Core Viewpoint - Hengkun New Materials has successfully registered for an IPO on the Sci-Tech Innovation Board, marking a significant milestone in its transformation from traditional optoelectronic film business to key materials for integrated circuits [1] Group 1: Company Development History - Established in 2004, Hengkun New Materials initially focused on the research, production, and sales of optoelectronic film devices and window lens products [2] - Since 2014, the company has been planning a business transformation towards key materials in the integrated circuit field [2] Group 2: Technological Innovation Achievements - The company has achieved significant milestones in technology innovation and R&D investment, focusing on the development and industrial application of key materials for integrated circuits [5] - Hengkun New Materials has successfully introduced imported photoresist materials and precursor materials, which have been validated by leading 12-inch integrated circuit wafer fabs in China since 2017 [4] - The company has achieved over 100 million yuan in sales revenue from self-produced products by 2022, including various photoresist materials and precursor materials [4] - Current products are essential for advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below, addressing critical areas in the integrated circuit wafer manufacturing process [5] - Hengkun New Materials has successfully replaced foreign products in the 12-inch integrated circuit key materials market, breaking the foreign monopoly and moving towards innovation leadership [5]

Core Viewpoint - The IPO registration of Xiamen Hengkang New Materials Technology Co., Ltd. has been approved, marking a significant step towards its public offering in the context of the ongoing U.S.-China trade tensions and the strategic push for domestic integration of key materials in the integrated circuit industry [1][6]. Company Overview - Hengkang New Materials specializes in the research, production, and sales of photolithography materials and precursor materials, being one of the few domestic companies capable of developing and mass-producing key materials for 12-inch integrated circuit wafer manufacturing [6][9]. - The company has a history of nearly 20 years, evolving from initially importing technology to developing its own through a process of "introduction, digestion, absorption, and innovation" [9][11]. Financial Information - The company aims to raise approximately 1.007 billion yuan through its IPO, with funds allocated to the second phase of the integrated circuit precursor project and advanced materials project [8]. - Hengkang New Materials reported revenues of 322 million yuan, 368 million yuan, and 548 million yuan for the years 2022, 2023, and 2024 respectively, with net profits of approximately 99.73 million yuan, 89.76 million yuan, and 96.91 million yuan for the same years [15][16]. Product Development and Market Position - The company has achieved significant sales in the domestic market, ranking first among local manufacturers in the sales scale of SOC (carbon film coating) and BARC (anti-reflective coating) in 2023 [13][14]. - Hengkang New Materials has developed a strong patent portfolio with 89 patents, including 36 invention patents, and has been involved in national-level research projects [14][15]. Investment and Support - The company has received substantial investment from various local funds, with the Xiamen Industrial Investment Fund investing over 100 million yuan [8][23]. - Hengkang New Materials has established stable sales relationships with several of the top ten wafer foundries in China, ensuring a solid customer base for its products [20][27]. Future Outlook - The company plans to continue enhancing the localization of its products and expand into international markets, aiming to become a leading domestic and internationally competitive player in the integrated circuit key materials sector [27].

Core Viewpoint - Hengkun New Materials has successfully registered for an IPO on the Sci-Tech Innovation Board, marking a significant milestone in its transformation from traditional optoelectronic film business to key materials for integrated circuits [1][4]. Transformation Development Process - Established in 2004, Hengkun New Materials initially focused on the R&D, production, and sales of optoelectronic film devices and window lens products [1]. - Since 2014, the company has been planning its business transformation towards key materials in the integrated circuit field [1][3]. Technical Innovation Achievements - Hengkun New Materials has achieved significant milestones in technology innovation and R&D investment, focusing on the development and industrial application of key materials for integrated circuits [3]. - The company has successfully introduced imported photoresist materials and precursor materials, which have been validated by leading 12-inch integrated circuit wafer manufacturers in China since 2017 [3]. - Since 2020, Hengkun has begun selling self-produced photoresist and precursor materials, with sales revenue surpassing 100 million yuan in 2022 [3]. - The company’s products are essential for the production processes of advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below [3]. Market Position and Future Prospects - Hengkun New Materials has achieved domestic substitution of similar foreign products, breaking the foreign monopoly on key materials for 12-inch integrated circuits [4]. - The successful IPO is expected to provide new momentum for the company's development and enhance the self-controllable capabilities of China's integrated circuit industry chain [5].

