Core Viewpoint - The rapid growth of the silicon carbide market has led companies in the industry, such as Tianyu Semiconductor, to seek capital market opportunities, with Tianyu recently passing the Hong Kong Stock Exchange hearing for a potential listing. Group 1: Company Overview - Tianyu Semiconductor is the largest manufacturer of silicon carbide epitaxial wafers in China, holding market shares of 30.6% and 32.5% in revenue and sales respectively for 2024 [1] - As of May 2023, Tianyu's annual production capacity for 6-inch and 8-inch epitaxial wafers is approximately 420,000 pieces, making it one of the companies with the highest capacity in the domestic market [1] Group 2: Financial Performance - Tianyu's revenue and net profit have shown volatility from 2022 to May 2025, with revenues of 437 million RMB in 2022, 1.171 billion RMB in 2023, and 520 million RMB in 2024 [2][3] - The average selling price of products has decreased significantly, from 7,924 RMB per piece in 2024 to 3,813 RMB per piece in 2025, contributing to a decline in overall revenue despite increased sales volume [2][3] Group 3: Sales and Market Dynamics - In 2023, Tianyu's sales volume reached 130,700 pieces, a significant increase from 44,500 pieces in 2022, but is projected to drop to 78,900 pieces in 2024 due to global trade tensions [2] - The company has seen a shift in revenue sources, with a notable portion coming from regions outside mainland China, including 12.26 million RMB from Hong Kong and 488 million RMB from South Korea in 2023 [5] Group 4: Profitability and Challenges - Tianyu's gross profit fluctuated from 87.49 million RMB in 2022 to a loss of 374 million RMB in 2024, with corresponding gross profit margins of 20% and -72% [6] - The company faced significant challenges in 2024 due to falling product prices, reduced production, and increased fixed costs, leading to a net loss of 500 million RMB [6] Group 5: Future Growth and Expansion Plans - Despite industry challenges, Tianyu is expanding its production capacity, with a new facility expected to add 380,000 pieces of 8-inch silicon carbide epitaxial wafer capacity by the end of the year, bringing total capacity to approximately 800,000 pieces [7] - The company plans to deepen its market presence in China while also targeting expansion into Southeast Asia and other overseas markets through new sales centers in Malaysia, Italy, and Japan [8][9] Group 6: Listing and Financial Strategy - The upcoming Hong Kong listing is seen as a potential "springboard" for Tianyu's growth, as the company currently has cash and cash equivalents of 95.34 million RMB, down from 115 million RMB the previous year [9] - Successful listing is expected to improve financing channels and positively impact the company's ability to develop overseas customer relationships [9]

Core Viewpoint - The rapid growth of the silicon carbide market has led companies in the industry, such as Tianyu Semiconductor, to pursue listings in capital markets, with Tianyu Semiconductor recently passing the Hong Kong Stock Exchange hearing and potentially becoming a mainboard listed company soon [1][9]. Company Overview - Tianyu Semiconductor is the largest manufacturer of silicon carbide epitaxial wafers in China, holding market shares of 30.6% and 32.5% in revenue and sales respectively for 2024 [1]. - As of May 2023, the company's annual production capacity for 6-inch and 8-inch epitaxial wafers is approximately 420,000 pieces, making it one of the companies with the highest capacity in the domestic market [1]. Financial Performance - The company's revenue and net profit have shown volatility from 2022 to May 2025, with revenues of 437 million RMB in 2022, 1.171 billion RMB in 2023, and a decline to 520 million RMB in 2024 [2][3]. - In the first five months of 2025, the revenue was 257 million RMB, down from 297 million RMB in the same period of 2024 [2]. - The average selling price of products has decreased significantly, from 7,924 RMB per piece in 2024 to 3,813 RMB per piece in 2025, contributing to the decline in overall revenue despite increased sales volume [2][6]. Sales and Market Dynamics - In 2023, the company sold 130,700 pieces of epitaxial wafers, a significant increase from 44,500 pieces in 2022, but projected sales for 2024 are expected to drop to 78,900 pieces due to global trade tensions [2][5]. - The company’s revenue from other sales and services has increased from 8.8% in 2022 to 12.6% in the first five months of 2025, indicating a diversification in revenue sources [3]. Production Capacity and Expansion Plans - Tianyu Semiconductor is expanding its production capacity, with a new production base expected to add 380,000 pieces of 8-inch silicon carbide epitaxial wafer capacity by the end of the year, bringing total capacity to approximately 800,000 pieces [7][9]. - The company plans to further expand production in Southeast Asia to meet overseas customer demand, although no specific timeline has been provided [7][8]. Strategic Focus - To mitigate the impact of international trade tensions, the company aims to strengthen its market position in China by focusing on domestic customer needs and enhancing customer loyalty [8]. - Despite challenges in overseas sales, the company intends to expand its global sales network by establishing sales centers in Malaysia, Italy, and Japan [8][10].

