Core Viewpoint - Jiangfeng Electronics experienced a stock price decline of 2.04% on January 9, 2025, with a trading volume of 1.043 billion yuan and a total market capitalization of 29.183 billion yuan [1]. Group 1: Stock Performance - Jiangfeng Electronics' stock price has increased by 19.55% year-to-date, with a 19.55% rise over the last five trading days, 23.96% over the last 20 days, and 8.60% over the last 60 days [2]. - As of December 19, 2025, the number of shareholders for Jiangfeng Electronics was 58,200, a decrease of 1.48% from the previous period, with an average of 3,803 circulating shares per person, an increase of 1.50% [2]. Group 2: Financial Performance - For the period from January to September 2025, Jiangfeng Electronics achieved a revenue of 3.291 billion yuan, representing a year-on-year growth of 25.37%, and a net profit attributable to shareholders of 401 million yuan, reflecting a year-on-year increase of 39.72% [2]. Group 3: Business Overview - Jiangfeng Electronics, established on April 14, 2005, and listed on June 15, 2017, is located in the Ningbo Economic Development Zone and specializes in the research, production, and sales of high-purity sputtering targets [2]. - The company's main business revenue composition includes ultra-high purity targets at 63.26%, precision components at 21.90%, and others at 14.84% [2]. - Jiangfeng Electronics is classified under the semiconductor materials sector and is associated with concepts such as SMIC, electronic chemicals, OLED, integrated circuits, and third-generation semiconductors [2]. Group 4: Shareholder Information - Since its A-share listing, Jiangfeng Electronics has distributed a total of 279 million yuan in dividends, with 188 million yuan distributed over the past three years [3]. - As of September 30, 2025, the fourth largest circulating shareholder is E Fund's ChiNext ETF, holding 4.4151 million shares, a decrease of 746,900 shares from the previous period [3].

Summary of Conference Call on Semiconductor Materials Industry Industry Overview - The semiconductor materials industry is experiencing significant growth, particularly in the storage segment, with expectations for continued high demand through 2026 [1][2][3] - China is the second-largest semiconductor market globally, and with new capacity being released, its market share is expected to increase further [1][5] Key Companies and Financial Performance - Changxin Storage reported a quarterly net profit close to 4 billion yuan in Q4, with projections for 2026 annual profits to reach 30 to 40 billion yuan [1][2] - The company plans to raise over 30 billion yuan through an IPO, indicating strong growth momentum [1] - Major companies to watch include: - **Anji Technology**: Expected profits between 1.1 to 1.5 billion yuan in 2026, with a potential compound annual growth rate (CAGR) of 30% to 40% over the next three to four years [3][8] - **Dinglong Co.**: Lower exposure to storage but significant revenue from printing consumables [8] - **Guanggang Gas**: Projected profits of over 300 million yuan in 2025, with potential for higher profit elasticity if prices improve [8][9] Market Dynamics - The storage cycle significantly impacts semiconductor materials companies, with short-term price increases leading to higher utilization rates and accelerated new capacity releases [7] - Long-term, the expansion of new capacity will drive sustained growth in material demand [7] - The current market dynamics suggest that companies with high exposure to storage materials will see substantial growth potential [7] Focus Areas and Recommendations - Key areas of focus within the semiconductor materials sector include: - **Silicon Wafers**: Representing the largest share (38%) of wafer manufacturing materials, with domestic manufacturers like Hu Silicon Industry [5] - **CMP Materials**: Companies like Anji Technology and Dinglong Co. are recommended for their high exposure in this area [6] - **Electronic Gases**: Guanggang Gas is highlighted for its significant role in the domestic electronic gas market [5][6] - **HBM-related Materials**: Companies such as Shanghai Xinyang and Xinfu Electronics are expected to benefit from the growth in AI and computing power demands [3][10] Long-term Outlook - The semiconductor materials sector is projected to have a robust long-term growth trajectory, with many companies currently undervalued compared to semiconductor equipment firms [10] - The anticipated increase in storage demand is expected to lead to upward revisions in earnings forecasts for 2026 [10] Conclusion - The semiconductor materials industry is poised for significant growth, driven by strong demand in the storage segment and the ongoing expansion of domestic production capabilities. Key companies are well-positioned to capitalize on these trends, making them attractive investment opportunities.

