NewTimeSpace | IPO Watch: FourSemi, a Leading Power Amplifier Audio Chip Maker, Launches Hong Kong IPO, Driven by Domestic Substitution Wave

Shanghai FourSemi Semiconductor Co., Ltd. (03625.HK) officially launched its H-share IPO on March 23, 2026, with an offer price range of HK$40 to HK$50 per share, 100 shares per lot and an admission fee of approximately HK$5,050.43. The subscription period runs from March 23 to March 26, 2026, and the Company is expected to list on the Main Board of the Hong Kong Stock Exchange on April 2, 2026. The Company plans to offer approximately 128 million shares globally, raising approximately HK$480 million at the midpoint offer price of HK$45 per share.
As a leading player in China's power amplifier audio chip industry, FourSemi specializes in the design, research and development of low-power audio chips, medium-to-high power audio chips and haptic feedback chips, and occupies a crucial position amid the domestic substitution trend.

Key Highlights: A Pioneer in Domestic Power Amplifier Audio Chip Substitution, Synergistic Development of Multiple Product Lines

FourSemi’s core competitiveness lies in its technological accumulation and market position in the niche segment of power amplifier audio chips. According to Frost & Sullivan, based on revenue in 2024, the Company ranked fourth among global power amplifier audio chip suppliers, third among Chinese power amplifier audio chip suppliers, and fifth among Chinese haptic feedback chip suppliers.
The Company launched China's first portable power amplifier audio chip with integrated ASIC DSP in 2017, China's first medium-to-high power audio chip in 2021, and China's first power amplifier audio chip with AEC-Q100 automotive-grade certification in 2023, highlighting its pioneering role in the domestic substitution process.
In terms of product structure, the Company’s offerings mainly include low-power audio chips (adaptive power control audio chips, portable power amplifier audio chips), medium-to-high power audio chips and haptic feedback chips, which are widely applied in smartphones, tablet computers, smart wearable devices, smart speakers, televisions, automotive electronics and other fields.
In the ten months ended October 31, 2025, low-power audio chips generated revenue of RMB 255 million, accounting for 91.0% of total revenue and serving as the Company’s core revenue source; medium-to-high power audio chips and haptic feedback chips accounted for 7.3% and 1.3% of revenue respectively, showing steady growth and reflecting the gradual release of the Company’s layout in high-end and emerging application fields.
The competitiveness of the above products is underpinned by the Company’s long-term and high-intensity R&D investment. According to the prospectus, FourSemi’s R&D expenditure was RMB 48.7 million, RMB 59.3 million and RMB 68.1 million in 2022, 2023 and 2024 respectively, accounting for 57.7%, 60.2% and 62.7% of total operating expenditure in the corresponding periods.
As of the Latest Practicable Date, the Company has 91 R&D personnel, accounting for 61.1% of the total employee count, holds 35 registered patents in China, the United States and Europe, and has filed 22 pending patent applications. Sustained R&D investment has enabled the Company to continuously launch new products, such as the recently launched FS1977U series (for action camera market), FS1986U series (for smartphone and tablet market) and automotive-grade FS5024E series (for new energy vehicle market).
In terms of market growth space, according to Frost & Sullivan, the scale of China's power amplifier audio chip market has grown from RMB 2.4 billion in 2020 to RMB 4.1 billion in 2024, with a compound annual growth rate (CAGR) of 14.9%, and is expected to reach RMB 9.9 billion by 2029, with a CAGR of 19.4%. Driven by the growing demand for advanced audio-visual interaction in consumer electronics and the accelerated upgrading of in-vehicle audio systems in smart cars, the sector where the Company operates is in a period of rapid growth.

Financial Performance: Rapid Revenue Expansion, Continuously Improving Gross Margins

FourSemi’s financial data reflects rapid revenue growth, sustained recovery of gross margins, high-intensity R&D investment, and a gradual narrowing of accumulated losses driven by economies of scale.
The Company’s revenue grew from RMB 130 million in 2022 to RMB 150 million in 2023 (a year-on-year increase of 15.4%), and surged to RMB 355 million in 2024, representing a year-on-year growth of 136.5%. Revenue reached RMB 281 million in the ten months ended October 31, 2025, maintaining stable performance.
By product structure, low-power audio chips remain the main revenue driver (accounting for 91.0% in the ten months ended October 31, 2025), while the revenue share of medium-to-high power audio chips and haptic feedback chips has continued to rise, reflecting the effectiveness of the Company’s strategy to expand into high value-added products.
Gross margins continued to recover, driving improved profitability. The Company’s gross margin declined from 7.3% in 2022 to -0.1% in 2023 (affected by strategic pricing strategies), but rebounded strongly to 13.1% in 2024 and further improved to 20.0% in the ten months ended October 31, 2025. The improvement in gross margin was mainly driven by economies of scale, optimization of the product mix toward higher-margin portable power amplifier audio chips, and chip size reduction and cost reduction achieved through continuous R&D. Based on preliminary financial data for 2025, the full-year gross margin is expected to rise to 20.8%.
The Company’s net loss expanded from RMB 65.902 million in 2022 to RMB 94.13 million in 2023 (affected by pricing strategies and increased R&D investment), but narrowed to RMB 56.844 million in 2024 and stood at RMB 51.776 million in the ten months ended October 31, 2025. The narrowing of losses was mainly due to economies of scale from revenue expansion, improved gross margins and operating leverage effects. Based on preliminary financial data for 2025, the full-year loss is estimated at RMB 59.2 million, a slight increase from 2024, mainly due to increased listing-related expenses.
The Company maintains sound working capital and sustained R&D investment. As of October 31, 2025, the Company had cash and cash equivalents of RMB 73.5 million and unused bank financing of RMB 70.1 million, which together can support the Company’s financial viability for approximately 23.7 months (excluding IPO proceeds). The Company expects to further improve its net asset position after listing to support business expansion and R&D investment.

