Core Viewpoint - Zhejiang Dongfang Kema Electronic Co., Ltd. is pursuing an IPO on the Hong Kong Stock Exchange after previously withdrawing its A-share application due to various concerns, including customer stability and cash flow discrepancies [1][3][4]. Group 1: Company Overview - Dongfang Kema was established in October 2005 and became a joint-stock company in December 2015, headquartered in Jiaxing, Zhejiang Province [6]. - The company focuses on the research and production of various smart IoT electronic paper display modules and related solutions, with applications in smart retail, education, logistics, and more [10][29]. - As of September 21, 2025, key shareholders include Lyu Zhongren and Zhou Aijun, who collectively hold approximately 36.79% of the company [7]. Group 2: Financial Performance - The company's revenue and net profit have declined in recent years, with revenues of RMB 12.14 billion in 2022, RMB 10.24 billion in 2023, and RMB 11.52 billion in 2024, while net profits were RMB 918.76 million, RMB 507.39 million, and RMB 534.04 million respectively [13][14]. - The overall gross margin for the reporting periods was 20.7%, 15.8%, and 15.8%, with a significant drop in 2023 due to price adjustments aimed at increasing market share [17][18]. - Operating cash flow was negative in the first half of 2025, influenced by inventory and accounts receivable factors [24]. Group 3: Market Position and Competition - The global smart IoT electronic paper display solutions market is expected to grow significantly, with a projected market size of approximately RMB 548 billion in 2024, growing at a compound annual growth rate of 14.6% to reach RMB 1,084 billion by 2029 [32]. - Dongfang Kema ranks second among the top five global smart IoT electronic paper display solution providers, holding a market share of 20.5% [36][38]. - The company has a high customer concentration, with the top five customers contributing over 80% of total revenue, and its largest customer, Solum, accounting for 36.1% of revenue in the most recent reporting period [22].