Summary of Semiconductor Equipment and Storage Sector Conference Call Industry Overview - The semiconductor equipment and storage sector has recently experienced significant stock price increases driven by several factors, including high capital expenditures and the emergence of new companies filling gaps in low domestic production rates [2][3] - Domestic semiconductor equipment component companies have improved their capabilities, transitioning from single-direction development to platform-based approaches, positively influenced by AI storage and mature process logic chip expansions [1][2] Key Points and Arguments - **Market Dynamics**: The storage industry is facing supply tightness and price increases starting from early 2026, affecting various sectors including consumer electronics, automotive electronics, and industrial applications [4][8] - **Domestic Production Requirements**: The National Development and Reform Commission has set a mandatory domestic production rate of 45%-50% for equipment components by 2026, up from the previous 20%-30% [2] - **Investment Opportunities**: - Focus on companies with high storage exposure such as Zhongwei Company and Tuojing Technology [5] - Potential in low domestic production rate sectors like precision measurement, with companies like Jingce Electronics and Zhongke Feice [5] - The components sector is expected to rebound in Q4 2025, with Jiangfeng Electronics recommended as a cost-effective investment [5][6] Company Highlights - **Jingce Electronics**: Recently announced cumulative orders of 547 million and a single order of 570 million, shifting market sentiment from pessimism to optimism regarding its annual order guidance of 2 billion [5] - **Jiangfeng Electronics**: Holds the global leading position in target materials with a second-largest market share, enhancing competitiveness through vertical integration and a diverse range of component offerings [6][7] Market Trends - The storage market has seen a significant price surge from September to November 2025, followed by a correction in late November to December [8] - The current storage cycle is driven by AI demand, which is expected to sustain longer than previous cycles that were typically consumer-driven [9] - Supply constraints are anticipated to persist due to tight original factory capacities and explosive demand growth, with potential price increases of up to 70% in Q1 2026 [9] Sector Classification - The domestic storage market is categorized into module manufacturers and chip manufacturers, with module manufacturers benefiting from strong relationships with original manufacturers [11][12] - Chip manufacturers are divided into foundational storage and supporting chips, with companies like Zhaoyi Innovation and Pulian Co. benefiting from rising NAND Flash prices [13] Future Recommendations - Recommended focus on module manufacturers such as Baiwei Storage and Jiangbo Long, followed by supporting chip companies like Lanke Technology and Jucheng Co., and finally foundational storage companies like Zhaoyi Innovation and Pulian Co. [14]

Summary of Conference Call on Semiconductor Equipment and Materials Industry Industry Overview - The core logic of investment in semiconductor equipment is domestic substitution, focusing on low penetration segments such as nutrient detection, image development, and ion implantation, which have significant elasticity and future potential [1][2] - The semiconductor equipment and components industry has shown good performance recently, with a notable increase despite not being as popular as commercial aerospace [2] Key Insights - The memory market is driving demand for wafer fabs, with Changxin and Changdong expected to expand production to approximately 100,000 wafers by 2026, leading to a continuous increase in orders for domestic semiconductor equipment [1][4] - The overall demand for the semiconductor equipment market is projected to reach 170 billion RMB in 2026, with memory-related capital expenditure around 100 billion RMB and advanced logic demand approximately 70 billion RMB [5] - The main source of growth in 2026 and 2027 will be from memory expansion, while advanced logic orders are expected to gradually increase from the second half of 2027 to 2028 [6] Investment Focus Areas - Investment logic on the equipment side focuses on high-value segments (etching, thin film, photolithography) and areas with low domestic substitution rates (ion implantation, track, measurement) [7][8] - Key companies to watch include North Huachuang and Zhongwei in etching and thin film equipment, while photolithography remains reliant on imports [7] - In the components and materials sector, attention should be given to segments with a domestic substitution rate below 10% and medium to high technical difficulty, such as mask companies and wet electronic chemicals [9] Recommended Companies 1. **Lu Wei Optoelectronics**: Specializes in mask business, expected revenue growth of 35% from 2025 to 2027, with profit growth outpacing revenue due to increased OLED and semiconductor mask contributions [10][11][12] 2. **Jiangfeng Electronics**: A key player in ultra-pure metal targets and semiconductor components, projected valuation of 35 billion RMB in 2026 with a P/E ratio of 50 [13][14] 3. **Zhongke Feicai**: Significant advancements in measurement and detection equipment, with products entering the storage supply chain [15] Additional Insights - The semiconductor equipment market is characterized by a gradual increase in domestic production capabilities, particularly in the context of memory expansion and the anticipated rise in advanced logic orders [6] - The conference highlighted the importance of monitoring the progress of specific companies and their technological advancements, particularly in the context of the ongoing expansion and price increase cycles in the industry [12][16]

