IPO News | Basic Semiconductors Secondary Delivery Hong Kong Stock Exchange focuses on R&D, manufacturing and sales of silicon carbide power devices

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange's disclosure on December 4, Shenzhen Basic Semiconductor Co., Ltd. (“Basic Semiconductor” for short) submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities, Guojin Securities (Hong Kong) Limited, and Bank of China International as co-sponsors. The company submitted a listing application to the Hong Kong Stock Exchange on May 27 this year. According to the prospectus, Basic Semiconductor is an enterprise in the third-generation semiconductor power device industry in China, focusing on R&D, manufacturing and sales of silicon carbide power devices.

The prospectus mentioned that Basic Semiconductor is the only company in China that integrates silicon carbide chip design, wafer manufacturing, module packaging, and gate drive design and testing capabilities, as confirmed by Frost & Sullivan. Basic semiconductors are one of the first domestic companies to mass-produce and deliver silicon carbide solutions for new energy vehicles, and new energy vehicles are the largest terminal application market for silicon carbide semiconductors. Silicon carbide is a leading third-generation semiconductor material with excellent performance, making it a key material for the future development of the power device industry.

Basic semiconductors build a comprehensive product portfolio, including silicon carbide discrete devices, automotive-grade and industrial-grade silicon carbide power modules, and power semiconductor gate drivers. The company's solutions serve many industries, covering fields such as new energy vehicles, renewable energy systems, energy storage systems, industrial control, data and server centers, and rail transit. According to Frost & Sullivan, in terms of 2024 revenue, basic semiconductors ranked sixth in the Chinese silicon carbide power module market, with a market share of 2.9%, and ranked third among Chinese companies. In terms of revenue in 2024, basic semiconductors ranked 9th and 9th respectively in China's silicon carbide discrete device market and power semiconductor gate driver market, with market shares of 2.7% and 1.7% respectively. These markets are highly concentrated and dominated by a few major international players.

Automotive-grade silicon carbide power modules of basic semiconductors have been used in mass-produced flagship models of leading automobile manufacturers, making the company one of the first domestic companies to mass-produce and deliver silicon carbide solutions for new energy vehicles, and NEVs are the largest terminal application market for silicon carbide semiconductors. Given the usually long evaluation cycle and high replacement costs associated with silicon carbide solutions, basic semiconductors have established a high entry threshold, cultivated long-term partnerships with customers, and maintained a good track record of design-in winning over 50 models from more than 10 car manufacturers.

The company's products have received wide market recognition. As of June 30, 2025, the cumulative shipment volume for energy vehicle products exceeded 110,000 units. Sales of basic semiconductor silicon carbide power modules increased from over 500 units in 2022 to over 30,000 units in 2023, and further increased to over 61,000 units in 2024. Sales of basic semiconductor silicon carbide power modules increased further from more than 6,000 units in the six months ended June 30, 2024 to more than 25,000 units in the six months ended June 30, 2025.

Financial data

revenue

In 2022, 2023, 2024 and 2025 for the six months ended June 30, the company recorded revenue of $117 million, $221 million, $299 million and $104 million respectively.

Losses during the year/period

In 2022, 2023, 2024 and 2025 for the six months ended June 30, the company recorded year/period losses of $242 million, $342 million, $237 million and $177 million respectively.

R&D expenses

The company generated R&D expenses of RMB 594.04 million, RMB 758.27 million, RMB 91.087 million and RMB 53.969 million in 2022, 2023, 2024 and 2025 respectively for the six months ending June 30.

Industry Overview

From 2020 to 2024, the global silicon carbide power device industry experienced significant growth. The market size grew from RMB 4.5 billion in 2020 to RMB 22.7 billion in 2024, with a compound annual growth rate of 49.8%. It is expected that from 2025 to 2029, the market size of the global silicon carbide power device industry will continue to rise, with a compound annual growth rate of 40.5%. The market size is expected to grow rapidly and reach approximately RMB 110.6 billion by 2029. The penetration rate of silicon carbide in the global power device market has also increased significantly. This ratio rose from 1.4% in 2020 to 6.5% in 2024, and is expected to reach 20.1% by 2029.

From 2020 to 2024, China's silicon carbide power device market sales revenue increased from RMB 1.1 billion in 2020 to RMB 6.9 billion in 2024, with a compound annual growth rate of 59.7%. This value is expected to grow at a compound annual growth rate of 47.1% from 2025 to 2029, and the market size is expected to reach RMB 42.8 billion in 2029. The penetration rate of silicon carbide in the Chinese power device market also increased dramatically from 0.9% in 2020 to 5.4% in 2024, and is expected to reach 19.0% by 2029.

The global silicon carbide discrete device market is expected to grow significantly in the next ten years. From 2020 to 2024, the market is expected to grow at a CAGR of 32.2%, with sales revenue growing from RMB 1.6 billion in 2020 to RMB 5 billion in 2024. This strong growth trend is expected to continue for some time. From 2025 to 2029, the market will have a compound annual growth rate of 45.0%, and sales revenue will reach RMB 29.4 billion in 2029.

In this global context, China's silicon carbide discrete device market is also expected to grow significantly. From 2020 to 2024, the Chinese market grew at a compound annual growth rate of 65.4%. Sales revenue increased from RMB 300 million in 2020 to RMB 1.9 billion in 2024, contributing 38.4% to the global market in 2024. This growth trend is expected to continue in the next phase, with a compound annual growth rate of 53.6% from 2025 to 2029, and sales revenue of RMB 14.9 billion in 2029, contributing 50.5% to the global market.

Board Information

Basic Semiconductor's board of directors consists of four executive directors (including one employee representative director) and three independent non-executive directors. The term of directors is three years, and they can be re-elected at the end of their term of office.

Shareholding structure

As of the last practical date, Dr. Wang Zhihan, Bronze Sword Holdings, British Bozhi, Bronze Sword Technology, Basic Principles, Basic Innovation, Basic Creation, Basic Entrepreneurship, and Basic Originality are all controlling shareholders of Basic Semiconductors.

Bronze Sword Technology has (a) Dr. Wang directly owns 40.85% of the rights; (b) Bronze Sword Holdings (controlled by Dr. Wang as its general partner) holds 27.35% of the shares; (c) British Bozhi owns 19.57% of the rights, while Dr. Wang holds 13.00% of the rights, and Dr. Wang's mother, Ms. Wang Yongmiao, owns 25.00% of the rights; and (d) Ms. Wang Yongmiao owns 12.23% of the rights. According to the unanimous action agreement between Dr. Wang and British Bozhi, they agreed to take concerted action (including voting and proposing decisions) on their shareholders' rights in Bronze Sword Technology, and if any differences of opinion arise, Dr. Wang's opinion shall prevail.

Intermediary team

Co-sponsors: CITIC Securities (Hong Kong) Limited, Guojin Securities (Hong Kong) Limited, Bank of China International Asia Limited

Chinese Legal Advisors: King & Wood Mallesons,

Co-sponsor's legal advisors: Gao Weishen Law Firm, JunHe Law Firm

Auditors and reporting accountants: Ernst & Young

Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch

Compliance Advisor: Zibo Capital Co., Ltd.