Core Viewpoint - Tianyue Advanced officially listed on the Hong Kong Stock Exchange on August 20, 2023, with a first-day opening price of HKD 45.60 per share, representing a 6.54% increase from the issue price [1][3] Company Overview - Shandong Tianyue Advanced Technology Co., Ltd. was established in November 2010 and focuses on the research, production, and sales of silicon carbide single crystal substrate materials [3] - The company offers semi-insulating and conductive silicon carbide substrates applicable in microwave electronics and power electronics [3] - Tianyue Advanced is the only company listed on both the A-share and H-share markets for silicon carbide substrates [3] Market Position - According to Frost & Sullivan, Tianyue Advanced ranks among the top three global manufacturers of silicon carbide substrates by sales revenue, holding a market share of 16.7% as of 2024 [3] - The company is one of the few globally capable of mass-producing 8-inch silicon carbide substrates and was the first to commercialize the transition from 2-inch to 8-inch substrates [3] - Tianyue Advanced was also the first company to launch 12-inch silicon carbide substrates [3] Financial Performance - In 2024, the company achieved operating revenue of CNY 1.768 billion, a year-on-year increase of 41.37% [4] - The net profit attributable to the parent company was CNY 180.464 million, an increase of CNY 226.1845 million, marking a turnaround to profitability [4] - The net profit after deducting non-recurring gains and losses was CNY 157.532 million, also reflecting a significant year-on-year increase [4] - In the first quarter of 2025, Tianyue Advanced reported operating revenue of CNY 408 million and a net profit of CNY 8.5182 million [4]

Core Viewpoint - The company is focusing on increasing the production capacity of 8-inch substrates rather than mass-producing 12-inch substrates due to the current state of technology and market conditions [1] Group 1: Production Capacity and Technology - The company has achieved self-controlled technology for 6-12 inch conductive silicon carbide crystal growth [1] - The expansion of 8-inch conductive silicon carbide substrates is primarily aimed at high-power applications in electric vehicles, high-voltage charging, energy storage, and rail transportation [1] - The company has stabilized mass production of 8-inch optical-grade crystals and is accelerating the industrialization verification of 12-inch optical-grade substrates [1] Group 2: Market and Ecosystem - The upstream and downstream ecosystem for 12-inch silicon carbide is still in the early verification stage and does not yet support large-scale industrialization [1] - The company will advance the production of 12-inch substrates based on the maturity of the supply chain and customer demand [1] Group 3: Future Investments and Strategic Focus - The company plans to continue increasing investment in the research and development of compound semiconductor materials to maintain a technological lead [1] - The focus is on providing reliable and leading key material support for strategic emerging industries such as electric vehicles, photovoltaics, 5G communication, and AR glasses [1]

Core Viewpoint - Shandong Tianyue Advanced Technology Co., Ltd. (referred to as "Tianyue Advanced") has officially launched its IPO on the Sci-Tech Innovation Board, aiming to become the first listed company in China focused on silicon carbide substrates, a type of wide bandgap semiconductor material [1][2]. Company Overview - Tianyue Advanced was established in 2010 and specializes in the research, production, and sales of silicon carbide substrates, which are applicable in microwave and power electronics [2]. - The company plans to raise 2 billion yuan through its IPO, with all proceeds directed towards silicon carbide semiconductor material projects [2]. Financial Performance - Tianyue Advanced has not yet achieved profitability, with reported revenues of approximately 136 million yuan, 269 million yuan, and 425 million yuan for the years 2018 to 2020, respectively. Corresponding net losses were approximately 42.14 million yuan, 201 million yuan, and 642 million yuan [2]. - The company reported a cumulative unabsorbed loss of 158 million yuan as of December 31, 2020 [3]. - Research and development expenses for the years 2018 to 2020 were approximately 25.10 million yuan, 24.75 million yuan, and 62.53 million yuan, respectively [3]. Shareholder Structure - The actual controller of Tianyue Advanced is Zong Yanmin, who controls 42.75% of the voting rights. Huawei indirectly holds 7.05% of the shares through its investment arm, Habo Technology Investment Co., Ltd. [4]. Customer Concentration - Over 80% of Tianyue Advanced's revenue comes from its top five customers, with sales to these customers amounting to approximately 109 million yuan, 223 million yuan, and 380 million yuan from 2018 to 2020, representing 80.15%, 82.94%, and 89.45% of total revenue, respectively [5]. - The company has a significant reliance on its largest customer, with sales to this customer accounting for 54.57%, 59.88%, and 45.43% of total revenue from 2018 to 2020 [6]. Sales Dynamics - In 2020, Tianyue Advanced experienced a significant increase in sales to an associated customer, referred to as Customer B, which became the second-largest customer, contributing 142 million yuan, or 33.32% of total revenue [7]. - The sales to Customer A decreased to below 50% of total revenue in 2020 due to the rise in sales to Customer B [7][8].

Core Viewpoint - Jinan is focusing on enhancing its industrial strength through the implementation of the "Industrial Strong City" development strategy, aiming for a total revenue of 1.1 trillion yuan from 13 key industrial chains by 2025 [1][3]. Group 1: Industrial Development Strategy - Jinan has identified 13 emblematic industrial chains and 34 key industrial chains as the main focus for its industrial development strategy [1][2]. - The city plans to conduct in-depth research and planning for each industrial chain, categorizing and nurturing key chains while dynamically optimizing the industrial chain system [1][3]. Group 2: Project Implementation and Investment - In 2025, Jinan aims to enhance project construction as a key driver for high-quality development, focusing on major projects to elevate industrial chain capabilities [2][3]. - The city has already implemented 1,046 industrial technology transformation projects in the first half of the year, with 313 projects exceeding 100 million yuan [4]. Group 3: Technological Innovation and Upgrading - Jinan is emphasizing the role of enterprises in driving industrial strength, encouraging them to increase investment in technological innovation and R&D [5][6]. - The automotive industry has seen significant growth, with a 37.8% increase in manufacturing value and a 173.9% increase in new energy vehicle production from January to May [6]. Group 4: Ecosystem and Collaboration - Jinan is working to build a comprehensive industrial ecosystem to enhance the resilience and safety of its industrial chains, promoting collaboration among enterprises [7][8]. - The city is establishing a supply-demand matching system and organizing regular supply-demand connection activities to support small and medium-sized enterprises in integrating into the industrial chains [8][9].