Core Viewpoint - The company, Hubei Dinglong Holdings Co., Ltd., anticipates a significant increase in net profit for the first half of 2025, driven by strong performance in the semiconductor materials sector, particularly in CMP polishing pads and liquids, as well as display materials [1][2]. Financial Performance - The expected net profit for the reporting period is between 290 million and 320 million RMB, representing an increase of 33.12% to 46.9% compared to the same period last year [1]. - The expected net profit after deducting non-recurring gains and losses is between 273 million and 303 million RMB, reflecting a growth of 38.81% to 54.06% year-on-year [1]. Revenue Growth - The company achieved approximately 1.727 billion RMB in revenue, marking a year-on-year growth of about 14% [1]. - Sales revenue from CMP polishing pads increased by 59%, with a quarter-on-quarter growth of 16% and a year-on-year growth of 57% in the second quarter [1]. - Combined sales revenue from CMP polishing liquids and cleaning liquids grew by 56%, with a quarter-on-quarter increase of 16% and a year-on-year increase of 58% in the second quarter [1][2]. - Sales revenue from semiconductor display materials rose by 62%, supported by product expansion and increased customer capacity utilization [2]. Product Development and Market Expansion - The company is advancing its semiconductor advanced packaging materials and KrF/ArF wafer photoresists, with sales revenue from advanced packaging materials reaching approximately 8.6 million RMB [2]. - The company is focused on market expansion and cost reduction initiatives to enhance operational efficiency and maintain steady performance in traditional consumables [2]. Non-Recurring Gains and Losses - The expected non-recurring gains and losses for the reporting period are approximately 17 million RMB, primarily due to government subsidies, compared to 21.17 million RMB in the same period last year [2].

