Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has successfully passed the IPO review for the Sci-Tech Innovation Board, aiming to raise 1.007 billion yuan for two major projects related to integrated circuit precursor materials and advanced materials [1][3]. Industry Overview - The domestic market for key materials in integrated circuits, such as photoresists and precursors, is heavily dominated by foreign manufacturers from Europe, the United States, Japan, and South Korea. Chinese companies face significant gaps in raw material supply, equipment development, technology accumulation, talent cultivation, and financial reserves [4]. - The increasing restrictions imposed by foreign countries on China's integrated circuit industry have created substantial challenges for the domestic supply chain, making the push for domestic production of key materials urgent, especially in the high-end integrated circuit sector [4]. Company Strategy - The fundraising projects by Hengkang New Materials align with the industry's trend towards domestic production of key materials. The focus will be on the research and industrialization of precursors and other critical materials, which is expected to enhance the domestic supply chain security for high-end integrated circuits [4]. - The current reliance on imports for key materials presents a competitive disadvantage for domestic manufacturers. However, the growing wafer fabrication capacity and rapid downstream demand create a unique opportunity for domestic companies to capture market share during this "golden development window" [5]. - Hengkang New Materials aims to leverage its existing customer base in the integrated circuit sector to quickly develop products that meet industry standards and ensure stable supply and quality, thereby seizing opportunities in the domestic market [5]. Product Development - Hengkang New Materials has made progress in the integrated circuit materials sector, with products including photoresists and precursors used in 12-inch wafer manufacturing. The company serves several leading domestic wafer manufacturers [6]. - The product range includes silicon-based and metal-based precursors, as well as advanced photoresist materials that meet the needs of cutting-edge manufacturing processes. The introduction of new products will enhance the company's ability to meet domestic demand for localized materials [6]. - The implementation of the fundraising projects will further diversify the product matrix of Hengkang New Materials, increasing its competitiveness and brand influence in the market, which is essential for long-term growth [6].

Core Viewpoint - The domestic production process of key materials in the integrated circuit industry is being driven by both policy and market forces, with Hengkun New Materials successfully passing the IPO process to raise 1.007 billion yuan for projects targeting high-end materials and precursor production [1][3]. Policy Support - The projects related to precursors and photoresists are included in the "Key New Materials First Batch Application Demonstration Guidance Catalog (2024 Edition)," which are encouraged by the state [3]. - A series of policies, including tax incentives and local government support, have provided substantial benefits for integrated circuit material companies, laying a solid policy foundation for Hengkun New Materials' capacity expansion [3]. Technical Capability - Hengkun New Materials has accumulated research and development capabilities and mass production experience in key materials for integrated circuits, with products like TEOS and SOC already in mass production [3]. - The company has formed a composite technical team covering material formulation design, process development, quality control, and application, which is crucial for achieving true domestic substitution [3][4]. Market Outlook - The demand for precursors and high-end photoresists is rapidly increasing as domestic wafer manufacturing processes advance, with a projected compound annual growth rate of over 27% for the integrated circuit precursor market in the next five years [4]. - The ArF photoresist market is expected to grow at an annual rate of 30.5%, indicating significant room for domestic substitution as the current localization rate remains low [4]. - Hengkun New Materials' fundraising projects have multiple feasibilities in terms of policy, technology, and market, which may enhance the company's competitiveness in the key materials sector and support the realization of domestic substitution and industrial autonomy [4].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has been approved for IPO on the Sci-Tech Innovation Board, indicating its compliance with the necessary conditions for issuance, listing, and information disclosure [2] Company Overview - Hengkang New Materials focuses on the research and industrial application of key materials in the integrated circuit field, being one of the few domestic companies capable of developing and mass-producing key materials for 12-inch integrated circuit wafers [2] - The company was established in 2004, initially engaged in the development and production of optoelectronic film devices and window lens products, and shifted its business strategy towards key materials for integrated circuits starting in 2014 [2] - Since 2020, the company has achieved over 100 million yuan in sales revenue from self-produced products, ranking among the top domestic peers in the sales scale of self-produced photoresist materials [2][3] Product Applications - The company's products are essential for the production of advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below, including photoresist and precursor materials [3] - Hengkang New Materials has successfully mass-produced and supplied various products, including SOC, BARC, i-Line photoresist, KrF photoresist, and TEOS precursor materials, with continuous increases in supply as product validations are completed [3] Market Position and Strategy - The company has developed a unique approach of "introducing, digesting, absorbing, and innovating" in the integrated circuit key materials market, successfully replacing foreign products and breaking the monopoly in the 12-inch integrated circuit key materials sector [3][7] - The domestic integrated circuit key materials market is currently dominated by foreign manufacturers, with local companies facing significant challenges in terms of raw material supply, technology, and funding [7] Fundraising and Project Development - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to invest in two major material projects, including the second phase of the precursor project and the development of SiARC [4] - The total fundraising amount has been adjusted to 1.006695 million yuan due to changes in project plans, reflecting the company's strategic focus on enhancing its production capabilities [4]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) is applying for an IPO on the Sci-Tech Innovation Board, aiming to become a leading domestic and internationally advanced enterprise in the integrated circuit key materials sector [1][8]. Company Overview - Established in 2004, Hengkang New Materials focuses on the R&D and industrial application of key materials for 12-inch integrated circuit wafer manufacturing, primarily covering photoresist materials and precursor materials [2][6]. - The company has achieved significant sales scale in self-produced photoresist materials, ranking among the top in the industry [2][3]. Market Position - Hengkang New Materials has successfully replaced products from foreign companies such as Tokyo Ohka Kogyo, Shin-Etsu Chemical, DuPont, Merck, and Japan Synthetic Rubber, becoming one of the few domestic companies capable of R&D and mass production of key materials for 12-inch integrated circuits [3][6]. - The company has extensive coverage of major domestic 12-inch integrated circuit wafer manufacturers [3]. Product Development - Hengkang New Materials has developed a range of products, including SOC, BARC, KrF photoresist, and i-Line photoresist, which are essential for advanced NAND, DRAM storage chips, and logic chips at 90nm technology nodes and below [2][4]. - The company has also achieved mass production supply of BARC for immersion lithography processes, supporting the rapid development of advanced processes in the domestic integrated circuit sector [3][4]. Financial Performance - The company's revenue for the years 2022 to 2024 is projected to be 322 million yuan, 368 million yuan, and 548 million yuan, respectively, with net profits of approximately 91.04 million yuan, 81.53 million yuan, and 94.30 million yuan [4][7]. - Hengkang New Materials' self-produced sales revenue has grown from 124 million yuan in 2022 to 344 million yuan in 2024, with a compound annual growth rate of 66.89% [7]. R&D Investment - The company has maintained a high level of R&D investment, with percentages of revenue allocated to R&D being 13.28%, 14.59%, and 16.17% from 2022 to 2024 [7]. - Hengkang New Materials has obtained 89 patent authorizations, including 36 invention patents, reflecting its strong innovation capabilities [7]. Industry Outlook - The integrated circuit key materials industry is experiencing significant growth, with the domestic market for photoresist materials expected to grow from 5.37 billion yuan in 2019 to 12.19 billion yuan in 2023, at a compound annual growth rate of 22.7% [9]. - The company is well-positioned to capitalize on the increasing demand for domestic production of key materials, as the overall level of localization in the integrated circuit industry remains low [8][9]. IPO Plans - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to fund projects related to integrated circuit precursors and advanced materials [10]. - The company aims to enhance its product matrix and seize market opportunities through the implementation of these fundraising projects [10].

