Youdu Capital · Primary-Market Financing
On 2026-10-27, a STAR Market Daily report on financing and factory construction in advanced packaging noted that transferring a process to another factory requires customers to repeat validation and onboarding. This article uses the original report as republished by Eastmoney, citing only its description of that transfer stage rather than generalizing the interviewee's experience to every company. For non-listed technology companies preparing to raise capital, it raises a useful question: spending on new facilities and retiring an existing operating arrangement may happen at different points.
The international background is SOSV's Prolific Machines financing update published on 2026-10-22. The post said the planned uses of capital included increasing staffing and advancing technology development and scale-up. Only the publicly stated uses of capital are cited here; this is neither an assessment of technological performance nor an inference about the company's detailed budget. As an FA advisory firm, Youdu Capital serves domestic financing for Chinese technology companies and does not provide cross-border financial services. The international information is for background only.
The following is the author's analysis of a general operating scenario, not a finding that either company has a budgeting problem. A financing model can describe a replacement by adding the new expense and subtracting the old one, leaving only the final net increase. Whether the old expense can stop, however, depends on whether its work has actually moved elsewhere. The start of spending on the new arrangement shows that new investment has begun; it does not also prove that existing expenses can be cancelled.
The first causal layer is that exit conditions differ. New equipment may already be installed while the existing arrangement is still completing committed deliveries, retaining comparison records or awaiting customer confirmation. Customers may also be migrating at different speeds: some work has moved, while other work still needs the existing staff and premises. Removing an entire block of old expenses on one commissioning date treats partial replacement as complete retirement and understates the resources needed to run both arrangements.
The second effect is that withdrawing resources from the old arrangement too early can itself slow migration. Suppose the people maintaining existing deliveries also explain differences between old and new results. If the budget assumes complete replacement and cuts their capacity first, they must switch repeatedly between deliveries and additional checks. Delayed checks prevent the new arrangement from taking over independently, while the old one cannot stop. Savings expected to arrive early may therefore arrive later, with parallel operating expenses lasting longer.
The point is not to retain every old expense, but to tie each reduction to evidence that can be checked. Has the relevant customer accepted the new arrangement? Who will take over unfinished work? Does remaining support still require a separate payment? Where these matters are settled, reduce expenses for the corresponding scope; where they remain unresolved, keep the conditions visible. The absence of new orders for old equipment does not establish that all associated spending has ended.
Consider a hypothetical company moving an existing product from a pilot line to a new line. The new line has produced acceptable samples, but some customers are still confirming delivery arrangements. Its budget should first show what support from the old line remains necessary during this phase, rather than apply the new line's projected unit cost to every sale. Retaining the old arrangement preserves capabilities needed for migration, rather than committing permanently to the original setup. Once exit conditions are met, spending that is no longer needed should also stop, so a transition does not become permanent duplication.
Alongside the list of new investments, financing preparation can therefore set out the evidence required to reduce each old expense. Link premises, maintenance, external services and necessary staff to the work they still support, rather than retaining everything at the same percentage. Show payments that have actually stopped separately from savings expected later. Savings whose conditions have not been met should not already finance another new investment. The funding requirement then represents the migration process, rather than only the steady state after completion.
Over the next three to six months, if a company has an internally approved migration plan, it could select a clearly defined group of products or customers and reconcile new spending with the evidence for stopping old spending. Update the relevant items whenever a customer confirms the change, unfinished work is handed over or support arrangements change, retaining the original estimate and the actual movement. The focus is on which conditions end parallel operation, rather than recording only progress on the new line.
Then consider a conditional scenario: if a confirmation is delayed, which old expenses must continue, and which new commitments can still be adjusted? If reducing staff would also delay confirmation, that cut cannot simply be treated as a way to close the funding gap. Conversely, where the evidence supports independent migration of some products, end duplicate operation for that scope without waiting for every product to switch at once. There is no universal overlap period or funding percentage here; the company's own records should establish the assumptions.
Financing materials can present steady-state costs and transition expenses together, with the conditions for each. Investors can then distinguish money used to establish new capabilities from money used to retire the old arrangement in an orderly way, rather than ask again only after expected savings fail to appear. An FA can support materials and communication, but does not make investment decisions for capital providers. This article promises no financing or operating outcome and provides no specific investment, legal or tax advice. Customer agreements, employment matters and specialist acceptance procedures involved in migration should be discussed with appropriately qualified professionals.
Sources 科创板日报：一条产线30亿，先进封装新玩家加速融资建厂（东方财富转载） (2026-10-27) https://finance.eastmoney.com/a/202610273910547030.html SOSV: Prolific Machines financing update (2026-10-22) https://sosv.com/prolific-machines-raises-50m-to-scale-biomanufacturing-platform/
Content note: This article was drafted with AI assistance and reviewed through an independent AI process, using the listed public sources. It contains no original interviews, and no first-hand testing of the products, services or methods discussed was conducted. Checking public sources is not a field investigation or first-hand experience.