Core Viewpoint - The article highlights the operational challenges and risks faced by Hengkun New Materials as it attempts to go public on the Sci-Tech Innovation Board, particularly focusing on issues related to technology independence, revenue recognition practices, and financial management [2][3][9]. Group 1: Operational Challenges - Hengkun New Materials has significant reliance on imported materials, with 30%-50% of its photolithography material costs depending on imports from Japan and South Korea, indicating a lack of technological independence [3][4]. - The company's patent portfolio is weak, with 36 invention patents, over half of which were filed after 2021, raising concerns about the timing and intent behind these applications [3]. - The gross margin for self-produced photolithography materials is declining, projected at 33.52%, 30.29%, and 28.97% from 2022 to 2024, while the gross margin for self-produced precursor materials has been negative for three consecutive years [4]. Group 2: Revenue Recognition Issues - Hengkun New Materials has shifted its revenue recognition method for its import business to a "net method," which has artificially inflated the proportion of self-produced products in its revenue from 28.22% in 2021 to 63.77% in 2024 [5][6]. - Despite this shift, over 65% of the company's gross profit still relies on imported products, raising questions about the sustainability of its revenue model [5][6]. Group 3: Financial Management Concerns - The company exhibits a "high deposit and high loan" phenomenon, with bank deposits of 746 million yuan and loans of 633 million yuan as of the end of 2024, prompting scrutiny from the listing committee [7]. - Interest income has become a significant part of the company's profits, with interest income rising from 2.07 million yuan in 2022 to 21.29 million yuan in 2024, constituting 21.9% of total profits in 2024 [8]. - Government subsidies have also played a crucial role in supporting profits, with subsidies accounting for 100.78% of total profits in 2021, indicating that the company may be operating at a loss without these funds [8]. Group 4: Industry Context - The challenges faced by Hengkun New Materials reflect broader issues within the Chinese semiconductor materials industry, including the long technology transfer cycle, high R&D costs, and low profitability [9]. - The current situation serves as a warning for the industry, emphasizing the need for genuine innovation and reduced reliance on imported technologies to achieve sustainable growth [9].

Core Viewpoint - The listing review of Xiamen Hengkang New Materials Technology Co., Ltd. has been postponed by the Shanghai Stock Exchange, raising concerns about potential intellectual property disputes and accounting practices [1][2]. Group 1: Company Overview - Hengkang New Materials focuses on the research and industrial application of key materials in the integrated circuit field, being one of the few domestic companies capable of developing and mass-producing 12-inch integrated circuit wafer manufacturing materials [2]. - The company's main products include SOC, BARC, KrF photoresists, i-Line photoresists, and TEOS precursor materials, with ArF immersion photoresists having passed verification and being sold on a small scale [2]. - Hengkang New Materials aims to replace foreign products in the domestic integrated circuit industry, leveraging a strategy of "introducing, digesting, absorbing, and innovating" to gain customer resources and accumulate product introduction and quality control experience [2]. Group 2: Regulatory Concerns - The Shanghai Stock Exchange has requested Hengkang New Materials to clarify the initial technology sources, R&D methods, core personnel, R&D investments, and corresponding patent technologies related to their self-produced photoresist materials and precursors, particularly regarding potential intellectual property disputes [1]. - The company is also required to explain the appropriateness of recognizing revenue using the net method in accordance with accounting standards, as it did not adopt this method in previous reporting periods [1]. - Additionally, Hengkang New Materials must justify the rationale behind the higher yield of long-term deposits compared to bank borrowing rates, and whether there are any restrictions or risks associated with these deposits [1].

Core Viewpoint - Hengkun New Materials has had its IPO review temporarily postponed by the Shanghai Stock Exchange, despite its focus on key materials for the integrated circuit industry and its innovative capabilities in the field [5]. Group 1: Company Overview - Hengkun New Materials is dedicated to the research and industrial application of key materials in the integrated circuit sector, being one of the few domestic companies capable of developing and mass-producing critical materials for 12-inch integrated circuit wafer manufacturing [3]. - The company's main products include photolithography materials and precursor materials, such as SOC, BARC, KrF photoresist, and i-Line photoresist, with ArF immersion photoresist having passed validation and being sold on a small scale [3]. - Hengkun New Materials has successfully replaced foreign products in the domestic market, breaking the monopoly on key materials for 12-inch integrated circuits [3]. Group 2: Financial Performance - The company reported revenues of 368 million yuan, 548 million yuan, and 294 million yuan for the years 2023, 2024, and the first half of 2025, respectively, with net profits of approximately 89.85 million yuan, 96.92 million yuan, and 41.48 million yuan during the same periods [3]. Group 3: IPO and Future Plans - Hengkun New Materials plans to raise 1.007 billion yuan through its IPO, which will be used for the second phase of its precursor project and advanced materials for integrated circuits [4]. - The company aims to enhance its product structure, promote technological innovation, and increase the localization level of related products through the implementation of its fundraising projects [4]. - Future strategies include deepening its focus on key materials for integrated circuits, expanding product lines, ensuring product quality, and actively participating in customized development for clients [4].

Group 1: Financial Performance - The company's semiconductor business revenue increased by 65% year-on-year in Q1, rising from 2.06 billion to 3.39 billion [2] - The company anticipates continued revenue growth throughout the year, maintaining the upward trend established in Q1 [2] Group 2: Research and Development - The R&D expenses for this year are expected to increase compared to last year's 220 million [1] - The company has developed etching liquids for DRAM products, which are expected to see significant sales growth this year [2] Group 3: Production Capacity and Market Demand - The expansion plan for the Hefei Phase I production capacity is based on future market demand and current capacity [1] - The sales volume of chip copper interconnect plating solutions and additives is projected to continue the growth trend of over 23% year-on-year [1] Group 4: Strategic Planning - The company will focus on executing its strategic plan, emphasizing technology leadership and addressing domestic market gaps while enhancing R&D for core technologies [2] - The development of immersion ArF photoresists is ongoing, with challenges in quality control and customer certification [2]