Core Viewpoint - The article highlights the operational challenges and risks faced by Hengkun New Materials as it attempts to go public on the Sci-Tech Innovation Board, particularly focusing on issues related to technology independence, revenue recognition practices, and financial management [2][3][9]. Group 1: Operational Challenges - Hengkun New Materials has significant reliance on imported materials, with 30%-50% of its photolithography material costs depending on imports from Japan and South Korea, indicating a lack of technological independence [3][4]. - The company's patent portfolio is weak, with 36 invention patents, over half of which were filed after 2021, raising concerns about the timing and intent behind these applications [3]. - The gross margin for self-produced photolithography materials is declining, projected at 33.52%, 30.29%, and 28.97% from 2022 to 2024, while the gross margin for self-produced precursor materials has been negative for three consecutive years [4]. Group 2: Revenue Recognition Issues - Hengkun New Materials has shifted its revenue recognition method for its import business to a "net method," which has artificially inflated the proportion of self-produced products in its revenue from 28.22% in 2021 to 63.77% in 2024 [5][6]. - Despite this shift, over 65% of the company's gross profit still relies on imported products, raising questions about the sustainability of its revenue model [5][6]. Group 3: Financial Management Concerns - The company exhibits a "high deposit and high loan" phenomenon, with bank deposits of 746 million yuan and loans of 633 million yuan as of the end of 2024, prompting scrutiny from the listing committee [7]. - Interest income has become a significant part of the company's profits, with interest income rising from 2.07 million yuan in 2022 to 21.29 million yuan in 2024, constituting 21.9% of total profits in 2024 [8]. - Government subsidies have also played a crucial role in supporting profits, with subsidies accounting for 100.78% of total profits in 2021, indicating that the company may be operating at a loss without these funds [8]. Group 4: Industry Context - The challenges faced by Hengkun New Materials reflect broader issues within the Chinese semiconductor materials industry, including the long technology transfer cycle, high R&D costs, and low profitability [9]. - The current situation serves as a warning for the industry, emphasizing the need for genuine innovation and reduced reliance on imported technologies to achieve sustainable growth [9].

Group 1 - The core focus of the article is the delayed IPO of Xiamen Hengkang New Materials Technology Co., Ltd. due to complex issues related to its business model, accounting practices, and potential legal risks stemming from its ownership structure [3][4][10] - The company has faced challenges in profitability despite revenue growth, with a significant decline in gross margins for self-produced products, raising doubts about its core research and development capabilities [3][5][7] - The company's revenue recognition method for its "imported business" has been questioned, as it shifted to a net method that may misrepresent its financial health and reliance on self-developed products [4][6] Group 2 - The historical ownership structure of Hengkang New Materials is complicated by shareholding proxies and connections to individuals involved in illegal activities, which raises compliance concerns [8][9] - The second-largest shareholder, Lv Junqin, has a history of involvement in illegal gambling, leading to serious implications for the company's governance and investor confidence [9][10] - There are suspicions of insider trading related to abnormal trading activities by associated parties around significant announcements, further damaging the company's reputation in the capital market [10]