On January 22nd, Hubei Xingfu Electronic Materials Co., Ltd. (stock abbreviation: Xingfu Electronics, stock code: 688545) was officially listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. On the first day of listing, Xingfu Electronics opened up 185.53% and closed at 27.39 yuan per share, up 134.50%. The total trading volume for the day was 48.3296 million shares, with a turnover of 1.36 billion yuan and a turnover rate of 70.63%. The company's total market value was 9.86 billion yuan.
As one of the earliest domestic enterprises engaged in the research and development of wet electronic chemicals, Xingfu Electronics has achieved comprehensive leadership in electronic grade phosphoric acid, sulfuric acid and other fields through continuous technological breakthroughs. The technical indicators of its core products have reached the highest level of international SEMI standards and successfully achieved import substitution, providing key support for the development of the domestic integrated circuit and display panel industry chain.
The successful listing of the company on the Science and Technology Innovation Board is not only an important milestone in the development process of Xingfu Electronics, but also marks the rise of domestic wet electronic chemicals in the global market. From technological innovation to market expansion, the rise of Xingfu Electronics is a model for Chinese companies to win international competition through independent research and development.
Xingfu Electronics was founded in 2008 and is located in Xiaoting District, Yichang City, Hubei Province. Xingfu Electronics is currently a subsidiary of the listed company Xingfa Group. It is one of the earliest enterprises in China that focuses on the research and development, production, and sales of wet electronic chemicals. After more than ten years of technological accumulation and market development, the company has become an important participant in the field of wet electronic chemicals, with products mainly covering general wet electronic chemicals (such as electronic grade phosphoric acid, electronic grade sulfuric acid) and functional wet electronic chemicals (such as etching solutions, cleaning agents, etc.).
The company is at the forefront of domestic core technology, and the technical indicators of electronic grade phosphoric acid and electronic grade sulfuric acid have reached the highest level of international SEMI standards. In addition, the company actively promotes product innovation and industrial upgrading, successfully develops new products such as electronic grade hydrogen peroxide, and achieves the recovery and reuse of wet electronic chemical waste through a technology closed-loop model. This not only meets the environmental protection needs of downstream customers, but also further consolidates its market position. Xingfu Electronics' customers include well-known integrated circuit and display panel manufacturers at home and abroad. With high-quality products and stable supply capabilities, the company has established long-term cooperative relationships with customers and continuously improved its market competitiveness. The financial performance of Xingfu Electronics fully demonstrates its strong business expansion capabilities and core competitiveness. According to the prospectus, during the reporting period (2021-2024), the company's main business revenue was 510.3922 million yuan, 734.8251 million yuan, 859.929 million yuan, and 493.5689 million yuan, respectively. The net profits were 99.8451 million yuan, 191.4088 million yuan, 123.994 million yuan, and 85.3232 million yuan, respectively. After deducting non recurring gains and losses, the net profits attributable to the shareholders of the parent company were 92.5322 million yuan, 146.1275 million yuan, 103.9213 million yuan, and 82.0919 million yuan, respectively, maintaining a high level of profitability.
