New Stock News | Eastcompeace Applies to Hong Kong Stock Exchange Again to Become the World's Second Largest E-paper Display Maker

According to the disclosure by the Hong Kong Stock Exchange on April 16, Zhejiang Orient Holdings Group's KeMai Electronic Co., Ltd. (referred to as Orient KeMai) has once again submitted its application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC as its exclusive sponsor. Company Overview According to the prospectus, the company is a well-known enterprise in the global electronic paper display industry, mainly engaged in the development, production, and sale of electronic paper display modules. Based on data from Burning Insight Consulting, by revenue in 2024, the company is the second-largest electronic paper display manufacturer globally (holding a market share of 20.5%) and the largest commercial electronic paper display manufacturer globally by revenue (holding a market share of 26.3%). By revenue, the company's commercial electronic paper display division accounted for 77.9% of the global commercial electronic paper display market in 2024, demonstrating its leading position in the market. Over the past decade, the company has accumulated experience in electronic paper display technology and has established the capability to independently design and manufacture electronic paper display modules. The company focuses on research, development, production, and sales of electronic paper display modules covering various colors and sizes. Its product portfolio is used in diverse applications such as smart retail, smart offices, smart education, smart logistics, smart transportation, e-readers, and emerging applications. Through its digital display products, the company aims to support a smarter way of living and working in the Internet of Things era. The company's electronic paper display modules make up the hardware components of electronic paper display terminal products. As key components that convert data into image signals to display on electronic paper, these modules ultimately drive the operation of electronic paper display terminal products. Therefore, the company's electronic paper display modules are semi-finished products that need to be integrated into other devices to achieve complete functionality. The company's production process involves cutting, laminating, bonding, and gluing various raw materials to assemble the final electronic paper display modules, utilizing core electronic paper display technology owned by third-party suppliers, mainly in the form of materials like electronic ink films. In the entire value chain of electronic paper display, the company's electronic paper display modules can be considered semi-finished products because they need to be integrated into electronic paper display terminal products to function completely. Electronic paper display terminal products can take various forms depending on downstream application scenarios. During the performance record period, almost all of the company's products were deployed in smart retail. Other application scenarios include smart offices, smart education, smart logistics, smart transportation, smart healthcare, and smart wearables. The company has launched new electronic paper display products such as full-color large-scale billboard products. Currently, the planned and in-development products include medium and small-sized full-color OTFT, PIa-Si flexible products, full-color large-sized products based on Spectra6 technology, and full-size multi-color, wide-temperature products based on Spectra3100 technology. The application areas of these products will expand from intelligent retail to smart offices, smart education, smart logistics, smart transportation, and smart healthcare, among other scenarios, indicating significant growth potential in revenue. The company has demonstrated strong market competitiveness. Based on data from Burning Insight Consulting, by revenue in 2024, the company is the second-largest global electronic paper display manufacturer (holding a market share of 20.5%) and the largest commercial electronic paper display manufacturer globally by revenue (holding a market share of 26.3%). Notably, according to Burning Insight Consulting, the company is one of the few globally to have a first-mover advantage in flexible electronic paper technology and large-scale commercialization. In terms of commercial electronic paper displays, the company's product portfolio covers full-size, full-color, and flexible products, offering diverse and flexible delivery modes. Additionally, the company is the only electronic paper display manufacturer globally to successfully enter the humanoid Siasun Robot & Automation application market, gaining a first-mover advantage in technological innovation and actual commercial deployment, thereby establishing a differentiated competitive edge. Financial Information Revenue In 2023, 2024, and 2025, the company's revenues were approximately RMB 1.024 billion, RMB 1.152 billion, and RMB 1.713 billion, respectively. Profit In 2023, 2024, and 2025, the company's annual