# Hengkun New Materials
Xiamen Hengkun New Materials Technology Co., Ltd. (恒坤新材, STAR Market ticker 688727) is a Chinese semiconductor-materials maker based in Xiamen that develops, produces, and sells lithography materials and precursor materials, and it has been listed on the [Shanghai Stock Exchange](https://www.edgepedia.org/shanghai-stock-exchange)'s STAR Market since 18 November 2025.[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) The company was established on 10 December 2004 in Xiamen and converted to a joint-stock company on 1 April 2014.[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf)
| Key fact | Detail |
| --- | --- |
| Legal name and ticker | Xiamen Hengkun New Materials Technology Co., Ltd. (恒坤新材), STAR Market code 688727[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) |
| Founded | December 2004, by Hengkun Industrial and Trade (恒坤工贸) and Chen Jiangfu[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) |
| Headquarters | 389 Shanbian Road, Dongfu Town, Haicang District, Xiamen; legal representative Yi Rongkun[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) |
| Products | SOC, BARC, KrF, and i-Line photoresists in mass production; TEOS, HfCl4, and AlCl3 precursors; ArF immersion photoresist in small-scale sales[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [3](https://www.hengkun.com/) |
| IPO | 18 November 2025; RMB 1.0103 billion gross, RMB 891.7 million net at RMB 14.99 per share[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) |
| FY2025 results | Revenue RMB 658.88 million (+20.25%); net profit attributable to shareholders RMB 97.79 million (+0.90%)[4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF) |
| Market position | Frost & Sullivan ranked it first among Chinese domestic vendors in SOC and BARC sales in 2023[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) |
## What Hengkun New Materials does
Hengkun's main business is the research, production, and sale of two families of semiconductor materials.[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) The first is lithography materials: spin-on carbon (SOC) hardmasks (hard etch-resistant layer protecting chip patterns during etching), bottom anti-reflective coatings (BARC), KrF photoresists, and i-Line photoresists, all in mass production, plus ArF immersion photoresist that has passed customer validation and is sold in small volumes, and SiARC and TopCoating products still in customer validation.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF) The second is precursor materials for thin-film deposition, chiefly TEOS ([tetraethyl orthosilicate](https://www.edgepedia.org/tetraethyl-orthosilicate)) and also HfCl4 and AlCl3, which the company says serve DRAM, 3D NAND, MOSFET, and logic applications.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [3](https://www.hengkun.com/)
The products go into advanced NAND and DRAM memory and logic chips at the 90nm node and below; [TrendForce](https://www.edgepedia.org/trendforce) reports that its fab customers produce 3D NAND above 128 layers, DRAM below 18nm, and logic below 14nm.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/)
## History and founding
Yi Rongkun, born in Anxi, Fujian, began his entrepreneurship in 1996 by founding Hengkun Industrial and Trade (恒坤工贸); in December 2004, with his brother-in-law Chen Jiangfu, he established Hengkun Co., Ltd. (恒坤有限), renamed Hengkun New Materials after the 2014 share reform.[6](https://news.futunn.com/en/post/60809958/why-did-hengkun-new-materials-become-the-first-ipo-to) Per the prospectus, the initial registered capital was RMB 2 million, of which Hengkun Gongmao subscribed RMB 1.9 million and Chen Jiangfu RMB 100,000.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF)
The company listed on the NEEQ (the national share-transfer system for smaller firms) in May 2015 and delisted from it in May 2021, ahead of the STAR Market effort.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF)
## Funding, IPO and by the numbers
The Shanghai Stock Exchange accepted Hengkun's STAR Market IPO application on 26 December 2024, with a plan to raise RMB 1.2 billion for an integrated-circuit precursor Phase II project, a SiARC development and industrialization project and an advanced IC materials project.[7](https://news.qq.com/rain/a/20241227A05USR00) The review was then postponed, as described under Risks. The [China Securities Regulatory Commission](https://www.edgepedia.org/china-securities-regulatory-commission) approved the registration on 11 September 2025 (证监许可〔2025〕2008号).[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf)
The completed IPO was smaller than planned. It issued 67,397,940 A shares at RMB 14.99, raising RMB 1,010,295,120.60 gross and RMB 891,734,601.30 net after RMB 118,560,519.30 in issuance costs, giving a post-IPO market value of RMB 6.735 billion at the offer price; trading began on 18 November 2025.[1](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf) Among the strategic investors was Yangtze Memory (YMTC)-backed Changcun Hongtu Equity Investment (Wuhan) [Partnership](https://www.edgepedia.org/partnership), which contributed RMB 40 million.[5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/) Beyond the 2004 founding capital and this RMB 40 million strategic placement, the public record retrieved does not document pre-IPO round amounts.
