Core Viewpoint - Hengkun New Materials Technology Co., Ltd. has successfully passed the IPO review, marking a significant step towards its listing on the STAR Market, with its financial status, business model, and compliance recognized by regulators [1][3]. Company Overview - Established in 2004, Hengkun New Materials focuses on the R&D, production, and sales of key materials for integrated circuits, including photoresist materials and precursor materials [3]. - The company is one of the few domestic firms capable of R&D and mass production of key materials for 12-inch wafer manufacturing, with products used in advanced NAND, DRAM storage chips, and logic chip manufacturing processes at technology nodes of 90nm and below [3]. Financial Performance - Hengkun New Materials has shown steady revenue growth, with reported revenues of 322 million yuan, 368 million yuan, and 548 million yuan for the years 2022 to 2024, respectively [3]. - The net profit attributable to the parent company was 101 million yuan, 90 million yuan, and 97 million yuan for the same period [3]. - The sales revenue from self-produced products has experienced rapid growth, with figures of 124 million yuan, 191 million yuan, and 344 million yuan, reflecting a compound growth rate of 66.89% [3]. - The proportion of self-produced product sales in total revenue increased from 38.94% to 63.77%, indicating enhanced competitiveness and optimized business structure [3]. - For the first nine months of 2025, the company expects to achieve revenue between 440 million yuan and 500 million yuan, representing a year-on-year growth of 12.48% to 27.82% [3]. Industry Outlook - The demand for key materials in advanced process chips has significantly increased due to breakthroughs in integrated circuit manufacturing processes and packaging technologies in China [4]. - The domestic integrated circuit materials market is projected to grow rapidly, with forecasts indicating a market size of 258.96 billion yuan by 2028 [4]. - Hengkun New Materials plans to raise 1.007 billion yuan through its IPO, primarily for two projects: the second phase of the integrated circuit precursor project and the advanced materials project for integrated circuits [4]. - The implementation of these fundraising projects is expected to expand the product line, enhance R&D capabilities, and better meet the urgent demand for domestic materials from downstream customers [4]. - As these projects are completed and put into production, Hengkun New Materials is anticipated to open up growth opportunities in multiple new product areas and further enhance its market position [4].

Core Viewpoint - Hengkun New Materials faces challenges in its IPO process, primarily due to concerns over technology intellectual property disputes and the appropriateness of its revenue recognition methods [3][4]. Group 1: IPO Challenges - Hengkun New Materials was the first company to face a "suspension of review" in 2025 during the Shanghai Stock Exchange's listing committee meeting, raising questions about its compliance and technical capabilities [3]. - The listing committee questioned the company's technological independence and required further clarification on potential ownership disputes regarding core technologies [3]. - Concerns were also raised about the revenue recognition method used for its introduced business, prompting the company to justify its compliance with accounting standards [3]. Group 2: Response to Regulatory Concerns - In response to the regulatory scrutiny, Hengkun New Materials provided detailed evidence and logical explanations to address the concerns, ultimately gaining approval [4]. - The company emphasized that all core technologies are derived from independent research and development, having obtained 78 patent authorizations, including 45 invention patents [4]. - To alleviate concerns about ownership disputes, Hengkun New Materials clarified that there are no unresolved technical disputes with upstream and downstream partners and has established a comprehensive intellectual property protection system [4]. Group 3: Company Background and Development - Established in 2004 and headquartered in Xiamen, Hengkun New Materials is one of the few companies in China capable of developing and mass-producing key materials for 12-inch integrated circuit wafer manufacturing [6]. - The company transitioned from its initial focus on optical film devices to the semiconductor materials sector in 2014, seizing opportunities for domestic production [6]. - By the end of 2024, Hengkun New Materials had obtained 89 patent authorizations and was recognized as a key materials engineering research center in Fujian Province [6].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has successfully passed the IPO review by the Shanghai Stock Exchange, marking it as the 45th company to receive approval this year [1]. 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 12-inch integrated circuit wafer manufacturing materials [1]. - The company primarily engages in the research, production, and sales of photoresist materials and precursor materials [1]. IPO Details - The company plans to publicly issue no more than 67,397,940 shares, which represents up to 15% of the total share capital after issuance, with a minimum of 10% [2]. - The total fundraising target is 1,006.695 million yuan, aimed at funding the second phase of the integrated circuit precursor project and advanced materials for integrated circuits [3]. Underwriting Information - The lead underwriter for the IPO is CITIC Securities Co., Ltd., marking the fifth successful IPO project for CITIC Securities this year [1]. Shareholding Structure - The actual controller of Hengkang New Materials is Yi Rongkun, who directly holds 19.52% of the voting rights and controls an additional 21.35% through various agreements, totaling 40.87% [2].

