Development History
Shanghai Xinyang was established in July 1999 and was listed on the Shenzhen Stock Exchange’s Growth Enterprise Market in 2011. The company is headquartered in the Songjiang District of Shanghai and focuses on the research and development, manufacturing, and sales of functional chemical materials and application technologies required by the semiconductor industry, committed to providing users with integrated solutions that include chemical materials, supporting equipment, application processes, and on-site services.
Technical Development History
- First Stage (First Ten Years): Developed the first generation of electroplating and cleaning technologies for the semiconductor packaging field.
- Second Stage (Second Ten Years): Developed the second generation of electroplating and cleaning technologies for chip manufacturing, filling the gap in domestic materials for copper interconnect processes in chip manufacturing, achieving domestic substitution and independent supply capabilities.
- Current Stage: Forming the third generation of core technologies represented by photolithography technology.
Core Technologies and Patents
The company possesses two core technologies: electroplating and cleaning, having applied for 354 patents, with 187 granted, including 79 domestic invention patents and 5 international invention patents. The second generation of core technologies for wafer electroplating and cleaning has reached world-class levels.
Business Layout
The company’s main business is divided into two categories:
- Research, development, production, sales, and service of key process materials and supporting equipment for integrated circuit manufacturing and advanced packaging.
- Research, development, production, and related services of environmentally friendly functional coatings.
Financial Performance
2024 Full Year and 2025 Mid-Year Performance
2024 Full Year Performance:
- Total Revenue: 1.475 billion yuan, a year-on-year increase of 21.67%
- Net Profit Attributable to Shareholders: 176 million yuan, a year-on-year increase of 5.32%
- Net Profit Excluding Non-Recurring Items: 161 million yuan, a year-on-year increase of 30.63%
- Semiconductor Business Revenue: 1.035 billion yuan, a year-on-year increase of 34.78%, accounting for 70.19% of total revenue.
- Coating Business Revenue: 440 million yuan, a slight year-on-year decrease.
2025 Mid-Year Performance:
- Total Revenue: 897 million yuan, a year-on-year increase of 35.67%
- Net Profit Attributable to Shareholders: 133 million yuan, a year-on-year increase of 126.31%
- Net Profit Excluding Non-Recurring Items: 127 million yuan, a year-on-year increase of 58.07%
- Semiconductor Business Revenue: 709 million yuan, a year-on-year increase of 53.12%, accounting for 76.27% of total revenue.
- Coating Business Revenue: 187 million yuan, accounting for 20.86%.
Financial Indicators by Business Segment (2025 Mid-Year Report)
| Business Segment | Revenue Share | Gross Margin | Profit Contribution Share |
|---|---|---|---|
| Integrated Circuit Materials | 76.27% | 45.90% | 85.90% |
| Coating Products | 20.86% | 22.98% | – |
| Supporting Equipment and Accessories | 2.76% | 30.58% | – |
Key Financial Indicators from Financial Statements
Key Indicators from the Balance Sheet (2025 Mid-Year Report):
- Cash and Cash Equivalents: 762 million yuan, a year-on-year decrease of 4.80%
- Accounts Receivable: 659 million yuan, a year-on-year increase of 13.77%
- Interest-Bearing Liabilities: 553 million yuan, a year-on-year increase of 0.96%
- Prepayments: Year-on-year increase of 154.79% (mainly due to increased material procurement prepayments)
- Inventory: Year-on-year increase of 20.06% (to meet increased sales growth)
Key Indicators from the Income Statement (2025 Mid-Year Report):
- Gross Margin: 40.75%, a year-on-year increase of 2.79%
- Net Margin: 14.88%, a year-on-year increase of 66.03%
- R&D Expenses: 120 million yuan, accounting for 13.58% of revenue
- Three Expenses as a Percentage of Revenue: 12.67%, a year-on-year increase of 10.46%
Key Indicators from the Cash Flow Statement (2025 Mid-Year Report):
- Net Cash Flow from Operating Activities: Year-on-year increase of 241.03% (mainly due to increased sales collections and tax refunds)
- Net Cash Flow from Investing Activities: Year-on-year decrease of 213.72% (due to increased asset purchases and external investments)
- Net Cash Flow from Financing Activities: Year-on-year increase of 208.97% (due to new bank loans and reduced loan repayments)
Industry Competition Landscape and Market Position
Technical Advantages and Product Progress
Shanghai Xinyang has significant technical advantages in the domestic semiconductor materials field:
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Cleaning Solution Products: 28nm dry etching cleaning solution products have been mass-produced, and cleaning solutions for dry etching after the 14nm technology node have also been mass-produced and sold, achieving full coverage of dry etching cleaning solutions for 14nm and above technology nodes.
