Core Viewpoint - Hengkun New Materials has successfully registered for an IPO on the Sci-Tech Innovation Board, marking a significant milestone in its transformation from traditional optoelectronic film business to key materials for integrated circuits [1] Group 1: Company Development History - Established in 2004, Hengkun New Materials initially focused on the research, production, and sales of optoelectronic film devices and window lens products [2] - Since 2014, the company has been planning a business transformation towards key materials in the integrated circuit field [2] Group 2: Technological Innovation Achievements - The company has achieved significant milestones in technology innovation and R&D investment, focusing on the development and industrial application of key materials for integrated circuits [5] - Hengkun New Materials has successfully introduced imported photoresist materials and precursor materials, which have been validated by leading 12-inch integrated circuit wafer fabs in China since 2017 [4] - The company has achieved over 100 million yuan in sales revenue from self-produced products by 2022, including various photoresist materials and precursor materials [4] - Current products are essential for advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below, addressing critical areas in the integrated circuit wafer manufacturing process [5] - Hengkun New Materials has successfully replaced foreign products in the 12-inch integrated circuit key materials market, breaking the foreign monopoly and moving towards innovation leadership [5]

Core Viewpoint - Hengkun New Materials Technology Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, marking a significant step for the company in the semiconductor materials sector and reflecting a key breakthrough in China's semiconductor industry chain autonomy [1][8]. Group 1: Company Overview - Hengkun New Materials focuses on the research, production, and sales of core materials for integrated circuit manufacturing, specifically photoresists and precursor materials [2]. - The company's product range includes SOC, BARC, KrF photoresists, and i-Line photoresists, which are widely used in advanced processes for logic and memory chips [2]. - By 2024, Hengkun is expected to capture approximately 10% of the domestic market for SOC products, with projected revenue from self-produced photoresist materials reaching 299.99 million yuan [2]. Group 2: Industry Context - The integrated circuit key materials sector is currently experiencing a golden development period, with the market size reaching 113.93 billion yuan in 2023 and expected to exceed 258.96 billion yuan by 2028, reflecting a compound annual growth rate of 14.4% [4]. - High-end products like KrF/ArF photoresists have a domestic production rate of less than 2%, indicating significant potential for domestic suppliers like Hengkun to replace imports [4]. Group 3: Competitive Landscape - The global photoresist market has been dominated by international giants such as JSR, Shin-Etsu Chemical, and DuPont, while precursor materials are largely monopolized by companies like Merck and Air Liquide [6]. - Hengkun has obtained 36 invention patents, with its products reaching international advanced levels, making it one of the first domestic companies to achieve mass production in advanced integrated circuit manufacturing [6]. Group 4: Financial Performance - From 2022 to 2024, Hengkun's revenue from self-produced products grew from 124 million yuan to 344 million yuan, achieving a compound annual growth rate of 66.89% [7]. - The company has supplied over 36,000 gallons of SOC and BARC products, successfully replacing similar products from foreign suppliers [7]. Group 5: Future Outlook - Hengkun's IPO is not only a growth story for the company but also a representation of China's semiconductor industry's breakthrough efforts [8]. - The company aims to enhance its R&D capabilities and production scale for high-end photoresist and precursor materials, solidifying its leading position in the domestic integrated circuit key materials sector [8].

Company Overview - Xiamen Hengkang New Materials Technology Co., Ltd. has received approval for its IPO on the Sci-Tech Innovation Board, marking a significant milestone for the company after over a decade in the integrated circuit key materials sector [2] - The company is one of the few domestic suppliers capable of mass-producing photolithography materials and precursors for 12-inch wafer manufacturing, reflecting a critical breakthrough in China's semiconductor industry [2] Core Business and Technology - Hengkang New Materials focuses on the research, production, and sales of photolithography materials and precursors, with a product range that includes SOC, BARC, KrF photoresists, and i-Line photoresists [3] - The company achieved a domestic market share of approximately 10% for SOC products in 2024, with revenues from self-produced photolithography materials reaching 299.99 million yuan [3] - Hengkang has developed a comprehensive R&D verification system with over 100 products, successfully completing national major science and technology projects [3] Industry Growth and Market Potential - The integrated circuit key materials sector is experiencing a golden development period, with the market size reaching 113.93 billion yuan in 2023 and projected to exceed 258.96 billion yuan by 2028, reflecting a compound annual growth rate of 14.4% [5] - High-end products like KrF/ArF photoresists have a domestic market penetration of less than 2%, indicating significant potential for domestic alternatives [6] Competitive Landscape - The global photolithography materials market is dominated by international giants such as JSR, Shin-Etsu Chemical, and DuPont, while the precursor materials market is monopolized by companies like Merck and Air Liquide [7] - Hengkang has obtained 36 invention patents, with its products reaching international advanced levels, and has become one of the first domestic companies to achieve mass production in advanced process applications [7] Financial Performance - From 2022 to 2024, the company's revenue from self-produced products grew from 124 million yuan to 344 million yuan, representing a compound annual growth rate of 66.89% [8] - The company has supplied over 36,000 gallons of SOC and BARC products, successfully replacing foreign competitors and breaking their monopoly [8] Strategic Positioning - Hengkang is accelerating the localization of upstream raw materials, supported by national policies and capital market dynamics [9] - The company's IPO journey exemplifies the growth of a "hard technology" enterprise and reflects the broader narrative of China's semiconductor industry overcoming challenges [11]

