Core Insights - Yida Capital has completed an investment in Shanghai Hengfeng New Material Technology Co., Ltd, which will enhance the company's product supply system and strategic layout in the electronic-grade specialty phenolic resin and specialty phenolic epoxy resin markets [1][3] Company Overview - Hengfeng New Material was established in 2018 and is a domestic manufacturer of core materials for semiconductor packaging, with a team that has over 20 years of experience in the phenolic resin and epoxy resin industry [1][3] - The company aims to become a global leader in electronic-grade specialty phenolic resin and specialty phenolic epoxy resin technology, guided by its forward-looking development strategy of "Polymer Technology, Sealing the Future" [1][3] Market Demand and Strategy - There is a significant demand for electronic-grade specialty phenolic resin and specialty phenolic epoxy resin in China, which heavily relies on imports, making the realization of "China Intelligent Manufacturing" urgent [3] - Hengfeng New Material is actively seeking growth points for product localization and has a product matrix widely used in various applications such as copper-clad laminates, epoxy encapsulants, photoresists, electronic adhesives, and other composite materials, receiving high recognition from leading domestic and international companies [3] Production Capacity and Future Plans - The company has established modern production lines in Anhui and Taizhou and plans to accelerate the localization process of electronic-grade specialty phenolic resin and specialty phenolic epoxy resin [3] - The production base in Bengbu, Anhui, is set to commence operations, which is expected to provide sufficient capacity assurance for customers and continuously create maximum value for shareholders and clients [3] Team and Management - The founding team and core members of Hengfeng New Material have extensive experience working in foreign enterprises, possessing rich technical expertise and a broad customer base [4] - The company's products are critical materials in the semiconductor packaging field, with high technical barriers for high-end products, aligning with the trend of domestic substitution [4] - There is an emphasis on cash flow management during the expansion process and on maintaining product quality during the ramp-up of production capacity, ensuring steady progress in the localization of core materials for semiconductor packaging [4]

Group 1 - In May 2025, the number of newly registered private equity and venture capital fund managers in China dropped to 2, a decrease of 83.3% compared to April and a 60% decline year-on-year [1] - A total of 339 new private equity and venture capital funds were registered, marking a year-on-year increase of 55.5% but a month-on-month decrease of 18.7% [1] - The domestic primary equity investment market recorded 428 financing events, representing a year-on-year and month-on-month decrease of 13.6% and 18.0% respectively, with a total disclosed financing amount of approximately 18.233 billion yuan, remaining stable compared to May 2024 but down 21.5% from March 2025 [1] Group 2 - Yida Capital, a management institution under Jiangsu High-tech Investment Group, has a capital management scale exceeding 120 billion yuan and focuses on various investment stages and sectors [2] - As of the end of May 2025, Yida Capital registered three new funds with a total registered capital of 2.12 billion yuan, including the Ma'anshan Charity Lake Venture Capital Partnership and the Ma'anshan Digital Empowerment Industry Fund [2][3] - The Ma'anshan Charity Lake Venture Capital Partnership, with a total scale of 1 billion yuan, primarily focuses on the life and health industry and its upstream and downstream sectors [2] Group 3 - The Ma'anshan Digital Empowerment Industry Fund, also with a total scale of 1 billion yuan, invests in key areas such as artificial intelligence and data elements [3] - Yida Capital disclosed five equity investment events during the reporting period, remaining stable compared to April 2025 but showing a significant increase of 150% year-on-year [3] - In the first five months of 2025, Yida Capital completed 31 investments, which is 93.9% of the total investment events from May to December 2024 [3] Group 4 - In May 2025, Yida Capital's investments were primarily in growth-stage projects, with Pre-B and B rounds accounting for 60% of the investments [6] - Yida Capital led a Pre-B round investment in "Hengfeng New Materials," which will use the funds to upgrade its product supply system and enhance its strategic layout in the electronic-grade specialty phenolic resin market [11] - Hengfeng New Materials, established in 2018, focuses on high-tech products used in semiconductor packaging and has modern production lines in Anhui and Taizhou to support domestic production [12]

Group 1 - Shanghai Hengfeng New Material Technology Co., Ltd. recently completed a Pre-B round financing of several tens of millions, led by Yida Capital, with participation from Lingang Digital Fund and Shangyanxin Industrial Fund, and continued investment from existing shareholder Yaotu Capital [1] - The company has raised over 100 million in its last two financing rounds, which will support the upgrade of its product supply system and strategic layout in the electronic-grade specialty phenolic resin and specialty phenolic epoxy resin markets [1] - Hengfeng New Material, established in 2018, aims to become a global leader in electronic-grade specialty phenolic resin and specialty phenolic epoxy resin technology, leveraging a team with over 20 years of experience in the industry [1] Group 2 - The product matrix of Hengfeng New Material is widely used in various applications, including copper-clad laminates, epoxy encapsulation materials, photoresists, electronic adhesives, and other composite materials, receiving high recognition from leading domestic and international companies [1] - The company has modern production lines established in Anhui and Taizhou, with a new production base in Bengbu, Anhui, set to provide sufficient capacity for customers [1] - Electronic-grade phenolic resin has higher technical requirements compared to ordinary phenolic resin, featuring lower free phenol content, better heat resistance, higher glass transition temperature (Tg), and high thermal decomposition temperature, making it suitable for electronic components [1] Group 3 - Shengquan Group is a leading enterprise in the phenolic resin industry, with its electronic-grade phenolic resin occupying a dominant position in the market, achieving an annual production capacity of 648,600 tons [2] - The company’s phenolic resin products are utilized in various applications, including friction materials, shale gas coating agents, abrasives, refractory materials, new energy-saving flame-retardant building materials, surface coatings, molding materials, and tire rubber, with over 800 varieties across 10 major series [2] - Shengquan Group has been recognized as a national manufacturing single-item champion demonstration enterprise and is a supplier of insulation materials for the "Shenzhou" series spacecraft and the "Fuxing" high-speed trains in China [2]

Core Insights - Shanghai Hengfeng New Materials Technology Co., Ltd. has successfully completed a Pre-B round financing of several tens of millions, led by Yida Capital, with participation from Lingang Digital Fund and Shangyan Xinguang Fund, alongside existing investor Yaotu Capital increasing its stake [1] - The company has previously secured nearly 100 million in A round financing in December 2023, led by Yaotu Capital and Yuanhe Puhua, with contributions from Yonghua Capital and Ruixia Investment, bringing total financing to over 100 million, which will enhance its product supply system and strategic deployment in the electronic-grade specialty phenolic resin and specialty phenolic epoxy resin markets [3] Company Overview - Established in September 2018 in Shanghai, Hengfeng New Materials has assembled a team of elites from renowned institutions like East China University of Science and Technology, with over 20 years of experience in phenolic and epoxy resin technology, production, and sales [3] - The company aims to become a leader in global electronic-grade specialty phenolic resin and specialty phenolic epoxy resin technology [3] Market Context - There is a significant demand for electronic-grade specialty phenolic resin and specialty phenolic epoxy resin, but the domestic market heavily relies on imports [3] - Hengfeng New Materials recognizes the urgency of achieving "Made in China" and seeks growth points through domestic production, with its products widely used in copper-clad laminates, epoxy encapsulants, photoresists, electronic adhesives, and other composite materials [3] Production Capacity - To meet the growing market demand, Hengfeng New Materials has established modern production lines in Anhui and Taizhou, with a production base in Bengbu, Anhui, set to commence operations soon, ensuring sufficient capacity for customers and further promoting the domestic substitution process for electronic-grade specialty phenolic resin and specialty phenolic epoxy resin [3]