Company and Industry Summary Company Overview - The company is involved in the production of nickel-based and copper-based products, with a focus on materials used in MLCC (Multi-Layer Ceramic Capacitors) and other electronic components. Key Points Industry Performance - In the first three quarters of 2025, the company's nickel-based product shipment volume remained flat compared to the same period last year, while the gross margin increased by 10 percentage points [2][3] - The copper-based products saw a quarter-on-quarter shipment increase of 18% in Q3 2025, generating approximately 30 million yuan in sales revenue, with a gross margin close to 23%, although it declined compared to the first half of the year due to rising raw material costs and sales structure adjustments [2][4] Production Capacity and Cost Management - The company plans to add 1,800 tons of nickel powder production capacity, with construction expected to be completed by the end of the year, although the specific contribution to capacity will depend on next year's conditions [2][4] - Short-term production costs have increased due to higher customer requirements and new employee inexperience, but the company aims to lower costs through process improvements to restore reasonable gross margins [2][4][5] Demand Dynamics - The demand for MLCC is significantly driven by the development of AI technology and the increasing application in automotive electronics, which now accounts for 30.5% of MLCC usage [2][6] - High-end AI servers require significantly more MLCC compared to standard servers, reshaping the supply-demand dynamics in the MLCC industry [6] - The company anticipates a gradual increase in demand for small particle powders in the AI sector starting in 2026 [3][12] Customs Verification Impact - Customs verification has delayed the recognition of some revenues, impacting Q3 profits by approximately 10 million yuan [2][7] - This verification process is a national-level control measure affecting the shipment rhythm, with delays ranging from one to three months, and is expected to become a norm in the short term [8] Customer Relationships and Market Trends - The company is expanding its cooperation with Japanese clients, although the market remains relatively closed, and large-scale orders are not yet confirmed [9] - The MLCC industry is currently in its third upward cycle, driven by inventory digestion and increased demand from AI and automotive electronics [9][10] - There is a polarization in global MLCC market demand, with strong demand in AI servers and automotive electronics, while traditional consumer electronics are underperforming [10][11] Future Outlook - The company expects high-end product growth to outpace that of standard products, with a focus on 300 nm applications currently dominating the market [13] - The introduction of new production equipment for 120 nm products is anticipated to meet the growing demand, particularly in AI servers [14][15] - The company is optimistic about the growth of multi-alloy powders for inductors and photovoltaic copper powders, although the latter is currently facing challenges due to market conditions [16] Strategic Investments - The acquisition of Meihong Alloy Materials is viewed as a financial investment, with potential applications in medical devices and other industrial fields [17] - The company is open to further acquisitions if opportunities arise that align with its strategic goals [17] Pricing Strategies - The company has communicated price increases for some products, with future adjustments dependent on market conditions and competitor pricing [18] - The high demand for high-end AI servers and automotive-grade MLCC is expected to maintain pressure on supply, leading to potential price increases in the mid-range MLCC market [18][19]

Group 1: Report Overview - The report is about a research on Boqian New Materials in the small metal industry on May 20, 2025 [1][2][17] Group 2: Research Participants - The participating institutions include online investors [2] Group 3: Company Representatives - The company representatives are Chen Gangqiang (Director and General Manager), Qiu Oute (Director and CFO), Jiang Ying (Director and Board Secretary), and Leng Jun (Independent Director) [17] Group 4: Company Responses to Questions Nickel Powder Business - The company's customers are MLCC and other electronic component manufacturers and electronic paste manufacturers. The Japanese market is being continuously expanded. The demand for small - particle - size nickel powder products has increased due to the upgrade of upstream passive electronic components. In 2024, the company's nickel - based products achieved an operating income of 684,564,670.66 yuan, and the annual sales volume exceeded 1400 tons [24] - The company's production process for different products is unique, and relevant indicators are core technology and business strategies, so they are not disclosed separately. For market share, it is recommended to refer to public third - party industry reports [24][25] - In the first quarter of 2025, the shipment proportion of small - particle - size high - end nickel powder increased significantly compared with the same period in 2024. The company's customers' end - customers cover the AI server field, but the company has no direct cooperation with specific AI server field customers [27] Other Products - New materials in industries such as photovoltaic copper powder, silicon - carbon anode, and 3D printing materials have a long application and promotion verification period due to technical complexity and safety requirements [25] - In 2024, the company's copper - based products achieved an operating income of 121,967,837.44 yuan, and the annual sales volume reached more than 150 tons. The company will strengthen market expansion and cooperate with downstream customers for R & D [26] Financial Issues - The company's performance decline in the fourth quarter of 2024 was mainly due to inventory write - downs and production process adjustments. The cash - flow change in the first quarter of 2025 was normal as the company increased raw material procurement and had growing accounts receivable within the normal payment period [26][27] Information Disclosure - The company strictly complies with relevant laws, regulations, and regulatory requirements for information disclosure, and there is no undisclosed information or insider information leakage [24][26]

Core Viewpoint - Hangzhou Xinchuan New Materials Co., Ltd. has secured 50 million yuan in B+ round financing, aimed at developing and mass-producing new electronic components and core materials for photovoltaics, as well as expanding production capacity [1] Company Overview - Founded in August 2017, Xinchuan New Materials is headquartered in Xiaoshan District, Hangzhou, and aims to become a global provider of basic materials for electronic information and green energy [1] - The company has developed nickel powder for MLCC (Multi-layer Ceramic Capacitor) inner electrodes, addressing the challenge of domestic high-end MLCC material production [1][2] Product Development - Xinchuan New Materials has achieved mass production of nickel powder for MLCC and ultra-fine soft magnetic powder for AI applications, while also advancing the scale application of high-end powder materials for photovoltaics and hydrogen production [1][8] - The company’s nickel powder products have been recognized as a new industrial product in Zhejiang Province for 2024 and are among the first in the country [1] Market Position - The MLCC market is dominated by Japanese and Korean companies, which hold over 70% of the market share, while domestic suppliers like Xinchuan New Materials aim to fill the gap in the production of 200nm and below nickel powder [2] - Xinchuan New Materials has received strategic investment from Japan's Inabata & Co., which supports its expansion into the Japanese market [7] Technological Advancements - The company has developed a proprietary evaporative condensation method for powder production, which automates the heating and cooling processes, enhancing production efficiency and yield [3][5] - Xinchuan New Materials has successfully produced 150nm and 200nm graded nickel powder, with plans to develop new nano-level nickel powder cooling and grading processes by 2025 [7] Future Plans - The company plans to achieve a production capacity of 1,500 tons of ultra-fine metal powder by 2025, with an increase to 2,000-2,500 tons by 2026, and is considering a third production base depending on market conditions [11] - Xinchuan New Materials is also focusing on developing copper powder for photovoltaics, which is expected to significantly reduce costs in the solar industry [9][11]