Core Insights - The company, as a leading supplier of CMP polishing pads in China, is benefiting from the booming semiconductor industry through comprehensive product layout, core technology localization, and orderly capacity expansion [1][2] Market Development - The company has penetrated major domestic wafer fabs and has become the primary supplier for some clients while actively expanding its customer base to foreign wafer fabs [2] - The company has achieved full self-supply of core raw materials for polishing hard pads, enhancing its core competitiveness [2] Capacity Expansion - The current production capacity at the company's Wuhan headquarters is approximately 500,000 pieces annually (40,000 pieces monthly) [2] - To meet future market demand, the company plans to increase its capacity to about 600,000 pieces annually (50,000 pieces monthly) by the end of Q1 2026 [2] Revenue Growth - In the first three quarters of 2025, the company's core product lines experienced significant growth, with sales revenue for CMP polishing pads, polishing liquids, cleaning liquids, and flexible display materials increasing by nearly or over 50% year-on-year [2] - This high growth is driven by two main factors: the booming downstream semiconductor and OLED display panel industries, and the company's optimized product layout and enhanced capability to synchronize with clients' new production lines [2] Product Development - The company has developed a full range of product models in the CMP polishing liquid sector and has achieved self-supply capability for core raw materials, specifically abrasive particles [2] - Various polishing liquid products, including dielectric materials, polysilicon, silicon nitride, metal gates, and copper processes, have been supplied in bulk to clients [2] Customer Base - The company's customer base focuses on two main sectors: semiconductor new materials clients, which include leading domestic integrated circuit manufacturers and OLED panel manufacturers, and traditional printing and copying consumables clients [2] R&D Investment - In the first three quarters of 2025, the company's R&D investment reached 389 million yuan, a year-on-year increase of 16%, accounting for 14.41% of revenue [2] - R&D resources are primarily directed towards the semiconductor sector, including flexible display materials, polishing liquids and cleaning liquids, polishing pads, and photoresists [2] - The company aims to maintain a certain level of R&D while controlling the expense-to-revenue ratio and focusing on the effectiveness and return on investment of R&D resources [2]

Group 1: Business Progress and Market Expansion - The company's polishing pad products have penetrated mainstream domestic wafer manufacturers and are actively promoting to foreign wafer manufacturers, achieving small batch orders and expanding market growth [1] - In the semiconductor display materials sector, the company launched several key products, achieving a sales revenue of 130 million yuan in Q1 2025, representing a year-on-year growth of 85.61% and a quarter-on-quarter growth of 8.48% [3] - The company has established itself as a leading domestic supplier for YPI and PSPI products, securing a significant market share among mainstream display panel customers [3] Group 2: Research and Development Investments - In 2024, the company invested 462 million yuan in R&D, a year-on-year increase of 21.01%, accounting for 13.86% of total revenue, which supports the rapid deployment of new products and resources [2] - The company is actively expanding its semiconductor materials product lineup, including CMP polishing pads and advanced packaging materials, with ongoing client validation processes [1][2] Group 3: Production Capacity and Supply Chain - The company is enhancing its production capacity with the YPI product line in Xiantao, planning to complete the second phase of construction for an annual capacity of 800 tons [4] - The PSPI production line in Xiantao is set to begin operations in the first half of 2024, with an annual capacity of 1,000 tons [4] - The company has achieved a high degree of autonomy in its supply chain for core raw materials, which enhances production stability and cost advantages [6]