Core Viewpoint - The company, Hangzhou Huada Haitan Technology Co., Ltd., is undergoing a public offering and listing on the Beijing Stock Exchange, focusing on its innovative water-based functional materials and their applications in various industries [1][2]. Group 1: Company Overview - Huada Haitan is recognized as a national-level "specialized, refined, and innovative" small giant and high-tech enterprise, specializing in the research and application of water-based functional materials [1]. - The company has developed a diverse product matrix, primarily consisting of three main categories: digital paper-based new materials, water-based ink materials, and food packaging materials [1]. - As a leading manufacturer of digital paper-based new materials, Huada Haitan has established industry standards and holds over 30% market share in high-weight products [1]. Group 2: Environmental Commitment - The company's products exhibit strong green and environmentally friendly attributes, aligning with national "dual carbon" goals and the "two mountains" concept [2]. - Digital paper-based new materials are used in digital printing, which eliminates wastewater, while water-based inks significantly reduce VOC emissions compared to solvent-based inks [2]. - The food packaging materials focus on providing eco-friendly, recyclable solutions, aligning with the national "plastic restriction order" [2]. Group 3: Market Growth and Demand - The digital printing sector in China's textile and apparel industry has seen a significant increase, with the production share rising from 2.1% in 2015 to 18.2% in 2023, reflecting a compound annual growth rate of 32.06% [3]. - The demand for digital paper-based new materials is expected to continue rising due to the growth of digital printing technology [3]. Group 4: Fundraising and Investment Projects - The company plans to invest a total of 700 million yuan in various projects, including a production capacity expansion for digital thermal sublimation transfer paper and high-end food packaging paper [3][4]. - The core project, aimed at producing 1 billion square meters of digital thermal sublimation transfer paper, will enhance automation and reduce production costs [4]. - The project for high-end food packaging paper and new transfer printing paper aims to capitalize on growth opportunities in the digital paper-based new materials and food packaging sectors [5]. Group 5: Technological Advancements - Huada Haitan has developed a comprehensive core technology system covering product formulation, structural design, and production process control [5]. - The company aims to strengthen its R&D capabilities through the public offering, facilitating the implementation of investment projects and enhancing production capacity and efficiency [5].

Core Viewpoint - The approval process for IPOs at the Beijing Stock Exchange has accelerated, as evidenced by the recent case of Huada Haitan, which submitted its prospectus for an IPO [3][4]. Company Overview - Huada Haitan, founded in 2001 at Zhejiang University, specializes in the research, development, and application of water-based functional materials [8]. - The company is co-controlled by Lin Xianfu and Lü Deshui, who hold 73.79% of the shares [9]. IPO Process - Huada Haitan submitted its IPO application on June 25, and the Beijing Stock Exchange issued an inquiry regarding the application on July 18, raising 11 questions related to the actual controller, innovation characteristics, performance authenticity, and the rationality of fundraising projects [5][6]. Financial Performance - In 2024, Huada Haitan reported revenue of 537 million yuan, with the main product categories being digital paper-based new materials (48% of revenue), water-based ink materials (33%), and food packaging materials (19%) [11]. - The company experienced a significant discrepancy between production and sales growth, with production increasing by 151 million square meters (53% growth) while sales revenue only grew by 19% [11]. - The net profit fluctuated during the reporting period, with figures of 51.53 million yuan, 85.34 million yuan, and 63.47 million yuan, indicating a decline of over 25% in 2024 compared to the previous year [12]. Fundraising Projects - Huada Haitan plans to raise 500 million yuan through the IPO, primarily for projects aimed at expanding production capacity and enhancing technological capabilities [13]. - The projects include a new production line for digital transfer paper and high-end food packaging paper, but their necessity and rationality have been questioned by regulators due to low current capacity utilization rates [14]. Regulatory Scrutiny - The Beijing Stock Exchange has requested explanations regarding the authenticity and sustainability of Huada Haitan's financial performance, as well as the rationale behind several of its fundraising projects [12][15]. - The company’s financial position shows total assets of 743 million yuan and total liabilities of 241 million yuan, indicating a relatively low debt pressure [15].