Group 1 - The China Securities Regulatory Commission has approved Xiamen Hengkang New Materials Technology Co., Ltd. for its initial public offering on the Sci-Tech Innovation Board, with a fundraising target of 1.007 billion yuan [1] - 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 [4] - The company's main products include photolithography materials and precursor materials, with significant sales revenue of 344.1893 million yuan in 2024, establishing itself as a major supplier of integrated circuit photolithography and precursor materials in China [4]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has successfully passed the IPO review for the Sci-Tech Innovation Board, aiming to raise 1.007 billion yuan for two major projects related to integrated circuit precursor materials and advanced materials [1][3]. Industry Overview - The domestic market for key materials in integrated circuits, such as photoresists and precursors, is heavily dominated by foreign manufacturers from Europe, the United States, Japan, and South Korea. Chinese companies face significant gaps in raw material supply, equipment development, technology accumulation, talent cultivation, and financial reserves [4]. - The increasing restrictions imposed by foreign countries on China's integrated circuit industry have created substantial challenges for the domestic supply chain, making the push for domestic production of key materials urgent, especially in the high-end integrated circuit sector [4]. Company Strategy - The fundraising projects by Hengkang New Materials align with the industry's trend towards domestic production of key materials. The focus will be on the research and industrialization of precursors and other critical materials, which is expected to enhance the domestic supply chain security for high-end integrated circuits [4]. - The current reliance on imports for key materials presents a competitive disadvantage for domestic manufacturers. However, the growing wafer fabrication capacity and rapid downstream demand create a unique opportunity for domestic companies to capture market share during this "golden development window" [5]. - Hengkang New Materials aims to leverage its existing customer base in the integrated circuit sector to quickly develop products that meet industry standards and ensure stable supply and quality, thereby seizing opportunities in the domestic market [5]. Product Development - Hengkang New Materials has made progress in the integrated circuit materials sector, with products including photoresists and precursors used in 12-inch wafer manufacturing. The company serves several leading domestic wafer manufacturers [6]. - The product range includes silicon-based and metal-based precursors, as well as advanced photoresist materials that meet the needs of cutting-edge manufacturing processes. The introduction of new products will enhance the company's ability to meet domestic demand for localized materials [6]. - The implementation of the fundraising projects will further diversify the product matrix of Hengkang New Materials, increasing its competitiveness and brand influence in the market, which is essential for long-term growth [6].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. has been approved for IPO on the Sci-Tech Innovation Board, indicating its compliance with the necessary conditions for issuance, listing, and information disclosure [2] 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 key materials for 12-inch integrated circuit wafers [2] - The company was established in 2004, initially engaged in the development and production of optoelectronic film devices and window lens products, and shifted its business strategy towards key materials for integrated circuits starting in 2014 [2] - Since 2020, the company has achieved over 100 million yuan in sales revenue from self-produced products, ranking among the top domestic peers in the sales scale of self-produced photoresist materials [2][3] Product Applications - The company's products are essential for the production of advanced NAND, DRAM memory chips, and logic chips at 90nm technology nodes and below, including photoresist and precursor materials [3] - Hengkang New Materials has successfully mass-produced and supplied various products, including SOC, BARC, i-Line photoresist, KrF photoresist, and TEOS precursor materials, with continuous increases in supply as product validations are completed [3] Market Position and Strategy - The company has developed a unique approach of "introducing, digesting, absorbing, and innovating" in the integrated circuit key materials market, successfully replacing foreign products and breaking the monopoly in the 12-inch integrated circuit key materials sector [3][7] - The domestic integrated circuit key materials market is currently dominated by foreign manufacturers, with local companies facing significant challenges in terms of raw material supply, technology, and funding [7] Fundraising and Project Development - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to invest in two major material projects, including the second phase of the precursor project and the development of SiARC [4] - The total fundraising amount has been adjusted to 1.006695 million yuan due to changes in project plans, reflecting the company's strategic focus on enhancing its production capabilities [4]

