Summary of Longhua Technology Conference Call Company Overview - **Company**: Longhua Technology - **Date**: October 29, 2025 Key Points Industry and Company Performance - Longhua Technology's operating cash flow significantly improved in the first three quarters of 2025, with a notable decrease in debt ratio and financial costs, establishing a solid financial foundation for future growth [2][3] - The company achieved a profit of 69 million yuan in Q3 2025, maintaining a strong growth momentum with approximately 20% growth in both sales and profit for the first three quarters [3] Business Segments Performance - **Composite Materials**: This segment performed exceptionally well, with subsidiary Zhaoheng Technology maintaining a growth rate of 40%-50%. The revenue for the first three quarters reached the total of the previous year [2][4] - **Extraction Agents**: The business underperformed due to environmental and construction delays, with production expected to be postponed to 2026 [2][5][6] - **Optoelectronic Target Materials**: The display panel segment remains dominant, but there are positive signs of improvement in the photovoltaic sector, particularly with increased orders for perovskite and BC series products [2][8] Strategic Initiatives - Longhua Technology acquired a minority stake in Zhaoheng Technology and integrated it with Siwinuo to enhance its foam material product line, expecting Zhaoheng's annual sales to reach 400-500 million yuan with a profit of nearly 100 million yuan [2][7] - Siwinuo's revenue in the wind power sector accounts for about 95%, but the company plans to focus on high-end PVC and PMI areas to improve profit margins rather than expanding capacity [2][11] Future Growth and Challenges - The extraction agent project aims to achieve half of its capacity by the end of 2025, but environmental constraints have delayed progress [12] - Longhua Technology anticipates significant growth in 2026 from the extraction business and other segments, projecting sales of approximately 1 billion yuan from the extraction business alone [15] - The company is exploring new applications in energy efficiency and environmental protection, including data centers and nuclear fusion, while also expanding into overseas markets to counter domestic challenges [14][16] Financial Outlook - The company expects to turn profitable in 2025, with a focus on improving cash flow and reducing financial costs [3][13] - The integration of Siwinuo into Zhaoheng is expected to streamline operations and enhance profitability without expanding production capacity [17] Additional Insights - Longhua Technology's photovoltaic perovskite component clients include major manufacturers like Longi and Xiexin, indicating strong industry partnerships [9] - The company is actively managing its financial structure to optimize costs and improve overall performance, with a focus on achieving set targets despite setbacks in the extraction segment [13][18]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company has shown steady profit growth and is actively developing new materials, with a revenue increase of 14.50% year-on-year in Q3 2025, reaching 811 million yuan [2][3] - The company's net profit attributable to shareholders for Q1-Q3 2025 was 180 million yuan, reflecting a year-on-year increase of 16.64% [2][3] - The gross margin improved to 23.20% in Q1-Q3 2025, up from 21.8% at the beginning of the year, aided by the growth in its energy-saving and environmental protection business [3] Summary by Sections Financial Performance - In Q3 2025, the company achieved a revenue of 811 million yuan, a year-on-year increase of 14.50% and a quarter-on-quarter decrease of 7.46% [2] - For the first three quarters of 2025, the total revenue was 2.326 billion yuan, up 20.49% year-on-year, with a net profit of 180 million yuan, reflecting a 16.64% increase [2][3] Business Development - The company is actively expanding into strategic emerging fields with new materials, including rare earth separation and lithium extraction [4] - The subsidiary, Sanuo New Materials, has established long-term partnerships with major rare earth suppliers [4] - The company's main products in the target material business include high-purity molybdenum and tungsten targets, which are essential for display panels and photovoltaic applications [4] Profit Forecast and Valuation - The company is projected to achieve net profits of 232 million yuan, 258 million yuan, and 310 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.22, 0.25, and 0.30 yuan [5] - The report assigns a target price of 9.64 yuan for 2026, based on a PE ratio of 20.3X for energy-saving and environmental protection business and 57.4X for new materials [5]

Company Overview - Longhua Technology (SZ 300263) announced its sixth board meeting on October 27, 2025, to review the proposal for the "2025 Q3 Report" [1] - As of the report, Longhua Technology has a market capitalization of 9 billion yuan [1] Revenue Composition - For the year 2024, Longhua Technology's revenue composition is as follows: manufacturing accounts for 86.48%, while engineering contracting and services account for 13.52% [1]

本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记 载、误导性陈述或重大遗漏。 特别提示： 1、隆华科技集团（洛阳）股份有限公司（以下简称"公司"或"隆华科技"） 无偿划转全资子公司洛阳思维诺新材料科技有限公司 100%股权，是基于公司收购湖 南兆恒材料科技有限公司（以下简称"兆恒科技"）剩余股权转让完成为前提，本次 交易是否完成存在不确定性； 2、公司收购兆恒科技剩余股权后，兆恒科技为公司全资子公司，公司向兆恒科 技无偿划转洛阳思维诺新材料科技有限公司（以下简称"思维诺"）100%股权交易事 项不构成关联交易； 3、本次交易不构成重大资产重组，不会导致公司合并报表范围发生变化，无需 提交公司董事会及股东会审议。 一、交易概述 2025年10月27日，公司召开第六届董事会第八次会议审议通过了《关于收购控 股子公司剩余股权暨关联交易的议案》，同意公司收购兆恒科技剩余股权，收购完成 后兆恒科技将成为公司全资子公司。 证券代码：300263 证券简称：隆华科技 公告编号：2025－068 隆华科技集团（洛阳）股份有限公司 关于控股子公司内部股权划转的公告 为进一步推动公司旗下泡沫芯材业务专业化发展 ...