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Photoresist Products: The company is one of the few manufacturers that simultaneously develops ArF and KrF photoresists. I-line and KrF photoresists have multiple models that have achieved continuous sales, and ArF immersion photoresists are undergoing testing and validation at several domestic wafer manufacturing enterprises.
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Market Share: The company’s series of electroplating solutions and additives for wafer manufacturing have rapidly increased market share, becoming the baseline materials for several integrated circuit manufacturing companies at the 28nm technology node.
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Capacity Layout and Expansion
The company is actively expanding capacity to meet market demand:
| Production Base | Investment Scale | Capacity Planning | Production Progress | Main Products |
|---|---|---|---|---|
| Shanghai Songjiang Plant | – | 19,000 tons/year | In production | Electronic Chemicals |
| Hefei Second Production Base | 1.049 billion yuan | 43,500 tons/year | Trial production stage | Cleaning Solutions, Etching Solutions, Polishing Solutions |
| Shanghai Chemical Industry Zone | – | 60,000 tons (planned) | To be put into production by the end of June 2026 | Photoresists and Supporting Materials |
| New Planned Project | 1.85 billion yuan | 50,000 tons | To be put into production by November 2027 | Key Process Materials for Integrated Circuits |
Dry Etching Cleaning Solutions
- Technology Nodes: Achieved full coverage of 14nm and above technology nodes.
- Cooperation Progress: This product has been mass-produced and sold in several domestic wafer manufacturing enterprises, including SMIC, and is widely used in the manufacturing processes of logic circuits, analog circuits, and memory devices.
- Performance: In the first half of 2024, revenue from this product line increased by nearly 50% year-on-year.
2. Electroplating Solutions and Additives Series
- Technology Nodes: Covers 90-14nm technology nodes and has become the baseline material for SMIC’s 28nm technology node.
- Cooperation Progress: This is Shanghai Xinyang’s traditional advantage product, serving as the baseline product in SMIC’s 28nm process and has been used in the development of more advanced processes.
- Performance: In the first half of 2024, related product revenue increased by over 80% year-on-year.
🔬 Products in Verification or Small Batch Supply Stage
1. KrF Photoresist
- Verification Progress: Has passed verification from over 10 leading domestic semiconductor manufacturing enterprises, including SMIC, and has received high recognition from customers.
- Mass Production Status: By the end of 2024, KrF photoresist has achieved batch sales.
- Performance: In 2024, overall sales of photoresist products increased by over 100% year-on-year.
2. ArF Immersion Photoresist
- Verification Progress: Currently, several products are undergoing testing and verification at multiple domestic wafer manufacturing enterprises (including SMIC), with some models achieving good test results and process windows, with technical indicators close to benchmark products.
- Technical Breakthrough: Reports indicate that it has passed verification on SMIC’s 28nm production line and that its ArF immersion photoresist, in conjunction with domestic lithography machines, can support multiple exposures for 7nm processes.
- Order Status: In 2024, ArF immersion photoresist has also received sales orders.
3. Chemical Mechanical Polishing Slurry (CMP Slurry)
- Verification Progress: Mature STI Slurry, Poly slurry, and W slurry series products have been tested and verified at over 20 client sites.
- Technical Maturity: W slurry series products have successfully passed client verification and possess the performance required for mass production.
📊 Summary Table of Cooperation Overview
| Product Category | Technology Node Coverage/Type | Cooperation Status with SMIC | Key Progress or Data Points |
|---|---|---|---|
| Dry Etching Cleaning Solutions | Full coverage of 14nm and above | Mass production supply | 2024H1 revenue increased by nearly 50% year-on-year |
| Electroplating Solutions and Additives | 90-14nm | Mass production supply (28nm baseline material) | 2024H1 related product revenue increased by over 80% year-on-year |
| KrF Photoresist | – | Passed verification, bulk sales | Recognized by over 10 customers, significant sales growth in 2024 |
| ArF Photoresist | Immersion | Several models in verification, some received orders | Technical indicators close to benchmark products, can support multiple exposures for 7nm |
| CMP Slurry | W Slurry, etc. | In verification at multiple client sites | W Slurry verification successful, possesses mass production performance |
Peer Comparison and Industry Position
In the domestic semiconductor materials industry, Shanghai Xinyang holds a leading position:
- Photoresist Field: Along with Tongcheng New Materials, Huamao Technology, and Jingrui Electric Materials, it is one of the companies making rapid progress in domestic semiconductor photoresists.
