IPO Foresight | Longxun Co., Ltd.: Leading video bridging chip in mainland China, A+H dual platforms accelerate globalization

The development of industries such as AI computing power, automotive intelligence, and XR hardware is accelerating simultaneously, and market demand for high-speed mixed-signal chips continues to rise as data transmission carriers for various devices. According to Frost & Sullivan estimates, the compound growth rate of interconnect chips can reach 23.1% from 2026 to 2030.

In this context, local chip design companies with self-developed underlying technology have also welcomed an international financing window. The Zhitong Finance App learned that recently, Longxun Co., Ltd. (688486.SH), a company listed on the Science and Technology Innovation Board, updated its prospectus and submitted a listing application to the main board of the Hong Kong Stock Exchange for the second time. CITIC Construction Investment International acted as the exclusive sponsor. The fundraising is intended to be used for R&D upgrades, enriching product matrices and expanding downstream application scenarios, expanding overseas sales networks, industrial chain mergers and acquisitions, and supplementing daily working capital.

The leading “player” in the video bridging chip market

According to the prospectus, Longxun Co., Ltd. was established in 2006 and landed on the Science and Technology Innovation Board in 2023. It is a domestic high-speed mixed signal chip design enterprise using the Fabless model, focusing on data transmission and video processing chip research and development in the fields of smart terminals and AI.

The company's business is divided into two core segments: smart video chips and interconnect chips. It has three self-developed underlying technologies: high-bandwidth SerDes, high-speed protocol encryption, and high-definition audio and video display drivers, which can achieve efficient data processing and format conversion between computing, storage, and display devices. The products cover four major application scenarios of intelligent visual terminals, vehicles, AR/VR, and AI computing power.

Relying on this integrated technology base, the chip integrates video processing, intelligent sensing and human-computer interaction functions, and can meet the needs of various end-side AI devices. According to Frost & Sullivan's 2025 revenue data, the company has the largest share of the mainland in the video bridge chip circuit, with a 4.1% share, and is the core domestic manufacturer of segmented racetracks.

As the core carrier for virtual and real interaction, drones, autonomous driving, XR, and computing power devices are all inseparable from high-speed stable transmission. With more than 20 years of research and development of SerDes, the company is expanding PCIe/CXL/USB relay and interconnection chips in addition to traditional video products to specifically address transmission bottlenecks across AI servers, GPU clusters, and data centers.

By the end of 2025, the company had launched a total of 169 smart video chips and 120 interconnect chips to build a complete end-to-end solution from data collection to terminal display; at the same time, it also carried out reference design cooperation with leading global semiconductor companies to build a collaborative industrial ecosystem and iterate products according to terminal requirements.

The performance growth trend is good, and accounts receivable are increasing rapidly

In terms of performance, from 2023 to 2025, Longxun Co., Ltd. achieved revenue of 323 million yuan (RMB, same below), 466 million yuan, and 568 million yuan respectively; net profit to mother during the same period was 103 million yuan, 144 million yuan, and 172 million yuan, respectively; gross sales margin remained around 53%.

The company continues to increase research and development, focusing resources on high-value-added chips such as PCIe/CXL and vehicle specifications, and the scale effect is gradually showing. From 2023 to 2025, smart chip business revenue increased from 270 million yuan to 473 million yuan, and interconnect chip revenue increased from 52 billion yuan to 93 million yuan.

However, it is worth noting that against the backdrop of continued upward revenue and profit, the company's net cash flow from operating activities remained stable for three years, at 103 million yuan, 117 million yuan, and 112 million yuan, respectively. Growth elasticity did not increase at the same time as revenue.

The Zhitong Finance App noticed that Longxun Co., Ltd. mainly uses a distribution model. Accounts receivable mainly come from dealer payments. The book size rose sharply from 5,526 million yuan in 2023 to 796.73 million yuan in 2025, and the number of accounts receivable turnover simultaneously increased from 4.3 days to 35.1 days. Slowing turnover was compounded by multiple factors. On the one hand, the business scale continued to expand; on the other hand, the revenue share of the company's leading downstream customers rose from 49.4% in 2023 to 52.3% in 2025. The scale of preparation by leading dealers increased, driving up accounts receivable balances at the end of the year.

Longxun Co., Ltd. stated in the prospectus that the company's credit policy stipulates that the account period is within one month after execution. All accounts receivable are within one year. Bad debt provisions are simultaneously calculated according to expected losses. The three-year impairment calculation is 276,000 yuan, 1.755 million yuan, and 3.984 million yuan, respectively. The company did not incur significant bad debt losses in the past business cycle. By the end of April 2026, all accounts receivable had been settled in full at the end of 2025.

At the level of capital reserves, cash and equivalents reached 112 million yuan, 360 million yuan, and 457 million yuan respectively at the end of 2023-2025. Furthermore, by the end of 2025, the company's balance ratio was only 6%, and its own capital could cover various capital expenses such as R&D, channel development, and industrial mergers and acquisitions.

The industry is booming, and the A+H platform opens up new channels for international development

Overall, the operating fundamentals of Longxun Co., Ltd. have remained steady. As the business structure is gradually optimized and the downstream circuit continues to expand, the company is expected to usher in new development opportunities.

The Frost & Sullivan report shows that the global semiconductor chip market continues to expand, driven by rising demand for high-performance electronic systems in automobiles, smart terminals, and industrial applications. The semiconductor industry is a market worth tens of trillions of yuan and is growing strongly. In this pattern, integrated circuits, as the most valuable and critical category, will account for 88% of the total semiconductor market in 2025. In the field of integrated circuits, mixed signal chips occupy an important position, with a market share of 16% of the integrated circuit market.

The accessible market of Longxun Co., Ltd. includes two segments: interconnect chips and smart video chips, which are two important segments of the global semiconductor chip market. The total market size of the company's accessible market increased from 169.8 billion yuan in 2021 to 26.5 billion yuan in 2025, and is expected to further increase to 633.8 billion yuan by 2030. In terms of market share, the combined share of interconnect chips and smart video chips in the global semiconductor market increased from 4.7% in 2021 to 5.4% in 2025, and is expected to rise to 8.2% by 2030.

In the context of the rapid development of the industry, the strategic value of Longxun Co., Ltd.'s listing in Hong Kong has also been highlighted. In addition to supporting business development and expansion through fundraising, building an A+H dual listing structure can also bring multi-dimensional long-term benefits to the company. In the short term, it can supplement working capital and effectively relieve the turnover pressure of daily operations; in the long run, Hong Kong stocks can help the company connect with global industrial capital and upstream and downstream resources, facilitate overseas cooperation channels, absorb high-end R&D talents, broaden the space for cross-border mergers and acquisitions and overseas business layout, gradually reduce dependence on the mainland single market, and help the company complete the transformation and upgrading from a local chip design manufacturer to a global supplier.

Overall, with self-developed SerDes core technology, perfect product matrix and good performance, Longxun Co., Ltd. has established a leading position in the video bridging chip segment in mainland China, and has relied on multiple automotive, XR, and AI interconnection tracks to open up new growth space. Despite operating disruptions such as customer concentration and phased use of working capital at this stage, the company has hedged risks through channel expansion and structural optimization. Investors can focus on tracking the progress of mass production of AI interconnect chips, overseas market expansion results, customer structure optimization, etc., and observe the company's medium- to long-term growth and implementation capacity.