Dongfang Kemai Hong Kong IPO: E-paper leader enters the capital markets, raising funds to accelerate smart transformation

Keywords: e-paper displays; Hong Kong listing; global offering; capacity upgrades; R&D innovation

1. Introduction

On June 29, 2026, Dongfang Kemai, a leading company in the global e-paper display industry (hereinafter referred to as the “Company”), officially announced the launch of its H-share global offering. According to the announcement, the Company plans to offer 5.1186 million H shares globally, including 511,900 shares in Hong Kong and 4.6067 million shares in the international offering, with an over-allotment option. The offering period runs from June 29 to July 3, 2026, the expected pricing date is July 6, and the offer price range is HK$78.64 to HK$101.11 per share, with a board lot of 50 shares. CITIC Securities is the sole sponsor, and the H shares are expected to begin trading on the Hong Kong Stock Exchange on July 8, 2026. This milestone marks Dongfang Kemai's formal entry into the international capital markets, injecting strong momentum into the Company's global strategy and capacity upgrades.

2. Industry-leading position: the world's second-largest e-paper display maker

Dongfang Kemai has been deeply engaged in the e-paper display industry for more than 15 years and has built a complete capability system from independent design to large-scale manufacturing. According to data from CIC, based on 2025 revenue, the Company ranks second among global e-paper display manufacturers, with a market share of 20.8%; more importantly, in the core segment of commercial e-paper displays, the Company holds the global No. 1 position with a 24.9% market share. It is worth noting that commercial e-paper displays accounted for 83.5% of the global commercial e-paper display market in 2025, which means Dongfang Kemai has already secured a leading edge in the most promising growth segment.

The Company's product portfolio covers a variety of display colors and sizes, and is widely used in smart retail, smart office, smart education, smart logistics, smart transportation, e-readers, and emerging application scenarios. Driven by both the dual carbon goals and digital transformation, e-paper, with its unique advantages of low power consumption, eye comfort, and refreshability, is gradually replacing traditional paper displays and some LCD screens, becoming an important medium for information exchange in the IoT era. With deep technological expertise and scale advantages, Dongfang Kemai has become a core supplier to many globally recognized brands.

3. Use of proceeds: focusing on capacity upgrades and R&D innovation

Based on the median offer price of HK$89.88 per share for this global offering, and assuming the over-allotment option is not exercised, the Company expects net proceeds of approximately HK$410.6 million. According to the strategic plan disclosed in the announcement, the funds raised will be precisely allocated to three areas:

First, about 65.0% will be used to improve the capacity layout and upgrade the smart systems of production bases. This high proportion of investment reflects the Company's keen judgment of market demand. As global orders for e-paper modules continue to grow, existing capacity is approaching a bottleneck. The Company plans to build new production bases or renovate existing ones, introducing automated production lines and smart warehousing systems to improve production efficiency and yield, and consolidate its scale cost advantage. This will not only help address short-term delivery pressure, but also build long-term sustainable supply flexibility.

Second, about 25.0% will be used to enhance R&D and technical capabilities to enrich the product portfolio. E-paper display technology is at a critical stage of evolution from black-and-white grayscale to full color, flexible formats, and larger sizes. The Company plans to invest part of the funds in R&D for next-generation display materials, driver chips, and system integration solutions, accelerating the commercialization of cutting-edge products such as color e-paper and foldable e-paper. At the same time, in response to customized needs in vertical scenarios such as smart retail and smart transportation, the Company plans to expand its R&D team and build an open innovation platform to increase the added value of its solutions.

Third, the remaining about 10.0% will be used for working capital and general corporate purposes. This portion of the funds will ensure the liquidity safety of the Company's daily operations, support overseas market expansion, brand building, and potential strategic partnerships, and provide a solid financial foundation for subsequent growth.

4. Market outlook and strategic vision

The e-paper industry is in a period of rapid growth. According to industry research institutions, the global e-paper display market is expected to maintain a compound annual growth rate of over 20% from 2026 to 2030, with the commercial sector as the core driver. As a leading company, Dongfang Kemai enjoys clear first-mover advantages: on the one hand, it has established long-term and stable partnerships with key upstream raw material suppliers, resulting in strong supply-chain resilience; on the other hand, by continuously serving internationally renowned clients, it has accumulated rich experience in custom design and rapid response.

This Hong Kong listing is not only a financing exercise, but also an important step in the Company's brand internationalization strategy. Leveraging the Hong Kong capital market platform, the Company will further enhance its credibility and influence among overseas customers, attracting more top talent and partners. At the same time, the information disclosure and governance standards after listing will also drive the Company to improve management efficiency and strengthen long-term shareholder returns.

5. Conclusion

This H-share global offering by Dongfang Kemai is a typical case of a leading e-paper company accelerating its development with the help of capital markets. Building on its position as the world's second-largest player and a clear use of proceeds, the Company has outlined a development blueprint centered on smart capacity upgrades and continuous technological innovation. Looking ahead, driven by the Internet of Things and the wave of sustainable development, Dongfang Kemai is expected to leverage its unique competitive moat to further expand its market leadership and provide global users with greener and smarter e-paper display solutions. Investors should closely watch the offer price to be announced soon and the subsequent market performance, and seize the value opportunity brought by the growth of this leading company in a niche track.