Epiworld International Co., Ltd.

Date of Prospectus: March 20, 2026

Epiworld International Co., Ltd. IPO: A Deep Dive into Asia’s Semiconductor Powerhouse Listing on the Hong Kong Stock Exchange

Epiworld International Co., Ltd. launches a high-profile IPO on the Hong Kong Stock Exchange, aiming to accelerate its growth in the semiconductor sector. This detailed analysis covers the IPO structure, financial performance, shareholder breakdown, risk factors, and the investment outlook—essential reading for investors, analysts, and market watchers tracking Asia’s dynamic technology sector.

IPO Snapshot

IPO Symbol: 2726
Offer Price: HK\$76.26 per H Share
Total Number of Offer Shares: 21,492,050 H Shares
Hong Kong Offer Shares: 2,149,250 H Shares (subject to reallocation)
International Offer Shares: 19,342,800 H Shares (subject to reallocation)
Nominal Value: RMB1.00 per H Share
Post-IPO Outstanding Shares: 425,584,810 Shares
Market Capitalization (Post-IPO): HK\$32,455.1 million

Use of Proceeds: Growth-Focused Capital Deployment

Epiworld International Co., Ltd. signals a growth-driven story with its use of proceeds. The funds raised from the offering are allocated towards research and development, business expansion, and general working capital. A significant portion of Pre-IPO funds (over 95% of the December 2024 raise) has already been utilized, with approximately RMB332 million spent on daily operations and RMB650 million used for early repayment of bank loans. The company’s capex and working capital priorities suggest a focus on expansion and operational strengthening.

Dividend Policy and Commitment

No dividends have been declared or paid during the track record period. As of the latest practicable date, the company does not have a formal dividend policy or fixed distribution ratio. Dividends, if any, will be subject to distributable profits, statutory and other reserves, and board discretion based on operating results, cash requirements, and other relevant factors. PRC law requires dividends to be paid only out of after-tax profits. Investors should note the lack of a current dividend commitment as the company focuses on reinvestment for growth.

Placement and Issuance Breakdown

– Hong Kong Public Offering: 2,149,250 H Shares (10% of the offer, subject to reallocation)
– International Offering: 19,342,800 H Shares (90% of the offer, subject to reallocation)
– Cornerstone Investor: Xiamen Advanced Manufacturing Equity Investment Fund Partnership (Limited Partnership) is subscribing for H Shares at an aggregate amount of HK\$774,797,022.30, subject to an 18-month lock-up.
– Pre-IPO Investors: Multiple rounds of Pre-IPO investments were made by institutional and strategic investors. All Pre-IPO funds have been fully utilized as of the latest practicable date.

Investor Participation and Book Quality

Cornerstone allocation and strategic investor participation signal strong institutional interest. The only named cornerstone investor is Xiamen Advanced Manufacturing Equity Investment Fund Partnership (Limited Partnership), with a substantial lock-up commitment. Pre-IPO investors include high-tech focused institutions and individuals with sector expertise, many of whom are subject to a one-year lock-up. No pre-listing disposals or sales by early investors are disclosed. The presence of a significant cornerstone investor and institutional lock-ups generally support the expectation of a stable initial trading environment.

Deal Parties and Offering Structure

Sole Sponsor, Sponsor-Overall Coordinator, Joint Global Coordinator, Joint Bookrunner, and Joint Lead Manager: China International Capital Corporation Hong Kong Securities Limited
Other Overall Coordinators, Joint Global Coordinators, Joint Bookrunners, and Joint 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 Structure: The Hong Kong Public Offering is fully underwritten on a conditional basis. The International Offering is expected to be fully underwritten as well.
Underwriting Fees: 2.5% fixed fee of the total offer size, with up to a 1.25% discretionary incentive fee.
Stabilization/Greenshoe: The prospectus does not mention an explicit greenshoe option.

The involvement of numerous top-tier investment banks and full underwriting support suggest robust deal execution and potential post-listing price stability.

Company Overview: Asia’s Epitaxial Material Leader

Epiworld International Co., Ltd. is a leading epitaxial wafer manufacturer in China with a focus on the semiconductor industry. The company’s principal business centers on research, development, production, and sales of high-quality epitaxial wafers, serving downstream segments such as power electronics, optoelectronics, and integrated circuit industries. Key revenue streams derive from supplying advanced materials to semiconductor device manufacturers.

Major customer segments: Semiconductor device manufacturers, foundries, and technology companies in China and internationally.
Geographical reach: Primarily China with international ambitions, leveraging the Hong Kong listing for global market access.