IPO Review and Registration Progress - Two companies, Weite Environment and Yatu High-tech, successfully passed the IPO review and plan to list on the Beijing Stock Exchange [2] - Weite Environment focuses on water resource pipeline leakage control technology consulting and construction, with projected revenues of 303 million yuan, 293 million yuan, and 329 million yuan from 2022 to 2024 [2] - Yatu High-tech specializes in high-performance industrial coatings, with revenues expected to grow from 557 million yuan in 2022 to 742 million yuan in 2024 [3] - Three companies, Yuanchuang Co., New Guangyi, and Youxun Co., are scheduled for IPO review this week [4] - Yuanchuang Co. has experienced revenue fluctuations, with 2023 revenue at 1.141 billion yuan, down 9.45% year-on-year [4] - New Guangyi's revenue is projected to increase from 455 million yuan in 2022 to 657 million yuan in 2024, with a high customer concentration [5][6] - Youxun Co. focuses on optical communication chips, with 2025 revenue expected to be 238 million yuan [6] New Stock Listings and Subscription Dynamics - Two new stocks were listed last week, with Sanxie Electric's share price increasing by 785.62% on its debut [9] - Sanxie Electric specializes in control motors, reporting a revenue of 256 million yuan for the first half of 2025 [9] - Aifenda, which focuses on electric towel racks, saw its share price rise by 170.03% on its first day of trading, with a revenue of 505 million yuan for the first half of 2025 [10] - This week, five new stocks are scheduled for subscription, including Jinhua New Materials with an issue price of 18.15 yuan per share [11] - Jinhua New Materials specializes in ketoxime fine chemicals, with a revenue of 571 million yuan in the first half of 2025 [12] - Yunhan Chip City, focusing on electronic components distribution, reported a revenue of 1.44 billion yuan in the first half of 2025 [12]