IPO Details: Proceeds Focused on R&D Innovation and Market Expansion

FourSemi’s IPO offer price ranges from HK$40 to HK$50 per share, with 100 shares per lot and an admission fee of approximately HK$5,050.43. The subscription period runs from March 23 to March 26, 2026, with listing scheduled for April 2, 2026 on the Main Board of the Hong Kong Stock Exchange. The Company plans to offer approximately 128 million shares globally, raising approximately HK$480 million at the midpoint price of HK$45 per share.
Use of Proceeds: Pursuant to the prospectus, the Company intends to allocate the net proceeds as follows: approximately 46.8% for the establishment of new R&D centers in the next five years to enhance R&D capabilities and technological competitiveness of power amplifier audio chips; approximately 17.8% for the procurement of automated testing equipment, the construction of in-house automated testing and verification lines, and the recruitment of supply chain management engineers; approximately 17.3% for strategic acquisitions and collaborations to strengthen industrial integration and consolidate industry position; approximately 8.1% for product marketing and sales; and approximately 10.0% for working capital and other general corporate purposes.
This allocation clearly reflects the Company’s development strategy of "R&D-driven + capacity enhancement + external integration", aiming to seize the historic opportunities brought by the domestic substitution wave.

Risk Concerns: Customer Concentration, Supplier Dependence and Patent Litigation

Customer Concentration Risk: The revenue share of the top five customers accounted for 93.0%, 78.6%, 83.0% and 88.2% in 2022, 2023, 2024 and the ten months ended October 31, 2025 respectively, with the largest customer accounting for 32.7%, 23.7%, 30.3% and 30.5% respectively. The high customer concentration means that any fluctuation in orders or changes in cooperative relationships with major customers may have a significant impact on the Company’s performance.
Supplier Concentration Risk: Under its fabless business model, the Company relies on a small number of suppliers for wafer fabrication, chip packaging and testing services. The procurement share of the top five suppliers accounted for 89.1%, 91.9%, 93.9% and 93.5% in the corresponding periods, with the largest supplier accounting for 31.5% to 62.0%. The highly concentrated supply chain exposes the Company to risks of supply disruption, price volatility and counterparty risk.
Patent Litigation Risk: The Company is currently defending against a patent infringement lawsuit filed by a competitor involving three early-generation charge pump chip models. The plaintiff is seeking an injunction and RMB 10 million in monetary damages. Although these products contribute minimally to total revenue and gross profit (3.7% and 1.0% respectively in the ten months ended October 31, 2025) and the Company’s litigation advisors consider the non-infringement defense to have a high probability of success, there remains uncertainty regarding the outcome of the litigation.
Uncertainty of Sustained Losses and Profitability: The Company has incurred net losses throughout the Track Record Period and recorded a gross loss in 2023. While losses have gradually narrowed, the Company is still in a phase of business expansion with high R&D investment intensity and may not achieve profitability in the short term. Future profitability depends on the commercialization progress of R&D achievements, growth in downstream demand and cost control capabilities.
Inventory Impairment Risk: As of October 31, 2025, the Company’s inventory amounted to RMB 130 million, with an inventory turnover period of 163.4 days. The expansion of business scale has led to an increase in inventory levels, bringing potential risks of price depreciation. Changes in market demand or technological iterations that render products obsolete may result in inventory impairment losses.
Agency Dependence Risk: The Company relies heavily on agents for sales. The revenue share from agency sales accounted for 96.1%, 86.2%, 91.4% and 85.2% in the corresponding periods. The agency network is a crucial channel for the Company to reach end customers, and any deterioration in relationships with agents or poor operation of agents may affect product sales.

Conclusion

As a leading enterprise in China's power amplifier audio chip sector, FourSemi’s upcoming Hong Kong IPO has attracted widespread market attention. However, it should be noted that the Company is still in a loss-making phase and faces risks including high customer and supplier concentration, uncertainty in patent litigation, pressure on inventory management and agency dependence.
After listing, the market will focus on how the Company can consolidate its competitive edge in the consumer electronics market, accelerate the expansion of emerging application fields such as automotive-grade products, effectively manage supply chain and customer risks, continuously optimize the cost structure and achieve profitability.

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