Saimet Resubmits Listing Application to HKEX: Gross Margin Falls for Third Consecutive Year Amid Strong Revenue Growth

ZC Asia has learnt that Saimet Information Group Co., Ltd. (hereinafter referred to as “Saimet”) recently updated its prospectus with the Hong Kong Stock Exchange, seeking a listing on the Main Board. This marks the company’s second attempt following the lapse of its initial application in September 2025, with Haitong International (Guotai Haitong) acting as the sole sponsor.

As a leading provider of intelligent industrial software solutions in China, Saimet specialises in providing smart manufacturing software for high-end manufacturing sectors such as the semiconductor industry. According to a report by Orizon Consulting, based on industrial software revenue in the advanced manufacturing sector for 2024, the company is the largest domestic provider in China’s advanced industrial smart manufacturing software market, with a market share of 1.5%; it also ranks first domestically in the field of smart manufacturing software for the semiconductor industry.

Saimet’s core business is divided into two main segments: smart manufacturing software solutions and business management software solutions. The smart manufacturing segment operates on a project-based model, providing dozens of industrial software solutions—including fully automated Computer-Integrated Manufacturing (CIM), MES, EAP and YMS—along with related hardware, and offers subsequent maintenance and support services; the business management segment focuses on the secondary development and customised implementation of enterprise management software such as ERP, EAM and eRPA.

By the end of 2025, Semet had 843 clients, covering six of the country’s top eight wafer fabs, the top three semiconductor wafer manufacturers and the top three packaging and testing facilities, thereby establishing significant industry barriers in the semiconductor sector. The company is the first and only domestic supplier whose fully automated CIM solutions have been validated by multiple 12-inch wafer fabs and put into mass production.

In terms of performance, Semet’s revenue for 2023, 2024 and 2025 was RMB 287 million, RMB 500 million and RMB 731 million respectively; net profit for the periods was RMB 24.565 million, RMB 73.832 million and RMB 72.767 million respectively; and profit margins for the periods were 8.6%, 14.8% and 10.0% respectively.

In terms of revenue composition, Semet’s business structure has undergone significant changes.

The proportion of revenue from the smart manufacturing business fell from 88.6% in 2023 to 59.7% in 2025, whilst the proportion from the operations and management business rose sharply from 10.2% to 40.3%, with the latter’s contribution to total revenue increasing by approximately 30 percentage points over the three-year period.

In terms of gross profit margin, Semate’s overall gross profit margin has shown a continuous downward trend. In 2023, 2024 and 2025, the company’s gross profit was RMB 126 million, RMB 198 million and RMB 260 million respectively; the overall gross profit margins were 44.0%, 39.6% and 35.6% respectively, representing a cumulative decline of 8.4 percentage points over the three-year period. By business segment, the gross profit margins of both major divisions showed a downward trend: the gross profit margin for smart manufacturing software solutions fell from 45.3% to 43.4%, whilst that for business management software solutions dropped from 30.8% to 24.0%, with the latter experiencing a more significant decline, falling by a cumulative 6.8 percentage points over the three-year period.

There are three main reasons for the sustained decline in gross profit margins: firstly, the proportion of revenue from the lower-margin business management segment has continued to rise, dragging down the overall gross profit level; secondly, project implementation costs have increased, particularly labour costs; and thirdly, intensified market competition has led to greater pricing pressure.

In terms of cash flow, Semate’s cash flow from operating activities has fluctuated significantly in recent years. In 2023, 2024 and 2025, the company’s net cash flow from operating activities was -88.263 million yuan, 41.345 million yuan and 65.199 million yuan respectively. Specifically, 2023 saw a net outflow, whilst 2024 and 2025 turned positive, albeit to a limited extent.

It is worth noting that although Semate’s customer concentration is trending downwards, it remains at a relatively high level. In 2023, 2024 and 2025, revenue from the top five customers accounted for 36.2%, 28.6% and 27.6% respectively; revenue from the largest single customer accounted for 11.5%, 10.8% and 10.1% respectively. The company’s clients are primarily concentrated in the semiconductor industry. In 2023, 2024 and 2025, the proportion of revenue from semiconductor industry clients was 75.7%, 73.4% and 56.8% respectively. Although this proportion has declined, the risk of reliance on a single industry remains significant.

At the same time, Semet exhibits a high degree of supplier concentration. In 2023, 2024 and 2025, the proportion of total procurement attributable to the top five suppliers stood at 82.1%, 52.1% and 49.1% respectively, with the largest supplier accounting for 36.7%, 19.7% and 16.4% of total procurement. Although concentration is trending downwards, it remains at a relatively high level.

Furthermore, according to media reports, Semet undertook several equity acquisitions during the reporting period (2022–2025). Among these, the high-premium acquisition of Shanghai Haosheng attracted external scrutiny due to issues such as the overlap between the transaction counterparties and the controlling shareholder. This matter raises questions regarding the fairness of the transaction pricing and the potential for利益輸送 (conflicts of interest), which may become a key focus of regulatory scrutiny.

In terms of shareholders, Mr Li Gangjiang and Ms Ni Qiong, through management shareholders, control approximately 48.63% of the voting rights attached to the company’s issued share capital, forming a relatively concentrated equity structure. Other shareholders include Huawei, BYD, Shenzhen Venture Capital, the Shanghai Free Trade Zone Equity Investment Fund, SDIC New Industry Fund, MPC, China Internet Investment, Houxue Capital, the Shanghai Science and Technology Innovation Fund, the Yangtze River Delta Fund, and Lian Microelectronics.

Overall, Semet possesses rare technological barriers and a strong client base in the field of semiconductor smart manufacturing software, with robust revenue growth momentum. However, risk factors such as a decline in gross profit margin for three consecutive years, a rapid increase in the proportion of management and operational services dragging down overall profit quality, significant fluctuations in cash flow from operating activities, high concentration of clients and suppliers, and governance inquiries arising from high-premium acquisitions, all constitute key issues that require further clarification to the market during its current push for a Hong Kong IPO.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.