Core Insights - The report emphasizes the growth opportunities in the electronic materials sector driven by rapid downstream development, technological advancements, and domestic substitution [3][5] - The semiconductor materials market is projected to grow significantly, with a forecasted sales revenue of USD 67.5 billion in 2024, reflecting a year-on-year increase of 3.8% [7][34] - The report maintains a "stronger than market" rating for the industry, indicating a positive outlook for investments in electronic materials [3][5] Semiconductor Materials - The global semiconductor materials market is expected to exceed USD 87 billion by 2029, with a compound annual growth rate (CAGR) of 4.5% from 2024 to 2029 [7][34] - China's semiconductor materials domestic substitution rate is currently around 15%, with significant reliance on imports for high-end materials [38][42] - Key materials such as CMP polishing materials, photoresists, and electronic specialty gases are seeing increased domestic production efforts, which are expected to enhance the domestic substitution rate [38][42] PCB Materials - The PCB industry is evolving towards high-frequency and high-speed applications, with increasing demand for electronic resins and fabrics [7][34] - The global market for electronic resins and fabrics used in PCB production is estimated at approximately USD 33.02 billion and USD 24.13 billion, respectively, in 2023 [7][34] - The transition to high-frequency and high-speed PCBs is driven by advancements in 5G technology and the rapid growth of data centers and cloud computing [7][34] OLED Materials - The demand for OLED materials is expected to grow rapidly due to increasing terminal application needs and the acceleration of high-generation line capacity release [7][34] - The global OLED display materials market is projected to reach USD 2.44 billion in 2024, with a CAGR of 19.8% expected from 2025 to 2031 [7][34] - Domestic OLED organic materials currently have a low substitution rate of around 12%, indicating significant growth potential as local manufacturers expand their capabilities [7][34] Investment Recommendations - The report recommends investing in companies benefiting from the semiconductor market recovery, such as Anji Technology, Yake Technology, and Jiangfeng Electronics, among others [5][34] - For AI server demand, companies like Shengquan Group and Dongcai Technology are highlighted as key players in the electronic resin market [5][34] - In the OLED sector, companies like Lite-On Optoelectronics and Wanrun Co., Ltd. are recommended due to their strong market positions [5][34] Industry Performance - The semiconductor materials index has shown a cumulative increase of 37.87% in 2025, outperforming the CSI 300 index by 18.72 percentage points [26] - The electronic chemicals index has increased by 54.98% in the same period, surpassing the CSI 300 index by 35.83 percentage points [26] - Overall, the electronic materials industry is experiencing stable growth, with significant improvements in revenue and profitability metrics [16][26]

Group 1 - Jiangfeng Electronics experienced a stock price increase of 5.41%, reaching 105.73 CNY per share, with a trading volume of 485 million CNY and a turnover rate of 2.14%, resulting in a total market capitalization of 28.052 billion CNY [1] - Jiangfeng Electronics, established on April 14, 2005, and listed on June 15, 2017, specializes in the research, production, and sales of high-purity sputtering targets, with its main business revenue composition being 63.26% from ultra-high purity targets, 21.90% from precision components, and 14.84% from other sources [1] Group 2 - Chang'an Fund holds a significant position in Jiangfeng Electronics through its fund Chang'an Yuteng Mixed A (005588), which held 4,000 shares in the third quarter, accounting for 0.36% of the fund's net value, ranking as the seventh largest holding [2] - The fund Chang'an Yuteng Mixed A (005588) was established on June 6, 2018, with a latest scale of 10.1875 million CNY, achieving a year-to-date return of 0.27% and a one-year return of 5.33%, with a cumulative return since inception of 19.49% [2] - The fund manager, Meng Nan, has been in position for 6 years and 185 days, overseeing total assets of 4.898 billion CNY, with the best fund return during his tenure being 31.98% and the worst being 0.87% [2]

