TF Securities(SH:601162) Zheng Quan Zhi Xing·2025-08-22 09:21Core Viewpoint - The report outlines the ongoing supervision and compliance of Hubei Xingfu Electronic Materials Co., Ltd. during its initial public offering and listing on the Sci-Tech Innovation Board, emphasizing the importance of adherence to regulations and the establishment of effective governance and internal control systems. Supervision Work Status - The sponsoring institution has established a comprehensive supervision system and developed specific work plans for ongoing supervision [1][2] - A sponsorship agreement has been signed with Xingfu Electronic, detailing the rights and obligations during the supervision period [1] - The institution has conducted regular communication, site visits, and due diligence to understand the business situation of Xingfu Electronic [2][3] Compliance and Governance - The institution has ensured that Xingfu Electronic and its management comply with laws, regulations, and the rules set by the Shanghai Stock Exchange [2][3] - The company has been urged to establish and effectively implement corporate governance and internal control systems [3][4] Financial Performance - For the first half of 2025, the company reported a significant increase in operating income to approximately 672.48 million yuan, a 31.43% increase from the previous year [12] - The net profit attributable to shareholders reached approximately 104.41 million yuan, reflecting a 22.37% increase [12] - The company's total assets amounted to approximately 4.08 billion yuan, a 36.41% increase year-on-year [12] Research and Development - The company has increased its R&D expenditure, which accounted for 5.83% of operating income, up from 5.52% the previous year [17] - The company holds 151 authorized intellectual property rights, including 12 invention patents, indicating a strong focus on innovation [17] Industry Context - The wet electronic chemical materials industry is characterized by rapid technological advancements and intense competition for skilled talent [6][10] - The company's products are critical in the manufacturing processes of integrated circuits and display panels, making it essential to maintain high quality and compliance with strict customer requirements [6][10] Risk Factors - The company faces risks related to core competitiveness, operational quality, and compliance with environmental regulations, which could impact its market position and financial performance [5][6][7][10] - Fluctuations in raw material prices, particularly yellow phosphorus, can significantly affect production costs and profit margins [10][11]