Core Viewpoint - The article highlights the rapid advancement of domestic substitution in the integrated circuit industry, focusing on the company Xinhenghui (301678) as a key player in the packaging materials and testing services sector, leveraging its integrated business model and core technological breakthroughs to break the overseas technology monopoly and promote self-sufficiency in China's integrated circuit packaging and testing industry [1] Group 1: Company Overview - Xinhenghui is one of the few integrated circuit companies in China that combines research, production, sales of chip packaging materials, and packaging testing services [1] - The company has established strong technical barriers in three main areas: smart cards, etched lead frames, and IoT eSIM chip packaging, allowing it to maintain a competitive edge in a fierce market [1][2] Group 2: Core Technology and Business Model - The smart card business serves as the foundation for Xinhenghui, where it employs an integrated business model of "key packaging materials + testing services," creating a competitive barrier that is difficult to replicate [2] - Xinhenghui's unique "upstream and downstream collaboration" model allows it to provide both flexible lead frames and smart card module testing services, enhancing delivery efficiency and profit margins while reducing reliance on external supply chains [2] Group 3: Technological Advancements - The company has developed high-etch-resistant alloy plating processes and nickel-palladium plating technology for smart cards, improving coating performance while reducing dependence on precious metals [3] - Xinhenghui's selective plating technology, which uses mold shielding for "regional" plating, has become a key method for cost control [3] Group 4: Market Expansion and Growth - Building on its smart card technology, Xinhenghui has expanded into the etched lead frame and IoT eSIM chip packaging sectors, leveraging shared technology and customer bases to quickly open new growth avenues [4] - The etched lead frame business has shown impressive performance, with a revenue increase of 46.48% year-on-year, focusing on high-end fields such as automotive-grade and high-density packaging [5] Group 5: Future Development and Strategy - Xinhenghui is committed to continuous capacity and technology iteration, with significant investments in projects aimed at alleviating capacity bottlenecks and enhancing market share [6] - The company aims to become a leading global supplier in the integrated circuit packaging materials sector while developing into a top-tier etched lead frame supplier [6] - Future plans include focusing on integrated circuit packaging, deepening technological innovation, and expanding into cutting-edge fields such as automotive and industrial internet [7]

Company Overview - Xin Heng Hui Electronics Co., Ltd. has one wholly-owned subsidiary, Shan Aluminum Electronics, and one branch office in Beijing [1] - Shan Aluminum Electronics was established on September 30, 2001, with a registered capital of RMB 20 million and is primarily engaged in the production and sales of IC card chips and modules, electronic products, integrated circuits, and related services [1] Financial Performance - As of December 31, 2024, Shan Aluminum Electronics reported total assets of RMB 44.25 million, net assets of RMB 37.90 million, operating income of RMB 38.89 million, and a net profit of RMB 0.76 million [1] - The main source of revenue for Shan Aluminum Electronics comes from smart card module packaging and testing services, primarily serving smart card chip design companies and manufacturers [1] Acquisition Details - The company acquired 75% of Shan Aluminum Electronics from China Aluminum Shandong Co., Ltd. in August 2020, with the equity value assessed at RMB 41.75 million as of February 29, 2020 [2] - The acquisition process involved a public transfer of shares at a price not lower than the assessed value, with the transaction price set at RMB 31.31 million [2] Shareholding Structure - After the acquisition, the shareholding structure of Shan Aluminum Electronics consists solely of Zibo Xintianrun Electronic Technology Partnership (Limited Partnership), holding 100% of the shares [3][4] - A portion of the shares (7.19%) was transferred to Zibo Xintianrun as incentive equity, with no monetary transaction involved [4] Branch Office Information - The Beijing branch of Xin Heng Hui Electronics Co., Ltd. was established on October 8, 2024, and is focused on local sales operations [4]