Epiworld International Co., Ltd.

Date of Prospectus: March 20, 2026

Epiworld International’s HKEX IPO: A Deep Dive Into China’s High-Growth Semiconductor Play

Epiworld International Co., Ltd. launches its high-profile IPO on the Hong Kong Stock Exchange, positioning itself as one of the most watched semiconductor listings of 2026. This comprehensive analysis explores every aspect of the deal, from offer structure and financials to growth prospects, risk factors, and investor considerations, based strictly on official disclosures.

IPO Snapshot: Key Details and Offer Structure

IPO Symbol: 2726

Use of Proceeds: Funds are directed toward research and development, business expansion, general working capital, and repayment of bank loans previously raised for expansion. As of the latest practicable date, all Pre-IPO proceeds had been used, with over 95% of the December 2024 raise deployed (RMB332 million for operations, RMB650 million for debt repayment). This mix signals both a strong **growth orientation** and elements of **deleveraging** [[132]].

Dividend Policy: No dividends have been declared or paid during the track record period. The company does not have a formal dividend policy or fixed payout ratio. Future dividends depend on distributable profits and Board discretion, considering operational results, financial condition, and cash requirements [[31]].

Placement & Issuance Breakdown:

• Public (Hong Kong): 2,149,250 H Shares (subject to reallocation)
• International: 19,342,800 H Shares (subject to reallocation)
• Cornerstone Investor: Xiamen Advanced Manufacturing Equity Investment Fund Partnership (Limited Partnership) subscribing to HK\$774,797,022.30 worth of H Shares, subject to 18-month lock-up [[431]].

Investor Participation & Book Quality

Cornerstone/Anchor Investors: Xiamen Advanced Manufacturing Equity Investment Fund Partnership (Limited Partnership) is the named cornerstone, with an 18-month lock-up. No evidence is disclosed of pre-listing disposals by early shareholders, and all pre-IPO investor lock-ups are consistent with PRC law (generally 1 year) [[132], [431]].

Subscription Levels/Oversubscription: Not explicitly disclosed in the document.

Book Quality Assessment: The presence of a large cornerstone investor, comprehensive underwriter syndicate, and full allocation of Pre-IPO funds suggest robust institutional demand and book quality likely supporting strong listing day interest [[431], [272]].

Deal Parties & Structure: Sponsors, Underwriters, Bookrunners

Sole Sponsor, Sponsor-Overall Coordinator, Joint Global Coordinator, Joint Bookrunner, Joint Lead Manager: China International Capital Corporation Hong Kong Securities Limited

Other Joint Global Coordinators, Bookrunners, Lead Managers:

• ICBC International Securities Limited
• Orient Securities (Hong Kong) Limited
• ABCI Securities Company Limited
• China Sunrise Securities (International) Limited
• Futu Securities International (Hong Kong) Limited
• CCB International Capital Limited
• Daokou Securities Limited
• China Industrial Securities International Capital Limited
• Fuze Securities (International) Limited
• Kingston Securities Limited
• Yuen Meta (International) Securities Limited

Underwriting: Both the Hong Kong Public and International Offerings are fully underwritten, with a fixed fee of 2.5% plus a discretionary incentive fee up to 1.25% of the total offer price. **No mention of an over-allotment (greenshoe) option** [[278]].

Stabilization and Support: The strong consortium of underwriters and the presence of cornerstone investment, as well as the tight control of allocation and lock-ups, are likely to provide support for the listing day performance [[272], [278]].

Company Overview: Business Model, Revenue Streams, Industry Position

Business Model: Epiworld International is a high-tech company specializing in the research, development, and manufacture of semiconductor materials and components. Its primary streams of revenue are from the sale of these products to downstream industries, with a focus on technological innovation and process upgrades. The company serves both domestic and international markets, leveraging a strong R&D capability and a network of strategic investors with deep industry experience [[132], [20]].

Key Products/Services: Advanced semiconductor wafers and related materials (product-level details are referenced but not itemized in the summary sections).

Customer Segments & Geography: A mix of PRC and international customers, with a strategy to expand international market reach post-listing.

Industry/Sector: Semiconductor materials and components. The sector is characterized by rapid technological advancement, high R&D intensity, and global supply chain integration. Market size figures for the industry are not explicitly disclosed in the summary sections.

Financial Health: Multi-Period Performance Metrics

Note: 2025 figures are unaudited. Margins, EBIT/EBITDA, cash flow, and further breakdowns are available in the full financial statements on the company’s website.

Balance Sheet & Leverage: The company reports no material adverse change in financial or trading position, indebtedness, mortgage, contingent liabilities, guarantees, or prospects since September 30, 2025 [[34], [267]].

Net Tangible Asset Value Per Share (pro forma, post-IPO): HK\$11.37 [[31]].

