Core Viewpoint - The article highlights the rapid advancement of controllable nuclear fusion technology, particularly focusing on the key material, high-temperature superconducting tape, which is attracting significant capital interest. Shanghai Superconductor Technology Co., Ltd. is positioned as a leader in this field, aiming to become the first publicly listed company specializing in high-temperature superconducting materials through its upcoming IPO [1][2]. Company Overview - Shanghai Superconductor, established in 2011, is one of only two companies globally capable of producing over 1,000 kilometers of second-generation high-temperature superconducting tape annually, with a market share exceeding 80% in China [1][9]. - The company plans to raise 1.2 billion yuan through its IPO, which will be used for the production of second-generation high-temperature superconducting tape and the development of its headquarters [1][9]. Technology and Market Potential - High-temperature superconductors are revolutionary materials with zero electrical resistance at extremely low temperatures, offering significant applications in energy transmission, medical imaging, and quantum computing, with a potential market size in the trillions [2][8]. - The second-generation high-temperature superconducting tape, produced by Shanghai Superconductor, is superior in mechanical strength, cost-effectiveness, and high-field current-carrying capacity compared to the first generation, which is fragile and expensive [2][4]. Development History - Shanghai Superconductor's journey began with a shift to independent research and development after facing barriers from foreign companies. The first 100-meter long second-generation high-temperature superconducting tape was produced in 2011 [4][5]. - The company faced significant challenges, including a critical low yield of 30% in 2014, but received investment support that enabled it to increase production capacity significantly, achieving 100 kilometers of delivery in 2019 and 200 kilometers in 2020 [4][5]. Industry Trends - The global commercialization of nuclear fusion is gaining momentum, with significant investments from high-profile individuals and companies, indicating a strong market demand for high-temperature superconducting materials [7][8]. - The market for high-temperature superconducting tape in the nuclear fusion sector is projected to grow from approximately 722 million yuan in 2025 to about 2.144 billion yuan by 2027 [9]. Financial Performance - Shanghai Superconductor's revenue has shown rapid growth from 36 million yuan in 2022 to an expected 240 million yuan in 2024, with a notable shift from losses to profitability [12]. - The company experiences seasonal revenue fluctuations, with a significant portion of its income concentrated in the second half of the year due to the nature of its client base, which includes major research institutions and state-owned enterprises [12][13].

Core Viewpoint - The article highlights the rapid advancement of controllable nuclear fusion technology, particularly focusing on the key material, high-temperature superconducting tape, which is attracting significant capital interest. Shanghai Superconductor Technology Co., Ltd. is positioned as a leader in this field, with its IPO on the Sci-Tech Innovation Board aiming to raise 1.2 billion yuan for production and headquarters projects [1][2]. Company Overview - Shanghai Superconductor, established in 2011, is one of only two companies globally capable of producing over 1,000 kilometers of second-generation high-temperature superconducting tape annually, the other being a Japanese firm, FFJ [1][14]. - The company holds a dominant position in the domestic market with a market share exceeding 80% [2][14]. Product and Technology - High-temperature superconducting materials exhibit zero electrical resistance and complete magnetic resistance at extremely low temperatures, making them crucial for applications in energy transmission, medical imaging, and quantum computing [4]. - The second-generation high-temperature superconducting tape, produced by Shanghai Superconductor, is characterized by superior mechanical strength, lower raw material costs, and high current-carrying capacity, gradually replacing the first generation in emerging applications like controllable nuclear fusion [4][5]. Market Dynamics - The global commercialization of nuclear fusion has seen significant investment, with cumulative financing in the field reaching approximately $9.766 billion, an increase of $2.643 billion from the previous year [12]. - The demand for high-temperature superconducting tape is expected to grow rapidly, with the market size in the controllable nuclear fusion sector projected to increase from approximately 722 million yuan in 2025 to about 2.144 billion yuan by 2027 [12]. Financial Performance - Shanghai Superconductor's revenue has shown significant growth from 36 million yuan in 2022 to an estimated 240 million yuan in 2024, with a net profit of 72.01 million yuan expected in 2024 [15]. - The company experiences seasonal revenue fluctuations, with a substantial portion of its income concentrated in the fourth quarter due to the budget management practices of its major clients, which include large state-owned enterprises and research institutions [16]. Client Base - The client base of Shanghai Superconductor is highly concentrated, with the top five clients accounting for 75% to 85% of total revenue during the reporting period [16]. - A significant portion of revenue in the first half of 2025 is expected to come from the Chinese Academy of Sciences, which has been a stable partner since 2015 [16].

Summary of Key Points from the Conference Call on High-Temperature Superconductors and Their Applications in Controlled Nuclear Fusion Industry Overview - The discussion centers around the superconducting materials industry, particularly focusing on high-temperature superconductors (HTS) and their applications in controlled nuclear fusion [1][2][10]. Core Insights and Arguments - **Key Characteristics of Superconductors**: Superconductors are defined by three critical characteristics: zero electrical resistance, complete diamagnetism, and a distinct change in specific heat curve. These characteristics are essential for determining the superconducting nature of materials [1][4]. - **Performance Metrics**: The performance of superconducting materials is primarily measured by critical temperature, critical magnetic field, and critical current density. These metrics are crucial for assessing the application potential of superconductors [5][10]. - **Types of Superconductors**: Superconductors are categorized into two main types based on critical fields: Type I (single critical field) and Type II (two critical fields). Most practical superconductors fall under Type II, which is more applicable for industrial use [6][8]. - **Applications in Nuclear Fusion**: High-temperature superconductors are vital in controlled nuclear fusion due to their zero resistance and complete diamagnetism, which help in maintaining stable fusion reactions and reducing energy losses [2][10][11]. Practical Applications and Challenges - **Current Utilization**: Low-temperature superconductors like niobium-titanium and niobium-tin are widely used in strong electric fields, such as MRI machines and particle accelerators, despite requiring liquid helium for cooling [9][12]. - **Challenges for High-Temperature Superconductors**: HTS face significant challenges, including brittleness, low strength, and high anisotropy, which hinder their scalability and application compared to low-temperature superconductors [3][13]. - **Advancements in Second-Generation HTS**: Second-generation HTS materials have shown significant improvements in critical current density and are gradually entering industrial applications, particularly in nuclear fusion [15]. Emerging Trends and Research Directions - **Research Focus**: Recent research has focused on increasing the transition temperature of superconductors under high-pressure conditions, although not all high-temperature superconductors are unconventional [7][8]. - **Material Development**: The development of nickel-based superconductors has shown promise, but practical applications remain distant. Current efforts are concentrated on enhancing existing materials like magnesium diboride and copper oxides [21]. Manufacturing Techniques - **Production Methods**: Various production methods for HTS include Pulsed Laser Deposition (PLD), Metal-Organic Chemical Vapor Deposition (MOCVD), and Solution Deposition (MOD). Each method has its advantages and disadvantages, impacting the quality and performance of the superconducting materials produced [22][23][24]. - **Selection Criteria**: The choice of production method depends on the specific application requirements, such as performance metrics and cost considerations [27]. Conclusion - The superconducting materials industry, particularly high-temperature superconductors, is poised for growth driven by advancements in nuclear fusion technology. However, challenges related to material properties and manufacturing processes must be addressed to fully realize their potential in practical applications [11][20].