Core Viewpoint - Suzhou Tianmai Thermal Conductivity Technology Co., Ltd. has released a "Share Buyback Management System" to regulate share buyback activities, aiming to protect the legal rights of investors and the company [1] Group 1: Buyback Applicable Situations - The company’s share buyback is primarily applicable for reducing registered capital, employee stock ownership plans, converting convertible bonds into shares, and necessary actions to maintain company value and shareholder rights [2] - Conditions for maintaining company value include the stock closing price being below the latest net asset value per share or a cumulative decline of 20% over 20 consecutive trading days [2] Group 2: Strict Basic Requirements for Buyback - The company must meet conditions such as being listed for at least six months and having no major legal violations in the past year [3] - Buyback methods include centralized bidding, tender offers, and other methods recognized by the China Securities Regulatory Commission [3] - The total shares held after buyback must not exceed 10% of the total issued shares, and shares must be transferred or canceled within three years after the buyback announcement [3] - The company must reasonably arrange the number and scale of buybacks, with clear upper and lower limits on the total amount, and specify the implementation period [3] Group 3: Implementation Procedures and Information Disclosure - Proposals for share buybacks can be made by eligible proposers to the board, which must evaluate and announce the decision promptly [4] - The buyback plan requires approval from the shareholders' meeting or board, with different procedures based on the situation [4] - Once disclosed, the buyback plan cannot be changed or terminated without valid reasons, and the company must timely disclose buyback reports and results [4] - Shares bought back must be canceled or transferred according to regulations, and specific shares can be sold after a designated period while adhering to disclosure requirements [4] - The improvement of the buyback management system by Suzhou Tianmai is expected to standardize buyback behavior, safeguard legal rights, and promote sustainable development [4]

Group 1 - The company has been deeply engaged in thermal interface materials for many years [1] - The company owns the TPCM series of thermal phase change materials [1] - The applications of these materials include communication industry, smart transportation, and consumer electronics [1]

Core Viewpoint - The Chinese thermal conductive materials industry is experiencing rapid growth driven by the commercialization of 5G technology and the increasing demand for efficient heat dissipation in electronic devices and communication equipment [7][28]. Industry Overview - Thermal conductive materials are essential for solving heat dissipation issues in various sectors, including communication, consumer electronics, new energy vehicles, and data centers [7]. - The industry has seen a market size increase from 74.1 billion RMB in 2015 to 156.2 billion RMB in 2021, with projections to reach 186.3 billion RMB by 2024 [28][29]. Market Size - The market size of thermal conductive materials in China was 156.2 billion RMB in 2021, with a compound annual growth rate (CAGR) of 18.2% from 2015 to 2021 [28][29]. - The market is expected to grow significantly due to the 5G commercialization, with a forecasted size of 186.3 billion RMB by 2024 [28]. Industry Chain Analysis - The industry chain consists of upstream raw material suppliers, midstream thermal conductive material manufacturers, and downstream application sectors, primarily in communication and consumer electronics [12][13]. - Upstream materials include chemical raw materials like graphite, PI film, silicone rubber, and plastic particles, with a significant portion being imported for high-end products [12][14]. Upstream Analysis - The upstream supply of raw materials is stable, with silicone rubber and plastic particles being the primary materials. However, high-end products like PI film are heavily reliant on imports, with overseas suppliers controlling 90% of the market [17][21]. - China has abundant natural graphite resources, which are crucial for thermal conductive materials, and the supply is sufficient to meet domestic demand [17][20]. Midstream Analysis - Midstream manufacturers have strong bargaining power over upstream suppliers due to the availability of many raw materials, except for high-end products like PI film [22][23]. - The industry faces high competition, especially in the low-end market, while the high-end market is dominated by foreign companies [22][23]. Downstream Analysis - The primary applications of thermal conductive materials are in the communication and consumer electronics sectors, which together account for over 80% of the market [26]. - The demand for thermal conductive materials is expected to increase with the growth of 5G technology and the diversification of consumer electronic products [26][28]. Industry Trends - The industry is moving towards more diverse applications beyond communication and consumer electronics, including new energy vehicles and data centers [28]. - The rapid development of 5G technology is expected to drive innovation and increase the demand for advanced thermal management solutions [28].

Industry Overview - The thermal materials industry in China is experiencing rapid growth, with a market size projected to reach approximately 22.2 billion yuan in 2024, representing a year-on-year increase of 8.18% [1][11] - This growth is primarily driven by the fast development of downstream sectors such as consumer electronics, communications, and automotive industries, which have a growing demand for thermal materials [1][11] - New infrastructure sectors like data centers and energy storage devices are emerging as incremental markets for thermal materials, with high-end thermal materials showing promising application prospects [1][11] Industry Development History - The industry has gone through three main stages: the initial stage from the 1950s to 1980s, the development stage from the 1990s to 2010, and the rapid growth stage from 2010 to the present [4][5] - The initial stage saw the use of metals like aluminum and copper, while the development stage introduced new materials such as silicone and aluminum oxide [4] - The current rapid growth stage is characterized by the emergence of advanced materials like graphene and carbon nanotubes, driven by the demands of AI, 5G, and other emerging technologies [4][5] Industry Value Chain - The upstream of the thermal materials industry includes raw materials and production equipment, such as graphite, PI film, silicone rubber, and various metals [7] - The midstream involves the manufacturing of thermal materials, while the downstream applications span consumer electronics, new energy vehicles, communication devices, home appliances, and healthcare [7] Key Companies and Performance - The industry is characterized by a "three-legged" competitive structure involving international giants, domestic leaders, and emerging companies [13] - Notable companies include Zhongshi Technology, which has developed artificial synthetic graphite with a thermal conductivity of 1200 W/(m·K), and Feirongda, which has seen revenue growth driven by demand from major clients like Huawei and Ningde Times [13][17] - Zhongshi Technology reported a revenue of 1.49 billion yuan in 2024, with a year-on-year growth of 27.54% [13][17] Market Trends - The industry is entering a phase driven by technological innovation, with new materials like graphene and phase change materials gaining traction [19][21] - Key growth engines for thermal materials demand include 5G communications, new energy vehicles, and data centers, with increasing power requirements leading to higher demand for thermal management solutions [21][22] - Domestic companies are enhancing their global presence and competitive edge through technological breakthroughs and vertical integration of the supply chain [22]