Business trajectory:
- Self-produced product revenue grew from RMB 123.58 million (2022) to RMB 190.59 million (2023) to RMB 344.19 million (2024), a 66.89% compound growth rate, with the self-produced share of main-business revenue rising to 86.66% by 2025.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
- [Total revenue](https://www.edgepedia.org/total-revenue) rose from RMB 322 million in 2022 to RMB 548 million in 2024, with net profits steady around RMB 90 million.[5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/) The Tencent report gives RMB 322 million, 368 million, and 238 million (H1) for 2022, 2023, and H1 2024.[7](https://news.qq.com/rain/a/20241227A05USR00)
- FY2025 revenue was RMB 658.88 million, up 20.25%, with precursor materials up 54.38%, and lithography materials up 14.39%; net profit attributable to shareholders was RMB 97.79 million, up 0.90%, while total profit fell 16.33% to RMB 89.65 million.[4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
- IPO proceeds fund capacity for roughly 500 tons of KrF/ArF photoresists and other lithography materials and 760 tons of TEOS and other precursors.[5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/)
- After the IPO, 2025 total assets grew 50.64% to RMB 3.985 billion and attributable net assets grew 66.85% to RMB 2.504 billion.[4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
## Business, customers and import substitution
Hengkun's customers are described as several leading Chinese 12-inch wafer fabs, with multiple of China's top-10 fabs named only generically; specific customers are not identified in the record.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) • [7](https://news.qq.com/rain/a/20241227A05USR00) The business model combines self-produced materials with reselling imported products: in 2024 self-produced lithography materials revenue was RMB 299.99 million and precursor materials RMB 44.20 million, while resold imported products contributed RMB 195.56 million.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF)
The company positions itself explicitly as an import substitute. Per the prospectus, in 2023 and 2024 it replaced products of [Nissan Chemical](https://www.edgepedia.org/nissan-chemical), Shin-Etsu, DuPont, Merck, JSR, and Tokyo Ohka.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) Frost & Sullivan data cited there put 2023 localization rates at roughly 10% for i-Line photoresist and SOC, 1–2% for BARC and KrF, and under 1% for ArF, a gap that defines the substitution headroom.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF)
## How it compares with peers
The Chinese market for photoresists and precursors remains dominated by US and Japanese firms including DuPont, Shin-Etsu, Tokyo Ohka, Nissan Chemical, and Fujifilm; Hengkun is a much smaller domestic challenger.[5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/) Within its niches it leads among Chinese vendors: SOC revenue tripled over three years to RMB 232 million in 2024, over 10% of the domestic market, and displacing Nissan Chemical and Shin-Etsu supply, and KrF photoresists launched in 2022 grew nearly 30-fold to RMB 13.52 million by 2024.[5](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/) With FY2025 revenue of RMB 658.88 million, it remains far smaller than the global incumbents in its categories.[4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
## Risks and controversies
Hengkun's IPO review became the first of 2025 to be postponed by the SSE's Sci-Tech Innovation Board, which Futu News attributes to intellectual-property disputes, doubts regarding revenue-recognition compliance and potential financial-management risks.[6](https://news.futunn.com/en/post/60809958/why-did-hengkun-new-materials-become-the-first-ipo-to) Whether those IP disputes were resolved is not stated in the record.
Customer concentration is the other standing risk: the top five customers accounted for 99.22%, 97.92%, 97.20%, and 95.38% of main-business revenue across the reporting periods, and the single largest customer for 72.35%, 66.47%, 64.07%, and 55.15%.[2](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF) [Capacity utilization](https://www.edgepedia.org/capacity-utilization) was also low relative to targets in 2024, at 57% for SOC, 21% for BARC, 18% for KrF, 47% for i-Line, and 46% for TEOS, rising in H1 2025 to 84%, 38%, and 42% for SOC, BARC, and KrF against full-year targets of 100%, 53%, and 46%.[6](https://news.futunn.com/en/post/60809958/why-did-hengkun-new-materials-become-the-first-ipo-to) In 2025 the margin picture weakened despite growth: revenue rose 20.25% but total profit fell 16.33%.[4](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
## References
The following sources document this record; the primary references are the company's SSE listing announcement, prospectus and annual report summary.
1. [厦门恒坤新材料科技股份有限公司科创板上市公告书 (SSE listing announcement, 2025-11-17)](http://big5.sse.com.cn/site/cht/www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2025-11-17/688727_20251117_AHZ1.pdf)
2. [厦门恒坤新材料科技股份有限公司招股意向书 (IPO prospectus, 2025-10-30)](https://static.cninfo.com.cn/finalpage/2025-10-30/1224768050.PDF)
3. [厦门恒坤新材料科技股份有限公司 official site](https://www.hengkun.com/)
4. [厦门恒坤新材料科技股份有限公司 2025 年年度报告摘要 (2025 annual report summary, 2026-04-28)](http://static.cninfo.com.cn/finalpage/2026-04-28/1225209357.PDF)
5. [China Photoresist Maker Hengkun Goes Public on STAR Market with YMTC-Tied Fund (TrendForce, 2025-11-18)](https://www.trendforce.com/news/2025/11/18/news-china-photoresist-maker-hengkun-goes-public-on-star-market-with-ymtc-tied-fund/)
6. [Why did Hengkun New Materials become the first IPO to be postponed this year? (Futu News)](https://news.futunn.com/en/post/60809958/why-did-hengkun-new-materials-become-the-first-ipo-to)
7. [恒坤新材科创板IPO获受理 拟募资12亿元 (Tencent News, 2024-12-27)](https://news.qq.com/rain/a/20241227A05USR00)
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*Initially written Sep 17, 2026 · Edited: Oct 11, 2026; Oct 15, 2026*
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