Shenzhen Stock Exchange has formally accepted HKC Corporation's IPO application, revealing its renewed pursuit of a main board listing with plans to raise 8.5 billion yuan. The capital allocation strategy earmarks 2.5 billion yuan for Changsha's new OLED R&D upgrade, 3 billion yuan for Changsha Oxide R&D and industrialization, 2 billion yuan for Mianyang Mini-LED manufacturing, and 1 billion yuan for working capital and loan repayments.

This fundraising effort places HKC's valuation between 56 billion and 85 billion yuan—significantly exceeding the approximately 40 billion yuan implied by the panel industry's average 1.2x price-to-book ratio. The company previously withdrew its 2022 ChiNext listing attempt after failing to meet profitability requirements during pandemic-era losses.

Financial metrics reveal both progress and persistent challenges: - Revenue climbed from 27.134 billion yuan (2022) to 40.310 billion yuan (2024) - Net profits reached 3.673 billion yuan in 2024 after a 2.097 billion yuan loss in 2022 - Overseas sales contributed nearly half of total revenue (49.92% in 2024) - Global market share exceeded 10% across TV, monitor, and smartphone panels

Despite these gains, HKC grapples with severe financial pressures: - Short/long-term loans totaled 218.81 billion and 112.71 billion yuan respectively at 2024 year-end - Pending equity acquisitions exceed 129 billion yuan - Debt-to-asset ratio remained elevated at 68.78% (2024) - Current/quick ratios stood below 1 (0.99 and 0.85 respectively) - Remarkably, the company distributed 200 million yuan in dividends amidst this debt burden

Notable accounting differences raise eyebrows: - Inventory provisions plunged from 1.369 billion yuan (2022) to 272 million yuan (2024) - This 4.09% provision rate contrasts sharply with BOE's 22.64% and TCL's 18.96% - Depreciation policies remain stringent, with machinery depreciation rates reaching 50%

Technologically, HKC's G8.6 production lines deliver competitive advantages in large-sized panels (85+ inches) through flexible cutting configurations. However, its complete absence from OLED manufacturing creates vulnerability as global OLED output value expands. Samsung Display and BOE dominate this critical growth segment.

Funding priorities appear contradictory: - While raising capital for OLED/Mini-LED projects - R&D spending actually decreased to 1.411 billion yuan (3.5% of revenue) in 2024 - This reduction occurred despite OLED being highlighted as a strategic weakness

The panel industry's "three countries, four regions" competitive landscape sees Korean firms leading OLED technology, while Chinese manufacturers including BOE, TCL CSOT, and HKC dominate LCD production. Whether this IPO can alleviate HKC's financial constraints and address technological gaps remains uncertain amid cyclical industry risks and fierce competition.