【New Stock IPO】The world's largest silicon carbide epitaxy supplier, Han Tian Cheng (2726), is going public. Huawei, China Resources, and Industrial and Commercial Bank of China (1398) are also shareholders. Will you subscribe?

The world's largest silicon carbide epitaxy supplier, Han Tian Cheng (2726.HK), will begin its IPO subscription from March 20 to 25, planning to issue 21.492 million H shares, with 10% available for public offering in Hong Kong. The offering price is HKD 76.26 per share, raising HKD 1.64 billion, with a minimum subscription of 50 shares, resulting in an entry fee of HKD 3,851.5. Han Tian Cheng is expected to be listed on March 30, with China International Capital Corporation as the sole sponsor. Huawei, China Resources, and ICBC are also shareholders This IPO introduces the Xiamen Advanced Manufacturing Fund, controlled by the Xiamen State-owned Assets Supervision and Administration Commission, as a cornerstone investor, with an investment amount of HKD 770 million. Founder Zhao Jianhui holds 28.9% of the shares, while Huawei's Hubble Technology holds 4%. China Resources Group's China Resources Microelectronics (Shanghai: 688396), ICBC (1398.HK) under ICBC Investment, and SAIF Partners are also shareholders. Han Tian Cheng focuses on the silicon carbide (SiC) epitaxy chip field and is the global leader in the silicon carbide epitaxy industry, primarily providing 4-inch, 6-inch, and 8-inch silicon carbide epitaxy chips, with 6-inch chips being the main product. However, it is expected that the sales proportion of 8-inch chips will continue to expand in the future. The company adopts a dual business model of epitaxy wafer sales and epitaxy wafer foundry, with products widely used in electric vehicles, charging infrastructure, renewable energy, energy storage systems, AI computing power and data centers, and smart grids. According to a report by Zhi Zhi Consulting, since 2023, in terms of annual sales volume, Han Tian Cheng is the largest silicon carbide epitaxy supplier globally, with a market share exceeding 30% in 2024, selling over 164,000 silicon carbide epitaxy chips and cumulatively delivering nearly 600,000 chips. The company stated that it currently has 134 customers, covering 4 of the top 5 silicon carbide power device companies globally and 7 of the top 10 power device giants. Profit down 38% in the first 9 months of 2025 In terms of performance, Han Tian Cheng's revenue from 2022 to 2024 is projected to be HKD 441 million, HKD 1.143 billion, and HKD 974 million (RMB, the same below); adjusted net profit is expected to be HKD 172 million, HKD 384 million, and HKD 324 million. In the first three quarters of 2025, it recorded revenue of HKD 535 million, a year-on-year decrease of 33.8%; adjusted net profit was HKD 163 million, a year-on-year decrease of 38% Hantian Technology stated that the decline in revenue is mainly affected by industry destocking, leading to pricing pressure. Taking 6-inch chips as an example, the average selling price dropped from HKD 8,787 in 2023 to HKD 6,433 in 2024, and fell to HKD 3,209 by the end of September last year, with a cumulative decline of over 63% in two and a half years. Use of Net Proceeds Approximately 71% of the net proceeds from this listing will be used to expand the production capacity of silicon carbide epitaxial chips; about 19% will be used for research and development of silicon carbide epitaxial chips; and about 10% will be used for working capital and general corporate purposes. Background Hantian Technology (Xiamen) Co., Ltd. is a leader in the global silicon carbide (SiC) epitaxy industry. The group is mainly engaged in the research and development, mass production, and sales of silicon carbide epitaxial wafers and devices used for manufacturing silicon carbide semiconductor devices. The group’s customers use silicon carbide epitaxial wafers to manufacture power devices, which are widely applied in downstream applications such as electric vehicles, charging infrastructure, renewable energy, and energy storage systems. According to reports, since 2023, the group has been the largest supplier of silicon carbide epitaxy in the world by annual sales volume, with a market share exceeding 30% in 2024. The group is the world's first manufacturer to achieve mass supply of 8-inch silicon carbide epitaxial wafers and is also the first in China to achieve commercial supply of 3-inch, 4-inch, 6-inch, and 8-inch silicon carbide epitaxial wafers in bulk. The group has led the drafting and formulation of the world's first and currently only international semiconductor equipment and materials industry standard for silicon carbide epitaxy under the Semiconductor Equipment and Materials International (SEMI). The group has cumulatively delivered over 599,700 silicon carbide epitaxial wafers. The group has 134 customers, including 4 of the top 5 silicon carbide power device giants and 7 of the top 10 power device giants globally