Core Viewpoint - The company, Jing Sheng Mechanical & Electrical (300316), is advancing in the production of silicon carbide (SiC) substrates, which are essential for third-generation semiconductor applications, particularly in electric vehicles, smart grids, and 5G communications. The company has achieved significant milestones in production capacity and technology development, positioning itself as a leader in the SiC substrate market. Group 1: SiC Substrate Development - The company has launched its first 12-inch SiC substrate pilot production line, achieving full domestic equipment development and marking a transition from parallel to leading in global SiC substrate technology [3][4]. - The pilot line covers the entire process from crystal growth to processing and testing, utilizing 100% domestic equipment, thus establishing a complete closed-loop system for 12-inch SiC substrates [4]. - The company is actively expanding its SiC production capacity, with projects including an annual production of 300,000 SiC substrates in Shaoxing and an 8-inch SiC substrate project in Penang, Malaysia [5]. Group 2: Market and Technical Progress - The company has achieved mass production and sales of 6-8 inch SiC substrates, with core parameters meeting industry-leading standards, and is successfully validating products with international customers [6]. - In the semiconductor equipment sector, the company has delivered 12-inch silicon epitaxy equipment to leading domestic clients, achieving international advanced levels in key performance indicators [7]. - The company is also innovating in the photovoltaic equipment sector, enhancing product technology and automation to improve efficiency for downstream customers [8]. Group 3: Financial Performance - For the first three quarters of 2025, the company reported a main revenue of 8.273 billion yuan, a year-on-year decrease of 42.86%, and a net profit of 900 million yuan, down 69.56% [10]. - The company has received buy ratings from seven institutions in the last 90 days, with a target average price of 50.14 yuan [10].

Group 1: Silicon Carbide Substrate Development - Silicon carbide (SiC) is a key material for third-generation semiconductors, widely used in electric vehicles, smart grids, and 5G communications [2] - The company has launched its first 12-inch SiC substrate pilot line, achieving 100% domestic equipment development, marking a significant advancement in SiC substrate technology [3] - The company plans to accelerate mass production of 12-inch SiC substrates to provide high-quality, low-cost products, contributing to the growth of China's third-generation semiconductor industry [2] Group 2: Production Capacity and Global Expansion - The company is establishing a production capacity of 300,000 SiC substrates annually in Shaoxing and is investing in an 8-inch SiC substrate project in Penang, Malaysia [4] - Additionally, a project in Yinchuan aims to produce 600,000 8-inch SiC substrates, enhancing the company's technological and scale advantages in the SiC substrate market [4] Group 3: Market Progress and Client Validation - The company has achieved mass production and sales of 6-8 inch SiC substrates, with core parameters meeting industry-leading standards [5] - The range of clients for product validation has significantly increased, successfully securing bulk orders from international customers [5] Group 4: Semiconductor Equipment Advancements - The company has developed a 12-inch atmospheric silicon epitaxy equipment that meets international advanced standards in key performance indicators [6] - New products such as the 12-inch dry-in-dry-out edge grinding machine and 12-inch double-sided thinning machine are undergoing client validation [6] Group 5: Innovations in Compound Semiconductor Equipment - The company is focusing on the transition of the SiC industry towards 8-inch technology, leveraging its core technological advantages in equipment [7] - Continuous innovation in photovoltaic equipment is being pursued, enhancing automation and advanced manufacturing processes to improve efficiency for downstream clients [7]

Core Viewpoint - Jing Sheng Mechanical and Electrical announced the successful delivery of its self-developed 12-inch atmospheric silicon epitaxy equipment to leading domestic customers, achieving international advanced levels in key performance indicators such as resistivity, thickness uniformity, epitaxial layer defect density, production efficiency, and process repeatability [1] Group 1: Product Development and Delivery - The company is actively promoting customer validation for new products including the 12-inch dry-in-dry-out edge grinding machine and the 12-inch double-sided thinning machine [1] - The 12-inch silicon reduced pressure epitaxy growth equipment has successfully achieved sales, utilizing a single temperature zone and multi-temperature zone closed-loop control mode, combined with multi-vacuum zone precise pressure control technology to ensure high stability during the epitaxy growth process [1] Group 2: Technological Advancements - The unique flat cavity structure and multi-port diversion system design of the equipment significantly enhance the film thickness uniformity and doping uniformity of the epitaxial layer, meeting the high standards required for advanced processes [1] - The company has successfully developed ultra-fast ultraviolet laser grooving equipment for advanced packaging applications, filling a gap in the domestic high-end ultraviolet laser grooving technology field and achieving domestic substitution [1]