profits were RMB 50.739 million, RMB 53.404 million, and RMB 80.228 million, respectively. Gross Profit Margin In 2023, 2024, and 2025, the company's gross profit margins were 15.8%, 15.8%, and 16.4%, respectively. Industry Overview With the deepening of global green and low-carbon transformation, the demand for digitalization and paperless operations is expected to continue growing. Among many mainstream display technologies, electronic paper, with its unique advantages of ultra-low power consumption, paper-like texture, eye protection experience, slimness, durability, and flexibility, is more in line with the trend of developing intelligent Internet of Things terminals compared to backlit displays, higher power-consuming liquid crystal displays (LCDs), and organic light-emitting diodes (OLEDs). As the core display technology for the next generation of intelligent Internet of Things devices, the ultra-low power characteristics of electronic paper also align with global carbon neutrality goals. With continued support for low-carbon information technology construction and the ongoing development and deployment of organic thin-film transistor (OTFT) technology in the field of flexible electronic paper, and the increasing demand for flexible, ultra-low power display technology in intelligent Internet of Things devices, the application scenarios for electronic paper are expected to penetrate into a wider range of commercial and consumer fields. As technology advances and applications widen, the use of electronic paper has gradually expanded from smart retail and traditional e-reading fields to various emerging industries and niche markets, providing continued growth momentum for the industry and creating broad market opportunities for the company. In this context, the global retail industry is accelerating its digital transformation, and the adoption rate of electronic price tags is steadily increasing. According to Burning Insight Consulting, it is expected that the global electronic paper display market in smart retail will reach 555 million units by 2029, with a compound annual growth rate of 15.6% from 2024 to 2029. At the same time, rapid development is seen in emerging fields such as smart education, smart offices, smart logistics, with electronic paper being increasingly used in scenarios such as smart transportation and smart home interactive screens, further driving the increase in market demand. According to Burning Insight Consulting, the global market size of electronic paper display products is expected to grow at a compound annual growth rate of 14.6%, increasing from RMB 54.8 billion in 2024 to RMB 108.4 billion by 2029. In 2024, the global electronic paper display market remained highly concentrated. Leading companies have established diversified product portfolios covering monochrome, color, full-color, flexible, and segmented products through years of technological development, market experience, and product validation. These products are widely deployed in commercial and consumer applications such as retail, industrial, medical, and consumer electronics sectors. With the recovery of downstream demand (especially for electronic paper price tags), inventory levels in the industry have rapidly decreased, and sales are increasingly concentrated among top suppliers, leading to a stable but increasingly consolidated competitive landscape. Board of Directors Information The board of directors is currently composed of nine directors, including two executive directors, four non-executive directors, and three independent non-executive directors. Directors serve a term of three years and may be re-elected after retirement. The board is responsible for and has overall authority over the management and operation of the group's business, including formulating business strategies and investment plans, implementing resolutions passed by shareholders' meetings, and exercising other powers, functions, and responsibilities conferred by the articles of association. The board is also responsible for developing and reviewing corporate governance, risk management, internal controls, and policies and practices to comply with legal and regulatory requirements. Equity Structure As of the latest practicable date (April 8, 2026), the concerted action group collectively holds approximately 36.79% equity interest in the company directly and indirectly. Therefore, the concerted action group, along with Dalian Longgu, Jiaxing Longxi, and Jiaxing Longguan (entities whose voting rights are ultimately controlled by Mr. Zhou), will be considered a controlling shareholder group after compilation. Intermediary Team Exclusive Sponsor: CITIC SEC (Hong Kong) Limited. Legal Advisors: Norton Rose Fulbright Hong Kong, King & Wood Mallesons, RHTLawVietnam, JunHe LLP. Exclusive Sponsor and Compilation Legal Advisor: DeJin Law Firm, Beijing Tongshang Law Firm. Reporting Accountant and Independent Auditor: ShineWing International. Industry Consultant: Burning Insight Consulting (Shanghai) Co., Ltd. Property Valuer: Knight Frank Valuation Services Limited.