Business model highlights:

• Production and sale of advanced epitaxial wafers for power and optoelectronics industries
• Long-term relationships with leading technology customers
• Continuous R&D investment to maintain product competitiveness

Financial Health: Revenue, Profit, and Margin Trends

Gross margins remain robust, but net profit is subject to industry trends, share-based payment expenses, and one-off listing costs in 2025.

Market Position and Competitive Advantages

Epiworld is positioned as a leading supplier in China’s high-tech semiconductor materials industry. The company benefits from:

• Strong R&D capabilities and a track record of technological innovation
• Established customer relationships with leading players in the semiconductor sector
• Strategic backing from cornerstone and pre-IPO investors specialized in high-tech industries

Management Team

Dr. Zhao (Single Largest Shareholder, post-IPO holding: 27.39%) leads the company. Other named individuals include Mr. Su Ping (Non-executive Director and General Partner of major pre-IPO investor Xike Zhongheng) and Li Qinghua (significant shareholder). The management team combines industry expertise, entrepreneurial leadership, and proven execution in scaling advanced materials businesses.

Sector Trends, Timing, and Market Environment

The company operates in the rapidly evolving semiconductor materials sector, with demand fueled by downstream power electronics, optoelectronics, and integrated circuits. Macro trends include:

• Rising technological requirements from downstream industries
• Accelerated innovation cycles requiring ongoing R&D investment

Offer Period: Applications open at 9:00 a.m. on Friday, March 20, 2026 and close at 12:00 noon on Wednesday, March 25, 2026.
Expected Listing Date: Monday, March 30, 2026.

The timing of the IPO is aligned with the company’s strategic growth and international expansion plans, supported by favorable regulatory approval and robust institutional participation.

Risk Factors

Investors should weigh the following key risks:

• Technology and Innovation Risk: Success depends on continuous innovation and upgrading of production processes. Failure to do so could erode competitiveness and market share.
• Supplier and Customer Concentration: Adverse changes to major supplier or customer relationships could materially impact performance.
• Geopolitical and Regulatory Risk: Exposure to international trade policies, export controls, and economic sanctions could affect operations and financials.
• Market Pricing and Volatility: The price and trading volume of H Shares may be volatile due to market, sector, or company-specific developments.
• Pre-IPO Investor Rights: Special rights (redemption, information, anti-dilution) have been terminated upon listing, mitigating overhang risk.
• Dividend Uncertainty: No fixed dividend policy or recent payout history; reinvestment is the current priority.

Growth Strategy

The company’s growth plan centers on:

• Expanding production capacity and technological capabilities
• Continued investment in R&D for next-generation semiconductor materials
• Deepening penetration in domestic and select international markets
• Utilizing IPO proceeds for business expansion, daily operations, and debt repayment—over 95% of December 2024 Pre-IPO proceeds already deployed

Ownership and Lock-Ups

*Estimate based on offer price and disclosed allocation

All Pre-IPO shares and cornerstone allocations are subject to lock-up periods, significantly reducing the risk of immediate post-IPO share overhang.

Listing Outlook

Based on robust institutional participation, cornerstone investor commitment, strategic use of proceeds, and a strong sector growth backdrop, the IPO appears attractive for investors seeking exposure to China’s semiconductor materials sector. The combination of a disciplined lock-up structure and the presence of major underwriters should support orderly trading on the listing day. While macro/geopolitical risks and volatility in the semiconductor cycle persist, the company’s R&D-driven growth plans and established market position suggest resilience.

Expected first-day trading range is likely to be at or above the offer price, supported by strong institutional support and the absence of immediate overhang from pre-IPO investors. However, medium-term performance will depend on execution of growth strategies and sector demand trends.

Prospectus Access

Full details, including the complete prospectus, can be obtained at:
www.hkexnews.hk
http://www.epiworld.com.cn/

How to Apply

Application Channels:

• Online via White Form eIPO service at www.eipo.com.hk
• Through the HKSCC EIPO channel by instructing your broker or custodian (who is an HKSCC Participant) to apply via the HKSCC FINI system

Eligibility:

• Applicants must be 18 years of age or older
• Only electronic applications are accepted; no physical channels available

Application Window:

• Opens: 9:00 a.m., Friday, March 20, 2026
• Closes: 12:00 noon, Wednesday, March 25, 2026

Allotment results, offer statistics, and listing confirmation will be published on www.hkexnews.hk and http://www.epiworld.com.cn/.