Core Viewpoint - Shenzhen Chuangzhixin Technology Co., Ltd. (Chuangzhixin) has submitted its IPO application to the Hong Kong Stock Exchange after withdrawing its A-share IPO application, aiming for faster capital market support and international exposure [12][13]. Group 1: Company Overview - Chuangzhixin, established in 2006, is the largest domestic provider of wet process coating materials in China and ranks sixth in the domestic market for wet process coating materials [2][4]. - The company has transitioned from initial losses to significant revenue growth, with revenues of 320 million yuan, 312 million yuan, and 410 million yuan from 2022 to 2024, and a gross profit margin increasing from 32.3% in 2022 to 42.8% in 2024 [3][4]. Group 2: Financing and Investment - Chuangzhixin has completed multiple financing rounds, raising approximately 589 million yuan, with significant investments from various funds and institutions [6]. - The company plans to allocate about 45% of the funds raised from the IPO for new production lines and service upgrades, with additional funds for R&D, strategic expansion, and general corporate purposes [1]. Group 3: Management and Innovation - The current general manager, Yao Yu, is the daughter of major shareholder Yao Cheng, and they are jointly driving the company's development [10]. - Chuangzhixin holds 71 invention patents and 61 utility model patents domestically, along with 6 overseas invention patents, showcasing its technological advantages in the coating materials sector [10].

Core Insights - The company, Chuangzhi Xinlian, established in November 2006, is a global leader in the wet process plating materials industry and a prominent player in the metallization interconnection field within the electronic packaging sector in China. It was recognized as a national-level specialized and innovative "little giant" enterprise in 2024 [2][44]. Group 1: Market Position and Financial Performance - Chuangzhi Xinlian is the largest domestic provider of wet process plating materials in China, as well as the largest one-stop plating solution provider by revenue in 2024 [6][44]. - The company reported cumulative revenues exceeding 1 billion RMB and a net profit of approximately 100 million RMB over three years [10]. - Revenue for the years 2022, 2023, and 2024 was 320 million RMB, 312 million RMB, and 410 million RMB, respectively, with net profits of 27 million RMB, 19 million RMB, and 53 million RMB [13][18]. Group 2: Revenue Breakdown and Growth - In 2024, revenue from PCB industry plating materials accounted for 61.9%, while semiconductor industry plating materials contributed 18.3%, and plating services made up 19.8% of total revenue [18][19]. - The company has experienced a compound annual growth rate (CAGR) of 53.8% in its semiconductor business from fiscal year 2022 to 2024 [4]. Group 3: Product Offerings and Applications - Chuangzhi Xinlian has developed a comprehensive product matrix for chemical and electroplating materials, covering applications in wafer-level packaging, chip-level packaging, and PCB manufacturing [25][27]. - The company's plating materials are used in various applications, including automotive power chips, CIS chips, RF chips, power management chips, and MEMS, serving sectors such as HPC, electric vehicles, rail transportation, AI, communication electronics, and high-end consumer electronics [8][9]. Group 4: Client Relationships and Market Penetration - The company has established long-term partnerships with leading PCB manufacturers and semiconductor companies, with an average cooperation duration of about 10 years [32]. - By the end of 2024, Chuangzhi Xinlian's chemical nickel/gold and chemical nickel/palladium materials were successfully applied in over 120 production lines in the PCB industry, leading the domestic market in coverage [32]. Group 5: Leadership and Ownership Structure - The company is controlled by a group of shareholders led by Yao Cheng and Yao Yu, with Yao Cheng serving as the chairman and Yao Yu as the executive director and R&D director [39][41]. - Yao Cheng holds a 52.39% stake in the company, while other significant shareholders include Zhiyuanxin and Zhiyuanxin Material [41]. Group 6: Industry Trends and Future Outlook - The demand for wet process plating materials in China is expected to grow, driven by the rapid expansion of sectors such as AI, electric vehicles, and data centers [44]. - The domestic supply of raw materials in the semiconductor sector has increased from approximately 10% to over 15% by 2024, indicating a trend towards localization in the supply chain [44].