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. has successfully passed the review for its IPO on the Sci-Tech Innovation Board, marking its second attempt after a previous delay [1] 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 R&D and mass production of key materials for 12-inch integrated circuit wafer manufacturing [1] - The company primarily engages in the R&D, production, and sales of photoresist materials and precursor materials [1] IPO Details - The company aims to raise 1.007 billion yuan through this IPO, which will be allocated to the second phase of the integrated circuit precursor project and advanced materials project for integrated circuits after deducting issuance costs [1]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (referred to as "Hengkang New Materials") is set to reapply for its IPO on the Sci-Tech Innovation Board, aiming to raise approximately 1 billion yuan. The company heavily relies on a few major clients for its revenue, with over 97% of its income coming from the top five clients, raising concerns about customer concentration risk [1][10][11]. Group 1: Financial Performance - Hengkang New Materials reported revenues of 322 million yuan, 368 million yuan, and 548 million yuan for the years 2022 to 2024, with net profits of 101 million yuan, 90 million yuan, and 97 million yuan respectively. For the first nine months of 2025, the company expects revenues between 440 million yuan and 500 million yuan, representing a year-on-year growth of 12.48% to 27.82% [9]. - The company has received government subsidies amounting to 19.12 million yuan, 16.76 million yuan, and 16.24 million yuan during the reporting periods, accounting for approximately 15% of total profits [9]. Group 2: Customer Dependency - The revenue from the top five clients accounted for 99.22%, 97.92%, and 97.20% of the main business income during the reporting periods, indicating a high customer concentration. Sales to the largest client represented 72.35%, 66.47%, and 64.07% of total revenue, highlighting significant reliance on a few customers [11][12]. Group 3: Production Capacity and Utilization - The company's production capacity utilization remains low, with only one product's utilization rate reaching 84% in the first half of the year, while the rest are below 50%. For instance, the utilization rates for BARC, KrF photoresist, and i-Line photoresist are projected to remain below 50% in 2025 [15][18]. - Hengkang New Materials has several production lines that are yet to be operational, including three 1000L lines and two 5000L lines, with one 2000L SOC line in standby [16]. Group 4: IPO Fundraising and Investment Plans - The company plans to raise 1 billion yuan through its IPO, with approximately 400 million yuan allocated for the second phase of the integrated circuit precursor project and about 607 million yuan for advanced materials for integrated circuits [13][14]. - The total investment for the precursor project is estimated at 519 million yuan, while the advanced materials project is projected to cost around 909 million yuan [14]. Group 5: Market Position and Product Development - Hengkang New Materials focuses on the research and industrial application of key materials for integrated circuits, being one of the few domestic companies capable of developing and mass-producing critical materials for 12-inch integrated circuit wafer manufacturing [8]. - The company has achieved mass production of its self-developed products, including SOC, BARC, KrF photoresist, and i-Line photoresist, while the ArF immersion photoresist has passed validation and is in small-scale sales [8]. Group 6: Risks and Challenges - The company faces potential risks regarding the sustainability of its cooperation with one of its target clients, as sales to this client have been declining over the reporting periods [21]. Additionally, the existing TEOS production capacity is underutilized, raising concerns about the feasibility of expanding production capacity [20][21].

