Core Viewpoint - Dongfang Kemaï has submitted a listing application to the Hong Kong Stock Exchange, marking its second attempt after a failed IPO on the Shanghai Stock Exchange last year [1][12]. Financial Performance - Dongfang Kemaï's financial performance has shown significant volatility, with a notable disparity between net profit and cash flow from operating activities. In the first half of 2025, the company reported a revenue of 796 million, a year-on-year increase of 69.34%, and a net profit of 43.04 million, a substantial increase of 186.52%. However, cash flow from operating activities was negative at -123 million, a decline of 87.91% year-on-year [2][21]. - The company's total revenue for the years 2022, 2023, and 2024 were 1.214 billion, 1.024 billion, and 1.152 billion respectively, with net profits of 91.88 million, 50.73 million, and 53.40 million, indicating a downward trend in overall performance [21]. Capital Structure and Funding - Dongfang Kemaï has raised a total of 469 million since its establishment, with a post-investment valuation of approximately 2.273 billion. The company has not secured new financing since November 2021, reflecting a significant decrease in its capital attractiveness [2][10]. Ownership and Control - The actual controller of Dongfang Kemaï is Zhou Aijun, who directly holds 20.79% of the shares and controls a total of 36.79% of the voting rights through various partnerships and agreements [3][4]. Market Position - Dongfang Kemaï is recognized as a leader in the global smart IoT electronic paper display solutions market, holding a 26.3% market share based on 2024 sales [14]. IPO Challenges - The company previously attempted to list on the Shanghai Stock Exchange in June 2023 but withdrew its application in May 2024 due to increased listing requirements, which included profitability and cash flow criteria that Dongfang Kemaï failed to meet [9][10][11]. R&D and Innovation - Dongfang Kemaï's R&D investment has been significantly lower than its peers, with R&D expenses as a percentage of total revenue ranging from 3.13% to 4.86% over recent years, compared to competitors whose R&D intensity is 2-3 times higher [27]. Customer and Supplier Concentration - The company faces high customer concentration, with its top five customers accounting for 93.3% to 82.6% of total revenue over the past few years. The largest customer contributed 36.1% of total revenue in the first half of 2025 [28][29]. - Supplier concentration is also high, with the top five suppliers representing 89.6% to 78.4% of total purchases, and the largest supplier accounting for over 51% of total procurement [33]. Financial Risks - The company has experienced rising inventory and accounts receivable, with inventory and accounts receivable reaching 480 million and 349 million respectively by June 30, 2025, indicating a significant portion of working capital is tied up [21][22].