Hengkun New Materials' IPO on the Shanghai Stock Exchange has been temporarily suspended for review. The company's customers include several 12-inch integrated circuit wafer factories in China.

On July 25th, the Shanghai Stock Exchange Listing Committee announced the results of the 26th review meeting for the year 2025, showing that Xiamen Hengkun New Material Technology Co., Ltd. (IPO) has been temporarily postponed for review. The Shanghai Stock Exchange requested that Hengkun New Material representatives explain whether there is a risk of intellectual property disputes related to the technology of their self-produced photolithography materials and precursor main products, including the initial technological sources, research and development methods, core research and development personnel, research and development investment, and corresponding patented technologies. The sponsor representative is also requested to provide a clear opinion. Furthermore, Hengkun New Material representatives are asked to explain whether the revenue recognition using the net method for introducing business in the reporting period complies with the provisions of enterprise accounting standards, considering their business model, comparable cases in the industry, and accounting policies in previous reporting periods. They should also clarify the reasons for not using the net method for revenue recognition in previous reporting periods. The sponsor representative is also requested to provide a clear opinion. Additionally, Hengkun New Material representatives are asked to explain the reasonableness of having a higher long-term deposit interest rate than the bank borrowing rate, any limitations on the use of long-term deposits, and the presence of financial risks. The sponsor representative is also requested to provide a clear opinion. According to the prospectus, Hengkun New Material is dedicated to the research and industrial application of key materials in the field of integrated circuits, being one of the few domestic innovative enterprises with the capability to research and mass produce key materials for 12-inch integrated circuit wafer manufacturing. The company's main focus is on the research, production, and sales of photolithography materials and precursor materials. During the reporting period, the company's self-produced products mainly included SOC, BARC, KrF photolithography resist, i-Line photolithography resist, TEOS precursor materials, and ArF immersion photolithography resist which have been validated and sold on a small scale. These materials are mainly used in the photolithography and thin-film deposition processes for advanced NAND, DRAM memory chips, and logic chip production at the 90nm technology node and below. Moreover, with the increasing demand for domestic alternatives in the integrated circuit industry in China, Hengkun New Material has strategically introduced and sold overseas photolithography materials, precursor materials, electronic specialty gases, and other wet electronic chemicals to quickly access customer resources, accumulate product introduction and quality control experience, and innovate a development path of "introducing, digesting, absorbing, and innovating." During the reporting period, the company's customers included several leading 12-inch integrated circuit wafer factories in China, achieving the replacement of foreign similar products and breaking the foreign monopoly on key materials for 12-inch integrated circuit production.