Junzheng Holdings Sets HK$102.80 Top Price for August 17-20 Hong Kong IPO

Junzheng Holdings will conduct its Hong Kong IPO subscription from August 17 to August 20, 2026, with an offer price not exceeding HK$102.80 per share. The issue carries a static price-to-earnings ratio of 127.31 times. Each board lot comprises 100 shares, with an entry fee of approximately HK$10,400. The global offering consists of 31.2873 million H shares, with international placement accounting for approximately 90% and the Hong Kong public offering approximately 10%. Cornerstone investors include Emerald Prime, GF Fund, Perseverance Asset Management and ICBC Wealth Management, subscribing for approximately 46.75% of the offering. The issuance includes an over-allotment option. As of the close of the subscription period, margin subscription reached 470 times.

Junzheng Holdings is a fabless chip design company with product lines spanning memory chips, computing chips and analog chips. Its memory chip products include DRAM, SRAM, NOR Flash and NAND Flash, primarily serving the automotive electronics and industrial medical sectors. The computing chip line comprises intelligent vision SoCs, embedded MPUs and AI-MCUs, applied in security cameras, doorbells, AR glasses, robot vacuums, and QR code, facial and fingerprint recognition scenarios. Analog chips provide lighting, touch control, voice control, power and control application solutions for automotive electronics, industrial and home appliance sectors.

Financial data shows that from 2023 to 2025, Junzheng Holdings recorded revenue of approximately RMB 4.531 billion, RMB 4.213 billion and RMB 4.741 billion respectively, with gross margins of 35.5%, 35% and 32.8%, and net profits of approximately RMB 516 million, RMB 364 million and RMB 375 million. In the past two years, the company's results have fluctuated and gross margin has declined year by year, mainly due to market factors such as declining average selling prices. In the first quarter of 2026, as demand for memory and computing chips grew and average selling prices recovered, the company's gross margin showed signs of improvement. Around 60% of the company's revenue comes from memory chips, with computing chips and analog chips contributing approximately 25% and 10% respectively.

Junzheng Holdings' products primarily serve downstream industries including automotive electronics, industrial medical, AIoT and security surveillance, and its operating results are affected by downstream demand and terminal product price fluctuations. Of the proceeds raised in this Hong Kong IPO, approximately 50% will be used to strengthen technological innovation and product development across the three core product lines of memory, computing and analog chips, approximately 25% for strategic investments or acquisitions, approximately 15% for expanding the sales network and product promotion, and approximately 10% as working capital and other general corporate purposes.