On the evening of July 25, the official website of the Shanghai Stock Exchange (SSE) showed that Xiamen Hengkun New Materials Technology Co., Ltd. (hereinafter referred to as "Hengkun New Materials") faced a review meeting for its STAR Market IPO that day, with the result being a temporary suspension of the review. Notably, the company is also the first IPO project this year to face a temporary suspension of review across the SSE, Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE).

It is understood that Hengkun New Materials is dedicated to the R&D and industrial application of key materials in the integrated circuit (IC) field. It is one of the few innovative enterprises in China with the capability to develop and mass-produce key materials for 12-inch IC wafer manufacturing, primarily engaged in the R&D, production, and sales of products such as photoresist materials and precursor materials. The company aims to raise 1.007 billion yuan in this IPO attempt, with the proceeds, after deducting issuance expenses, to be allocated to the second-phase project of IC precursors and the advanced materials project for ICs.

From 2022 to 2024, Hengkun New Materials reported operating revenues of approximately 322 million yuan, 368 million yuan, and 548 million yuan, respectively. The corresponding net profits attributable to shareholders were approximately 101 million yuan, 89.8493 million yuan, and 96.9192 million yuan, respectively.

During the listing committee meeting, the committee requested Hengkun New Materials to explain whether there is a risk of intellectual property disputes related to the core technologies of its self-developed photoresist and precursor products, based on the initial technology sources, R&D methods, key R&D personnel, R&D investments, and corresponding patent technologies. Additionally, the company was asked to clarify whether the use of the net method to recognize revenue for imported business during the reporting period complies with the requirements of the Accounting Standards for Business Enterprises (ASBE), considering its business model, comparable industry cases, and pre-reporting period accounting policies, as well as the reasons for not adopting the net method in previous years.

The listing committee also required Hengkun New Materials to explain the rationality of the higher yield on long-term fixed deposits compared to bank loan interest rates, whether the long-term fixed deposits face usage restrictions, and whether there are any wealth management risks.

Furthermore, the committee asked Hengkun New Materials to further demonstrate, based on its business model, comparable industry cases, and pre-reporting period accounting policies, whether the use of the net method to recognize revenue for imported business during the reporting period complies with the ASBE.