In recent years, thanks to the rapid development of downstream application fields such as automotive electronics and artificial intelligence, the integrated circuit industry has expanded rapidly, and global semiconductor equipment sales have also grown rapidly.
According to SEMI statistics, global semiconductor equipment sales reached $135.06 billion in 2025, with sales in mainland China amounting to $49.31 billion for the same period. The compound annual growth rate from 2016 to 2025 reached 25.34%.
Currently, equipment giants from the United States and Japan, represented by Applied Materials, ASML, Lam Research, Tokyo Electron, and KLA Corporation, occupy the major share of the global market. Against the backdrop of domestic substitution in semiconductor equipment, a company recently led by a former ASML employee is seeking an IPO.
Gelonghui learned that recently, Dongfang Jingyuan Microelectronics Technology (Beijing) Co., Ltd. ("Dongfang Jingyuan") submitted a prospectus to the Shanghai Stock Exchange for a planned listing on the STAR Market, with China Securities serving as the sponsor.
Dongfang Jingyuan is mainly engaged in the research and development, production, and sales of integrated circuit metrology and inspection equipment and manufacturing EDA software. Integrated circuit metrology and inspection equipment is a core equipment in the front-end process of integrated circuits, helping customers improve process levels, chip yield, and market competitiveness.
01 Significant Space for Semiconductor Equipment Localization; Company Still Lags Behind International Giants
The upstream of the semiconductor industry chain mainly provides semiconductor materials and specialized equipment, EDA software, and IP (intellectual property) modules, with participants including Shanghai Silicon Industry, Tianyue Advanced, AMEC, Naura, Piotech, Empyrean Technology, VeriSilicon, etc.
The midstream design and manufacturing fields are mainly involved in the design, manufacturing, packaging, and testing of integrated circuits and other semiconductor products, with participants including Hygon, Cambricon, GigaDevice, SMIC, Huarun Microelectronics, Silan Microelectronics, JCET, etc.;
Downstream applications cover consumer electronics, communication equipment, automotive electronics, industrial control, AI computing power, and other fields.
Image from the prospectus
Dongfang Jingyuan's integrated circuit metrology and inspection equipment and manufacturing EDA software belong to the upstream of the industry, mainly applied in the integrated circuit manufacturing stage. Its customers include CRRC Times Semiconductor, Beijing Yitang Technology, Yandong Micro, and Xinxin Semiconductor.
For the 2023, 2024, and 2025 periods (referred to as the "Reporting Period"), sales to Dongfang Jingyuan's top five customers accounted for 59.33%, 58.46%, and 48.78% of its main business revenue, respectively. Although the proportion has decreased, customer concentration remains relatively high.
Specifically, during the Reporting Period, the revenue share from Dongfang Jingyuan's integrated circuit metrology and inspection equipment products increased from 34.9% to 64.36%, while the revenue share from manufacturing EDA software products decreased from 60.36% to 31.95%. There was also a small amount of revenue from technology development services, spare parts sales, and operation and maintenance services.
Among them, the company's integrated circuit metrology and inspection equipment products include four types of electron beam metrology and inspection equipment for the front-end process: CD-SEM (Critical Dimension Scanning Electron Microscope), EBI (Electron Beam Inspection), DR-SEM (Defect Review Scanning Electron Microscope), and HV-SEM (High-Voltage Scanning Electron Microscope), breaking the monopoly of international leaders;
Manufacturing EDA software products mainly include computational lithography software and other integrated circuit manufacturing EDA software that improve wafer manufacturing yield through optimization and improvement of lithography processes.
Breakdown of Company's Main Business Revenue by Product/Service Category, Image Source: Prospectus
In terms of market size, according to QYR data, the sales of China's mainland semiconductor electron beam metrology and inspection equipment market reached $1.025 billion in 2025, with a compound annual growth rate of 24.52% from 2021 to 2025, and is expected to reach $1.618 billion by 2032.
Data from the China Commercial Industry Research Institute shows that from 2020 to 2024, the domestic EDA market's compound annual growth rate was about 9.92%, and the market size is expected to reach 14.95 billion yuan in 2025.
Electron beam metrology and inspection equipment is one of the most technologically challenging and least localized equipment categories in front-end integrated circuit equipment. The market is occupied by international leading enterprises such as Applied Materials, Hitachi High-Tech, and ASML-HMI. Domestic suppliers of electron beam metrology and inspection equipment are mainly Dongfang Jingyuan and Shanghai Jingce.
Computational lithography software connects the two major links of chip design and manufacturing and is essential for manufacturing integrated circuits at 90nm and below process nodes. The market is mainly occupied by three international giants: Siemens EDA, Synopsys, and ASML-Brion. It is reported that Dongfang Jingyuan's computational lithography software, PanGen, has domestically leading technical levels, breaking the monopoly of international vendors.
Internationally leading integrated circuit equipment manufacturers, through long-term accumulation, possess first-mover advantages in technology, market, and product R&D and have established industry standards. Dongfang Jingyuan still lags behind international leading enterprises in certain technical indicators, product portfolio composition, product iteration status, application fields, industrialization level, and sales scale.
Furthermore, as the overall capabilities of China's mainland semiconductor industry progress, Dongfang Jingyuan will also face competition from local companies in the same field.