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. is seeking to raise 1.007 billion RMB through an IPO on the Shanghai Stock Exchange's Sci-Tech Innovation Board, focusing on the research and industrial application of key materials for integrated circuits [1] Company Overview - The company specializes in the research, production, and sales of key materials for integrated circuits, including photolithography materials and precursor materials, and is one of the few domestic firms capable of developing and mass-producing 12-inch integrated circuit wafer manufacturing materials [1][2] - Main products include SOC, BARC, KrF photolithography resin, i-Line photolithography resin, and TEOS precursor materials, with ArF immersion photolithography resin having passed validation and being sold on a small scale [1][2] Market Position - The domestic market for 12-inch integrated circuit photolithography and precursor materials is primarily dominated by foreign manufacturers, but the company has achieved significant breakthroughs and is now one of the main suppliers in China [2] - The company has successfully replaced products from major foreign competitors such as Dai Nippon, Shin-Etsu Chemical, DuPont, Merck, and others, covering major domestic 12-inch integrated circuit wafer manufacturers [2] Financial Performance - The company reported revenues of approximately 322 million RMB, 368 million RMB, and 548 million RMB for the years 2022, 2023, and 2024, respectively [2] - Net profits for the same years were approximately 99.73 million RMB, 89.76 million RMB, and 96.91 million RMB [2] - Total assets increased from 1.632 billion RMB in 2022 to 2.645 billion RMB in 2024, with equity attributable to shareholders rising from 1.273 billion RMB to 1.500 billion RMB over the same period [3]

Core Viewpoint - The article highlights the significance of Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) in the domestic semiconductor materials industry, particularly in the high-end photoresist sector, as it prepares for its IPO on the Sci-Tech Innovation Board, reflecting recognition of its technological scarcity and rectification efficiency by regulatory authorities [1][12]. Industry Overview - The integrated circuit industry is a strategic and foundational sector for national economic and social development, with the self-sufficiency of key materials directly impacting the security and competitiveness of the supply chain [3]. - As of 2023, the domestic production rates for critical materials like i-Line photoresist and SOC are approximately 10%, while KrF photoresist and BARC are below 2%, and ArF photoresist is less than 1%, indicating a heavy reliance on imports [3]. Company Profile - Established in 2004, Hengkang New Materials focuses on two core product categories: photoresist materials (including SOC, BARC, KrF, i-Line, and ArF photoresists) and precursor materials (notably TEOS) [4]. - The company has achieved mass production of several key materials by 2024, supplying over 36,000 gallons of SOC and BARC, and over 320 tons of TEOS, successfully replacing foreign competitors' products [6]. Financial Performance - From 2022 to 2024, the company's revenue from self-produced products grew from 124 million to 344 million yuan, with a compound annual growth rate of 66.89%, and the revenue share increased from 38.94% to 63.77% [6][7]. - In 2023, Hengkang New Materials' self-produced photoresist revenue was 170 million yuan, accounting for approximately 2.2% of the total semiconductor photoresist market in China [11]. Research and Development - Hengkang New Materials emphasizes R&D, with total R&D investment reaching 185 million yuan from 2022 to 2024, and R&D expense ratios increasing to 16.17% by 2024, significantly above the industry average [8]. - The company has made breakthroughs in three core areas: customized development of photoresist materials, high-purity precursor synthesis, and advanced materials validation [9]. Market Position and Strategy - The company has established a leading position in the domestic market for SOC and BARC materials, with significant market shares as of 2023 [11]. - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to invest in the second phase of its precursor project and advanced materials project, aiming to enhance production capacity and product structure [15][16]. - The company aims to expand its product matrix from mid-to-low-end to high-end materials and to promote the localization of upstream raw materials to mitigate supply chain risks [16]. Future Outlook - With increasing government support for the semiconductor industry and the ongoing push for domestic material substitution, Hengkang New Materials is well-positioned to capitalize on growth opportunities in the integrated circuit materials market [12]. - The company is committed to continuous technological innovation and stable operational development, contributing to the security of the supply chain and enhancing China's global competitiveness in the semiconductor industry [16].