Core Viewpoint - New Henghui plans to publicly issue approximately 5,988,890 shares on the Shenzhen Stock Exchange's Growth Enterprise Market, aiming to raise 519 million yuan for industrialization projects and R&D center upgrades [1][2] Company Overview - New Henghui is located in Zibo High-tech Zone and operates as an integrated circuit enterprise focusing on chip packaging materials, including smart card business, etched lead frame business, and IoT eSIM chip testing services [1] - The company has shown steady growth in recent years, with revenues projected to increase from 684 million yuan in 2022 to 842 million yuan in 2024, reflecting a compound annual growth rate (CAGR) of 10.97% [1] - Net profit is expected to grow significantly from 110 million yuan to 186 million yuan during the same period, with a CAGR of 29.4% [1] Growth Strategy - The company is actively expanding its second growth curve, with the IoT eSIM chip testing business accounting for 3.93% of its operations, indicating strong development potential [2] - The IPO funds will primarily support two projects: 456 million yuan for high-density QFN/DFN packaging material industrialization to enhance capacity in the etched lead frame sector, and 62.66 million yuan for upgrading the R&D center to strengthen technological advantages and promote new product development [2] Shareholder Structure - The major shareholder, Yu Renrong, holds 31.41% directly and 0.53% indirectly, totaling 31.94%. He is the actual controller of A-share listed company Weier Shares [2] - The second-largest shareholder, Ren Zhijun, owns 16.21% directly and 3.1% indirectly, totaling 19.31%, and serves as the chairman of the company [2]

Core Viewpoint - Xin Heng Hui Electronics Co., Ltd. is preparing for an IPO with a focus on raising funds for high-density QFN/DFN packaging materials and R&D center expansion, but there are concerns regarding the transparency of its financial disclosures and project timelines [2][3][11]. Group 1: Company Overview - Xin Heng Hui is an integrated circuit company involved in the R&D, production, sales, and testing services of chip packaging materials, with key business segments including smart card business, etching lead frame business, and IoT eSIM chip testing [2]. - The company underwent a restructuring in 2017 due to a debt crisis linked to local "guarantee circles," with new control established by investors including Yu Renrong and Ren Zhijun [2]. Group 2: IPO and Fundraising - The IPO aims to raise approximately 518.63 million yuan, allocated mainly for the high-density QFN/DFN packaging materials industrialization project (455.97 million yuan) and R&D center expansion (62.66 million yuan) [3]. - The total estimated investment for the high-density QFN/DFN project is reported to be 1.7 billion yuan, with discrepancies noted between the investment figures in the environmental assessment documents and the IPO prospectus [3][9]. Group 3: Financial Performance - Xin Heng Hui's revenue for the reporting periods from 2021 to 2024 shows a growth trajectory, with total revenues of 548.03 million yuan, 683.81 million yuan, 766.73 million yuan, and 414.26 million yuan, respectively [14]. - The net profit attributable to the parent company for the same periods was 100.51 million yuan, 109.93 million yuan, 152.34 million yuan, and 101.01 million yuan [14]. Group 4: R&D and Innovation - The company has invested in R&D with expenditures of 41.75 million yuan, 42.67 million yuan, 53.94 million yuan, and 23.21 million yuan over the reporting periods, with a decreasing R&D expense ratio [15]. - Xin Heng Hui holds 59 authorized patents, including 32 invention patents, with a significant portion of recent applications filed post-2021 [15]. Group 5: Transaction Discrepancies - There are inconsistencies in transaction data with clients, particularly with Unisoc and Beijing Heqi Data Co., where sales and procurement figures do not align, raising questions about the accuracy of reported financials [16]. - The company reported a procurement of 3.03 million yuan from Heqi Data while simultaneously selling 8.16 million yuan worth of products to the same client, attributed to a barter arrangement due to the client's cash flow issues [16]. Group 6: Future Outlook - The performance of Xin Heng Hui in 2024 will be critical for its IPO pricing and investor interest, with ongoing scrutiny of its financial disclosures and project execution timelines [17].