Core Viewpoint - Hengkun New Materials has had its IPO review temporarily postponed by the Shanghai Stock Exchange, despite its focus on key materials for the integrated circuit industry and its innovative capabilities in the field [5]. Group 1: Company Overview - Hengkun New Materials is dedicated to the research and industrial application of key materials in the integrated circuit sector, being one of the few domestic companies capable of developing and mass-producing critical materials for 12-inch integrated circuit wafer manufacturing [3]. - The company's main products include photolithography materials and precursor materials, such as SOC, BARC, KrF photoresist, and i-Line photoresist, with ArF immersion photoresist having passed validation and being sold on a small scale [3]. - Hengkun New Materials has successfully replaced foreign products in the domestic market, breaking the monopoly on key materials for 12-inch integrated circuits [3]. Group 2: Financial Performance - The company reported revenues of 368 million yuan, 548 million yuan, and 294 million yuan for the years 2023, 2024, and the first half of 2025, respectively, with net profits of approximately 89.85 million yuan, 96.92 million yuan, and 41.48 million yuan during the same periods [3]. Group 3: IPO and Future Plans - Hengkun New Materials plans to raise 1.007 billion yuan through its IPO, which will be used for the second phase of its precursor project and advanced materials for integrated circuits [4]. - The company aims to enhance its product structure, promote technological innovation, and increase the localization level of related products through the implementation of its fundraising projects [4]. - Future strategies include deepening its focus on key materials for integrated circuits, expanding product lines, ensuring product quality, and actively participating in customized development for clients [4].

Core Insights - The report highlights the significant growth of the integrated circuit (IC) key materials market in China, driven by domestic industry development and national strategies promoting localization of key materials [6][11] - The market size for IC key materials is projected to grow from 66.47 billion yuan in 2019 to 113.93 billion yuan in 2023, with a compound annual growth rate (CAGR) of 14.4%, and is expected to reach 258.96 billion yuan by 2028 [6][11] - The report emphasizes the importance of various key materials in the IC manufacturing process, particularly in the front-end processes, which are expected to see higher growth compared to back-end packaging materials [6][7] Industry Overview - The IC key materials industry is characterized by a large market scale, numerous sub-sectors, high technical barriers, significant R&D investment, and long development cycles [6][11] - Key materials can be categorized into front-end wafer manufacturing materials and back-end packaging materials, with the former including silicon wafers, photomasks, and various chemicals [6][7] Market Segmentation - In 2023, silicon wafers accounted for 33.1% of the wafer manufacturing materials market, followed by photolithography materials (15.3%), photomasks (13.2%), and electronic specialty gases (13.2%) [7][8] - The diversity of key materials includes dozens to hundreds of specific products, indicating a fragmented market with many sub-industries [7][8] Future Projections - The front-end manufacturing materials market is expected to exceed 70% of the total key materials market by 2028, with a projected market size of 185.38 billion yuan [6][11] - The report anticipates continued growth in the demand for advanced manufacturing materials as technology nodes evolve and domestic IC processes mature [6][11]