In the front-end integrated circuit equipment field, the company faces competition from peers such as Skyverse, AMEC, Piotech, Kingsemi, Hwatsing Technology, ACM Research; in the EDA software field, peers include Empyrean Technology, Semitronix, and Primarius Technologies.
02 Accumulated Losses Exceed 800 Million in Three Years; Gross Margin Declines Yearly
In the past two years, Dongfang Jingyuan's revenue has fluctuated, and net profit has remained in a state of continuous loss.
In 2023, 2024, and 2025, the company's operating revenue was approximately 191 million yuan, 375 million yuan, and 317 million yuan, respectively, with corresponding net profits of approximately -239 million yuan, -150 million yuan, and -478 million yuan, accumulating losses of about 860 million yuan over the three years.
Among these, as the company's products gradually gained market recognition and new orders increased, the company's revenue in 2024 increased significantly. Due to product iteration and the strategic prioritization of resources to core customers, revenue declined in 2025, and the scale of losses expanded.
It is worth noting that during the Reporting Period, government subsidies included in current profits and losses amounted to 50.1741 million yuan, 85.5026 million yuan, and 133 million yuan, respectively. If the company undertakes fewer R&D projects in the future or policy support weakens, it may affect operating performance.
Semiconductor companies face high R&D difficulty, involving a wide range of technical fields, requiring long-term R&D investment to achieve technological breakthroughs. However, large R&D investments also impact company profitability.
During the Reporting Period, Dongfang Jingyuan's R&D expenses were approximately 255 million yuan, 326 million yuan, and 300 million yuan, with R&D expense ratios of 133.19%, 86.77%, and 94.89%, respectively. These figures are higher than the average of listed peers, mainly due to the company's emphasis on R&D investment and its relatively small business scale.
Comparison of Company's R&D Expense Ratio with Listed Peers, Image Source: Prospectus
In each period of the Reporting Period, Dongfang Jingyuan's comprehensive gross profit margin was 67.5%, 48.11%, and 39.7%, showing a declining trend year by year.
Among them, the gross profit margin of Dongfang Jingyuan's metrology and inspection equipment was 31.89%, 36.54%, and 21.12%, lower than the average gross margin of peers; the gross profit margin of its manufacturing EDA software was 87.98%, 77.47%, and 73.93%, also lower than the average software business gross margin of peer companies.
Comparison of Company's Metrology and Inspection Equipment Gross Margin with Comparable Company's Equipment Business Gross Margin, Image Source: Prospectus
Comparison of Company's EDA Software Gross Margin with Comparable Company's Software Business Gross Margin, Image Source: Prospectus
Furthermore, at the end of each Reporting Period, the company's consolidated asset-liability ratio was 43.97%, 51.69%, and 81.52%, respectively, showing a rapid upward trend. The relatively high asset-liability ratio subjects the company to certain financial pressure.
03 An IPO Emerges from Beijing; Former ASML Employee Serves as Chairman
Dongfang Jingyuan is registered in Beijing and has a relatively dispersed shareholding structure.
Prior to this issuance, Yu Zongqiang, through himself and the founder's holding platform Zhongchang Yulian and five employee持股平台s, collectively controls approximately 32.82% of the voting rights corresponding to Dongfang Jingyuan's shares, serving as the actual controller.
Additionally, Gongqingcheng Baimai, Ningbo Zhikun, E-Town International, Sanxing Zhiqi, Qingdao Xinding Sanshi, Beijing Jidian, and Shenzhen Capital Group are all shareholders of the company.
In terms of management, Dongfang Jingyuan's Chairman, Yu Zongqiang, was born in 1961 and holds a Ph.D. in Mechanical Engineering. He has served as a postdoctoral researcher and associate professor in automatic control at Beihang University, and has held positions such as System Architect at Japan Microsystems Co., Ltd., Senior Engineer at KLA Corporation, Senior Engineer at Brion Technologies, Inc., Product Development Manager at ASML Holding N.V., Senior Manager at D2S Inc., and Director and General Manager of Dongfang Jingyuan Limited.
Vice Chairman and General Manager Jiang Junhai was born in 1984 and holds a master's degree in Business Management. He has served as an Engineer at Semiconductor Manufacturing International Corporation, Assistant to the President of Beijing Automation Technology Research Institute, Executive Deputy General Manager of Beijing Jingyi Automation Equipment Technology Co., Ltd., and General Manager of Dongfang Jingyuan Limited.
Vice President and Chief Financial Officer Yu Songchen was born in 1985 and holds a master's degree in Accounting. She has served as Deputy General Manager of the Corporate Business Department at China Agricultural Bank Suzhou Branch and has held positions such as Assistant to the General Manager, Chief Financial Officer, and Director and Chief Financial Officer at Dongfang Jingyuan Limited.
For this IPO, Dongfang Jingyuan plans to use raised funds of 2.5 billion yuan for the high-end semiconductor yield management equipment R&D upgrade and industrialization project, the computational lithography and design-technology co-optimization EDA tool R&D upgrade project, and to supplement working capital.
Company's Fundraising Investment Directions, Image Source: Prospectus
This article is from the WeChat public account "Gelonghui New Shares", author: Bro Fa Talks New Shares
