Zhuzhou Keneng Science and Technology Innovation Board's IPO was accepted, laying out the Mini/MicroLED and other material markets

On May 11, the Shanghai Stock Exchange disclosed that the Zhuzhou Keneng Science and Technology Innovation Board IPO was accepted and the company planned to raise 560 million yuan.

The prospectus shows that the funds raised this time will be mainly used for "annual output of 500 tons of semiconductor high-purity materials projects and recycling projects", "sparse metal advanced materials R&D center construction projects" and to supplement working capital.

Among them, the "annual output of 500 tons of semiconductor high-purity materials project and recycling project" is planned to be implemented by Zhejiang Nengpeng, a wholly-owned subsidiary. The construction site is located in the optical film town of Lanxi City, Zhejiang Province. After the project reaches full production, it is expected to have production capacity of 120 tons/year of high-purity arsenic, 110 tons/year of high-purity gallium, 60 tons/year of high-purity indium, 50 tons/year of high-purity cadmium, 50 tons/year of high-purity tellurium, 45 tons/year of high-purity antimony, as well as high-purity zinc, high-purity phosphorus, high-purity selenium, and high-purity sulfur.

The project will add production capacity for key semiconductor materials such as high-purity arsenic, high-purity gallium and high-purity indium. Among them, gallium arsenide materials are widely used in radio frequency devices, laser devices and LED manufacturing due to their characteristics such as high frequency, high power density, and high luminous efficiency. The terminal applications cover 5G/6G communications, Mini LED and Micro LED displays, artificial intelligence, intelligent networked new energy vehicles, wearable devices, aerospace and other fields.

According to data, Zhuzhou Keneng was established in 2001 and is mainly engaged in the research and development, production and sales of scattered metals, semiconductor materials and display luminescent materials. The company's products include indium, gallium, bismuth, tellurium, tin and related products, which are used in industries such as liquid crystal displays, semiconductors, electronics, solar energy and medicine. It also carries out valuable waste recycling business, forming a circular industry chain from raw materials, materials, products to recycling.

The company's customers include a number of domestic and foreign compound semiconductor, ITO target and chemical companies, including compound semiconductor companies such as Sumitomo Electric and Sanan Optoelectronics, as well as scientific research institutions such as the Institute of Semiconductors of the Chinese Academy of Sciences; it also includes ITO target companies such as Mitsui Metals and Koyo Technology, as well as chemical companies such as VIBRANTZ, KCC, and SUN CHEMICAL.

In terms of performance, the prospectus shows that Zhuzhou Keneng's operating income from 2023 to 2025 was 610 million yuan, 787 million yuan and 1.027 billion yuan respectively; net profits were 43.04 million yuan, 72.07 million yuan and 140 million yuan respectively; net profits after non-deduction were 39.11 million yuan, 70.93 million yuan and 122 million yuan respectively.

From the perspective of revenue structure, the company's revenue mainly comes from three series of products: gallium, indium and bismuth. During the reporting period, the total revenue of the above products was 580 million yuan, 750 million yuan and 979 million yuan respectively, accounting for 95.47%, 96.57% and 97.49% of the main business revenue respectively.