of 137 million yuan, 179 million yuan, 161 million yuan, and 142 million yuan respectively.

Analysis reveals that Circuit Fabology Microelectronics Equipment's 2024 revenue increased 15.09% year-over-year, while net profit attributable to shareholders declined 10.38%, showing "revenue growth without profit growth."

Circuit Fabology Microelectronics Equipment's customers are primarily PCB and semiconductor manufacturers, with a small portion being distributors. During the reporting period, revenue from the company's top five customers accounted for 28.0%, 23.5%, 30.2%, and 46.9% respectively, with revenue from the single largest customer accounting for 8.6%, 7.4%, 7.8%, and 19.7% of the company's total revenue in the same periods respectively, all showing year-over-year/period-over-period increasing trends.

Circuit Fabology Microelectronics Equipment's main suppliers include manufacturers of motion platforms and components, graphics generation modules, optical path components, exposure light sources, and automatic control components. During the reporting period, the company's procurement from its top five suppliers accounted for approximately 40.1%, 42.6%, 38.9%, and 47.8% of total procurement respectively, with procurement from the single largest supplier accounting for 16.3%, 20.4%, 12.7%, and 25.3% of total procurement in the same periods respectively.

**Continuous Growth in Inventory Book Value**

During the reporting period, Circuit Fabology Microelectronics Equipment's direct material costs were 342 million yuan, 457 million yuan, 551 million yuan, and 353 million yuan respectively.

Circuit Fabology Microelectronics Equipment's inventory mainly includes raw materials, work in progress, finished goods, and goods in transit. The application documents show that during the reporting period, the company's inventory book value was 303 million yuan, 309 million yuan, 578 million yuan, and 794 million yuan respectively, with finished goods accounting for 14.3%, 5.0%, 16.3%, and 7.6% respectively. During the same period, Circuit Fabology Microelectronics Equipment's inventory turnover days were 255.9 days, 227.5 days, 262.9 days, and 317.1 days respectively.

Regarding this, Circuit Fabology Microelectronics Equipment stated that if it fails to effectively manage inventory, the company may face increased inventory storage costs, heightened inventory obsolescence risks, declining inventory value, and significant inventory write-downs. "We cannot guarantee that our inventory levels can quickly meet customer demand, which may adversely affect our operating revenue."

Additionally, Circuit Fabology Microelectronics Equipment faces issues of continuously growing accounts receivable and accounts receivable turnover days. Specifically, the company's accounts receivable mainly include amounts due from customers for goods sold across various business lines. Circuit Fabology Microelectronics Equipment generally provides 6-12 months credit terms, with certain major customers eligible for extensions up to 24 months.

The application documents show that during the reporting period, Circuit Fabology Microelectronics Equipment's net accounts receivable and notes receivable were 584 million yuan, 850 million yuan, 1.017 billion yuan, and 1.222 billion yuan respectively, with accounts receivable turnover days of 260.4 days, 318.6 days, 361.5 days, and 297.1 days respectively, consistent with industry practices.

Regarding the increasing amounts of accounts receivable and notes receivable over time, Circuit Fabology Microelectronics Equipment stated: "This is mainly attributable to the expansion of our business scale and increased sales to our expanded and diversified customer base."

Regarding the increase in accounts receivable turnover days, Circuit Fabology Microelectronics Equipment stated: "This is mainly due to our expanded customer base and the increased proportion of sales settled through installment payments to secure customer orders."

In terms of major shareholders, Circuit Fabology Microelectronics Equipment's Chairman Cheng Zhuo and his controlled entities Ningbo Yage Venture Capital, Hefei Heguangke, and Hefei Naguangke collectively control approximately 36.13% of the company's total share capital.

Regarding issues such as high customer and supplier concentration, year-over-year/period-over-period increases in inventory and inventory turnover days, attempts to contact Circuit Fabology Microelectronics Equipment on September 1, 2025, were unsuccessful as phone calls went unanswered. Interview outlines sent to the company's board secretary and securities representative email addresses also received no response by publication time.