Display Panel Maker HKC Completes Pre-IPO Counseling, Prepares for A-Share Listing

Display panel maker HKC has recently completed pre-listing counseling, Yicai reported on Tuesday. LCD panel prices have fallen to record lows, posing a profit challenge for the firm, which is the third-largest display panel maker in China.

Previously, the China Securities Regulatory Commission disclosed a CICC report on the IPO and listing guidance for HKC. CICC believes that HKC is qualified with the corporate governance structure and internal control system as a listed company.

Founded in December 2001, HKC builds up LCD panel production bases in Chongqing, Chuzhou and Mianyang. It has formed a vertical industrial chain spanning from LCD panels, LED backlights, LCD modules to whole machine production.

In terms of various panel applications, HKC’s LCD products have a relatively high share of area shipped in TVs and monitors, accounting for 10.1% of the global TV panel market and 6.5% of the global display panel market in 2021.

As a latecomer in the industry, HKC was initially known for lower prices in its initial competition with the industry leaders. Gradually, HKC is adding value to its panels as its industry position of third place in terms of area shipped in the Chinese panel industry stabilizes, and with the demand of going public.

However, in May this year, the price of LCD panels fell drastically. Research firm Omdia estimates that from September 2021 to May 2022, the price of 43-inch LCD panels fell 46 percent, and the price of 55- and 65-inch panels both fell 34 percent.

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HKC is preparing to increase its whole machine project and expand overseas with its LCD panels. According to the Bozhou government website on May 27, HKC intends to invest in Bole City, Xinjiang Uygur Autonomous Region, to build a complete LCD project, which will have an annual output of 5 million sets of complete machines. This will include conference machines, monitors, science and education, televisions, car screens, notebooks, cell phones, splicing screens, and more.