China Science and Technology Innovation Board of Shanghai Stock Exchange has accepted the IPO application of Zhongke Science and Technology, with a planned fundraising amount of 598 million yuan.

On December 5th, Jiangsu Zhongke Kehua New Materials Co., Ltd. (referred to as Zhongke Kehua) has submitted its application for an IPO on the Shanghai Stock Exchange Sci-Tech Innovation Board. CMSC is the sponsor institution, and the company plans to raise 598 million yuan. The prospectus shows that Zhongke Kehua focuses on research, production, and sales of semiconductor packaging materials, with its main product being epoxy molding compounds, a key material in the semiconductor packaging process widely used in consumer electronics, automotive electronics, industrial control, communication, computer, and other terminal applications. The company targets the mid-to-high-end market, with rapid growth in sales revenue of mid-to-high-end epoxy molding compounds during the reporting period, with an increasing proportion. Currently, the domestication rate of semiconductor packaging materials in China is still relatively low, and the company is one of the few domestic manufacturers with independent research and large-scale production capabilities for mid-to-high-end epoxy molding compounds. During the reporting period, the company's epoxy molding materials business scale steadily rose to second place among domestic manufacturers, with some mid-to-high-end products replacing Japanese competitive products. As of the signing date of this prospectus, the company has established long-term and stable partnerships with downstream well-known manufacturers such as China Resources Microelectronics (688396.SH), Foshan Blue Rocket Electronics (301348.SZ), Jiangsu Jiejie Microelectronics (300623.SZ), Changzhou Galaxy Century Microelectronics Co., Ltd. (688689.SH), TongFu Microelectronics (002156.SZ), Tianshui Huatian Technology (002185.SZ), Fine Made Microelectronics Group (300671.SZ), China Chippacking Technology Co., Ltd. (688216.SH), Ri Yue Xin Group, KEC Group, and others. The proceeds from this public offering of new shares will be invested in the following projects: Financially, in the fiscal years 2022, 2023, 2024, and January-June 2025, Zhongke Kehua is expected to achieve operating revenues of around 200 million yuan, 250 million yuan, 331 million yuan, and 159 million yuan respectively; and net profits attributable to the parent company are projected to be 4.7437 million yuan, 10.0283 million yuan, 33.8985 million yuan, and 15.5316 million yuan respectively.