Financial Performance - In the first three quarters of 2025, the company achieved a revenue of ¥8,273,220,959.41 and a net profit attributable to shareholders of ¥901,103,576.55 [2] - As of June 30, 2025, the company had unfulfilled contracts for integrated circuit and compound semiconductor equipment exceeding ¥3.7 billion (including tax) [5] Product Development - The company launched its first 12-inch silicon carbide (SiC) substrate processing pilot line on September 26, 2025, marking a significant advancement in domestic equipment development with 100% localization [2][3] - The pilot line covers the entire process from crystal growth to detection, utilizing domestically developed equipment, thus establishing a complete closed loop for 12-inch SiC substrates [3] Capacity Expansion - The company is actively expanding its SiC production capacity, with a project in Shangyu aiming for an annual output of 300,000 SiC substrates and an 8-inch SiC substrate industrialization project in Penang, Malaysia [4] - Additionally, a project in Yinchuan is set to produce 600,000 8-inch SiC substrates annually, enhancing the company's technological and scale advantages in the SiC substrate field [4] Semiconductor Equipment Progress - The company has successfully delivered its self-developed 12-inch atmospheric silicon epitaxy equipment to leading domestic clients, achieving international advanced levels in key performance indicators [6] - The company is also advancing the market promotion of new products such as the 12-inch dry-in-dry-out edge grinding machine and the 12-inch double-sided thinning machine [6] Component and Material Development - The subsidiary, Jinghong Precision, is focusing on the localization of core semiconductor components, enhancing manufacturing capabilities and product quality [8] - In the semiconductor consumables sector, the company has achieved domestic substitution for quartz crucibles, leading the market share and gradually increasing it [10] Client Base and Market Position - The company has established a strong reputation among high-end clients in the semiconductor and photovoltaic industries, maintaining long-term strategic partnerships with notable firms [10] - Major clients include well-known companies such as Longi Green Energy, Tongwei Co., and JinkoSolar, contributing to the company's industry influence [10]

Summary of Key Points from the Conference Call of Jing Sheng Electromechanical Industry Overview - Jing Sheng Electromechanical focuses on three main business areas: semiconductor equipment, substrate materials, and consumables [2][3][5] - The company is actively advancing its 12-inch silicon epitaxy equipment, achieving international advanced levels in key indicators [2][3] - The transition from 6-inch to 8-inch silicon wafers is a significant trend in the industry, with expectations that 8-inch will become mainstream by 2027 [6][10] Company Performance - In the first three quarters of 2025, Jing Sheng Electromechanical reported revenue of 8.273 billion yuan and a net profit of 901 million yuan [3] - The company has successfully delivered 12-inch silicon epitaxy equipment to leading domestic clients and is developing new products such as laser external groove and laser slotting equipment [3][4] - The third quarter saw improved profitability due to high-margin semiconductor equipment revenue and effective cost control [3][12] Product Development and Market Strategy - The first 12-inch silicon carbide substrate processing pilot line has been completed, with 100% domestic equipment [2][5] - The company is expanding its global supply capabilities by building an 8-inch silicon carbide substrate project in Penang, Malaysia [2][7] - Jing Sheng Electromechanical is positioned as a leader in the 12-inch silicon carbide substrate market, with competitive advantages in 6-inch and 8-inch sizes [2][6] Competitive Landscape - The silicon carbide substrate industry is expected to see increased concentration among leading companies, with potential price declines due to scale supply increases [2][7] - The company aims to maintain its competitive edge through technological innovation and cost control, particularly in larger sizes [2][6] Future Outlook - The semiconductor equipment industry is expected to maintain high growth due to China's focus on expanding its semiconductor industry and increasing self-sufficiency [12][20] - The company anticipates a rebound in the photovoltaic equipment market in 2026, following a challenging 2025 [15][17] - The demand for silicon carbide in high-power applications, such as data centers, is projected to grow significantly, driven by its low-loss characteristics [11][13] Additional Insights - The company is investing in advanced manufacturing technologies to enhance efficiency for downstream clients [4] - The transition to larger wafer sizes is expected to lead to a healthier price trend for 8-inch wafers due to limited domestic capacity [10] - The company is also exploring various thermal materials, including silicon nitride and gallium nitride, to meet the growing demand in power semiconductors [18][20] This summary encapsulates the critical insights from the conference call, highlighting the company's strategic positioning, performance metrics, and future industry trends.

