On December 12, Chengdu Hongming Electronics Co., Ltd. (formerly known as Factory 715, hereinafter referred to as Hongming Electronics) passed the review by the listing committee of the Shenzhen Stock Exchange for its IPO application. By December 15, its status on the exchange's website was updated to "registration submitted," marking a critical step toward entering the capital markets.
Founded in 1958 and restructured into a joint-stock company in 2000, this veteran Sichuan-based enterprise is now poised to list on the ChiNext board. The financial community is watching closely to see whether it can leverage the capital markets to stage a revival—akin to "an old tree sprouting new shoots."
According to its prospectus, Hongming Electronics is a high-tech company specializing in the R&D, production, and sales of new electronic components—primarily resistive and capacitive components—as well as precision parts. With over six decades of experience in electronic component manufacturing and technical validation, the company's high-reliability MLCCs, organic and mica capacitors, displacement sensors, and thermistors enjoy strong competitiveness and reputation in the defense sector. Its products are widely used in aerospace, military equipment, shipbuilding, nuclear industries, as well as consumer electronics and new energy vehicles.
The company plans to raise 1.951 billion yuan through its ChiNext IPO, earmarked for projects such as the industrialization of high-energy pulse capacitors and the production of new electronic components and integrated circuits.
Behind this IPO journey lies the legacy of Factory 715, one of Chengdu’s four major Soviet-aided electronic industrial projects under China’s First Five-Year Plan. Located in the former industrial hub of Chengdu’s eastern suburbs, the factory once operated as a self-contained community with production zones, a hospital, and a school. Today, remnants of its history persist—such as the SM Plaza commercial complex built on its former site, retaining traces like chimney bases—while the surrounding area has transformed into the "East Suburb Memory," a cultural and creative district.
However, financial performance tells a different story. From 2022 to 2024, Hongming Electronics reported declining revenues (31.46 billion yuan, 27.27 billion yuan, and 24.94 billion yuan, respectively) and net profits (4.76 billion yuan, 4.12 billion yuan, and 2.68 billion yuan, respectively). In the first half of 2025, revenue stood at 15.28 billion yuan, with net profit at 2.57 billion yuan.
R&D investment has also trended downward, with spending falling from 294.88 million yuan in 2022 to 91.23 million yuan in H1 2025, while the R&D expense ratio dropped from 9.37% to 5.97%. Notably, 450 million yuan of the IPO proceeds are allocated for working capital, despite the company’s stable debt ratio (declining from 39.9% in 2022 to 34.66% in mid-2025) and cumulative dividends exceeding 280 million yuan from 2022 to 2024.
Historically a key Apple supply chain player, Hongming Electronics faces challenges as global electronics manufacturing shifts to Southeast Asia. The company is pivoting toward new energy batteries and automotive electronics, having secured certifications and begun small-scale supply.
During the listing review, regulators questioned Hongming Electronics on market competition, demand trends, order backlogs, and future R&D plans to assess earnings stability. The firm reaffirmed its commitment to becoming a "world-class electronic component manufacturer," with ambitions to expand into cutting-edge applications and global markets.
As Hongming Electronics advances toward listing, the question remains: Can this storied firm rejuvenate itself and reclaim its former prominence?
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