I. Current Period Performance Forecast [1. Performance Forecast Period](index=1&type=section&id=1.%E3%80%81Performance%20Forecast%20Period) The performance forecast period for this report is from January 1, 2025, to June 30, 2025 - The performance forecast period is from **January 1, 2025, to June 30, 2025**[3](index=3&type=chunk) [2. Performance Forecast Overview](index=1&type=section&id=2.%E3%80%81Performance%20Forecast%20Overview) Dinglong Holdings expects net profit attributable to shareholders for H1 2025 to be between **290 million and 320 million yuan**, a **33.12% to 46.9% year-on-year increase**, with net profit after non-recurring items between **273 million and 303 million yuan**, up **38.81% to 54.06%** Key Financial Indicators for H1 2025 Performance Forecast | Item | Current Period (Estimated) | Prior Period | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | Profit: 290 million – 320 million yuan | Profit: 217.8405 million yuan | 33.12% - 46.9% | | Net Profit After Non-Recurring Items | Profit: 273 million – 303 million yuan | Profit: 196.6737 million yuan | 38.81% - 54.06% | II. Communication with Accounting Firm [Communication with Accounting Firm](index=1&type=section&id=Communication%20with%20Accounting%20Firm) The data in this performance forecast is a preliminary estimate by the company's finance department and has not been audited by an accounting firm - The data in this performance forecast is a preliminary estimate by the company's finance department and **has not been audited by an accounting firm**[4](index=4&type=chunk) III. Explanation of Performance Changes [1. Semiconductor Materials and Integrated Circuit Chip Design and Application Business](index=2&type=section&id=1.%E3%80%81Semiconductor%20Materials%20and%20Integrated%20Circuit%20Chip%20Design%20and%20Application%20Business) The company's semiconductor materials and integrated circuit chip design and application business achieved approximately **945 million yuan** in revenue, a **49% year-on-year increase**, with net profit attributable to shareholders for this segment growing **104%** - Semiconductor materials and integrated circuit chip design and application business achieved approximately **945 million yuan** in operating revenue, a year-on-year increase of approximately **49%**[6](index=6&type=chunk) - Net profit attributable to shareholders for this segment significantly increased by **104%** year-on-year[6](index=6&type=chunk) [① CMP Polishing Pad Sales Revenue](index=2&type=section&id=CMP%20Polishing%20Pad%20Sales%20Revenue) CMP polishing pad sales revenue increased by **59% year-on-year**, with Q2 revenue growing **16% sequentially** and **57% year-on-year** - CMP polishing pad sales revenue increased by **59%** year-on-year[6](index=6&type=chunk) - Q2 CMP polishing pad sales revenue grew **16% sequentially** and **57%** year-on-year[6](index=6&type=chunk) [② CMP Slurry and Cleaning Solution Products](index=2&type=section&id=CMP%20Slurry%20and%20Cleaning%20Solution%20Products) Combined sales revenue for CMP slurry and cleaning solution products increased by **56% year-on-year**, with Q2 revenue growing **16% sequentially** and **58% year-on-year** - Combined sales revenue for CMP slurry and cleaning solution products increased by **56%** year-on-year[6](index=6&type=chunk) - Q2 CMP slurry and cleaning solution sales revenue grew **16% sequentially** and **58%** year-on-year[6](index=6&type=chunk) - Copper process slurry achieved its **first order breakthrough**, with alumina and polysilicon slurry products gaining traction with clients[6](index=6&type=chunk) [③ Semiconductor Display Materials Business](index=2&type=section&id=Semiconductor%20Display%20Materials%20Business) Semiconductor display materials business sales revenue increased by **62% year-on-year**, driven by product expansion, customer growth, and increased market share - Semiconductor display materials business sales revenue increased by **62%** year-on-year[6](index=6&type=chunk) - Growth drivers include continuous expansion and iteration of product categories, sustained revenue growth from customer expansion, increased capacity utilization by downstream display clients, and higher market share for the company's products[6](index=6&type=chunk) [④ Semiconductor Advanced Packaging Materials](index=2&type=section&id=Semiconductor%20Advanced%20Packaging%20Materials) Semiconductor advanced packaging materials generated approximately **8.6 million yuan** in sales revenue, with KrF/ArF wafer photoresists accelerating market entry - Semiconductor advanced packaging materials achieved sales revenue of approximately **8.6 million yuan**[7](index=7&type=chunk) - KrF/ArF wafer photoresists are accelerating market entry, and client validation progress for the company's semiconductor advanced packaging materials and other new materials, including wafer photoresists, is in line with expectations[7](index=7&type=chunk) [2. Printing and Copying Consumables Business](index=2&type=section&id=2.%E3%80%81Printing%20and%20Copying%20Consumables%20Business) Printing and copying consumables business generated approximately **780 million yuan** in revenue (excluding chips), with Q2 revenue showing sequential growth - Printing and copying consumables business achieved operating revenue of approximately **780 million yuan** (excluding chips)[7](index=7&type=chunk) - Q2 revenue showed a **sequential growth trend**[7](index=7&type=chunk) - The company prioritizes profit, ensuring stable operations for its traditional consumables business through market expansion and cost reduction initiatives[7](index=7&type=chunk) [3. High-End Wafer Photoresist and New Chip Development Businesses in Investment Phase](index=2&type=section&id=3.%E3%80%81High-End%20Wafer%20Photoresist%20and%20New%20Chip%20Development%20Businesses%20in%20Investment%20Phase) High-end wafer photoresist and new chip development businesses remain in an investment phase, projected to reduce net profit attributable to shareholders by over **50 million yuan** - High-end wafer photoresist and new chip development businesses are still in a **continuous investment phase**[7](index=7&type=chunk) - These are expected to reduce net profit attributable to shareholders by over **50 million yuan**[7](index=7&type=chunk) [4. Impact of Non-Recurring Gains and Losses](index=2&type=section&id=4.%E3%80%81Impact%20of%20Non-Recurring%20Gains%20and%20Losses) Non-recurring gains and losses for the current period are estimated at approximately **17 million yuan**, primarily from government subsidies, a decrease from **21.17 million yuan** in the prior period - Non-recurring gains and losses for the current period are estimated at approximately **17 million yuan**, primarily due to government subsidies[8](index=8&type=chunk) - Non-recurring gains and losses in the prior period amounted to **21.17 million yuan**[9](index=9&type=chunk) IV. Risk Warning and Other Related Disclosures [Risk Warning and Other Related Disclosures](index=3&type=section&id=Risk%20Warning%20and%20Other%20Related%20Disclosures) This performance forecast is a preliminary estimate by the company's finance department, unaudited by an accounting firm, and final financial data will be based on the 2025 semi-annual report - This performance forecast is a preliminary estimate by the company's finance department and **has not been audited by an accounting firm**[10](index=10&type=chunk) - Specific financial data will be subject to the company's disclosed **2025 semi-annual report**[10](index=10&type=chunk) - Investors are advised to **exercise caution** in their decisions and be aware of investment risks[10](index=10&type=chunk)

鼎龙股份（300054）公告，预计2025年上半年净利润为2.9亿元–3.2亿元，比上年同期的2.18亿元上升 33.12%-46.9%。 ...

