Core Viewpoint - Zhejiang Dongfang Kema Electronic Co., Ltd. (referred to as Dongfang Kema) has submitted its IPO application to the Hong Kong Stock Exchange, positioning itself as the world's largest provider of commercial smart IoT electronic paper display solutions [2][3]. Financial Performance - The company reported revenues of approximately 1.214 billion, 1.024 billion, 1.152 billion, and 796 million RMB for the six months ending June 30 in 2022, 2023, 2024, and 2025, respectively. Corresponding profits were approximately 91.876 million, 50.739 million, 53.404 million, and 43.036 million RMB [4]. - Sales volume of smart IoT electronic paper display modules increased from 50.6 million units in 2022 to 56.1 million in 2023, with projections of 67.1 million units in 2024 and 52.7 million units for the six months ending June 30, 2025 [4]. Production Capacity and Expansion Plans - Dongfang Kema operates four production bases located in Jiaxing, Zhejiang, Dalian, Liaoning, and Vietnam, with the Vietnam facility commencing operations in June 2023 and an expected annual capacity of 20 million electronic paper displays [4]. - The IPO funds will be allocated to two main areas: upgrading the existing production capacity in Vietnam and establishing a new domestic production base focused on advanced products such as electronic backpacks and flexible electronic paper [5][6]. Research and Development - A portion of the IPO proceeds will be invested in enhancing the company's core technological capabilities and innovation, expanding the product portfolio, and recruiting high-level R&D teams [6].

Core Insights - Flexible display technology is revolutionizing the display industry by enabling devices to be curved, folded, and rolled, breaking the traditional rigid display limitations [1][17] - The global flexible display market is projected to grow from $23.2 billion in 2024 to over $173 billion by 2031, driven by advancements in 5G, AI, and VR technologies [1][17] - The flexible OLED segment is expected to see significant growth, with global shipments estimated at approximately 617 million units in 2024, reflecting a year-on-year increase of 21.5% [21] Industry Overview - Flexible displays are made from soft materials and are characterized by low energy consumption, lightweight, durability, and shape variability [2][7] - The main types of flexible displays include bendable, foldable, rollable, and stretchable displays, with bendable and foldable displays already seeing large-scale applications in consumer electronics [2][4] Technology Landscape - The leading technology for flexible displays is flexible OLED, known for its high contrast, wide viewing angles, and rapid response times [4][6] - Other technologies include flexible LCD, electronic paper, quantum dot LEDs, and Micro-LEDs, with flexible OLED being the most widely adopted [4][6] Market Dynamics - The Asia-Pacific region dominates the flexible display market, accounting for over 65% of the global market share, with China, South Korea, and Japan as key contributors [17] - The flexible AMOLED market share in smartphones is expected to rise from 28% in 2022 to 40% in 2024, driven by the demand for high-end smartphone models [19][21] Competitive Landscape - Samsung is the leading global supplier of flexible OLED displays, while BOE Technology Group is the largest producer in China, having broken the international monopoly in 2017 [23] - Chinese companies like BOE, Visionox, Tianma, and TCL Huaxing have made significant technological advancements, enhancing their competitiveness and gradually reducing Samsung's market dominance [23]