Core Viewpoint - The IPO application of Xiamen Hengkang New Materials Technology Co., Ltd. has been postponed due to compliance issues regarding its revenue recognition method for introduced business, specifically the use of net method for revenue recognition [1][3]. Group 1: IPO Application and Review Process - The listing committee has requested Hengkang New Materials to explain the rationale behind using the net method for revenue recognition during the reporting period from 2022 to 2024, and to clarify why this method was not used in prior years [1][5]. - The company claims it acts as an "agent" in its introduced business, justifying the use of the net method, a view supported by its sponsor, CITIC Securities [1][3]. Group 2: Business Transformation and Financial Performance - Since 2014, Hengkang New Materials has shifted its focus to the R&D and production of key materials for integrated circuits, initially relying on introduced products to supply downstream customers [3]. - Despite an increase in the revenue share from self-produced products to over 60%, approximately 65% of the company's profits still come from introduced business, raising concerns about the effectiveness of its business transformation [3][4].

Core Viewpoint - The company, Ningbo Nengzhiguang New Materials Technology Co., Ltd., has experienced significant growth in 2023, with a notable increase in sales to a new major client, Aoshen De, which began cooperation in the same year [1][2]. Group 1: Client Cooperation - Aoshen De, a subsidiary of Ascend Performance Materials, became a major client for the company in 2023, primarily purchasing nylon toughening agents [2][3]. - The collaboration began in 2021, with Aoshen De seeking reliable domestic alternatives to previously used materials due to public health safety concerns [2]. - Sales figures to Aoshen De for 2023, 2024, and Q1 2025 are projected at 9.83 million, 12.67 million, and 3.44 million respectively, indicating a steady increase in transaction volume [2][3]. Group 2: Revenue Recognition - The company recognizes revenue based on customer-signed delivery receipts, which is a common practice in the industry [3][4]. - The revenue recognition method aligns with comparable companies in the industry, confirming that it is a standard practice [3][4]. - The company maintains a structured process for confirming deliveries and ensuring that the signed receipts are valid, which includes communication with clients before and after delivery [6][9]. Group 3: Client Signature Verification - The company acknowledges that discrepancies may occur between the logistics recipient and the actual signer due to the nature of the business, but maintains that this does not affect the validity of the signed receipts [7][9]. - Measures have been implemented to minimize potential disputes arising from signature discrepancies, including proactive communication with clients [8][9]. - Regular reconciliation with clients is conducted to ensure that the quantities signed for match the invoiced amounts, which is part of the company's performance assessment [10].