Investment Rating - The report rates the chemical industry as "Outperform" [2] Core Views - The industry has been significantly impacted by tariff-related policies and fluctuations in crude oil prices this year. Key areas to focus on in July include safety regulations, supply changes in the pesticide and intermediate sectors, performance fluctuations due to "export rush," the importance of self-sufficiency in electronic materials, and stable dividend policies in energy companies [2][12] Summary by Sections Industry Dynamics - In the week of June 30 to July 6, among 100 tracked chemical products, 25 saw price increases, 56 saw declines, and 19 remained stable. The average price of TDI increased by 7.02% week-on-week, while the average price of acrylic acid rose by 3.65% [11][36] Investment Recommendations - The report suggests focusing on safety regulations and supply changes affecting the pesticide and intermediate sectors, performance fluctuations from the first half of the year, the growing importance of self-sufficiency in electronic materials, and stable dividend policies in energy companies. Long-term investment themes include sustained high crude oil prices benefiting the oil and gas extraction sector, rapid development in downstream industries, and policy support for demand recovery [12][19] Key Products and Price Changes - TDI prices increased to 12,013 CNY/ton, while acrylic acid prices reached 7,100 CNY/ton, reflecting a 14.52% year-on-year increase. The average price of crude oil also saw slight increases, with WTI at 66.50 USD/barrel and Brent at 68.30 USD/barrel [11][35][36] Company Highlights - Satellite Chemical and Anji Technology are highlighted as "gold stocks" for July, with both companies showing strong revenue and profit growth in 2024. Satellite Chemical reported a revenue of 45.648 billion CNY, a 10.03% increase year-on-year, while Anji Technology achieved a revenue of 1.835 billion CNY, a 48.24% increase year-on-year [13][19]

Core Viewpoint - CMP (Chemical Mechanical Polishing) technology is essential for the development of integrated circuits, playing a critical role in achieving surface flatness during chip manufacturing, which is increasingly important as technology nodes shrink and the number of layers in chips increases [6][38]. Group I: CMP Technology and Market Overview - CMP technology is a necessary process in wafer manufacturing, which includes multiple steps such as diffusion, lithography, etching, ion implantation, thin film growth, and CMP itself [9]. - The global CMP materials market is experiencing continuous growth, driven by advancements in semiconductor technology and increasing demand from various sectors, including 5G and AI [32][49]. - The CMP materials market is characterized by a high degree of technical, talent, and patent barriers, with significant market share held by leading companies from the US and Japan [54]. Group II: Market Size and Growth - The global CMP polishing pad market size increased from $650 million in 2016 to $1.13 billion in 2021, with a CAGR of 11.69% [49]. - The CMP polishing liquid market also saw growth, rising from $1.1 billion in 2016 to $1.43 billion in 2021, with a CAGR of 5.39% [50]. - China's CMP polishing liquid market grew significantly, from 1.23 billion yuan in 2016 to 2.2 billion yuan in 2021, achieving a CAGR of 12.28%, indicating a faster growth rate compared to the global market [50]. Group III: Domestic Industry Dynamics - Chinese companies are increasingly entering the CMP materials market, with government policies supporting the development of the semiconductor industry and promoting domestic alternatives to imported materials [39][41]. - The domestic semiconductor materials market is expected to continue growing at a rate higher than the global average, driven by technological advancements and increasing local demand [32][39]. - The shift towards domestic production of CMP materials is seen as a strategic move to reduce reliance on foreign suppliers, especially in light of export controls from the US and Japan [39][54]. Group IV: Product Segmentation and Applications - CMP materials are primarily categorized into polishing liquids, polishing pads, and cleaning agents, with polishing liquids accounting for 49% and polishing pads for 33% of the market share [18]. - Various types of polishing liquids are used for different applications, including copper CMP, tungsten CMP, and dielectric CMP, each tailored for specific manufacturing processes [19][21]. - Polishing pads are typically made from polyurethane and are designed to maintain a stable polishing environment while effectively distributing polishing liquids [20][22].