Core Viewpoint - Tianyu Semiconductor is set to list on the Hong Kong Stock Exchange on October 21, 2025, with CITIC Securities as the sole sponsor. The company specializes in silicon carbide (SiC) epitaxial wafers and is the first technology-leading supplier in China [1]. Company Overview - Tianyu Semiconductor's projected revenue for 2024 is approximately RMB 520 million, with a gross loss of RMB 374 million and a net loss of RMB 500 million [1]. - The company focuses on the research, production, and sales of self-developed SiC epitaxial wafers, which are used in various applications including the new energy sector (electric vehicles, photovoltaics, charging stations, and energy storage), rail transportation, smart grids, general aviation, and home appliances [1]. Market Position - According to Frost & Sullivan, the company is expected to capture a market share of 30.6% by revenue and 32.5% by volume in the Chinese SiC epitaxial wafer market by 2024, making it the leading company in this sector [2]. - The sales volume of 4-inch and 6-inch SiC epitaxial wafers has decreased from 2022 to May 2025, while the sales volume of 8-inch wafers has significantly increased from 0% in 2022 to 9.8% in May 2025 [1]. Financial Performance - Revenue figures for the years 2022, 2023, and 2024 are approximately RMB 437 million, RMB 1.171 billion, and RMB 520 million, respectively, with a compound annual growth rate (CAGR) of 9.06% [2]. - Gross profit figures for the same years are approximately RMB 87 million, RMB 217 million, and a gross loss of RMB 374 million, indicating a significant decline in profitability in 2024 [2]. - Net profit figures for 2022, 2023, and 2024 are approximately RMB 3 million, RMB 96 million, and a net loss of RMB 500 million, reflecting a shift from profit to loss in 2024 [2]. Industry Outlook - The global SiC epitaxial wafer market has seen significant changes, particularly in the 6-inch segment, with revenue increasing from USD 300 million in 2019 to USD 1 billion in 2023 [6]. - The Chinese SiC epitaxial wafer market is expected to grow at a compound annual growth rate (CAGR) of 50.9% from 2023 to 2028, outpacing the global market's expected CAGR of 37.8% during the same period [9]. - The competition in the Chinese SiC epitaxial wafer market is highly concentrated, with the top five players accounting for 85% of the total market share by revenue in 2023 [9].