一、董事会会议召开情况 证券代码：300263 证券简称：隆华科技 公告编号：2025－065 隆华科技集团（洛阳）股份有限公司 第六届董事会第八次会议决议公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 1 独立董事认为：本次交易事项符合公司战略发展的需求，不会对公司生产经 营活动和财务状况产生不利影响；本次交易符合相关法律、法规及规范性文件的 规定，不存在损害公司及股东利益的情形。因此，我们一致同意本次关联交易事 项，并同意将本议案提交至公司第六届董事会第八次会议审议。 隆华科技集团（洛阳）股份有限公司（以下简称"公司"）第六届董事会第 八次会议于 2025 年 10 月 27 日下午 2：30 以现场及通讯相结合会议方式在公司 一号会议室召开，会议通知于 2025 年 10 月 16 日以邮件方式送达。本次会议由 公司董事长李占强先生主持，会议应出席董事 9 人，实际出席董事 9 人，董事田 国华、董治国、胡春明、孙峙以通讯表决方式出席会议。全体高级管理人员列席 会议。本次会议的召开符合法律、行政法规、部门规章和《公司章程》的有关规 定。 二、董事会 ...

Core Insights - Longhua Technology reported third-quarter revenue of 811 million yuan, representing a year-on-year increase of 14.50% [1] - The net profit for the third quarter was 68.8465 million yuan, showing a year-on-year growth of 39.78% [1] - For the first three quarters, the total revenue reached 2.326 billion yuan, reflecting a year-on-year increase of 20.49% [1] - The net profit for the first three quarters amounted to 180 million yuan, with a year-on-year growth of 16.64% [1]

Financial Performance - Revenue for Q3 2025 reached ¥810,743,710.39, an increase of 14.50% year-over-year, while year-to-date revenue totaled ¥2,325,590,762.97, up 20.49% compared to the same period last year[5] - Net profit attributable to shareholders for Q3 2025 was ¥68,846,451.89, representing a 39.78% increase year-over-year, with a year-to-date net profit of ¥180,446,702.62, up 16.64%[5] - The basic earnings per share for Q3 2025 was ¥0.08, a 46.79% increase compared to the same period last year, while year-to-date earnings per share was ¥0.20, up 17.65%[5] - Total operating revenue for the current period reached ¥2,325,590,762.97, an increase of 20.5% compared to ¥1,930,190,051.84 in the previous period[23] - Net profit for the current period was ¥189,352,171.68, representing a 11.1% increase from ¥169,563,829.16 in the previous period[24] - Earnings per share (EPS) for the current period was ¥0.20, compared to ¥0.17 in the previous period[24] Assets and Liabilities - Total assets at the end of Q3 2025 amounted to ¥7,303,912,124.74, reflecting a 5.76% increase from the end of the previous year[5] - Total assets increased to ¥7,303,912,124.74 from ¥6,905,982,426.84, reflecting a growth of 5.8%[21] - Total liabilities decreased to ¥2,976,263,622.75 from ¥3,521,800,706.29, a reduction of 15.5%[21] - Shareholders' equity attributable to the parent company reached ¥4,198,613,285.18, a significant increase of 29.57% compared to the end of the previous year[5] - Owner's equity rose to ¥4,327,648,501.99, up from ¥3,384,181,720.55, indicating a growth of 27.8%[21] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥154,464,272.97, a substantial increase of 151.63% compared to the same period last year[13] - Operating cash flow for the current period is ¥154,464,272.97, a significant improvement from -¥299,186,434.51 in the previous period[25] - The company reported a net increase in cash and cash equivalents of ¥149,984,156.21, contrasting with a decrease of -¥312,369,629.96 in the prior period[26] - The ending balance of cash and cash equivalents is ¥875,845,136.53, up from ¥475,521,423.88 year-over-year[26] Investments and Financing - Total cash inflow from investment activities is ¥2,703,377,276.66, compared to ¥969,458,658.44 in the prior period[25] - Cash outflow for investment activities increased to ¥2,798,795,639.16 from ¥1,190,724,419.84 year-over-year[25] - Net cash flow from financing activities is ¥90,973,778.57, down from ¥207,362,783.61 in the previous period[26] - Cash received from the recovery of investments is ¥2,699,060,315.97, significantly higher than ¥966,638,751.51 in the previous period[25] - Cash received from borrowing decreased to ¥696,716,551.74 from ¥766,716,626.71 in the previous period[26] Shareholder Information - The total number of common shareholders at the end of the reporting period is 46,976[14] - The largest shareholder, Li Zhanming, holds 9.23% of the shares, totaling 95,501,092 shares[14] - The number of shares held by the top ten shareholders accounts for a significant portion of the total shares, with the top three shareholders holding a combined 18.74%[14] - The company has not disclosed any changes in the shareholding structure of the top ten shareholders due to margin trading activities[14] - There are no preferred shareholders or changes in restricted shares reported for the period[15] Operational Metrics - The company reported a 62.19% increase in contract assets, totaling ¥378,914,160.59, driven by growth in the energy-saving and environmental protection business segment[9] - The company experienced a 79.97% decrease in non-operating expenses, amounting to ¥1,192,594.91, compared to the same period last year[11] - Research and development expenses for the current period were ¥102,114,342.78, compared to ¥93,997,587.04 in the previous period, marking an increase of 8.5%[23] - The company's cash and cash equivalents increased to ¥963,122,316.38 from ¥814,870,332.59, representing a growth of approximately 18.2%[18] - Accounts receivable decreased slightly to ¥1,344,422,583.68 from ¥1,403,884,022.90, a decline of about 4.2%[18] - Inventory increased to ¥1,092,587,074.64 from ¥979,668,730.81, reflecting a rise of approximately 11.5%[18] - The total current assets rose to ¥4,224,573,541.76 from ¥3,779,403,128.51, indicating an increase of around 11.8%[18] - The company has a total of 155,821,998 restricted shares at the beginning of the period, with 96,344,842 shares released during the period[16]

