Core Viewpoint - SanHuan Group has officially submitted its listing application to the Hong Kong Stock Exchange, marking the beginning of its IPO process, focusing on advanced electronic ceramic materials and components [1] Group 1: Company Overview - SanHuan Group specializes in advanced electronic ceramic materials and components, with a complete business system covering basic materials, electronic components, communication devices, and equipment components [1] - The company's products are widely used in various fields, including communication, AI and data centers, consumer electronics, automotive electronics, semiconductors, new energy, and smart industrial control [1] - According to a Frost & Sullivan report, SanHuan Group has become a significant leading enterprise in the global advanced electronic ceramic materials and components sector [1] Group 2: Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from 5.088 billion to 7.266 billion yuan, with a compound annual growth rate (CAGR) of approximately 19.5% [3] - Net profit is expected to increase from 1.506 billion to 2.190 billion yuan during the same period [3] - In the first nine months of 2025, the company achieved revenue of 6.420 billion yuan and a net profit of 1.957 billion yuan, demonstrating strong profitability and operational efficiency [3] Group 3: Market Position and Competitive Advantage - In the electronic ceramic materials sector, SanHuan Group holds over 50% of the global market share for alumina ceramic substrates, ranking first in the industry [3] - The company also ranks first in the global market share for solid oxide fuel cell (SOFC) membranes and fourth for resistor pastes, with a market share of approximately 13% [3] - As a major supplier of multilayer ceramic capacitors (MLCC), SanHuan Group is ranked ninth globally and is the largest MLCC supplier in mainland China [3] Group 4: Market Outlook - The global advanced electronic ceramic materials market is expected to grow from 24.1 billion yuan in 2025 to 42.2 billion yuan by 2030, with a CAGR of approximately 11.8% [4] - Key growth drivers include the penetration of high-performance substrate materials in power electronics, automotive electric drives, and high-speed communications, as well as new demand from AI, IoT, and new energy sectors [4] - The MLCC and core ceramic electronic components market is projected to expand alongside developments in optical communication, AI data centers, and automotive electronics, with an expected global market size of 251.7 billion yuan by 2030 [4] Group 5: Strategic Intentions - The founder and actual controller, Zhang Wanzhen, controls approximately 36.47% of the issued shares, indicating a stable shareholding structure [4] - The IPO aims to leverage international capital markets to enhance R&D investment, strengthen capacity layout, and expand global business, thereby consolidating its leading position in high-end electronic ceramic materials and components [4] - The company seeks to capitalize on long-term development opportunities arising from downstream industry upgrades and domestic substitution [4]

Core Viewpoint - Sihuan Group has submitted an application for listing on the Hong Kong Stock Exchange, with China Galaxy International as the exclusive sponsor [1]. Company Overview - Sihuan Group focuses on advanced ceramic materials and has become a global leader in the field of advanced electronic ceramic materials and components. The company has established a product matrix covering four core categories: electronic and ceramic materials, electronic components, communication devices, and equipment components [3]. - The company specializes in upstream basic materials in the electronic industry chain, including alumina ceramic substrates, aluminum nitride ceramic substrates, electronic pastes, and solid oxide fuel cell (SOFC) membranes [3]. Competitive Position - Sihuan Group has achieved significant competitiveness in specific segments, such as alumina ceramic substrates, where it has become one of the top suppliers globally, holding over 50% market share by revenue in 2024 [4]. - The company ranks first in the global market for SOFC membranes, which are critical components for energy transition systems, with a leading market share by revenue in 2024 [4]. Financial Performance - The revenue for Sihuan Group was approximately RMB 5.09 billion in 2022, RMB 5.68 billion in 2023, and is projected to reach RMB 7.27 billion in 2024. For the nine months ending September 30, 2024, the revenue is expected to be RMB 5.32 billion, and RMB 6.42 billion for the same period in 2025 [5]. - The profit for the company was approximately RMB 1.51 billion in 2022, RMB 1.58 billion in 2023, and is projected to be RMB 2.19 billion in 2024. For the nine months ending September 30, 2024, the profit is expected to be RMB 1.60 billion, and RMB 1.96 billion for the same period in 2025 [6]. Industry Overview - The global market for core advanced electronic ceramic materials is expected to grow from RMB 16.8 billion in 2020 to RMB 22.1 billion in 2024, with a compound annual growth rate (CAGR) of 7.1%. The market is projected to reach RMB 42.2 billion by 2030, with a CAGR of 11.8% from 2025 to 2030 [8]. - The global alumina ceramic substrate industry is highly concentrated, with the top four companies accounting for approximately 97% of the market share by revenue in 2024. Sihuan Group leads this market with about 52% share [10]. - The global market for core ceramic electronic components is expected to grow from RMB 136 billion in 2020 to RMB 167.3 billion in 2024, with a CAGR of 5.3%. The market is projected to reach RMB 251.7 billion by 2030 [11].