Core Viewpoint - Guangdong Tianyu Semiconductor Co., Ltd. (Tianyu Semiconductor) is preparing for its IPO on the Hong Kong Stock Exchange, having submitted its prospectus after receiving approval from the China Securities Regulatory Commission for overseas listing [2][3]. Company Overview - Tianyu Semiconductor, established in 2009, specializes in the design, research, and manufacturing of silicon carbide (SiC) epitaxial wafers, ranking first in China's SiC epitaxial wafer industry with market shares of 30.6% and 32.5% in revenue and sales volume respectively as of 2024 [3][4]. Production Capacity - The company is one of the first in China to achieve mass production of 4-inch, 6-inch, and 8-inch SiC epitaxial wafers, with an annual production capacity of approximately 420,000 wafers for 6-inch and 8-inch sizes as of May 31, 2025 [4]. Sales Performance - Sales volume increased from 44,515 wafers in 2022 to 132,072 wafers in 2023, but dropped to 78,928 wafers in 2024 due to market fluctuations. In the first five months of 2025, sales reached 77,709 wafers [4]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first five months of 2025 were RMB 437 million, RMB 1.171 billion, RMB 520 million, and RMB 257 million respectively. The corresponding net profits were RMB 2.814 million, RMB 95.882 million, a loss of RMB 500.252 million, and a profit of RMB 9.515 million [15][16]. Shareholder Structure - The pre-IPO shareholder structure includes major stakeholders such as Mr. Li Xiguang with 29.0522% ownership, and Mr. Ouyang Zhong with 18.2067%. Together with other investors, they form a controlling group with approximately 58.36% ownership [8][9]. Management Team - The board of directors consists of six members, including one executive director, Mr. Li Xiguang, and two non-executive directors, Mr. Ouyang Zhong and Mr. Jiang Dacai. The management team includes key positions such as CFO and vice presidents [12][14]. Industry Context - Tianyu Semiconductor operates in the rapidly growing third-generation semiconductor materials sector, benefiting from the increasing demand in the renewable energy industry both in China and globally [4].

Core Viewpoint - Tianyu Semiconductor has passed the main board listing hearing of the Hong Kong Stock Exchange, with CITIC Securities as the exclusive sponsor [1] Group 1: Market Position - In 2024, Tianyu Semiconductor holds the largest market share in China's silicon carbide epitaxial wafer market, with a revenue market share of 30.6% and a sales market share of 32.5% [1] - The company is the third largest silicon carbide epitaxial wafer manufacturer in China based on global revenue and sales, with market shares of 6.7% and 7.8% respectively [1] Group 2: Product and Production Capacity - Silicon carbide epitaxial wafers are key raw materials for producing power semiconductor devices, offering significant advantages over silicon materials in terms of high voltage, high temperature, and high frequency [1] - The company has achieved mass production of 4-inch (2014), 6-inch (2018), and 8-inch (2023) silicon carbide epitaxial wafers [1] - As of May 31, 2025, the annual production capacity for the company's 6-inch and 8-inch wafers is approximately 420,000 pieces, making it one of the largest companies in China in this field [1]

Core Viewpoint - Tianyu Semiconductor is the largest manufacturer of silicon carbide (SiC) epitaxial wafers in China by revenue and sales volume, with significant market shares in both domestic and global markets [1][2]. Group 1: Company Overview - Tianyu Semiconductor is the largest SiC epitaxial wafer manufacturer in China, holding a market share of 30.6% in revenue and 32.5% in sales volume for the year 2024 [1]. - The company ranks as the third-largest SiC epitaxial wafer manufacturer globally, with a market share of 6.7% in revenue and 7.8% in sales volume [1]. - The company has achieved mass production capabilities for 4-inch, 6-inch, and 8-inch SiC epitaxial wafers, with the latter being achieved in 2023 [2]. Group 2: Production Capacity and Sales - By May 31, 2025, Tianyu Semiconductor's annual production capacity for 6-inch and 8-inch epitaxial wafers is projected to be approximately 420,000 wafers, making it one of the largest companies in China for these sizes [2]. - The company's sales volume increased from 44,515 wafers in 2022 to 130,702 wafers in 2023, but is expected to decline to 78,928 wafers in 2024 [2]. - The sales volume for the five months ending May 31, 2025, is projected to rise from 37,391 wafers to 77,709 wafers for the same period in 2024 [2]. Group 3: Financial Performance - Tianyu Semiconductor's revenue for the fiscal years 2022, 2023, 2024, and the five months ending May 31, 2025, were approximately RMB 437 million, RMB 1.171 billion, RMB 520 million, and RMB 257 million, respectively [3]. - The company's gross profit for the same periods were approximately RMB 87.486 million, RMB 217 million, -RMB 374 million, and RMB 57.765 million [3].

