Hengkun New Materials Suspends IPO, Adjusts Investment Projects

Hengkun New Materials, a company focused on advanced materials for integrated circuits, has had its initial public offering (IPO) temporarily suspended. The company had initially planned to raise 10.07 billion yuan through the IPO, with the funds allocated to two key projects: the Phase II project for integrated circuit precursors and the advanced materials project for integrated circuits. These projects are designed to drive innovation and growth within the company's core business operations.

The suspension of the IPO follows the company's 2025 first extraordinary general meeting of shareholders, held on July 25. During this meeting, a resolution was approved to adjust the investment projects. The decision was made to remove the "SiARC Development and Industrialization Project" from the list of investment projects, reducing the total planned fundraising amount to 10.07 billion yuan. This adjustment reflects the company's strategic shift in focus and priorities, aiming to optimize resource allocation and enhance project feasibility.

The decision to suspend the IPO and adjust the investment projects is a significant development for Hengkun New Materials. It underscores the company's commitment to strategic flexibility and its ability to adapt to changing market conditions. By removing the SiARC project from the investment plan, the company can concentrate its resources on more promising and immediately viable projects, ensuring that the funds raised are used effectively to drive growth and innovation.

The suspension of the IPO also highlights the regulatory scrutiny that companies face during the IPO process. The decision to temporarily halt the IPO suggests that the regulatory authorities may have identified issues that need to be addressed before the offering can proceed. This could include concerns about the company's financial health, project feasibility, or compliance with regulatory requirements. Hengkun New Materials will need to work closely with regulators to address these issues and ensure that the IPO can move forward smoothly.

Hengkun New Materials is dedicated to the research and development of key materials for the integrated circuit industry, with a focus on light-sensitive materials and precursor materials. The company's products are used in various stages of integrated circuit manufacturing, including lithography and thin-film deposition. The company's clients include leading 12-inch integrated circuit wafer manufacturers in China, and it has successfully replaced imported products with domestic alternatives, breaking the monopoly of foreign suppliers in the 12-inch integrated circuit key materials market.

In terms of financial performance, Hengkun New Materials reported revenues of 3.68 billion yuan, 5.48 billion yuan, and 2.94 billion yuan for the periods from 2023 to 2025's first half, respectively. The corresponding net profits for these periods were 8984.93 million yuan, 9691.92 million yuan, and 4148.45 million yuan. The company's strong financial performance and strategic focus on innovation and growth position it well for future success in the integrated circuit materials market.