- Technical Strength: The company possesses complete and controllable intellectual property rights for its two core technologies: electroplating and cleaning, with the second generation of core technologies reaching world-class levels.
- Customer Coverage: The company provides baseline materials for 56 12-inch and 23 8-inch wafer production lines, with coverage rates exceeding 70% and 60%. It has established long-term deep cooperation with companies such as Shanghai Silicon Industry, SMIC, and Yangtze Memory Technologies.
Overview of Cooperation Relationships
| Partner | Cooperation Model | Main Cooperation Areas and Products | Synergistic Effects and Strategic Significance |
|---|---|---|---|
| Shanghai Silicon Industry | Cross-equity (Shanghai Xinyang holds 4.49% of Shanghai Silicon Industry), asset swap | 300mm large silicon wafers | Financial investment returns, strategic synergy, promoting domestic large silicon wafers. |
| SMIC | Deep supply chain cooperation, technical collaborative research and development | Copper interconnect electroplating solutions and additives, cleaning solutions for wafer manufacturing, post-etch cleaning solutions, and other wet electronic chemicals. | Technical benchmark effect, supply chain stability and domestic substitution, jointly promoting technological node iteration. |
| Yangtze Memory Technologies | Industry fund investment, supply chain cooperation | Electroplating solutions, additives, and etching products for memory chip manufacturing. | Embedding in the industry chain, product verification and introduction, seizing opportunities for domestic memory chip production. |
💰 Cooperation with Shanghai Silicon Industry
The cooperation between Shanghai Xinyang and Shanghai Silicon Industry began with a significant asset restructuring in 2019. Shanghai Xinyang transferred 26.06% of its shares in Shanghai Xinxing Semiconductor Technology Co., Ltd. to Shanghai Silicon Industry for a transaction price of approximately 482 million yuan. Through this transaction, Shanghai Xinyang acquired 147 million shares issued by Shanghai Silicon Industry, becoming an important shareholder of Shanghai Silicon Industry.
🔬 Cooperation with SMIC: Deep Binding, Technological Progress
The cooperation between Shanghai Xinyang and SMIC is a deep binding model between supplier and core customer, far exceeding a typical buyer-seller relationship.
Cooperation Content
- Baseline Material Status: Copper interconnect electroplating solutions and additives have become the baseline materials for SMIC’s 28nm technology node.
- Product Synergy and Verification:
- Cleaning solutions for wafer manufacturing: Used in copper and aluminum processes, already sold in multiple production lines at SMIC.
- Post-etch cleaning solutions: Products for the 28nm technology node have been mass-produced, and products for the 14nm technology node have also been produced and sold.
- Photoresists: KrF photoresists and ArF dry photoresists are being verified at several mainstream wafer manufacturing enterprises.
- Joint Research and Forward-Looking Layout: Cooperation extends to joint research and development, matching the higher material requirements of SMIC’s advanced processes.
📊 Cooperation with Yangtze Memory Technologies
Shanghai Xinyang is cooperating with Yangtze Memory Technologies through a strategy of entering emerging industrial chains via industrial investment.
Cooperation Methods
- Participating in Industry Funds: In 2023, invested 100 million yuan to participate in the Changchun Industry Investment Fund managed by Yangtze Memory Technologies’ fund manager.
- Supply Chain Synergy: Establishing close ties with enterprises in the Yangtze Memory Technologies ecosystem through industrial fund investments to create conditions for product introduction.
Conclusion
As a leading enterprise in the domestic semiconductor materials industry, Shanghai Xinyang is benefiting from the accelerated process of semiconductor localization. The company continues to expand its market share based on its accumulation in electroplating, cleaning, and breakthroughs in new products such as photoresists. With the gradual production of capacity projects in Hefei, Shanghai, and other locations, the company’s future growth potential is vast.
The company’s semiconductor business is currently maintaining rapid growth, with revenue in the first half of 2025 increasing by 53.12% year-on-year, becoming the core driver of performance. Although the coating business has shown mediocre performance due to the sluggish construction industry, the company’s focus has clearly shifted towards semiconductor materials.
Based on the company’s advantages in technology, customers, and capacity, as well as the trend of domestic substitution in the semiconductor materials industry, Shanghai Xinyang is expected to maintain a rapid growth trajectory over the next three years.
Disclaimer: This article is for entertainment sharing only and does not constitute investment advice; the stocks mentioned in the article have already risen significantly, and the index is also at historical highs. Please do not act impulsively; investment requires personal research.