In recent years, with the vigorous development of the new energy industry, as well as the rise of emerging fields such as intelligent manufacturing and industrial Internet, the demand for power semiconductor devices has grown rapidly. Among them, the third-generation semiconductor materials represented by gallium nitride, with excellent physical properties and a wide range of downstream application scenarios, have become the core driving force to promote the change of the power semiconductor industry.
    In this field, Innoseco (Suzhou) Technology Co., LTD. (" Innoseco "or the" Company ", 2577.HK) is a recognized leader in the industry, with strong technical expertise and forward-looking layout. From 18 December to 23 December, the Company launched a Hong Kong share offering, with the intention of offering 45,364,000 H shares worldwide at a price range of HK $30.86 to HK $33.66, with 100 shares per lot, which is expected to be listed on the Stock Exchange on 30 December.

Technical strength cast industry leader position
    Technology is the source of vitality of semiconductor enterprises. Innosecco has been committed to the research and development and innovation of gallium nitride technology for a long time, and has accumulated a deep technical foundation. As of June 30, 2024, the company had 319 patents and 430 patent applications worldwide, covering key areas such as chip design, device structure, wafer manufacturing, packaging and reliability testing, building a complete technical barrier.
    With comprehensive expertise, Innoseco designs, develops and manufactures high-performance and reliable gallium nitride discrete devices in a wide range of package options ranging from 15V to 1,200V. The company is the only company in the world that offers industry-scale silicon-based gallium nitride semiconductor products with a full voltage spectrum. With a full voltage portfolio, Innosecco not only meets the needs of a wide range of industrial applications, but also supports versatile, customized solutions that significantly improve the performance, efficiency and reliability of end applications.
    It is worth mentioning that Innosecco has successfully developed new mass production processes and technologies, becoming the first company in the world to achieve mass production in the field of 8-inch silicon-based gallium nitride technology. With this technology, Innosecco can achieve much higher efficiencies than 6-inch gallium nitride wafers and significantly lower per-chip costs. As of June 30, 2024, the company's monthly wafer production capacity exceeded 12,500 wafers, achieving industrial-scale commercialization and a wafer yield of more than 95%. In terms of converted gallium nitride discrete devices, the company has shipped more than 850 million units, and in terms of converted gallium nitride discrete devices, the company's shipments in 2023 ranked first among the world's gallium nitride power semiconductor companies, with a market share as high as 42.4%.

IDM mode has formed a significant competitive advantage
    In the rapidly growing gallium nitride power semiconductor industry, the IDM model, which is controlled at every step, from design to manufacturing to testing, has proven to be the most effective mainstream operating architecture. Innosecco's operating strategy revolves around a highly integrated IDM model that enables us to understand and address customer pain points first and meet industry needs.
    Using the industry-preferred IDM model, Innosecco ensures stable product delivery and facilitates seamless coordination of R&D and manufacturing efforts throughout the product development and delivery process. At the same time, the IDM model allows companies to manage costs more effectively than fabless chip design companies, resulting in more competitive pricing. Supported by the IDM model, the company is expected to maintain a long-term first-mover advantage and continue to benefit from its technological leadership.
    In addition, Innosecco works with a wide range of well-known domestic and international customers, including leading semiconductor manufacturing service providers, high-tech companies specializing in renewable energy technologies, and Tier 1 suppliers to automotive Oems. During the track record period, the company supplied gallium nitride products to approximately 140 customers in China and overseas.
    At present, the global gallium nitride semiconductor market is accelerating development, and the industry is in the ascendant. With its leading market position, technological advantages and operational advantages, Innosecco, with the support of international capital, is expected to seize the opportunities for power semiconductor market change, further consolidate its industry leading position, and achieve continuous improvement in valuation.