A-share subscription | Xingfu Electronics (688545.SH) starts subscription. Major customers include TSMC, SK Hynix, Semiconductor Manufacturing International Corporation, and other integrated circuit enterprises.

On January 13, Xingfu Electronics (688545.SH) started its subscription, with the issue price set at 11.68 yuan per share and a subscription limit of 21,000 shares. The price-earnings ratio is 40.46 times, listed on the Shanghai Stock Exchange, with Tianfeng as the sponsor (lead underwriter). The prospectus shows that Xingfu Electronics was established in 2008 and was one of the earliest companies in China to engage in the business of wet electronic chemicals. After more than ten years of continuous investment, technical accumulation, and market development, the company successfully developed and mass-produced electronic-grade phosphoric acid products that meet the highest level G3 grade of the SEMIC36-1121 electronic-grade phosphoric acid product standard, electronic-grade sulfuric acid products that meet the highest level G5 grade of the SEMI general standard, as well as wet electronic chemicals such as etching solution, cleaning agent, regeneration agent, developing solution, and stripping solution that meet the special process requirements of downstream customers, and have achieved bulk supply to mainstream customers in the integrated circuit industry at home and abroad. In 2023, the company developed electronic-grade hydrogen peroxide technology that meets the highest level G5 grade of the SEMI general standard. Additionally, in 2021, the company successfully expanded its business in the comprehensive utilization of phosphoric acid wastewater, establishing a closed-loop business model for wet electronic chemicals. By recycling and processing the wastewater of electronic-grade phosphoric acid products used by customers, it not only meets the disposal needs of downstream customers for phosphoric acid wastewater, increases customer stickiness, but also broadens the company's sources of revenue. During the reporting period, Xingfu Electronics' main customers include TSMC, SK Hynix, Semiconductor Manufacturing International Corporation, Changjiang Storage, Huahong Group, Changxin Memory, Xinlian Integration, Globalfoundries, United Microelectronics Corporation, Texas Instruments (Chengdu), Sanan Integration, GigaDevice Semiconductor, CR Microelectronics, Wuhan Xinxin, Nexchip Semiconductor Corporation, BYD Company Limited Semiconductor, Xineon Integration, Chongqing Wanguo, Beijing YanDong MicroElectronic, Entegris, CMCMaterials, Tianhong Technology, Silterra, Shenzhen Huaxing Optoelectronics, Huikong Technology, Rainbow Optoelectronics, and many other well-known domestic and foreign companies in the integrated circuit and display panel industries. The metal ion content of Xingfu Electronics' electronic-grade phosphoric acid products can be stably controlled within 3ppb, and the main technical indicators have reached the highest level G3 grade of the SEMIC36-1121 electronic-grade phosphoric acid product standard, and the highest level E2 grade requirement of the electronic-grade phosphoric acid national standard (GB/T28159-2011). In November 2022, a panel of experts organized by the China Electronic Materials Industry Association validated that the overall technology of electronic-grade phosphoric acid products has reached the international advanced level. At present, there are few companies in China that can produce electronic-grade phosphoric acid for integrated circuits. The company's electronic-grade phosphoric acid products have a high market share in the domestic market. According to data published by the China Electronic Materials Industry Association and combined with the company's sales data, the market share of the company's electronic-grade phosphoric acid (single acid) for the front-end wafer manufacturing process of integrated circuits in the domestic market is expected to be 39.25%, 55.79%, and 69.69% in 2021, 2022, and 2023, respectively, with a continuous increase in market share. According to documents issued by the China Electronic Materials Industry Association, the company's electronic-grade phosphoric acid products have held the top market share in the domestic semiconductor industry for three consecutive years from 2021 to 2023. The metal ion content of Xingfu Electronics' electronic-grade sulfuric acid products can be stably controlled within 5ppt, and the main technical indicators have reached the highest level G5 grade of the SEMI general standard and the highest level E1 grade requirement of the electronic-grade sulfuric acid national standard (GB/T41881-2022). In November 2022, a panel of experts organized by the China Electronic Materials Industry Association validated that the overall technology of electronic-grade sulfuric acid products has reached the international advanced level. Currently, there are several companies in China that can produce SEMIG5 grade electronic-grade sulfuric acid. Based on data published by the China Electronic Materials Industry Association and combined with company sales data, the market share of the company's electronic-grade sulfuric acid products for front-end wafer manufacturing processes of integrated circuits in the domestic market is expected to be 9.97%, 18.25%, and 31.22% in 2021, 2022, and 2023, respectively, with a continuous increase in market share. The core technology of functional wet electronic chemicals lies in product formulation. The company has successfully developed and mass-produced a rich variety of functional wet electronic chemical products, including etching solution, cleaning agent, developing solution, stripping solution, and regeneration agent, totaling 60 types. The company's customer base for functional wet electronic chemicals is wide, and it has already supplied to many well-known companies in the integrated circuit and display panel industries both domestically and internationally, including Semiconductor Manufacturing International Corporation, Changjiang Storage, Huahong Group, Xinlian Integration, Huahong Group, BYD Company Limited Semiconductor, Xineon Integration, Tianhong Technology, Shenzhen Huaxing Optoelectronics, Huikong Technology, Rainbow Optoelectronics, and others. Financially, in 2021, 2022, 2023, and January to June 2024, Xingfu Electronics achieved operating revenues of approximately RMB 529 million, 792 million yuan, 878 million yuan, and 512 million yuan, with corresponding net profits of approximately RMB 99.84 million, 191 million yuan, 124 million yuan, and 85.32 million yuan.