Shenggong Share Silicon Components Revenue Surpasses Silicon Materials Business for the First Time; Net Profit Significantly Increases in 2025, Achieving Growth Leap

Reprinted from: Securities Daily

Staff Reporter Li Yong

Jinzhou Shengong Semiconductor Co., Ltd. (hereinafter referred to as “Shengong Co.”) disclosed its 2025 annual report on the evening of March 20. During the reporting period, the company achieved operating revenue of 438 million yuan, a year-on-year increase of 44.68%; net profit attributable to shareholders of the listed company was 102 million yuan, a year-on-year increase of 147.96%. The profit growth rate far exceeded the revenue growth rate.

“Shengong Co. demonstrated extremely high performance resilience in 2025, which is essentially the result of the combined effects of the typical ‘scale effect’ and ‘product structure optimization’ in the semiconductor materials industry,” said Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, in an interview with Securities Daily. “The profit growth rate far surpassing revenue growth indicates that the company has achieved a qualitative leap in profitability while expanding its market share.”

Shengong Co. is a semiconductor materials and components company rooted in the Chinese domestic market, dedicated to the localization of core process materials and components for integrated circuit manufacturing in China. In the field of large-diameter silicon materials, Shengong Co. has maintained a leading position globally in niche segments through years of accumulation and strategic layout. Its products cover all specifications from 14-inch to 22-inch diameters, with technology, quality, and capacity all at the world’s leading level. The annual report shows that in 2025, the proportion of revenue from high-margin products over 16 inches further increased to 56.72%, with a gross profit margin of 76.09%, positively impacting the overall gross margin level of this business. Overall, Shengong Co.'s large-diameter silicon materials business achieved revenue of 188 million yuan, an increase of 8.11% year-on-year; gross profit margin was 69.87%, up 6.02 percentage points from the previous year.

While continuously consolidating its leading advantage in silicon materials, Shengong Co. has also been expanding into downstream high-value-added silicon components and wafers in recent years. In the silicon components sector, Shengong Co. is one of the few domestic integrated manufacturers capable of full production from crystal growth to silicon electrode finished products.

The annual report shows that in 2025, Shengong Co.'s silicon components business achieved revenue of 214 million yuan, a year-on-year increase of 100.15%. The silicon components segment has surpassed the large-diameter silicon materials segment in the company’s total revenue, becoming a key driver of Shengong Co.'s performance growth.

Shengong Co.'s silicon components are directly processed from the company’s upstream large-diameter silicon materials, mainly used in plasma etching processes for memory chip manufacturing, and are core consumables that require regular replacement.

“From the growth logic of the silicon components business, this is not just simple localization but a leap in the industry chain from ‘raw material supply’ to ‘precision processing of core consumables’,” Yuan Shuai said. In core processes like etching, silicon electrodes, silicon rings, and other components are consumables whose market demand is highly correlated with the wafer fab’s operating rate and installed capacity. Currently, the localization rate of silicon components remains relatively low, and Shengong Co. faces a rigid track supported by the wave of domestication of memory chips. As the proportion of this high-margin business rapidly increases, Shengong Co.'s overall profit center is also substantially elevated.

It is worth noting that in early December 2025, Shengong Co. announced its plan to act as a limited partner, with a committed investment of 60 million yuan, to jointly establish Jiangcheng Guotai Haitong Shengong (Wuhan) Venture Capital Partnership (Limited Partnership) (hereinafter referred to as “Venture Capital Fund”) with multiple institutions. The fund will focus on key equipment, components, and materials needed for wafer manufacturing, and will also pay attention to fields such as new energy vehicles, high-end equipment, emerging technologies, green development, and aerospace that align with national industrial policies and receive policy support and encouragement. By the end of 2025, the fund had officially completed registration procedures.

“Shengong Co.'s joint establishment of a venture capital fund marks its evolution from a product-oriented company to an industry ecosystem builder. This strategic layout creates a closed loop of ‘internal growth’ and ‘external expansion’: internal growth ensures cash flow and technological foundation, while external expansion is expected to penetrate deeper into wafer manufacturing through capital linkage,” Yuan Shuai said. The company’s integration of the industry chain enhances overall risk resistance and valuation potential, paving the way for it to become a leading platform-based semiconductor enterprise. Shengong Co.'s focus on key equipment and materials not only helps lock in downstream demand and technological trends early but also generates business synergy, reducing the trial-and-error costs for new products entering the market. This strategy not only mitigates risks from fluctuations in a single niche market but also helps Shengong Co. upgrade from a “materials supplier” to a “core upstream solution provider for semiconductors.”

Alongside the annual report, Shengong Co. also disclosed a profit distribution plan for 2025, proposing to distribute a cash dividend of 1.85 yuan (tax included) per 10 shares to all shareholders, totaling approximately 31.39 million yuan (tax included).

“A good return to investors is the foundation for a company’s long-term development in the capital market and a fundamental obligation of listed companies,” said Li Pengyan of Shenzhen Youpin Investment Consulting Co., Ltd., in an interview with Securities Daily. “Cash dividends allow investors to share growth dividends, balancing current and long-term interests, and help enhance investors’ sense of tangible gains.”