Group 1 - The core point of the article is that Xiamen Hengkang New Materials Technology Co., Ltd. has successfully registered its IPO on the Sci-Tech Innovation Board [1] - The company focuses on the research and industrial application of key materials in the integrated circuit field, specifically in the development, production, and sales of photoresist materials and precursor materials [1] - The IPO process began with acceptance on December 26, 2024, followed by an inquiry phase starting on January 18, 2025, and approval on August 29, 2025, with registration submitted on the same day [1] Group 2 - Hengkang New Materials aims to raise approximately 1.007 billion yuan through this IPO, which will be allocated to the second phase of the integrated circuit precursor project and advanced materials for integrated circuits, after deducting issuance costs [1]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, but faces significant challenges due to high customer concentration and a notable disparity between revenue growth and profit decline [1][2][4]. Group 1: Revenue and Profitability - Hengkang New Materials has shown strong revenue growth with a compound annual growth rate of 30.5%, but struggles with profitability, as evidenced by a 25.18% decline in net profit in the first half of 2025 despite a 23.74% increase in revenue [1][2][3]. - The company’s revenue heavily relies on its top five customers, which accounted for over 97% of total sales during the reporting period, indicating a high customer concentration risk [3][4]. - The revenue figures for 2022 to 2024 show a significant increase, with 2024 revenue up 70.29% compared to 2022, yet net profit decreased by nearly 3 million [2][3]. Group 2: Customer Dependency - The largest customer contributed 64% of total revenue in the lowest year of the reporting period, raising concerns about the sustainability of the business model if relationships with key clients deteriorate [4][5]. - The company’s reliance on a few key customers poses a risk to its operational performance, as any changes in these relationships could adversely affect financial results [4]. Group 3: Product Profitability - Hengkang New Materials has a dual product structure, with self-produced products and introduced products, but the latter remains the primary source of profit, contributing over 65% of gross profit despite a growing share of self-produced products in revenue [5][6]. - The gross profit margins for self-produced products have been declining, falling below industry averages since 2023, raising questions about their technological competitiveness [9]. Group 4: IPO Fund Utilization and Project Viability - The company plans to raise 1.007 billion yuan for expansion projects, including the second phase of integrated circuit precursors and advanced materials, but the rationale behind these projects is under scrutiny due to ongoing losses in precursor products [1][10][12]. - The utilization rates for KrF photoresist production have been alarmingly low, with rates below 20%, leading to skepticism about the decision to expand production capacity in this area [12].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (referred to as "Hengkang New Materials") has seen its IPO registered on the Sci-Tech Innovation Board as of September 12. The company heavily relies on a concentrated customer base, with 97% of its revenue coming from its top five clients, raising concerns about its growth sustainability and profitability despite strong revenue growth [1][2][3]. Group 1: Revenue and Profitability - Hengkang New Materials reported significant revenue growth during the reporting period, with revenues of 321.77 million yuan, 367.71 million yuan, and 547.94 million yuan from 2022 to 2024, respectively. However, net profits fluctuated, with figures of 99.73 million yuan, 89.76 million yuan, and 96.91 million yuan, indicating a "revenue growth without profit" trend [2][3]. - In the first half of 2025, the company achieved a revenue of 294.34 million yuan, a year-on-year increase of 23.74%, while net profit decreased by 5.71% to 41.58 million yuan, with a significant drop of 25.18% in net profit after deducting non-recurring gains and losses [2][3][4]. Group 2: Customer Concentration - The company's revenue is highly dependent on a few key clients, with sales to the top five clients accounting for 99.22%, 97.92%, and 97.2% of total revenue during the reporting period, indicating a significant reliance on a limited customer base [3][4]. - Specifically, sales to a single client (Client A) contributed 72.35%, 66.74%, and 64.07% of total revenue in the respective years, highlighting the risk associated with such customer concentration [4]. Group 3: Product Profitability - Hengkang New Materials has two main product categories: self-produced products and introduced products. The revenue from self-produced products has been increasing, but the profit contribution remains low, with introduced products generating the majority of profits [6][7]. - The gross profit from introduced products was 189.41 million yuan, 167.92 million yuan, and 192.31 million yuan, while self-produced products generated gross profits of 41.43 million yuan, 57.72 million yuan, and 99.71 million yuan, indicating that introduced products account for over 65% of the company's profit [7][8]. Group 4: R&D Investment and Product Viability - The company has a high R&D expense ratio, with rates of 13.28%, 14.59%, and 16.17% during the reporting period, significantly above the industry average [11]. - Despite high R&D spending, the gross margin for self-produced products has been declining, falling below the industry average since 2023, raising questions about the technological content of its self-produced products [11]. Group 5: IPO Fund Utilization and Expansion Plans - Hengkang New Materials aims to raise 1.007 billion yuan through its IPO for expansion projects, including the second phase of integrated circuit precursor projects and advanced materials projects. However, the rationale behind these projects is questioned due to the ongoing losses in precursor materials [13][15]. - The company plans to expand its production capacity for KrF photoresist, which has consistently low utilization rates below 20%, raising concerns about the feasibility of such expansion [15].

Industry Overview - The Chinese integrated circuit industry is experiencing unprecedented development opportunities driven by national policies and market demand, with the "14th Five-Year Plan" elevating integrated circuit technology innovation and new material research to a national strategic level [1] - The collaboration between upstream and downstream sectors of the industry chain is increasingly enhanced, with the localization of key materials becoming a core aspect of supply chain security [1] Company Profile - Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) is a significant participant and beneficiary in this process, focusing on the research, production, and sales of photolithography materials and precursor materials required for 12-inch wafer manufacturing [3] - The company has become one of the few domestic innovators to achieve mass production of related materials and enter the supply chain of mainstream wafer manufacturers [3] Financial Performance - Hengkang New Materials has shown significant revenue growth in recent years, with projected revenues of 321.77 million yuan, 367.71 million yuan, and 547.94 million yuan for 2022, 2023, and 2024 respectively, reflecting a compound annual growth rate of 30.50% [3] - This performance is attributed to the continuous expansion of industry demand and the company's strong technological foundation and market positioning [3] Market Expansion - The company has established stable partnerships with several leading domestic 12-inch wafer manufacturers, enhancing order continuity and customer loyalty through active participation in client process development and production line validation [4] - Future projects, such as the "Phase II of Integrated Circuit Precursor" and "Advanced Materials for Integrated Circuits," are expected to further enrich the product structure, increase production capacity, and enhance the company's competitiveness in the high-end semiconductor materials market [4] Growth Potential - Hengkang New Materials is positioned to maintain strong growth and profitability in the favorable industry policy environment, continuously injecting new momentum into the localization process of key materials in China's integrated circuit sector [4]

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 - 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].