Core Viewpoint - The 2025 TrendBank (Fifth) Lithography Industry Conference will be held on July 9-10, 2025, in Hefei, focusing on advancements in lithography technology and the challenges faced by the domestic semiconductor industry [29][41]. Group 1: Conference Overview - The conference will feature over 20 speakers from the lithography industry, covering advanced lithography technologies, photoresists, wet electronic chemicals, and lithography equipment [32]. - The event aims to promote deep integration of industry, academia, and research, enhancing communication and collaboration among domestic research institutions, universities, and enterprises [41][42]. - The conference will address the current state of domestic lithography materials, including challenges in localization and technology bottlenecks [31][40]. Group 2: Key Discussions - A roundtable forum will discuss the impact of US-China political and tariff conflicts on domestic semiconductor materials, equipment, and technological innovation [10]. - The forum will also explore the ability of Chinese companies to meet high-barrier, low-market-share domestic demands for materials and equipment in light of recent supply chain disruptions [10]. - Discussions will include the challenges of developing photoresist materials for advanced packaging technologies and the implications of heterogeneous integration on product development [10]. Group 3: Industry Challenges - The domestic lithography industry faces significant challenges, including low self-sufficiency rates in high-end photoresists and reliance on imports for certain high-purity electronic chemicals [40]. - The manufacturing technology for high-precision masks is complex, with key raw materials primarily imported, which poses risks to supply stability [40]. - The high-end lithography equipment market is dominated by foreign companies, creating a "bottleneck" in the domestic semiconductor industry's development [40].

Core Viewpoint - The recent supply disruption of CMP slurry, specifically DST slurry produced by AGC in Taiwan, has accelerated the pace of domestic alternatives in the semiconductor industry, highlighting the urgency for local manufacturers to innovate and adapt [1][2]. Group 1: Importance of CMP Slurry - CMP slurry is essential for the chemical mechanical polishing process in semiconductor manufacturing, akin to smoothing and leveling surfaces in construction [2]. - The slurry consists of ultra-fine abrasives, chemical agents, and water, and is crucial for achieving the required surface smoothness in logic and memory chip production [2]. Group 2: Market Dynamics - The CMP slurry market is predominantly controlled by American and Japanese companies, with Cabot Microelectronics holding 33% of the global market share, while Japanese firms account for an additional 23% [3]. - Domestic manufacturers currently hold a market share of 25-30%, which is even lower in high-end processes (e.g., below 28nm) [3]. - The global CMP slurry market was valued at $1.89 billion in 2021 and is projected to exceed $2.6 billion by 2026, with a compound annual growth rate (CAGR) of approximately 6% [3]. - In China, the CMP slurry market is expected to grow from approximately 2.3 billion yuan in 2023 to 4.6 billion yuan by 2028, reflecting a CAGR of 15% [3]. Group 3: Demand Surge Factors - The demand for CMP slurry is increasing due to the growing complexity of high-end processes, with the number of CMP steps for 14nm logic chips doubling, requiring more types of slurry [3]. - The rise of 3D NAND memory chips, with increasing stacking layers, necessitates more intricate polishing processes, leading to a significant increase in CMP slurry usage [3]. Group 4: Domestic Players - Anji Technology has been a leader in CMP slurry since 2006, achieving a market share of over 5% globally and increasing its share in China from 20.9% in 2020 to 30.8% in 2021 [4]. - Sanhe New Materials focuses on diamond polishing liquids for hard materials and is gradually increasing its market share by supplying to companies like SMIC [4]. - Dinglong Co. is a key player in the domestic polishing pad market, offering a comprehensive solution that includes polishing liquids, cleaning liquids, and polishing pads, enhancing its competitive edge [5].

Core Viewpoint - The 2025 TrendBank Lithography Industry Conference aims to address the challenges and advancements in lithography technology, materials, and equipment, focusing on enhancing domestic capabilities and self-sufficiency in the semiconductor industry [21][29][30]. Group 1: Conference Overview - The conference will take place on July 9-10, 2025, in Hefei, Anhui, at the Sheraton Hotel [20]. - It will feature over 20 speakers from the lithography industry, covering advanced lithography technologies, photoresists, and wet electronic chemicals [22]. - The event will include academic discussions and a combination of conference and exhibition formats to foster industry collaboration [23]. Group 2: Key Topics of Discussion - The conference will explore the latest research and application prospects of cutting-edge lithography technologies, including EUV, electron beam lithography, and nanoimprint [21]. - It will analyze the current state and technical bottlenecks of domestic photoresists, wet electronic chemicals, and masks, aiming to improve self-sufficiency and quality [21]. - Discussions will also focus on the challenges and solutions related to the localization of lithography equipment, including development, manufacturing processes, and market conditions [21]. Group 3: Industry Challenges - The domestic high-end photoresist self-sufficiency rate is low, with significant gaps in R&D and production technology compared to international standards [28]. - There is a reliance on imports for high-purity and specialty wet electronic chemicals, which poses supply constraints [28]. - The high-precision manufacturing technology for masks is challenging, with key raw materials primarily imported, and the rapid repair and update technology needing improvement [28]. Group 4: Strategic Importance - The lithography technology is crucial for semiconductor manufacturing, directly impacting chip performance, integration, and production costs [28]. - The conference aims to enhance the autonomous capabilities of the lithography technology and related industries in response to global geopolitical tensions affecting the semiconductor supply chain [29].