In the main business structure, the revenue contribution of core products electronic grade phosphoric acid and electronic grade sulfuric acid has remained at a high level, and their combined revenue accounted for 74.21% of the main business revenue in 2023. This indicates that Xingfu Electronics has successfully established its market leading position in technology intensive products. At the same time, the company is gradually expanding its new product line, such as electronic grade hydrogen peroxide, further enhancing the diversity of revenue sources. From the perspective of asset liability ratio, Xingfu Electronics has always maintained a healthy range, with 42.24% in 2023, demonstrating the company's robust financial management capabilities during the expansion phase. Xingfu Electronics, with its technological advantages and stable financial performance in the field of wet electronic chemicals, has demonstrated the high recognition of its development prospects by the capital market and laid a solid foundation for the company to explore global markets and deepen industrial layout in the future. The success of Xingfu Electronics is not accidental. Since its inception, this company has made technological innovation its core strategy, continuously promoting technological progress and achieving the subversion and reconstruction of traditional craftsmanship. The company focuses on the research and development, production, and sales of wet electronic chemicals. Its core products, electronic grade phosphoric acid and electronic grade sulfuric acid, have reached international leading levels, with metal ion content controlled at extremely low levels of 3ppb and 5ppt. This technical indicator not only meets the strict requirements of domestic integrated circuit manufacturing enterprises for ultra-high purity chemicals, but also reaches the highest level of international SEMI standards, setting a benchmark for the technical level of the domestic wet electronic chemical industry. For many years, the domestic wet electronic chemical industry has been constrained by foreign technological barriers, and the production and supply of key products have long relied on imports. Xingfu Electronics has broken this situation through independent research and development, successfully replacing imported products with electronic grade phosphoric acid and sulfuric acid, occupying a leading position in the domestic market. According to statistics, Xingfu Electronics has rapidly increased its domestic market share of electronic grade phosphoric acid from 39.25% to 69.69% between 2021 and 2023, maintaining its position as the market leader for three consecutive years. The market share of electronic grade sulfuric acid has steadily increased from 9.97% to 31.22%, demonstrating strong growth momentum. This not only brings substantial economic benefits to the company, but also significantly reduces the dependence of the domestic semiconductor manufacturing industry on imported materials, promoting the localization process of the entire industry. The technological advantages of Xingfu Electronics are not only reflected in its product performance, but also in the efficiency and environmental friendliness of its production process. The company has independently developed a closed-loop production process to recycle and reprocess electronic grade phosphoric acid waste liquid into reusable products. This green technology solution not only significantly reduces resource waste, but also meets the strict environmental protection requirements of downstream customers. Through this innovative model, the company has successfully achieved a complete closed-loop product ecosystem, not only increasing its sources of business revenue, but also further consolidating long-term cooperative relationships with downstream customers. It is worth noting that Xingfu Electronics' continuous investment in technology research and development is an important guarantee for maintaining its leading position in the industry. During the reporting period, the company's cumulative R&D investment exceeded 135 million yuan, accounting for 6.17% of its operating revenue, which is higher than the average level of companies listed on the Science and Technology Innovation Board. As of mid-2024, the company has obtained 77 authorized invention patents, including 71 patents applied to its main business and achieving industrialization. These patents cover key processes, core technologies, and environmental solutions for the preparation of wet electronic chemicals, not only building the company's technological barriers, but also forming a stable competitive advantage. Under the trend of the global semiconductor industry evolving towards advanced processes, the performance requirements for wet electronic chemicals are constantly increasing. Xingfu Electronics has keenly captured market opportunities and met future market demands through new product development and capacity expansion. The company plans to establish an electronic chemical research and development center through fundraising projects to further enhance the adaptability of products in advanced processes. From process nodes of 28 nanometers to 5 nanometers or even lower, Xingfu Electronics will provide high-performance chemical solutions for global semiconductor manufacturing enterprises. At the same time, the company is actively laying out new product lines such as electronic grade ammonia water and ammonia gas to seize higher value-added markets and expand the depth and breadth of its technological coverage. China is the world's largest semiconductor consumer market, and with the continuous support of the country for the integrated circuit industry, the domestic semiconductor material market is entering a period of rapid growth. As one of the key links, the localization process of wet electronic chemicals has also entered an accelerated stage. However, for a long time, the high-end wet electronic chemical market has been dominated by international enterprises, and the market share of domestic enterprises is relatively low. As one of the earliest domestic enterprises engaged in the research and development of wet electronic chemicals, Xingfu Electronics has successfully broken the monopoly of foreign companies and become an important participant in this field through continuous technological innovation and market development. According to market research data, from 2021 to 2023, Xingfu Electronics' domestic market share in the electronic grade phosphoric acid market has jumped from 39.25% to 69.69%, and its market share in electronic grade sulfuric acid has also increased from 9.97% to 31.22%. This significant improvement not only reflects Xingfu Electronics' leading position in technology, but also verifies the enormous potential of domestic brands in the field of wet electronic chemicals.