Analysis of Lianxun Instruments' IPO and Semiconductor Test Equipment Business

Based on the publicly available information searched, I will conduct a systematic analysis of Lianxun Instruments’ IPO fundraising and its semiconductor test equipment business.

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Suzhou Lianxun Instruments Co., Ltd., founded in 2017, is a leading domestic supplier of high-end test instruments and equipment, focusing on

and with respect to R&D, manufacturing, sales and services. The company will be reviewed by the Listing Committee of the Shanghai Stock Exchange STAR Market on January 14, 2026 [1][2].

• Planned fundraising amount:
  RMB 1.711 billion
• Number of shares to be issued: 25,666,700 shares
• Registered address: Jiangsu Province
• Sponsor: CITIC Securities [2]

Project Name	Planned Investment Amount
R&D and Industrialization Project of Next-Generation Optical Communication Test Equipment	RMB 513 million
R&D and Industrialization Project of Memory Test Equipment	RMB 385 million
R&D and Industrialization Project of Digital Test Instruments	RMB 304 million
R&D and Industrialization Project of Automotive Grade Chip Test Equipment	RMB 199 million
R&D Center and Manufacturing Center Construction Project (Phase I)	RMB 403 million
Supplementary Working Capital	RMB 150 million [1][3]

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Period	Production-Sales Ratio
2022	80.08%
2023	85.34%
2024	71.39%
Jan-Mar 2025	68.78%

Period	Production-Sales Ratio
2022	97.70%
2023	71.32%
2024	60.11%
Jan-Mar 2025	70.21%

According to the company’s explanation, the decline in production-sales ratio mainly stems from the following factors:

“The fluctuation is caused by a

cycle mismatch

between production volume and sales volume recognized as revenue, as there is a certain period from the shipment of semiconductor test equipment to the completion of acceptance” [1]

“The company maintains a certain amount of inventory at the end of the period to ensure order delivery” [1]

This

is a typical feature of the semiconductor test equipment industry. Semiconductor test equipment is a highly customized professional device that requires multiple steps such as installation, commissioning, and acceptance after shipment. The acceptance cycle is usually 3-6 months or even longer, resulting in a time gap between the current period’s production volume and the sales volume recognized as revenue.

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• Optical Communication Sector:
  Accelerated data center construction and 5G/6G technology iteration have driven a surge in demand for high-speed optical modules
• Power Device Sector:
  The popularization of new energy vehicles has driven rapid growth in the market for automotive-grade silicon carbide (SiC) power devices
• Semiconductor Integrated Circuit Sector:
  The accelerated process of domestic substitution has brought broad market space for test equipment [3]

• 43.6% domestic market share in wafer-level aging systems for SiC power devices, ranking first
• Ranked first in the domestic market for optoelectronic device test equipment
• The second manufacturer in the world to mass-produce all core test instruments for 1.6T optical modules [3]

Indicator	2022	2023	2024	2025 Forecast
Operating Revenue	RMB 214 million	—	RMB 789 million	RMB 1.15-1.2 billion
Net Profit Attributable to Parent Companies	Loss	—	RMB 140 million	3-17% Growth

The comprehensive gross profit margins from 2022 to 2024 were 43.61%, 60.50%, and 63.63% respectively, significantly higher than the industry average [3]

The decline in production-sales ratio reflects potential pressure on capacity absorption. If future market demand falls short of expectations or competition intensifies, the new capacity from the fundraising projects may face the risk of insufficient utilization.

As the business scale expands, the company’s accounts receivable may continue to increase, exerting certain pressure on cash flow.

The prospectus shows that the company’s customer concentration is increasing year by year, which may bring certain customer dependence risks.

The acceptance cycle of semiconductor test equipment is affected by multiple factors. If the acceptance cycle is further extended, it may lead to delayed revenue recognition and affect short-term performance.

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The fluctuations in the production-sales ratio of Lianxun Instruments’ semiconductor test equipment are mainly caused by

, which is in line with the common characteristics of the semiconductor test equipment industry. Judging from the recovery of the production-sales ratio to 70.21% in Jan-Mar 2025, this indicator has shown signs of stabilization and recovery.

Based on comprehensive analysis, the company’s future performance will be supported by the following factors:

1. Domestic Substitution Dividend:
   The localization rate of high-end test instruments is still low, and as a domestic leader, the company will continue to benefit from the domestic substitution process
2. High Prosperity in Downstream Sectors:
   The optical communication, new energy vehicle, and semiconductor industries continue to grow rapidly
3. Leading Technical Advantages:
   Core technical advantages in 1.6T optical module testing, SiC testing, and other fields
4. Implementation of Fundraising Projects:
   The RMB 1.711 billion fundraising will strengthen the company’s market position in various sub-sectors

Investors need to pay attention to the potential impact of capacity absorption progress, changes in acceptance cycles, and cyclical fluctuations in downstream industries on the company. It is recommended to continuously track the company’s quarterly performance and order acquisition status.

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[1] Sina Finance - “Lianxun Instruments’ Accounts Receivable Surges: Decline in Production-Sales Ratio, Volatile Operating Cash Flow” (https://cj.sina.cn/articles/view/5847117812/15c83eff400101qv7o)

[2] Securities Times Network - “4 Companies Including Lianxun Instruments and Ruier Jingda to Undergo IPO Review Soon” (https://www.stcn.com/article/detail/3577862.html)

[3] Securities Times Network - “Leading the Upgrade of High-End Test Instrument Industry: Lianxun Instruments’ STAR Market IPO to Undergo Review Soon” (https://www.stcn.com/article/detail/3579797.html)