KINGLAI MATERIALS(SZ:300260) Zheng Quan Shi Bao·2025-10-23 17:19Core Viewpoint - The company Xinlai Materials is expanding its semiconductor core component project through its subsidiary Fangxin Precision, which is expected to significantly enhance its revenue scale and core competitiveness in the semiconductor industry [1][3]. Group 1: Project Announcement - On October 23, Xinlai Materials announced that its wholly-owned subsidiary Fangxin Precision plans to further invest and expand in Kunshan, establishing a semiconductor core component project [1]. - Fangxin Precision signed a project investment framework agreement with the Kunshan Lujia Town government, aiming to create a long-term cooperation mechanism to strengthen the semiconductor industry chain [1]. Group 2: Project Details - The project will focus on the research, production, and sales of gas distribution plates and semiconductor aluminum chambers, providing precision cleaning services for semiconductor, TFT, and OLED equipment [1]. - Upon reaching full production, the project is expected to generate an annual output value exceeding 1.5 billion yuan, with a total investment of 2 billion yuan [1]. Group 3: Company Performance - Xinlai Materials specializes in the research, production, and sales of clean application materials and ultra-pure materials, primarily serving the food safety, biomedicine, and semiconductor sectors [2]. - In the first half of 2025, Xinlai Materials reported a revenue of 1.409 billion yuan, a year-on-year decrease of 0.62%, and a net profit attributable to shareholders of 108 million yuan, down 23.06% year-on-year [2]. Group 4: Strategic Importance - The agreement with the Kunshan government is seen as a key move to leverage the domestic substitution strategy in the semiconductor sector, enhancing the company's sustainable development capabilities [3]. - The signing of this agreement is not expected to impact the company's existing business operations or its financial results for 2025 significantly, with future impacts dependent on subsequent project cooperation agreements [3].