$25 Billion Analog Chip Giant Successfully Completes Landmark A+H Dual Listing

On December 8, analog chip design company Suzhou Novosense Microelectronics Co., Ltd. (Novosense) officially made its debut on the Main Board of the Hong Kong Stock Exchange. The stock opened flat at its IPO price of HK$116 per share, giving the company an initial market capitalization of approximately HK$18.745 billion. By the midday trading break, the share price had slipped 6.64% to HK$108.3, with total market value standing at about HK$17.501 billion.

For this Hong Kong IPO, Novosense filed its prospectus twice—in April and October this year—before successfully passing the listing hearing in November. The offering raised HK$2.212 billion in gross proceeds (HK$2.096 billion net). The deal attracted a strong lineup of cornerstone investors, including BYD, Xiaomi Group, Sanhua Intelligent Controls, as well as leading investment firms such as Hillhouse High Yield (Gao Yi Asset) and 3W Fund, with total cornerstone subscriptions reaching HK$1.089 billion.

Earlier, Novosense was listed on Shanghai’s STAR Market in April 2022, after its IPO application was accepted in May 2021 and completed in less than a year. Since listing, its share price once surged to RMB 331.43 per share in August 2022, pushing its market capitalization to a peak of RMB 47.2 billion. As of midday today, the stock was down 3.07% at RMB 153.42, with a total valuation of around RMB 24.792 billion.

China’s Fifth-Largest Analog Chip Company, Revenue Surges But Losses Deepen

Novosense’s founder, Wang Shengyang, was born in June 1984 in Jixi, Heilongjiang Province. He holds a master’s degree in electronic communication engineering from Peking University. After graduation, he joined global analog chip leader Analog Devices (ADI) as a design engineer, later serving as R&D manager at Wuxi Naxun Microelectronics and a supervisor at Shanghai Stingo Microelectronics.

During his time at ADI and Wuxi Naxun, Wang met his future co-founder Sheng Yun. In May 2013, the two established Novosense in Suzhou Industrial Park, starting with sensor signal-conditioning ASIC chips. By 2014, the company had entered mass production and achieved profitability.

According to the prospectus, prior to the Hong Kong IPO, Wang Shengyang (directly holding 10.87%), Sheng Yun (10.13%), and Wang Yifeng (3.80%) acted in concert. Together with their controlled entities, they held a combined 31.11% stake and 31.13% of voting rights (excluding treasury shares). After the IPO, their respective stakes declined to 9.58%, 8.93%, and 3.35%, with total control reduced to approximately 27.43%.

After 12 years of development, Novosense has grown into one of China’s leading analog chip providers. Operating under a fabless model, the company focuses on chip R&D and design, while outsourcing wafer manufacturing and most packaging and testing to third-party partners.

Centered on automotive electronics, renewable energy, and consumer electronics, Novosense delivers a wide range of high-performance, high-reliability products and solutions. Its three core categories—sensor products, signal-chain chips, and power management chips—form a complete system chain covering sensing, signal processing, power supply, and power drive, playing a vital role in connecting the physical world with digital systems.

According to Frost & Sullivan, based on 2024 revenue, Novosense ranked 14th among all analog chip companies in China, with a 0.9% market share, and fifth among domestic Chinese analog chip firms.

From 2022 to 2024 and the first half of this year, Novosense recorded revenues of approximately RMB 1.67 billion, RMB 1.311 billion, RMB 1.96 billion, and RMB 1.524 billion, respectively. Net profits over the same periods were about RMB 250 million, -RMB 305 million, -RMB 403 million, and -RMB 78.01 million.

In the first three quarters of this year, total revenue reached approximately RMB 2.366 billion, jumping 73.18% year-on-year. However, net loss expanded to RMB 158 million, up 61.51%, while attributable net loss grew to RMB 140 million, a 65.54% increase.

It is worth noting that over the past three years, Novosense’s revenue has followed a V-shaped recovery, while net profit has steadily declined. In 2024, despite achieving 49.53% revenue growth, the company’s attributable net loss widened by 31.95%, revealing mounting pressure in cost control and market competition.

Direct Investment on One Hand, LP on the Other—More Than 100 External Investments

Beyond expanding its financing channels, Novosense’s Hong Kong listing also marks a key step in the expansion of its capital footprint.

Wang Shengyang previously explained at a performance briefing in June 2024 that Novosense’s industrial investment activities are mainly carried out through its subsidiary Suzhou Naxing Venture Capital Management Co., Ltd. (Naxing Capital). In 2023, the company partnered with leading investment institutions such as Yuanhe, Huaye, Suzhou Juyuan, and Xiaomi to establish joint funds, investing in over 70 projects across the integrated circuit and semiconductor supply chain.

Public records show that as early as December 2016, Novosense made an equity investment in Xiangyang Zhenxin Sensor Technology, marking its first traceable direct external investment.

With the success of its STAR Market listing approaching, Wang formally established Naxing Capital in February 2022 as a wholly owned subsidiary of Novosense. This move significantly enhanced the company’s flexibility in capital operations and positioned it as a key platform for outward investment.

Naxing Capital: 3 Direct Investments, 2 Indirect Stakes, 8 Fund Partnerships

According to Tianyancha data, Naxing Capital has made 18 outward investments, including 2 historical investments in Lanshin Semiconductor and Beijing Chebaizhi Power Management Consulting (Limited Partnership). Among its current 16 active investments, one—Shanghai Entek Technology, in which it holds 25%—has limited public information, while the remaining 15 can be broadly categorized into direct investments and LP investments.

Direct investments include companies such as Bao Xinyuan, a developer of 12V low-voltage high-current lithium battery protection power semiconductor devices; Xingzhi Storage, specializing in memory ICs; and Chuanzhou Semiconductor, a provider of optoelectronic chips and system solutions.

Through its 89.8%-owned Suzhou Hexu Consulting Partnership, Naxing Capital indirectly acquired a stake in AISWEI Technology, a photovoltaic inverter developer and manufacturer. Additionally, via its role as the general partner in Suzhou Xinji Consulting Partnership, Naxing Capital invested in Fu Shida, an R&D and manufacturing company focused on automotive components and intelligent equipment, holding a 15% stake.

The remaining eight investments were made as a limited partner (LP) through joint funds established with major institutions such as Yuanhe Zhongyuan, New Micro Capital, Hengxin Huaye, Dazhong Transportation, Xiaomi Industry Investment, SMIC Juyuan, and Yongxin Ark.

To date, through direct investments, indirect stakes, and LP fund participation, Novosense and Naxing Capital have completed over 100 external investments in total. Even after excluding overlapping projects, the company’s expanding capital footprint remains both broad and strategically significant.