Investment Rating - The industry rating is "Overweight" (first-time) [6] Core Insights - The report highlights the acquisition of 100% equity of Henan High Purity Minerals by AnCai High Technology, which occurred in September 2025. This acquisition aims to enhance the production and sales of high-purity quartz materials essential for semiconductor, photovoltaic, and optical fiber communication industries [6] - Quartz Co. has successfully mass-produced and sold various high-end quartz material products, including semiconductor-grade quartz tubes, rods, and ingots, as of November 27, 2025. These products are crucial for key processes in semiconductor manufacturing [6] - The establishment of high-purity quartz as the 174th new mineral type in China, announced in April 2025, signifies a breakthrough in domestic mineral resources, with purity levels not lower than 99.995%. This development is expected to strengthen the resilience and security of the domestic supply chain [6] Summary by Sections - **Recent Industry Performance**: The industry has shown a relative return of 6.65% over the past 12 months, with an absolute return of 23.5% [3] - **Investment Highlights**: The acquisition by AnCai High Technology and the production capabilities of Quartz Co. are pivotal developments, indicating a growing market for high-purity quartz materials [6] - **Market Demand**: High-purity quartz is characterized by its high-temperature resistance, corrosion resistance, low thermal expansion, high insulation, and transparency, making it indispensable for semiconductor and photovoltaic industries [6] - **New Mineral Classification**: The recognition of high-purity quartz as a new mineral type is expected to foster the development of new production capabilities and enhance the domestic supply chain [6]