Summary of Jinsheng Electric's Conference Call Company Overview - **Company**: Jinsheng Electric - **Industry**: Semiconductor and Photovoltaic Equipment Key Points Financial Performance - In the first half of 2025, Jinsheng Electric achieved a revenue of 5.799 billion yuan and a net profit attributable to shareholders of 639 million yuan [3] - The company reported a net cash inflow from operating activities of 447 million yuan, a year-on-year increase of 55.84%, indicating improved financial management [2][4] Business Segments - Jinsheng Electric focuses on three main business segments: semiconductor equipment, substrate materials, and consumables [2] - The company has over 3.7 billion yuan in unfulfilled contracts for integrated circuits and compound semiconductor equipment as of June 30, 2025 [3] Semiconductor Equipment - The company successfully delivered 12-inch silicon epitaxy equipment to leading domestic clients and is promoting 8-inch silicon carbide (SiC) epitaxy equipment [3] - New products such as the 12-inch dry-in dry-out edge polishing machine and double-sided thinning machine are undergoing customer validation [3] - Jinsheng Electric is a market leader in large silicon wafer equipment and is expanding its overseas market for semiconductor components and consumables [3][4] Photovoltaic Equipment - The company is optimistic about the long-term development of the photovoltaic industry and is addressing overcapacity challenges through technological innovations [2][5] - New products like Topcon efficiency EPD equipment and BC end silver-free multi-wire welding equipment are expected to have a positive impact from 2025 to 2026 [5][6] Silicon Carbide (SiC) Development - Jinsheng Electric has made significant advancements in 12-inch SiC crystal growth technology and is validating 8-inch SiC substrates with global customers [2][4] - The company plans to produce 600,000 wafers per month to meet future market demand, anticipating that 8-inch SiC will fully replace 6-inch [2][7] - The expected turning point for SiC development is projected for 2026-2027, particularly in the automotive sector [3][11] Market Outlook - The company expects a significant increase in demand for 8-inch conductive chips and MOSFETs by 2026-2027, driven by investments from major players like Infineon [9][11] - The photovoltaic industry is recovering from a downturn, and Jinsheng Electric is focused on maintaining order expansion and enhancing competitiveness through innovation [16] Challenges and Strategies - The company faces challenges in the photovoltaic equipment sector due to intense competition and cash flow pressures, particularly in the dry pot and diamond wire segments [28] - Jinsheng Electric is committed to continuous investment in key areas to ensure long-term sustainable development despite current financial performance not meeting expectations [29] Inventory and Supply Chain - The company maintains a lean inventory in the photovoltaic sector, while semiconductor components are stocked due to the long cycle nature of the industry [20] Conclusion - Jinsheng Electric is strategically positioned in the semiconductor and photovoltaic equipment markets, with a focus on innovation and expansion to capture future growth opportunities in the SiC and photovoltaic sectors [2][3][4][5][6][7][11][16][29]

Financial Performance - The company achieved operating revenue of 579,895.11 million yuan in the first half of 2025, with a decline in revenue and profit from photovoltaic equipment and materials due to cyclical adjustments in the industry [2] - The semiconductor business continued to grow, with unfulfilled contracts for integrated circuits and compound semiconductor equipment exceeding 3.7 billion yuan as of June 30, 2025 [2] Semiconductor Equipment Development - The company successfully delivered 12-inch atmospheric silicon epitaxy equipment to leading domestic customers, achieving international advanced levels in key performance indicators [3] - New products such as the 12-inch dry-in-dry-out edge grinding machine and 12-inch double-sided thinning machine are undergoing customer validation [3] Silicon Carbide Substrate Progress - The company made significant breakthroughs in the growth of 12-inch conductive silicon carbide crystals, addressing core challenges in temperature uniformity and crystal cracking [4] - The company is expanding its global customer verification for 8-inch silicon carbide substrates and has received bulk orders from international clients [4] Semiconductor Components and Materials - The subsidiary, Jinghong Precision, is enhancing its manufacturing capabilities for core components, focusing on precision processing and special welding [5] - The company has achieved domestic substitution for semiconductor quartz crucibles, leading the market share and overcoming technical bottlenecks for large-sized crucibles [5] Sapphire Business Growth - The sapphire material business experienced year-on-year growth driven by new applications in LED and consumer electronics sectors [5] Customer Base and Risk Management - The company has established a strong reputation among high-end clients in the semiconductor and photovoltaic industries, with long-term strategic partnerships [6] - To mitigate order fulfillment risks, the company focuses on large, financially stable clients and implements strict credit management and contract practices [6]