Core Viewpoint - Ningbo is emerging as a significant economic powerhouse in China, showcasing robust growth in its GDP and a strong focus on innovation and high-tech industries, particularly in the manufacturing sector. Economic Growth - Since joining the "trillion GDP club" in 2018, Ningbo's GDP has steadily increased, reaching 1.35 trillion yuan in the first three quarters of 2025, with a year-on-year growth of 5.0% [1] - Investments in emerging sectors such as artificial intelligence and robotics, high-tech services, and technology services have seen significant growth rates of 9.3%, 41.2%, and 56.7% respectively [1] Manufacturing and Innovation - Ningbo is home to 119 national manufacturing champions, maintaining the top position in China for eight consecutive years [3] - The city is recognized for its strong manufacturing base, vibrant private economy, and active foreign trade, which collectively foster an environment conducive to innovation [6] - Approximately 90% of R&D institutions, personnel, and investments, along with over 80% of invention patents, originate from enterprises in Ningbo [8] Global Market Presence - Ningbo's manufacturing sector has gained significant global influence, with notable companies like Sunny Optical Technology supplying one-third of the world's Android phone optical lenses [9] - Long阳科技, listed on the STAR Market, has dominated the global market for optical reflection films with a 55% market share, breaking the long-standing monopoly of Japanese and Korean firms [9] Emerging Industries - The humanoid robot industry in Ningbo is rapidly developing, with the number of companies capable of producing humanoid robots increasing from 3 to 8 since 2025 [10] - The city has established a strong presence in the new energy vehicle supply chain, housing 22 manufacturing champions and 97 specialized "little giant" enterprises [10] Financial Support and Innovation - Ningbo's financial sector has seen a significant increase, with a financial industry value added of 1.224 trillion yuan in the first three quarters of 2025, marking a 13.8% year-on-year growth [16] - The city has implemented various financial tools to support innovation, including specialized loans and risk-sharing mechanisms, which have facilitated the growth of high-tech enterprises [18] Policy and Strategic Initiatives - Ningbo has introduced several policies to enhance its innovation ecosystem, including the "Ningbo City Science and Technology Innovation Regulations" and the establishment of high-level innovation platforms [14] - The government is actively promoting collaboration between enterprises and research institutions to foster innovation and address industry challenges [22] Trade and Export Growth - Ningbo has organized over 300 enterprises to participate in international exhibitions, achieving an intended transaction amount exceeding 5 billion USD [15] - The city has seen a 7% increase in trade with Central and Eastern European countries, with exports reaching 45.45 billion yuan in the first three quarters of 2025 [15] Capital Market Engagement - Ningbo has a robust capital market, with 125 listed companies, including 46 national champions, leveraging capital for technological development and capacity expansion [24] - The city has established a nurturing environment for startups and innovative enterprises, with a focus on attracting long-term capital to support technological advancements [27]

Core Insights - Ningbo has demonstrated robust economic growth, achieving a GDP of 1.35 trillion yuan in the first three quarters of 2025, with a year-on-year increase of 5.0% [1] - The city is home to 119 national manufacturing champions, maintaining its position as the leader in this category for eight consecutive years [2][3] - Emerging industries such as artificial intelligence, robotics, and high-tech services have seen significant investment growth, with increases of 9.3%, 41.2%, and 56.7% respectively [1] Economic Performance - Ningbo's GDP reached 1.35 trillion yuan in the first three quarters of 2025, reflecting a 5.0% year-on-year growth [1] - The city has a diverse economic structure, with strong performance in manufacturing, foreign trade, and logistics [1] Innovation and Technology - Approximately 90% of R&D institutions, personnel, and investments, as well as over 80% of invention patents, originate from enterprises in Ningbo [2] - The number of high-tech enterprises in Ningbo has reached 8,855, with an average annual growth rate exceeding 30% over the past three years [2] - Ningbo's innovation landscape includes significant contributions from companies like Long阳科技, which has captured a 55% market share in optical reflection films globally [3] Industry Development - The humanoid robot industry in Ningbo has expanded rapidly, with the number of companies capable of producing humanoid robots increasing from 3 to 8 since 2025 [5] - The city has established a strong presence in the new energy vehicle supply chain, housing 22 single-item champions and 97 specialized "little giant" enterprises [4][5] Financial Support and Investment - The financial sector in Ningbo has shown robust growth, with a value added of 1,224.3 billion yuan in the first three quarters of 2025, marking a 13.8% increase [12] - As of October 2025, the balance of loans to the manufacturing sector reached 8,175.3 billion yuan, a 7.3% year-on-year increase [12] - Ningbo has implemented various financial tools to support technology-driven enterprises, including loans and financing policies [12][19] Market Expansion - Ningbo's exports to Central and Eastern European countries reached 45.45 billion yuan in the first three quarters of 2025, growing by 7% [11] - The city has organized over 300 enterprises to participate in exhibitions across 12 countries, achieving an intended transaction amount exceeding 500 million USD [10] Strategic Initiatives - Ningbo aims to establish 10 national-level innovation platforms and over 1,000 provincial-level R&D institutions by 2030 [7] - The city has introduced policies to enhance the integration of technology and industry, focusing on core technology breakthroughs and high-end brand development [14][16]

