Core Viewpoint - The advanced electronic ceramic materials and components industry is experiencing a high prosperity phase driven by upgrades in key sectors such as communication, AI, data centers, consumer electronics, automotive electronics, semiconductor manufacturing, new energy, and smart industrial control [1] Company Overview - SanHuan Group, a leading electronic ceramics company from Chaozhou, Guangdong, has initiated its "A+H" listing path, submitting an application to the Hong Kong Stock Exchange on December 5 [1] - The company has over 55 years of experience in the advanced electronic ceramic materials and components sector and is recognized as a global leader [1] - As of December 10, the company's stock price was 45 yuan, with a total market capitalization of 86.242 billion yuan [1] Financial Performance - SanHuan Group reported annual revenues of 72.66 billion yuan, with profits exceeding 20 billion yuan [2] - Revenue figures from 2022 to 2024 are projected to be 50.89 billion yuan, 56.82 billion yuan, and 72.66 billion yuan, respectively, showing consistent growth [2] - For the first three quarters of 2025, revenue reached 64.21 billion yuan, a year-on-year increase of 20.67%, with profits at 19.58 billion yuan, up 22.09% [3] Profitability and Cash Flow - The company's gross margin has remained high, with figures of 41.3%, 37.9%, 40.9%, and 40.1% from 2022 to the first three quarters of 2025 [3] - Operating cash flow was robust, with a net cash amount of 19.90 billion yuan and cash and cash equivalents growing to 42.99 billion yuan by the end of the first three quarters of 2025 [3] Accounts Receivable - Accounts receivable have been increasing, with figures of approximately 11.98 billion yuan, 16.27 billion yuan, 18.72 billion yuan, and 20.36 billion yuan from 2022 to September 30, 2025 [4] - The growth in accounts receivable is linked to business expansion, although it raises concerns about asset impairment risks [4] Industry Context - The advanced electronic ceramics industry is foundational, providing high precision and reliability for downstream components, with significant growth driven by trends in consumer electronics, AI, electric vehicles, and semiconductor localization [6] - The global market for core advanced electronic ceramic materials is expected to grow at compound annual growth rates of 11.8%, 7.1%, 8.3%, and 11.8%, reaching 42.2 billion yuan, 251.7 billion yuan, 70.4 billion yuan, and 96.5 billion yuan by 2030, respectively [6] Competitive Position - SanHuan Group is the largest MLCC supplier in mainland China, benefiting from demand driven by AI servers and data center construction [7] - The company's SOFC business is emerging as a new growth point, with a leading global market share in SOFC membranes [7] - Despite being a domestic leader, the company faces challenges from rising raw material costs and price pressures on core products, with its global market share in MLCC at only about 2% [8]

Core Viewpoint - The advanced electronic ceramic materials and components industry is experiencing a high prosperity phase driven by upgrades in key sectors such as communication, AI, data centers, consumer electronics, automotive electronics, semiconductor manufacturing, new energy, and smart industrial control [1][5] Company Overview - SanHuan Group, a leading electronic ceramics company from Chaozhou, Guangdong, has initiated its "A+H" listing path, submitting an application to the Hong Kong Stock Exchange on December 5 [1] - The company has over 55 years of experience in the advanced electronic ceramic materials and components sector and is recognized as a global leader [1] - As of December 10, the company's stock price was 45 yuan, with a total market capitalization of 86.242 billion yuan [1] Financial Performance - SanHuan Group reported annual revenues of 72.66 billion yuan, with profits exceeding 20 billion yuan [2] - Revenue figures from 2022 to 2024 are projected to be 50.89 billion yuan, 56.82 billion yuan, and 72.66 billion yuan, respectively, showing consistent growth [2] - For the first three quarters of 2025, revenue reached 64.21 billion yuan, a year-on-year increase of 20.67%, with profits at 19.58 billion yuan, up 22.09% [3] Profitability and Cash Flow - The company's gross margin has remained high, with figures of 41.3%, 37.9%, 40.9%, and 40.1% from 2022 to the first three quarters of 2025 [3] - Operating cash flow was robust, with a net cash flow from operating activities of 19.90 billion yuan and cash and cash equivalents growing to 42.99 billion yuan by the end of the first three quarters of 2025 [3] Accounts Receivable - Accounts receivable have been increasing, with figures of approximately 11.98 billion yuan, 16.27 billion yuan, 18.72 billion yuan, and 20.36 billion yuan from 2022 to September 30, 2025 [4] - The growth in accounts receivable is aligned with business expansion, although it poses potential asset impairment risks [4] Industry Trends - The advanced electronic ceramics industry is foundational, supporting high precision and reliability for downstream components, with significant demand growth driven by trends in consumer electronics, AI, electric vehicles, and semiconductor localization [6][7] - The global market for core advanced electronic ceramic materials and components is expected to grow at compound annual growth rates of 11.8%, 7.1%, 8.3%, and 11.8%, reaching 42.2 billion yuan, 2,517 billion yuan, 704 billion yuan, and 965 billion yuan by 2030, respectively [6] Competitive Position - SanHuan Group is the largest MLCC supplier in mainland China, benefiting from strong demand in AI servers and data center construction [7] - The company is also a leader in SOFC membrane sheets, participating in significant projects that align with North American AI power infrastructure needs [7] - Despite being a domestic leader, the company faces challenges from rising raw material costs and price pressures on core products, with its global market share in MLCC at only about 2%, ranking ninth [8]

Core Viewpoint - The company, Chaozhou Sanhuan (Group) Co., Ltd., has submitted an application for listing on the Hong Kong Stock Exchange, with China Galaxy International as the sole sponsor [1]. Company Overview - The company focuses on advanced ceramic materials and has become a global leader in the field of advanced electronic ceramic materials and components. It has established a core product matrix covering four categories: electronic and ceramic materials, electronic components, communication devices, and equipment components [2]. - 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 [2]. Competitive Position - The company 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 [3]. - The company ranks first in the global market for SOFC membranes, which are critical components for energy transition [3]. Financial Performance - The company's revenue for the fiscal years 2022, 2023, and projected for 2024 is approximately RMB 5.09 billion, RMB 5.68 billion, and RMB 7.27 billion, respectively [4]. - The profit figures for the same periods are approximately RMB 1.51 billion, RMB 1.58 billion, and RMB 2.19 billion, respectively [5]. Industry Overview - The global market for 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% [7]. - The market for core ceramic electronic components is projected to increase from RMB 136 billion in 2020 to RMB 167.3 billion in 2024, with a CAGR of 5.3% [10]. Market Dynamics - The global alumina ceramic substrate industry is highly concentrated, with the top four companies accounting for about 97% of the market share in 2024. The company holds approximately 52% of the global market share in this segment [9]. - The global resistor paste market is also concentrated, with the top five companies holding about 84% of the market share in 2024, where the company ranks fourth with approximately 13% market share [9]. Board of Directors - The board will consist of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors, with a term of three years [15]. Shareholding Structure - As of the latest feasible date, Mr. Zhang holds approximately 59.21% of the equity in Sanjiang Investment, which in turn holds about 33.67% of the company's equity [16].