Hualing Electronics IPO "terminated", the company faces the risk of decreased market demand.

On February 29, Shandong Hualing Electronic Co., Ltd. (referred to as "Hualing Electronic") had its IPO status on the ChiNext board of the Shenzhen Stock Exchange changed to "terminated", because the company applied to withdraw its application for initial public offering. According to the prospectus, Hualing Electronic is a high-tech enterprise specializing in the research, development, production, sales, and technical services of thermal print heads. They can provide customers with a variety of series and applications of thermal print heads with various printing densities, speeds, and widths, with over a thousand different specifications. They are a leading manufacturer in the world for the research, development, and production of thermal print heads. The company was the first to achieve the localization of the core component of thermal printingthermal print heads, breaking the long-term monopoly by foreign manufacturers. The company's main product is thermal print heads, which are electronic devices that use Joule heat effects for information printing and are the core components of thermal printers. The specifications and performance of thermal print heads directly determine the quality of image and text output, playing a crucial role in ensuring national information security. The company's products are mainly used in various industries such as finance, commercial retail, logistics, industrial manufacturing, household, medical, transportation, etc., playing an important role in automation, intelligentization, and networking in the field of information output technology. Thermal printing technology is widely used in electronic government, aerospace, shipping, ticketing, labeling, and logging, etc. Thermal print heads are divided into thick film products and thin film products according to different technical routes, and into 2 inches and below, 3 inches, 4 inches and above according to different printing widths. Thick film products use precious metal materials and printing and sintering technology, with high product reliability suitable for printing in harsh environments; thin film products mainly use technology such as vacuum deposition, with thin and uniform heating elements, uniform heating points, high heating efficiency, enabling high resolution, high speed, and high gray scale printing, suitable for ultra-fine printing. In terms of finances, in 2020, 2021, and 2022, the company achieved operating revenues of about 471 million yuan, 590 million yuan, and 598 million yuan respectively, with net profits of approximately 98.1337 million yuan, 126 million yuan, and 122 million yuan respectively over the same period. It is worth noting that Hualing Electronic mentioned in the prospectus that there is a risk of decreasing market demand. With the continuous development of thermal printing technology, the application of thermal printing has gradually expanded to various fields of industry, commerce, and national life, such as finance, commercial retail, logistics, industrial manufacturing, household, medical, transportation, etc., driving the growth in demand for thermal print heads. The widespread application of electronic data in the future may lead to a decrease in printing demand in certain downstream industries, which may have an adverse impact on the company's future operations.