根据隆华科技集团（洛阳）股份有限公司（以下简称"公司"或"隆华科技"） 整体战略布局及发展需要，公司拟以自有资金9,082.22万元收购李明卫先生、戴云 帆先生、李江文先生、张源远先生合计持有的湖南兆恒材料科技有限公司（以下简 称"兆恒科技"）16.44%股权，交易完成后公司将持有兆恒科技100%股权。 证券代码：300263 证券简称：隆华科技 公告编号：2025－067 隆华科技集团（洛阳）股份有限公司 关于收购控股子公司剩余股权暨关联交易的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记 载、误导性陈述或重大遗漏。 一、关联交易概述 李明卫先生为公司控股股东、实际控制人之一，李江文先生为公司董事/副总经 理，张源远先生为公司副总经理，根据《深圳证券交易所创业板股票上市规则》等 相关规定，本次交易构成关联交易。 2025年10月27日，公司召开第六届董事会第八次会议审议通过了《关于收购控 股子公司剩余股权暨关联交易的议案》，关联董事李占强先生、李波波先生、李明强 先生、李江文先生回避表决。公司董事会审议前，该议案已提交公司第六届董事会 第一次独立董事专门会议审议，并经全体独立董事 ...

Core Insights - The semiconductor sputtering target market in China is experiencing rapid growth, with the market size projected to increase from 1.4 billion yuan in 2017 to 2.6 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 9.25% [1][9] - The market is expected to reach 3.3 billion yuan by 2026, driven by the expansion of domestic wafer manufacturing capacity, advancements in process technology, and the deepening application of third-generation semiconductor materials [1][9] - The global semiconductor sputtering target market is also expanding, with a projected growth from $4.688 billion in 2018 to $6.269 billion in 2024, and the market size expected to reach $3.26 billion by 2030, with a CAGR of 7.62% [7][8] Industry Overview - Semiconductor sputtering targets are high-purity materials used in the manufacturing of semiconductor chips, essential for physical vapor deposition processes [2] - The industry is characterized by a significant growth potential despite its relatively late start in China, with a focus on domestic production and import substitution [9] Market Structure - The semiconductor sputtering target industry chain includes raw material supply, target preparation, and application, with upstream involving the production of high-purity metals and ceramics [5] - The downstream applications primarily focus on wafer manufacturing and chip packaging, with wafer manufacturing accounting for approximately 61.8% of the market share [8] Competitive Landscape - The global market is dominated by a few international giants such as JX Metals and Honeywell, while domestic companies like Zhongguang Optical and Longhua Technology are gaining traction [10][11] - The competitive structure is tiered, with leading companies holding significant market shares and smaller firms focusing on niche markets [10] Development Trends - The industry is expected to shift towards high-end, refined products, with increasing demands for purity and uniformity in materials as chip manufacturing advances to smaller nodes [13] - Innovations in product types are anticipated, particularly in response to the needs of third-generation semiconductors and emerging storage technologies [14] - The integration of smart manufacturing and green production techniques is projected to enhance efficiency and sustainability in the sputtering target manufacturing process [16]

Core Viewpoint - Longhua Technology (300263) is actively monitoring fluctuations in raw material prices and is implementing mechanisms such as hedging to ensure normal operations [1] Group 1 - The company is closely watching the volatility in raw material prices [1] - Longhua Technology is utilizing hedging and other mechanisms to respond to price changes [1] - The measures taken are aimed at safeguarding the company's normal operations [1]