Jiangyin Jianghua Microelectronics Materials Overview
Jianghua Micro-electronic Materials (JHM) was the first specialist wet electronic chemicals company to list in China. It makes ultra-clean high-purity reagents (acids, bases, solvents and oxidisers) and photoresist ancillary reagents (developers, strippers, etchants and cleaning solutions). These are used for cleaning, lithography, developing, etching and stripping in the manufacture of semiconductor wafers, flat-panel displays and crystalline-silicon solar cells. The product range covers SEMI grades G2 to G5. Production runs at three bases: Jiangyin (Jiangsu), Zhenjiang (Jiangsu) and Meishan (Sichuan). FY2025 revenue was CNY 1.234 billion, and semiconductors supplied 58.7% of core-business sales. The company is mid-sized in a fragmented domestic market of 50-plus producers. Its rivals for high-end 12-inch fab business include Japanese, US, European and Korean incumbents and fast-growing Chinese peers such as Hubei Xingfu Electronic Materials. In August 2026 control passed from Zibo municipal state capital to Shanghai's chemical state-owned group, Shanghai Huayi. JHM is now Shanghai SASAC's listed platform for semiconductor wet chemicals.
What the company does
JHM develops, produces and sells wet electronic chemicals. These are liquid reagents whose main component is ultra-pure, and whose metal-ion and particle impurities are controlled to parts-per-billion or parts-per-trillion levels. Customers use them in wet process steps:
Cleaning: Wafer and glass-substrate cleaning before and after deposition, etching and CMP.
Lithography and developing: Developers such as TMAH-based solutions, edge-bead removers and thinners.
Etching: Metal etchants (for example, aluminium etchant for integrated circuits), oxide etchants and mixed acids.
Stripping: Photoresist strippers and post-etch residue removers.
Doping and texturing: Mainly in crystalline-silicon solar cells.
The 2025 annual report describes the main business as "research, development, production and sale of ultra-clean high-purity reagents, photoresist ancillary reagents and other wet electronic chemicals", used chiefly in display panels, semiconductor chips and solar cells for cleaning, lithography, developing, etching and similar processes. The company calls itself "China's first listed specialist wet electronic chemicals enterprise" and says its products cover SEMI grades G2 to G5 in full.
Business and revenue model
| Dimension | Description |
|---|---|
| Revenue type | Nearly all product sales. Main-business revenue was CNY 1,210.2 million of CNY 1,233.8 million total revenue in FY2025. Other operating income (materials, scrap and services) was about CNY 23.6 million. There is no subscription or licensing income. |
| Production model | "Produce according to sales, purchase according to production". Products are made to customer specifications and qualified per fab or panel line. |
| Sales model | 100% direct sales to end users. FY2024 direct-sales revenue was CNY 1,069.6 million at a 25.62% gross margin. |
| Pricing | Prices are set per tonne, by product and grade. Over 9M FY2026 the average selling price was CNY 6,672/t for ultra-clean reagents (−0.35% YoY) and CNY 10,997/t for photoresist ancillary reagents (+1.75% YoY). |
| Customer concentration | The top five customers took 42.14% of FY2025 sales, with no related parties. The largest single customer took 3.3%. |
| Supplier concentration | The top five suppliers provided 18.85% of FY2025 purchases. |
Revenue type: Description: Nearly all product sales. Main-business revenue was CNY 1,210.2 million of CNY 1,233.8 million total revenue in FY2025. Other operating income (materials, scrap and services) was about CNY 23.6 million. There is no subscription or licensing income.
Production model: Description: "Produce according to sales, purchase according to production". Products are made to customer specifications and qualified per fab or panel line.
Sales model: Description: 100% direct sales to end users. FY2024 direct-sales revenue was CNY 1,069.6 million at a 25.62% gross margin.
Pricing: Description: Prices are set per tonne, by product and grade. Over 9M FY2026 the average selling price was CNY 6,672/t for ultra-clean reagents (−0.35% YoY) and CNY 10,997/t for photoresist ancillary reagents (+1.75% YoY).
Customer concentration: Description: The top five customers took 42.14% of FY2025 sales, with no related parties. The largest single customer took 3.3%.
Supplier concentration: Description: The top five suppliers provided 18.85% of FY2025 purchases.
