Huike temporarily suspends IPO

Recently, the latest information from the official website of the Shenzhen Stock Exchange showed that the IPO review status of the main board of Huike Co., Ltd.(referred to as Huike) was changed to suspension, which attracted industry attention. The suspension was not due to major operating issues, but because the financial information in the prospectus exceeded the validity period and required supplementary submission of relevant documents as required, which was a routine procedural adjustment during the IPO review. Looking back on Huike's path to listing, its exploration of the capital market has gone through many twists and turns. Behind the suspension of this IPO, it not only reflects the company's determination to impact the main board, but also hides its strategic layout considerations during the critical period of industry technology iteration.​

There are many twists and turns on the road to listing: the IPO has been hit twice, and the main board process has been temporarily suspended

This is not the first time Huike's attempt in the capital market. The suspension of the main board IPO is another stage in its listing journey. As early as June 2022, Huike submitted an application to the Shenzhen Stock Exchange for an initial public offering and listing on the GEM, trying to achieve a capitalization breakthrough through the GEM. However, more than a year later (August 2023), the company voluntarily applied for withdrawal of the application documents, and the initial IPO ended in termination. As for the reasons for the withdrawal, market speculation may be related to the GEM's review requirements for corporate earnings stability and technological innovation at that time, as well as the pace of Huike's own business structure adjustment.​

In 2024, Huike will restart its listing plan and launch counseling to shift its listing target from the GEM to the main board. It is obviously hoping to use the main board's tolerance for mature companies and broader financing space to support business development. On June 30, 2025, Huike's prospectus submitted to the main board of the Shenzhen Stock Exchange was formally accepted. On July 11, it quickly entered the inquiry stage, and the listing process once accelerated. However, according to the on-site inspection lottery list of the second batch of IPO companies in 2025 announced by the Securities Industry Association of China and the subsequent announcement of the Shenzhen Stock Exchange, Huike was forced to suspend the IPO review due to the expiration of the financial information in the prospectus and the need to submit supplementary submissions.​

From the perspective of industry practice, the validity period of financial information is usually 6 months or 12 months. If the company fails to update it in time during the review period, it needs to supplement the latest financial data, audit reports and other documents. After the review and approval by the regulatory body, the IPO process can be restored. For Huike, this suspension is more a time-level adjustment rather than a material obstacle. If the financial information supplement can be successfully completed in the future, its main board listing path is expected to continue.​

8.5 billion fundraising blueprint: Anchoring oled and Mini-LED, consolidating display technical barriers

Although the IPO process has been temporarily suspended, Huike's 8.5 billion yuan fundraising plan disclosed in its prospectus has clearly outlined its technical layout direction in the display industry. The fundraising will focus on three major areas, of which 5.5 billion yuan will be used for Changsha OLED and Oxide display technology R & D and upgrading projects, 2 billion yuan will be invested in Mianyang Mini-LED intelligent manufacturing projects, and the remaining 1 billion yuan will be used to supplement working capital and repay loans, each investment accurately corresponds to the cutting-edge technology and market demand of the display industry.​

In the field of OLED, Huike Changsha project focuses on the R & D upgrade and production capacity optimization of OLED display technology, while taking into account breakthroughs in Oxide(Oxide Semiconductor) technology. OLED has become a mainstream display solution for high-end smartphones, notebook computers, and smart wearable devices with its advantages of flexibility, high contrast, and wide color gamut. Oxide technology, as a key support for OLED panels (can improve panel resolution and response speed), is one of the core competitiveness of enterprises to seize the high-end OLED market. Huike's investment of 5.5 billion yuan will not only expand existing OLED production capacity, but will also carry out technical research on high-end products such as flexible OLEDs and folding screens, trying to narrow the gap with leading companies such as BOE and TCL Huaxing in the OLED field.​

In the field of Mini-LED, Mianyang Mini-LED intelligent manufacturing project is another strategic focus of Huike. As the upgrade direction of LCD display, Mini-LED achieves more precise local dimming through micron LED chips. It is superior to traditional LCDs in terms of brightness, contrast, power consumption, etc., and its cost is lower than that of OLED. It has been widely used in high-end TVs, e-sports displays, car displays and other scenarios. Huike plans to increase the layout of the Mini-LED production line through this project and continue to develop high-performance Mini-LED backlight modules and direct display products. On the one hand, it enriches its own display product matrix, and on the other hand, it grasps the rapid growth of the Mini-LED market. During the dividend period, seize market share in mid-end and high-end display.​