Market Position, Competitive Advantages & Management

Market Position: The company’s ability to attract top-tier Pre-IPO and cornerstone investors is a strong signal of its **competitive position and growth prospects**. The combination of technological innovation, R&D capacity, and strategic use of capital positions Epiworld as a key player in China’s and the global semiconductor value chain.

Management Team: Post-listing, Dr. Zhao will be the single largest shareholder with 27.39% holding and is likely the company’s key executive leader. The board includes directors with technical and investment expertise; specific names and biographies are detailed in the company’s official documents [[19], [137]].

Sector Trends, IPO Timing & Market Environment

Trends & Demand Drivers: The semiconductor sector is experiencing rapid technological advancement, with downstream industries demanding higher-performance materials. The company flags increasing R&D and innovation requirements as both an opportunity and a risk [[54]].

Timing:

• Offer Period: Commences 9:00 a.m., March 20, 2026
• Application Deadline: 11:30 a.m., March 25, 2026 (White Form eIPO); 12:00 noon, March 25, 2026 (HKSCC EIPO/Brokers)
• Listing Date: Expected March 30, 2026

Market Environment: The company withdrew a previous A-share listing application in June 2024, citing strategic reasons and the advantages of a Hong Kong listing, including an international platform, access to global capital, and enhanced talent attraction. No negative regulatory flags or unresolved issues were disclosed [[20]].

Recent Developments: All Pre-IPO investor redemption rights have been terminated, and there have been no material adverse changes or events since September 30, 2025 [[34], [402]].

Risk Factors: Key Exposures and Mitigations

• Technological Innovation Risk: Failure to innovate or upgrade could result in loss of competitiveness and market share.
• Supplier/Customer Concentration: Adverse changes to major supplier or customer relationships can impact operations.
• Geopolitical Risks: International trade policies, export controls, and sanctions could materially impact business.
• Product Quality/Reputation: Inability to maintain high product quality may result in reduced market adoption and potential liability.
• Financial Volatility: Industry trends have negatively affected profitability in the near term; long-term measures are in place to restore growth [[33], [54], [222]].

Growth Strategy: Expansion and Innovation Pipeline

• R&D Investment: Continued investment in innovation and new product development is central to the strategy.
• Global Expansion: The Hong Kong listing is intended to boost global brand recognition and attract international talent and investors.
• Capital Efficiency: Proceeds are being deployed for operational expansion, technology upgrades, and strengthening the capital structure (including debt repayment).

Ownership Structure and Lock-ups

Pre- and Post-IPO Ownership:

• Dr. Zhao: 27.39% post-IPO
• Xike Zhongheng: 13.33% post-IPO
• Li Qinghua: 6.35% post-IPO
• Cornerstone investor and other Pre-IPO investors: Various, with all subject to 1-year lock-up as per PRC law (cornerstone subject to 18 months) [[137], [431]].

ESOP/Employee Incentives: Share-based payment expenses are ongoing (2025–2029) to incentivize and retain key talent [[33]].

Valuation and Peer Comparison

No detailed peer company data or comparable IPOs are cited in the prospectus.

Research Coverage & Analyst Opinions

No analyst price targets or institutional opinions are published in the prospectus.

IPO Allotment Result

Final subscription and allocation results by tranche not available as of the prospectus date.

Listing Outlook: Is Epiworld International Worth Subscribing?

Based strictly on prospectus data:

• Strong institutional participation (cornerstone, top-tier underwriters) and full Pre-IPO allocation support robust book quality.
• Financials reflect growth and profitability, though 2024–2025 saw margin pressure; management cites concrete plans for long-term margin recovery.
• No unresolved regulatory or legal impediments are disclosed, and all Pre-IPO special rights/lock-ups are in place.
• Market environment is described as conducive for a global-facing, technology-driven capital raise.

Inference: The IPO appears to be a compelling growth story with strong institutional support and robust governance. If current demand and sector momentum persist, first-day trading is likely to be firm, with the potential for the H Share price to trade at or above the offer price of HK\$76.26, particularly if global semiconductor sentiment remains constructive.

Where to Access the Prospectus

The official prospectus and application details can be obtained at:

• www.hkexnews.hk
• http://www.epiworld.com.cn/

How to Apply for the IPO

Application Channels:

• Online via White Form eIPO service: www.eipo.com.hk
• Electronically through the HKSCC EIPO channel (via brokers/custodians that are HKSCC Participants and the FINI system)

Application Window:

• Opens: 9:00 a.m., March 20, 2026
• Closes: 11:30 a.m., March 25, 2026 (White Form eIPO); 12:00 noon, March 25, 2026 (HKSCC EIPO/Brokers)

Eligibility: Applicants must be 18 years of age or older. No physical application channels are provided.

Investors and market participants are encouraged to review all official materials at the company and exchange websites for the most up-to-date information and application procedures.