Core Viewpoint - The article discusses the supply chain issues and investment opportunities in the semiconductor chemical mechanical polishing (CMP) materials market, particularly focusing on the impact of Taiwan's export controls on the supply of DSTl slurry and the growth potential of CMP materials in the semiconductor industry. Group 1: CMP Slurry Supply Issues - DSTl slurry supply has been suspended due to Taiwan's export control restrictions, with only five months of inventory remaining (267 barrels) [2] - DSTl slurry is critical for the CMP process in semiconductor manufacturing, enhancing wafer flatness and surface quality [2] Group 2: Investment Logic in CMP Materials - The demand for CMP materials is expected to grow rapidly due to advancements in process nodes, increased wiring density, and the transition from 2D NAND to 3D NAND technology [4] - CMP materials account for 7% of the semiconductor manufacturing material costs, with CMP slurry and pads making up 49% and 33% of CMP material costs, respectively [4] - The global CMP materials market is projected to grow from $3.3 billion in 2023 to over $4.2 billion by 2027 [4] Group 3: CMP Pad Market Overview - The global CMP pad market grew from $650 million in 2016 to $1.13 billion in 2021, with a CAGR of 11.69% [5] - In China, the CMP pad market increased from 810 million yuan in 2016 to 1.31 billion yuan in 2021, with a CAGR of 10.09% [5] - Dow DuPont dominates the global CMP pad market with a 79% share, while domestic company Dinglong has become a key player in China [6] Group 4: CMP Slurry Market Overview - The global CMP slurry market expanded from $1.1 billion in 2016 to $1.43 billion in 2021, with a CAGR of 5.39% [7] - The Chinese CMP slurry market grew significantly, from 1.23 billion yuan in 2016 to 2.2 billion yuan in 2021, with a CAGR of 12.28% [7] - Major global players in the CMP slurry market include Cabot, Versum Materials, and Dow, with China being the largest demand region [7] Group 5: Domestic Companies in CMP Materials - Dinglong has established itself as the only domestic supplier mastering the entire CMP pad production process, achieving significant breakthroughs in the field [6][12] - Anji Technology, a leading domestic CMP slurry company, reported revenues of 1.075 billion yuan in 2023, capturing a significant market share [22][23] - Shanghai Xinyang and Jiangfeng Electronics are also notable players in the CMP materials sector, focusing on various CMP products [36][37] Group 6: Future Trends and Opportunities - The future of CMP materials is expected to trend towards specialization and customization, providing opportunities for new entrants in the market [8] - Companies focusing on new technologies for polishing liquids, such as those related to SiC, and those mastering upstream particle development are recommended for investment [8]

Group 1 - The core viewpoint of the news indicates that the growth style is currently favored, with strong performance in sectors such as communication, computer, and electronics, while the dividend style remains a high-certainty direction [1][2] - The CSI 500 Quality Growth Index is at a historical low valuation, with a latest price-to-book (PB) ratio of 1.86, which is lower than 91.23% of the time over the past three years, highlighting its attractive valuation [2] - The top ten weighted stocks in the CSI 500 Quality Growth Index account for 20.42% of the index, with notable companies including Dongwu Securities, Kaiying Network, and Huagong Technology [2] Group 2 - The 500 Quality Growth ETF has shown a recent upward trend, with a 0.31% increase, marking three consecutive days of gains [1] - According to Dongwu Securities, the communication sector has a relatively high risk but is currently the strongest trend, while the computer sector has lower risk and greater potential for catch-up [1] - The banking sector is expected to rebound after June, influenced by the timing of mid-year reports [1]