Core Viewpoint - The article highlights the significance of Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) in the domestic semiconductor materials industry, particularly in the high-end photoresist sector, as it prepares for its IPO on the Sci-Tech Innovation Board, reflecting recognition of its technological scarcity and rectification efficiency by regulatory authorities [1][12]. Industry Overview - The integrated circuit industry is a strategic and foundational sector for national economic and social development, with the self-sufficiency of key materials directly impacting the security and competitiveness of the supply chain [3]. - As of 2023, the domestic production rates for critical materials like i-Line photoresist and SOC are approximately 10%, while KrF photoresist and BARC are below 2%, and ArF photoresist is less than 1%, indicating a heavy reliance on imports [3]. Company Profile - Established in 2004, Hengkang New Materials focuses on two core product categories: photoresist materials (including SOC, BARC, KrF, i-Line, and ArF photoresists) and precursor materials (notably TEOS) [4]. - The company has achieved mass production of several key materials by 2024, supplying over 36,000 gallons of SOC and BARC, and over 320 tons of TEOS, successfully replacing foreign competitors' products [6]. Financial Performance - From 2022 to 2024, the company's revenue from self-produced products grew from 124 million to 344 million yuan, with a compound annual growth rate of 66.89%, and the revenue share increased from 38.94% to 63.77% [6][7]. - In 2023, Hengkang New Materials' self-produced photoresist revenue was 170 million yuan, accounting for approximately 2.2% of the total semiconductor photoresist market in China [11]. Research and Development - Hengkang New Materials emphasizes R&D, with total R&D investment reaching 185 million yuan from 2022 to 2024, and R&D expense ratios increasing to 16.17% by 2024, significantly above the industry average [8]. - The company has made breakthroughs in three core areas: customized development of photoresist materials, high-purity precursor synthesis, and advanced materials validation [9]. Market Position and Strategy - The company has established a leading position in the domestic market for SOC and BARC materials, with significant market shares as of 2023 [11]. - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to invest in the second phase of its precursor project and advanced materials project, aiming to enhance production capacity and product structure [15][16]. - The company aims to expand its product matrix from mid-to-low-end to high-end materials and to promote the localization of upstream raw materials to mitigate supply chain risks [16]. Future Outlook - With increasing government support for the semiconductor industry and the ongoing push for domestic material substitution, Hengkang New Materials is well-positioned to capitalize on growth opportunities in the integrated circuit materials market [12]. - The company is committed to continuous technological innovation and stable operational development, contributing to the security of the supply chain and enhancing China's global competitiveness in the semiconductor industry [16].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. is set to undergo IPO review on the Sci-Tech Innovation Board, marking a significant milestone in its long-term commitment and innovation in the key materials for integrated circuits [1] Group 1: Company Development - Since its establishment in 2004, the company has transformed from optical film devices to key materials for integrated circuits, with a strategic shift confirmed in 2014 [3] - The company achieved sales breakthroughs in self-produced materials by 2020, and by 2022, its product sales revenue exceeded 100 million yuan, demonstrating solid technical accumulation and strong industrialization capabilities [3] - According to Frost & Sullivan market research, the company has become a leading player in the domestic photolithography materials market for 12-inch integrated circuits, ranking first among domestic manufacturers in SOC and BARC sales in 2023 [3] Group 2: Technical Strength - The company has undertaken multiple national special research tasks since 2020, addressing critical industry challenges [3] - Its subsidiary, Fujian Hongguang, has been recognized as a key materials engineering research center for photolithography in Fujian Province and was identified as a national-level specialized and innovative "little giant" enterprise in 2022 [3] - As of July this year, the company holds 89 patents, including 36 invention patents, establishing a solid technical barrier [3] Group 3: Future Outlook - The company aims to continue its commitment to the localization of key materials for integrated circuits, increasing R&D investment and expanding product varieties and application fields [4] - The upcoming IPO is expected to provide new development opportunities, helping the company secure a position in the global semiconductor materials landscape and contribute to the self-controllability of China's integrated circuit industry chain [4]

Core Viewpoint - Hengkun New Materials Technology Co., Ltd. has adjusted its revenue recognition method from gross to net, reflecting its adherence to accounting standards and showcasing its technological accumulation and business transformation in the integrated circuit materials sector. The upcoming review of its IPO on August 29 is seen as a critical test of its commercialization process and industry barrier-breaking capabilities [1][2]. Accounting Policy Adjustment - The adjustment to net revenue recognition is based on a deeper understanding of the "Enterprise Accounting Standard No. 14 - Revenue" and aligns with industry practices. This change is consistent with the regulatory guidance emphasizing the distinction between principal and agent roles, focusing on the transfer of control of goods [2][6]. - Over 30 listed companies, including Xunlong Holdings and Huanghe Wind Power, have made similar adjustments since 2024, indicating a consensus in the industry towards net revenue recognition for trade and agency businesses [2][6]. Financial Data and Business Composition - Despite the adjustment leading to a reduction in reported scale, Hengkun New Materials emphasizes that it still meets the listing standards for the Sci-Tech Innovation Board. The net profits for 2023 and 2024, after excluding non-recurring gains and losses, are projected to be 81.52 million yuan and 94.38 million yuan, respectively, totaling over 170 million yuan [4][6]. - The proportion of self-operated business revenue significantly increased, reaching 86.68% under the net method and 61.85% under the gross method in the first half of 2025. This shift reflects the company's strategic transition from trade agency to independent research and development [4][6]. Technological and Market Position - Hengkun New Materials reaffirms its commitment to technology-driven development, with R&D investments, personnel, and patent numbers meeting the criteria for innovation attributes. The company expects to expand its market share in light of rising domestic demand for integrated circuit materials [6][7]. - The proactive response to regulatory inquiries demonstrates the company's respect for accounting standards and highlights the effectiveness of its strategic transformation, positioning it favorably for its IPO and potential market valuation exceeding 1 billion yuan [6][7].

Core Viewpoint - The establishment of the "Shaoguan Integrated Circuit Advanced Materials Key Laboratory" by Olay New Materials has been recognized by the Shaoguan Science and Technology Bureau, focusing on key materials and technologies for integrated circuits and other advanced applications [1] Group 1: Laboratory Focus Areas - The laboratory will primarily research high-performance target materials, including high-purity copper targets for integrated circuits [1] - It will also focus on high-performance metals, such as high-purity copper and copper alloy materials [1] - The research will extend to critical materials and core components in cutting-edge technology fields, including integrated circuit phosphor copper anodes, superconducting wire harnesses for drones, and key components for robots [1] Group 2: Objectives - The laboratory aims to tackle "bottleneck" technologies and achieve domestic substitution in the relevant sectors [1]