The remaining 1 billion yuan will be used to supplement working capital and repay loans, which reflects Huike's consideration of optimizing the financial structure. It shows that the industry is a capital-intensive industry, and production line construction and technology research and development require continuous large capital investment. Huike can supplement working capital by raising funds, which can relieve daily operating pressure, reduce debt levels, optimize capital structure, and provide long-term technology research and development and production capacity expansion. Provide financial support.​

Strategic significance: From scale expansion to technological breakthrough, responding to industry competition

Behind Huike's IPO fundraising layout is its strategic transformation needs in demonstrating the competitive landscape of the industry. As an important participant in the domestic display panel industry, Huike's main business covers the research and development, manufacturing and sales of semiconductor display panels and smart display terminals. Its products cover large, medium and small size panels, and has a certain market share in TV panels, display panels and other fields. However, with the continued efforts of leading companies such as BOE and TCL Huaxing on multiple technology routes such as LCD, OLED, and Mini-LED, as well as the technological monopoly of international companies such as Samsung and LG in the high-end display field, Huike is facing the competitive pressure of being a model soldier in the front and chasing after others, and it is urgent to consolidate its market position through technological breakthroughs and production capacity upgrades.​

From the perspective of industry trends, the current display industry is in a critical period of technological iteration: LCD still occupies the mainstream market, but the growth rate is slowing down;OLED is rapidly penetrating in the high-end market, but the technical threshold and cost are high;Mini-LED is in the growth period, becoming an important transition technology between LCD and OLED. Huike's fundraising plan will also deploy OLED and Mini-LED. It hopes to use the parallel strategy of dual technology routes to not only catch up in the OLED field, but also seize the opportunity in the Mini-LED field, so as to avoid missing out due to reliance on a single technology route. Market opportunity.​

In addition, Huike's technical layout is also highly consistent with the national display industry policy orientation. In recent years, my country has repeatedly issued policies to support the development of the semiconductor display industry, encouraging companies to increase investment in R & D in cutting-edge technology fields such as OLED and Mini/Micro LED, and promoting the transformation of the display industry from large-scale leadership to technology-leading. Huike's promotion of technology research and development and production capacity construction through IPO fundraising will not only enhance its competitiveness, but will also help my country's display industry chain become independent and controllable in high-end fields and reduce dependence on foreign technology.​

Future outlook: IPO restart is expected, technology implementation is pending verification

For Huike, the suspension of this IPO is only a temporary intermission. If financial information can be successfully supplemented in the future, its main board listing process is expected to resume in the short term. In the long run, the core challenge for the company is not the process issue of the capital market, but how to transform the technological layout raised by 8.5 billion yuan into actual market competitiveness: on the one hand, the research and development of OLED and Mini-LED technologies requires long-term accumulation. Huike needs to continue to invest in technical team building, patent layout, industrial chain coordination, etc. to ensure that the project achieves the expected R & D goals; On the other hand, after production capacity is implemented, it is necessary to quickly meet customer needs and open up sales in TV, car, e-sports and other market segments to avoid idle production capacity.​

From the perspective of industry competition, Huike needs to face competitive pressure from BOE Chengdu, Mianyang OLED production lines, and TCL Huaxing Wuhan OLED production lines in the OLED field; in the Mini-LED field, TCL Huaxing, San 'an Optoelectronics and other companies have achieved Mini-LED product mass production, Huike needs to form differentiated advantages in cost control and product performance. If it can achieve technological breakthroughs and production capacity implementation through IPO fundraising, Huike is expected to stand out in the second echelon of the display industry and become an important force in promoting changes in the competitive landscape of the domestic display industry.​

Overall, although the suspension of Huike's IPO has brought short-term uncertainty, it has not changed its long-term strategic layout in the display industry. As the financial information is supplemented and the review process progresses, the market's focus will return to the progress of technology research and development, the pace of production capacity implementation and market expansion capabilities. For the display industry, Huike's IPO and technology layout will further intensify the industry's competition in the OLED and Mini-LED fields, promote overall technology iteration and cost reduction, and ultimately benefit consumers and the entire industry chain.