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (Hengkang New Materials) is applying for an IPO on the Sci-Tech Innovation Board, aiming to become a leading domestic and internationally advanced enterprise in the integrated circuit key materials sector [1][8]. Company Overview - Established in 2004, Hengkang New Materials focuses on the R&D and industrial application of key materials for 12-inch integrated circuit wafer manufacturing, primarily covering photoresist materials and precursor materials [2][6]. - The company has achieved significant sales scale in self-produced photoresist materials, ranking among the top in the industry [2][3]. Market Position - Hengkang New Materials has successfully replaced products from foreign companies such as Tokyo Ohka Kogyo, Shin-Etsu Chemical, DuPont, Merck, and Japan Synthetic Rubber, becoming one of the few domestic companies capable of R&D and mass production of key materials for 12-inch integrated circuits [3][6]. - The company has extensive coverage of major domestic 12-inch integrated circuit wafer manufacturers [3]. Product Development - Hengkang New Materials has developed a range of products, including SOC, BARC, KrF photoresist, and i-Line photoresist, which are essential for advanced NAND, DRAM storage chips, and logic chips at 90nm technology nodes and below [2][4]. - The company has also achieved mass production supply of BARC for immersion lithography processes, supporting the rapid development of advanced processes in the domestic integrated circuit sector [3][4]. Financial Performance - The company's revenue for the years 2022 to 2024 is projected to be 322 million yuan, 368 million yuan, and 548 million yuan, respectively, with net profits of approximately 91.04 million yuan, 81.53 million yuan, and 94.30 million yuan [4][7]. - Hengkang New Materials' self-produced sales revenue has grown from 124 million yuan in 2022 to 344 million yuan in 2024, with a compound annual growth rate of 66.89% [7]. R&D Investment - The company has maintained a high level of R&D investment, with percentages of revenue allocated to R&D being 13.28%, 14.59%, and 16.17% from 2022 to 2024 [7]. - Hengkang New Materials has obtained 89 patent authorizations, including 36 invention patents, reflecting its strong innovation capabilities [7]. Industry Outlook - The integrated circuit key materials industry is experiencing significant growth, with the domestic market for photoresist materials expected to grow from 5.37 billion yuan in 2019 to 12.19 billion yuan in 2023, at a compound annual growth rate of 22.7% [9]. - The company is well-positioned to capitalize on the increasing demand for domestic production of key materials, as the overall level of localization in the integrated circuit industry remains low [8][9]. IPO Plans - Hengkang New Materials plans to raise 1.007 billion yuan through its IPO to fund projects related to integrated circuit precursors and advanced materials [10]. - The company aims to enhance its product matrix and seize market opportunities through the implementation of these fundraising projects [10].

Core Viewpoint - Xiamen Hengkang New Materials Technology Co., Ltd. (referred to as "Hengkang New Materials") has faced a delay in the review of its IPO application on the Sci-Tech Innovation Board, with concerns raised regarding its self-produced photoresist materials and precursor products, accounting practices, and the sustainability of high-yield long-term deposits [2][3]. Group 1: Business Overview - Hengkang New Materials was established in 2004, initially focusing on optoelectronic film devices and window lenses, later transitioning to semiconductor materials, primarily developing photoresist and precursor materials for integrated circuits [3]. - The company's main products are categorized into self-produced and introduced products, with self-produced product sales increasing from 123.58 million yuan in 2022 to 344.19 million yuan in 2024, representing a growing share of total revenue [3][4]. Group 2: Financial Performance - Despite the growth in self-produced product sales, over half of the company's profits still derive from introduced products, which are subject to customer cooperation changes that significantly impact performance [3][4]. - The gross profit from introduced products was 189.41 million yuan in 2022, 167.92 million yuan in 2023, and 192.31 million yuan in 2024, accounting for 82.05%, 74.42%, and 65.86% of total gross profit, respectively [3][4]. Group 3: Customer Dependency - The company's largest customer, referred to as Customer A, accounted for 72.35% of main business revenue in 2022, with sales figures of 229.60 million yuan, 240.29 million yuan, and 345.83 million yuan from 2022 to 2024 [4]. - In 2025, the largest customer terminated its cooperation with Hengkang New Materials, leading to a significant decline in revenue and gross profit from introduced products by 57.4% and 59.09%, respectively, in the first half of 2025 [4]. Group 4: Production and Capacity Issues - Hengkang New Materials' self-produced products include SOC, BARC, KrF photoresist, i-Line photoresist, and TEOS precursor materials, with TEOS being produced under a technology transfer agreement with South Korea's Soulbrain [5][6]. - The company has reported negative gross margins for its self-produced TEOS products, with gross margins of -329.59%, -19.91%, and -1.56% from 2022 to 2024 [6]. Group 5: Expansion Plans - The company plans to raise 1.2 billion yuan for various projects, including the second phase of the integrated circuit precursor project and advanced materials projects, although the total fundraising amount has been reduced to 1,006.70 million yuan due to project adjustments [14][15]. - The second phase of the integrated circuit precursor project is expected to invest 519.11 million yuan and add a production line with a capacity of 720,000 kg [15]. Group 6: Capacity Utilization - Current production capacities for various products in 2024 are reported as follows: SOC at 26,928 gallons, BARC at 20,796 gallons, KrF photoresist at 12,465 gallons, and TEOS at 840,000 kg, with utilization rates of 57.42%, 21.43%, 17.55%, and 46.47%, respectively [16][17]. - There are discrepancies noted between the production capacities reported in the IPO documents and those disclosed in inquiry responses, with some subsidiary capacities exceeding the total capacities reported [18][20].