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].

Group 1 - Company submitted an IPO application to the Hong Kong Stock Exchange, with Haitong International, Jianyin International, and China Merchants Securities International as joint sponsors [1] - Company is a leading provider of metallization interconnection plating materials and key process technologies in China, focusing on wafer-level and chip-level packaging, as well as PCB manufacturing [1] - According to Frost & Sullivan, the company is the largest domestic wet process plating material provider in China by revenue in 2024, and also the largest one-stop plating solution provider in the market [1] Group 2 - Financial data shows the company's revenue for 2022, 2023, and 2024 at 320 million, 312 million, and 410 million RMB respectively, with corresponding gross profits of 103 million, 110 million, and 175 million RMB, leading to gross margins of 32.3%, 35.3%, and 42.8% [1] - Revenue is primarily derived from plating materials and plating services, with plating materials accounting for 80.2% of total revenue in 2024, while plating services contributed 19.8% [1] Group 3 - Company's plating materials and services are critical for electronic packaging production, significantly impacting the performance, mechanical properties, thermal dissipation, and reliability of chips and devices [2] - The global wet process plating materials market is projected to rebound to 40.7 billion RMB in 2024, with an estimated CAGR of 12.6% from 2024 to 2029, reaching 73.7 billion RMB by 2029 [2] - The Chinese wet process plating materials market is expected to grow to 27.5 billion RMB by 2029, with a CAGR of 12.9% from 2024 to 2029, driven by emerging applications in AI and electric vehicles [2] Group 4 - Approximately 45% of the IPO proceeds will be used for the construction and upgrade of new production lines for plating materials and services, while 30% will be allocated for R&D, technological innovation, and product upgrades [2] - About 15% of the funds will be reserved for potential strategic expansion opportunities [2] - Specific allocations include 25% for enhancing plating service capabilities and upgrading production equipment, 10% for expanding plating material capacity and building new production lines, and 10% for establishing an overseas production base in Thailand [3]

Core Viewpoint - Shenzhen Chuangzhi Xinlian Technology Co., Ltd. has officially begun its IPO journey on the Hong Kong Stock Exchange, positioning itself as a leading provider of metallization interconnection plating materials and key process technologies in China [2] Business Overview - Chuangzhi Xinlian focuses on the development of supply chains for plating materials in wafer-level and chip-level packaging, as well as PCB manufacturing [2] - According to Frost & Sullivan, by 2024, Chuangzhi Xinlian is projected to be the largest domestic wet process plating material provider and the largest one-stop plating solution provider in the Chinese market [2] Revenue Breakdown - The company's revenue primarily comes from two business segments: 1. Plating materials business segment, which generates income through the manufacturing and sales of plating materials for the semiconductor and PCB industries [2] 2. Plating services business segment, which provides plating services for silicon wafers, silicon carbide wafers, packaging substrates, and PCBs, charging service fees [2] Industry Impact - The synergy between the two business segments enhances Chuangzhi Xinlian's influence within the industry ecosystem, allowing it to supplement customer production capacity and undertake key tasks in innovative process development [3] - As of December 31, 2024, Chuangzhi Xinlian's chemical nickel-gold and chemical nickel-palladium-gold materials and plating services have been adopted by 4 out of the top 5 power device manufacturers in China, achieving an 80% coverage rate [3] Financial Performance - Chuangzhi Xinlian's total revenue for 2022, 2023, and 2024 was RMB 319.6 million, RMB 311.7 million, and RMB 409.9 million, respectively [4] - The net profit for the same years was RMB 27.3 million, RMB 19.4 million, and RMB 52.7 million, respectively [4] - Revenue from plating materials for the semiconductor industry grew from RMB 31.7 million in 2022 to RMB 48.6 million in 2023, and is expected to reach RMB 75.0 million in 2024, with a compound annual growth rate of 53.8% from 2022 to 2024 [4]

Industry Overview - The Chinese semiconductor and PCB manufacturing industry is expected to continue expanding from 2020 to 2024, driven by technological advancements, large-scale investments in new wafer fabs, rising global electronic application demand, and favorable policies [1] - The semiconductor manufacturing market in China is projected to grow from RMB 256 billion in 2020 to RMB 443.7 billion in 2024, while the PCB manufacturing market is expected to increase from RMB 275 billion to RMB 352.4 billion during the same period [1] Company Profile - Shenzhen Chuangzhi Xilian Technology Co., Ltd. (Chuangzhi Xilian) has submitted a listing application to the Hong Kong Stock Exchange, with Haitong International, Jianyin International, and China Merchants Securities International as joint sponsors [2] - The company specializes in metallization interconnection plating materials and key process technology solutions, focusing on wafer-level and chip-level packaging, as well as the supply chain development of plating materials in the PCB manufacturing sector [2] Financial Performance - Chuangzhi Xilian's revenue has shown steady growth, with annual revenues exceeding RMB 400 million [3] - The company's revenue is primarily derived from two segments: plating materials (80.2% of revenue in 2024) and plating services (19.8% of revenue in 2024) [3] - From 2022 to 2024, the company achieved revenues of RMB 320 million, RMB 312 million, and RMB 410 million, with net profits of RMB 27.3 million, RMB 19.4 million, and RMB 52.7 million respectively [4] Market Dynamics - The demand for wet process plating materials in China is expected to rebound in 2024, driven by rapid growth in end-use sectors such as AI, electric vehicles, and data centers [6] - The market for PCB wet process plating materials is projected to grow from RMB 9.3 billion in 2020 to RMB 10.2 billion in 2024, with a compound annual growth rate (CAGR) of 2.1% [6] - The semiconductor wet process plating materials market is anticipated to grow from RMB 3.6 billion to RMB 4.8 billion during the same period, with a CAGR of 7.6% [6] Competitive Landscape - The Chinese wet process plating materials market is relatively concentrated, with the top ten market participants holding a 63.3% market share as of 2024 [9] - Chuangzhi Xilian ranks sixth among all participants in the Chinese wet process plating materials market, holding a 2.7% market share, and is the largest domestic supplier in this segment [9] - The company is positioned in a high-growth sector, with stable revenue and net profit growth, which could enhance its attractiveness for an IPO [9]