Hepu Runsi's GEM IPO is terminated, mainly engaged in research, production, sales, and services of OLED evaporation coating materials.

On December 3, Changchun Haipu Run Technology Co., Ltd. (referred to as: Haipu Run) terminated its IPO on the Shenzhen Stock Exchange ChiNext board. The termination was due to the withdrawal of the issuance and listing application by Haipu Run and its sponsor, in accordance with Article 62 of the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules (2024 Revised)", the Shenzhen Stock Exchange decided to terminate its issuance and listing review. According to the prospectus, Haipu Run is a high-tech enterprise mainly engaged in the research and development, production, sales, and purification services of OLED evaporation materials technology. Compared to traditional display technologies, OLED displays have the advantages of self-luminous, wide viewing angles, fast response, small size, lightweight, and flexibility. The companys main product, OLED evaporation materials, is used in the evaporation process of OLED processing. The evaporation process is a core and high-tech component in the manufacturing process of OLED panels, and is in the middle section of the OLED processing. The principle can be simply understood as the OLED material being heated to sublime, and then deposited as a film on a cooled substrate. OLED evaporation materials are the key materials in the OLED evaporation process and are the core functional materials for the OLED panel to achieve light emission. The consistency and purity of OLED evaporation materials directly affect the production stability, yield, and performance of OLED screens, ultimately affecting the display quality of end-user devices using OLED panels. According to Omdia's calculation data, the total market demand for OLED evaporation materials in 2021 was 110.3 tons, an increase of 25% over 2020. According to Omdia, the total market demand for OLED evaporation materials in 2023 is expected to be 117.59 tons, an increase of 33.32% over 2020. According to Omdia and IHS institutions' statistics and forecasts, the global market space for OLED evaporation materials in 2022 is $2.195 billion, and the market size is estimated to reach $2.9 billion by 2025, with a compound annual growth rate of 10.11%. In the Chinese market, according to data from the China Industry Information Network and Co-research Industry Consulting, the domestic market size of OLED evaporation materials in 2022 is 3.417 billion yuan, and is expected to increase to over 4.5 billion yuan by 2025. Due to the late start of the domestic OLED evaporation materials industry, there is a certain technological gap compared to companies in Japan, South Korea, Europe, and America. However, due to international trade frictions and high prices of evaporation materials in recent years, domestic display panel manufacturers have increased their support for domestic material manufacturers to ensure the security of their own evaporation materials supply. Financially, in 2021, 2022, and 2023, Haipu Run achieved operating revenues of approximately 207 million yuan, 296 million yuan, and 349 million yuan, respectively; during the same period, the company achieved net profits of 45.44 million yuan, 84.74 million yuan, and 102 million yuan, respectively. The prospectus mentions that Haipu Run faces a high risk of concentration of a single customer. During the reporting period, the company's sales revenue from BOE accounted for 87.84%, 88.21%, and 90.12% of the operating revenue, respectively. Due to the different types of products/services sold to BOE compared to other customers, BOE's main business gross profit contribution rate is higher than its revenue proportion, at 94.86%, 96.81%, and 99.44%, respectively. If BOE's business conditions deteriorate or the company fails to meet customer demand in a timely manner, leading to a decrease in the demand for the company's OLED evaporation materials from BOE or a adjustment in purchase prices, this may have a significant impact on the company's operating performance. Therefore, the company faces operational risks due to the relatively high concentration of customers and the significant dependence on BOE.