Core Viewpoint - The semiconductor equipment components industry is crucial for the development of the semiconductor sector, with significant growth driven by domestic policies and market demand, leading to a projected market size of 188.79 billion yuan in 2024, representing a year-on-year growth of 34.9% [1][8]. Industry Overview - Semiconductor equipment components are essential building blocks for semiconductor manufacturing equipment, directly impacting precision, stability, and lifespan [2]. - The industry has evolved from complete reliance on imports to local enterprises gradually breaking through, focusing on high-quality and systematic breakthroughs [3]. Market Size and Composition - The market size for semiconductor equipment components in China is expected to reach 188.79 billion yuan in 2024, with the supporting market (including imported equipment) accounting for 92.5% and the maintenance market for 7.5% [1][8]. - Within the supporting market, mechanical components hold the largest share at 36.5%, followed by system transport systems at 16.1% and electrical components at 14.3% [8]. Policy Support - The Chinese government has implemented numerous policies to support the development of the semiconductor industry, including tax reductions and action plans aimed at promoting high-quality growth [4]. Industry Chain - The upstream of the semiconductor equipment components industry includes suppliers of various metals and non-metals, while the midstream involves R&D, design, and production of components, and the downstream includes applications in wafer fabrication and chip packaging [4][5]. Competitive Landscape - Despite a large market, domestic manufacturers have historically captured a small share, with many relying on imported components. However, local firms are increasingly entering the supply chain, focusing on proprietary technology and modular solutions [6][9]. - Major domestic players include companies like 富创精密 (Fuchuang Precision) and 江丰电子 (Jiangfeng Electronics), which have established competitive positions in their respective niches [10][12]. Development Trends - The industry is moving towards systematic penetration of domestic alternatives across all categories, with a focus on high-end components previously reliant on imports [13]. - Future R&D will emphasize high precision and new materials to meet the evolving demands of semiconductor manufacturing [13]. - Collaboration across the supply chain will strengthen, with industry clusters enhancing resource integration and reducing costs [14]. - The integration of AI and a focus on green manufacturing practices are becoming key development directions, aiming to improve efficiency and reduce environmental impact [15][16].

国浩律师（上海）事务所 关 于 宁波江丰电子材料股份有限公司 向特定对象发行股票 之 补充法律意见书（一） （修订稿） 中国上海市静安区山西北路 99 号苏河湾中心 MT25-28 楼 邮编：200085 25-28/F, Suhe Centre, 99 North Shanxi Road, Jing'an District, Shanghai 200085, China 电话/Tel: +86 21 5234 1668 传真/Fax: +86 21 5234 1670 网址/Website: http://www.grandall.com.cn 2025 年 12 月 | | | | | | 国浩律师（上海）事务所 补充法律意见书（一）（修订稿） 释 义 除非根据上下文应另作解释或者已经标注之解释外，本补充法律意见书中 有关词语具有以下特定含义： | 本次发行 | 指 | 发行人本次向特定对象发行股票，募集总额不超过 192,782.90 | | --- | --- | --- | | | | 万元资金的行为。 | | 发行人 | 指 | 宁波江丰电子材料股份有限公司，深圳证券交易所创业板上市 | | /公 ...