August 7 — Chip sector “little giant” Zhanxin (301707.SZ) made its official debut on the A-share market today, with its share price skyrocketing as much as 453.94% during intraday trading, hitting a high of ¥129.90. Zhanxin’s IPO price was set at ¥23.45 per share, meaning that based on the morning’s peak price, investors who scored one lot of Zhanxin shares could have pocketed a maximum paper gain of ¥53,200.
Zhanxin publicly issued 41.12 million shares in this IPO, raising a total of ¥964 million, with net proceeds of ¥892 million. The funds raised are earmarked for several key projects, including the R&D and industrialization of high-reliability power management chips and signal chain chips, the construction of a headquarters base and R&D center, a testing center project, and supplementary working capital.
In the final strategic placement, 12,336,000 shares were allocated, representing 30.00% of the total offering. Based on the finalized issue price, the Huatai Jiangsu Zhanxin Home No.1 ChiNext Employee Stock Ownership Collective Asset Management Plan ultimately secured 4,112,000 shares, accounting for about 10.00% of the offering. Other strategic investors, including China State Shipbuilding Corporation Investment Co., Ltd., CETC Investment Holding Co., Ltd., and NORINCO Investment Management Co., Ltd., collectively received 8,224,000 shares, around 20.00% of the total.
Founded in 2018, Zhanxin is a nationally recognized specialized and innovative “little giant” enterprise focused on the R&D, testing, and sales of high-reliability analog chips and micro-module products. Its analog chip lineup is anchored by power management chips, with specific products including DC/DC converter chips, linear regulators, and load and current-limit switches. The micro-module products, on the other hand, deliver a range of functions such as isolated and non-isolated DC/DC conversion, logic control, signal modulation, and diode control.
Zhanxin operates on a direct sales model, counting major state-owned military conglomerates—such as China Electronics Technology Group, China Electronics Corporation, AVIC, CASIC, and CASC—as well as private military supply chain players like BDStar and Raytron Microelectronics, among its core clientele.
Looking at the financials, from 2023 through 2025, Zhanxin posted revenues of ¥466 million, ¥413 million, and ¥639 million, respectively. Net profit attributable to parent shareholders, excluding non-recurring gains and losses, came in at ¥168 million, ¥87 million, and ¥218 million over the same period.
In the first quarter of this year, the company generated revenue of ¥130 million, up 12.98% year-over-year, while net profit attributable to parent shareholders reached ¥49.6467 million, a robust 72.11% jump. As of the end of March, total assets stood at ¥1.541 billion, up 3.17% from the end of 2025, while total liabilities were ¥80.7934 million, down 5.55% from the prior year-end.
Zhanxin also flagged several risk factors in its prospectus. On the front of intensifying market competition, the company noted that China’s integrated circuit industry is in a phase of rapid expansion. Given its strategic focus on serving the military electronics supply chain—a sector that imposes far stricter demands on product reliability and supplier qualifications—the number of players is relatively limited compared to civilian markets like consumer electronics, which has kept competitive pressure comparatively mild so far.
That said, the company acknowledges that as the state continues to streamline the application process for military-related qualifications and actively encourages more private enterprises to participate in the military electronics supply chain, it wouldn’t be surprising to see a wave of new entrants flooding into its niche. Such a development could intensify competition, making it harder to win over new clients or even risking the loss of existing ones. If rivals resort to aggressive pricing strategies to grab market share, the company’s profitability and market position could take a hit, ultimately weighing on its operating performance.
This year, the A-share market has served up quite a few “fat lot” opportunities. On May 27, Changjin Photonics (688635.SH) made its debut on the STAR Market, surging over 1,500% on day one and delivering per-lot profits exceeding ¥300,000—making it one of the hottest new stocks of the year so far. Then on August 4, PCB leader Jiali Chuang (001232.SZ) listed on the Shenzhen main board. As the second-highest-priced new stock of 2026, Jiali Chuang shot up straight out of the gate, peaking with an intraday gain of over 177%, and handing investors a maximum per-lot profit of nearly ¥75,000.