Core Viewpoint - Tianyu Semiconductor is the largest manufacturer of silicon carbide (SiC) epitaxial wafers in China by revenue and sales volume, with market shares of 30.6% and 32.5% respectively for 2024 [3]. Group 1: Market Position - In the global market, Tianyu Semiconductor ranks as the third-largest SiC epitaxial wafer manufacturer, holding market shares of 6.7% in revenue and 7.8% in sales volume [3]. - The company has achieved mass production capabilities for 4-inch, 6-inch, and 8-inch SiC epitaxial wafers, with the latter being achieved in 2023 [4]. Group 2: Production Capacity - By May 31, 2025, the annual production capacity for 6-inch and 8-inch epitaxial wafers is projected to be approximately 420,000 pieces, making the company one of the largest in China for these sizes [4]. Group 3: Financial Performance - Revenue figures for Tianyu Semiconductor are as follows: approximately RMB 437 million in 2022, RMB 1.171 billion in 2023, RMB 520 million in 2024, and RMB 257 million for the five months ending May 31, 2025 [5]. - The gross profit for the same periods was approximately RMB 87.5 million, RMB 217 million, a loss of RMB 374 million, and a gross profit of RMB 57.8 million respectively [5]. - The company's sales volume increased from 44,515 pieces in 2022 to 130,702 pieces in 2023, but is expected to decline to 78,928 pieces in 2024 [4]. Group 4: Industry Context - The rapid growth of the renewable energy sector in China and globally has significantly increased the demand for SiC products, benefiting Tianyu Semiconductor [4]. - SiC is recognized for its superior performance compared to traditional semiconductor materials like silicon, making it suitable for high-voltage, high-temperature, and high-frequency applications [3].

Core Viewpoint - Tianyu Semiconductor is preparing for an IPO on the Hong Kong Stock Exchange after passing the listing hearing [2]. Financial Performance - Tianyu Semiconductor reported revenues of 437 million yuan in 2022, 1.171 billion yuan in 2023, and projected 519 million yuan in 2024, indicating a significant decline of 55.6% in 2024 compared to the previous year [4][8]. - The company experienced a net loss of 500 million yuan in 2024, following a profit of 281,000 yuan in 2022 and 95.88 million yuan in 2023 [7][10]. - For the first five months of 2025, the company generated revenue of 257 million yuan, a decrease of 13.5% from 297 million yuan in the same period of 2024 [9]. Product and Technology - Tianyu Semiconductor specializes in silicon carbide (SiC) epitaxial wafers and has developed core technologies for producing power devices ranging from 600V to 30,000V [6]. - The company has completed the construction of its Dongguan Ecological Park, which is expected to start mass production of 6-inch and 8-inch SiC epitaxial wafers by the end of 2025 [6]. Shareholder Structure - Major shareholders include Huawei and BYD, with the company's executive director, Li Xiguang, controlling approximately 29.05% of the equity directly and additional stakes through investment vehicles [11][14]. - The combined holdings of Li Xiguang, Ouyang Zhong, and their associated investment entities account for 58.36% of the total issued shares [14]. Funding and Investment - Tianyu Semiconductor has undergone seven rounds of financing prior to its IPO, including a significant 668 million yuan investment in August 2022 and 491 million yuan in December 2022 [11][12].

Group 1 - The company has confirmed that its electronic-grade trichlorosilane products are primarily used in the production of 6-8-12 inch silicon epitaxial wafers and silicon carbide epitaxial wafers [2] - The company has achieved stable bulk supply to downstream customers [2]

Core Viewpoint - Mindray Electronics (300656) has announced that Jingrui Electronics has begun mass production of various semiconductor materials, indicating a focus on enhancing production capacity and specialization in high-end applications [1] Group 1: Product Development - Jingrui Electronics has started mass production of 4-8 inch silicon epitaxial wafers, silicon carbide epitaxial wafers, double-polished wafers for special sensors, and SOI (Silicon on Insulator) wafers [1] - The company is actively developing semiconductor materials for the sensor market, aiming to improve its specialization and high-end capabilities [1] Group 2: Capacity Enhancement - Jingrui Electronics is continuously increasing the production capacity of its main products [1]