Group 1 - The recent surge in Hong Kong IPOs includes multiple new listings, indicating a vibrant market environment reminiscent of 2021 [1][2] - Shenzhen Chuangzhi Xinian Technology Co., Ltd. (Chuangzhi Xinian) has submitted its IPO application to the Hong Kong Stock Exchange, focusing on semiconductor packaging materials and technology [3][9] - The company previously attempted an A-share listing but withdrew its application in May 2023, citing strategic business considerations [3][4] Group 2 - Chuangzhi Xinian was founded in November 2006 and has undergone significant ownership changes, with the current controlling shareholder being Yao Cheng, who holds approximately 66.75% of the voting rights [5][6] - Yao Cheng's daughter, Dr. Yao Yu, also plays a key role in the company, serving as the General Manager and R&D Director [7][8] Group 3 - The company has raised a total of 589 million yuan in investments from various institutions, including Shenzhen Capital Group and the National Integrated Circuit Industry Investment Fund [7] - As of April 2025, the company's valuation was approximately 2.722 billion yuan [8] Group 4 - Chuangzhi Xinian's revenue from coating materials for 2022, 2023, and 2024 was 3.12 billion yuan, 2.75 billion yuan, and 3.29 billion yuan, respectively, with a notable increase in revenue from coating services [12][16] - The company's revenue and profit have fluctuated due to the cyclical nature of the downstream electronics industry, with a rebound expected in 2024 driven by demand from AI, electric vehicles, and data centers [14][16] Group 5 - The wet process coating materials market in China is projected to grow significantly, with an expected market size of 27.5 billion yuan by 2029, reflecting a compound annual growth rate of 12.9% from 2024 to 2029 [22] - Chuangzhi Xinian ranks sixth in the Chinese wet process coating materials market, holding a 2.7% market share [26][28] Group 6 - The company faces credit risks associated with accounts receivable, which have increased over the years, indicating potential challenges in cash flow management [19][29] - R&D investment is crucial for the company, with a total of 85.2 million yuan spent on R&D during the reporting period, representing an R&D expense ratio of approximately 8.2% [18]

Core Viewpoint - Shenzhen Chuangzhi Xinlian Technology Co., Ltd. has officially begun its IPO journey on the Hong Kong Stock Exchange, positioning itself as a leading provider of metallization interconnection plating materials and key process technologies in China [2] Business Overview - Chuangzhi Xinlian focuses on the development of supply chains for plating materials in wafer-level and chip-level packaging, as well as PCB manufacturing [2] - According to Frost & Sullivan, by 2024, Chuangzhi Xinlian is projected to be the largest domestic wet process plating material provider and the largest one-stop plating solution provider in the Chinese market [2] Revenue Breakdown - The company's revenue primarily comes from two business segments: 1. Plating materials business segment, which generates income through the manufacturing and sales of plating materials for the semiconductor and PCB industries [2] 2. Plating services business segment, which provides plating services for silicon wafers, silicon carbide wafers, packaging substrates, and PCBs, charging service fees [2] Industry Impact - The synergy between the two business segments enhances Chuangzhi Xinlian's influence within the industry ecosystem, allowing it to supplement customer production capacity and undertake key tasks in innovative process development [3] - As of December 31, 2024, Chuangzhi Xinlian's chemical nickel-gold and chemical nickel-palladium-gold materials and plating services have been adopted by 4 out of the top 5 power device manufacturers in China, achieving an 80% coverage rate [3] Financial Performance - Chuangzhi Xinlian's total revenue for 2022, 2023, and 2024 was RMB 319.6 million, RMB 311.7 million, and RMB 409.9 million, respectively [4] - The net profit for the same years was RMB 27.3 million, RMB 19.4 million, and RMB 52.7 million, respectively [4] - Revenue from plating materials for the semiconductor industry grew from RMB 31.7 million in 2022 to RMB 48.6 million in 2023, and is expected to reach RMB 75.0 million in 2024, with a compound annual growth rate of 53.8% from 2022 to 2024 [4]