Value-chain position
JHM sits between commodity chemical producers and device makers. It buys industrial-grade or first-grade inputs: sulphur trioxide (for sulphuric acid), phosphoric acid, hydrofluoric acid, isopropanol, liquid ammonia, hydrogen peroxide and glycol ethers. It then purifies, blends, filters, packages and tests them to electronic grade. Its value added lies in:
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purification technology (rectification, sub-boiling distillation, ion exchange and membrane filtration);
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ultra-trace analysis (ICP-MS and particle counting);
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clean packaging and container handling; and
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formulation know-how for functional chemicals such as etchants, strippers and developers.
Customer qualification cycles for 12-inch logic and memory fabs typically run 12 to 36 months. This creates switching costs once a supplier is qualified.
Customer types and end markets
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Semiconductors (wafer fabs, silicon wafers, advanced packaging, third-generation semiconductors, LED) — FY2025 revenue (CNY M): 710.8; Share of main business: 58.73%; Representative customers named by the company: Hua Hong Group, ChangXin Memory (CXMT), TCL Zhonghuan, JCET
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Flat-panel displays (TFT-LCD, OLED, colour filter, touch panel) — FY2025 revenue (CNY M): 455.3; Share of main business: 37.62%; Representative customers named by the company: BOE, CSOT (TCL China Star)
Crystalline-silicon solar cells: FY2025 revenue (CNY M): 44.1; Share of main business: 3.65%; Representative customers named by the company: Solar cell makers (not named)
Independent characterisation
JHM started as a display-panel and solar chemicals supplier. It has repositioned toward semiconductors over the past five years. Semiconductor revenue rose from about CNY 499 million in FY2023 to CNY 711 million in FY2025, and 8–12-inch wafer-fab products grew 39.7% in FY2025 to CNY 381 million.
The strategic asset is the Zhenjiang G5 base, built for 12-inch advanced-node customers. Its sales doubled in FY2025 to CNY 144 million, but it remains loss-making. The core Jiangyin base is the profit engine but is a mature, display-heavy operation.
Gross margins of 24–28% are typical for a commodity-adjacent specialty chemical. Profits are therefore sensitive to raw-material spikes, as the 127% rise in sulphur trioxide prices in 2026 showed. They are also sensitive to depreciation from new capacity. The equity story is now driven largely by Shanghai SASAC's ownership and the expected integration into Shanghai's integrated-circuit cluster.
Strategy
Stated strategy (2025 Annual Report)
Management's stated themes are:
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Focus on high-end semiconductors and new-type displays. Expand G5 general-purpose chemicals and functional chemicals for 12-inch advanced and mature nodes, advanced packaging, large silicon wafers and compound semiconductors.
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"Two-New" strategy. Develop new products for new customers and new products for existing customers, to raise the share of mid-to-high-end customers and products.
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Three-base synergy. Jiangyin is the R&D and mature-product hub, Zhenjiang the high-end G5 hub, and Sichuan the western regional hub.
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Import substitution. Displace foreign suppliers in segments they still dominate.
Initiatives in the last 24 months
| Date | Initiative | Detail |
|---|---|---|
| Nov 2024 | Full ownership of Zhenjiang | Bought out Jinshi Fund's 25.71% for CNY 338 million, simplifying control of the G5 base |
| Dec 2024 | Zhenjiang 9,000 t/yr ultra-high-purity project | Total investment CNY 110 million, of which fixed assets CNY 100 million; uses existing buildings |
| Aug 2025 | Zhenjiang 37,000 t/yr ultra-high-purity project | Total investment CNY 288.8 million, approved by the state-owned asset regulator; builds on the 9,000 t project and a 28,000 t supplementary agreement |
| Aug 2025 | Simplified-procedure private placement | Proposed to fund expansion; share count unchanged at 385,637,248 through Q3 FY2026 |
| Dec 2025 | Environmental approval for the 37,000 t project | Zhenjiang ETDZ approval no. 镇经开审批环审【2025】86号 |
| Jan–Aug 2026 | Change of control to Shanghai SASAC | Intended to integrate Shanghai state resources in semiconductors "across market, R&D, capital and talent dimensions" |
| Feb 2026 | Treasury management | Board authorised use of idle own funds for wealth-management products (CNY 440.8 million held at 30 Sep 2026) |
| Jun 2026 | Structural simplification | Deregistration of the Shandong subsidiary; capital increase into Zhenjiang |
| Jul 2026 | Fuxin minority buy-out | Acquires the founder's 15.5% of Fuxin |
| 2025–2026 | Dividend policy | Interim plus final dividends with an annual payout above 30% |
Nov 2024: Initiative: Full ownership of Zhenjiang; Detail: Bought out Jinshi Fund's 25.71% for CNY 338 million, simplifying control of the G5 base
Dec 2024: Initiative: Zhenjiang 9,000 t/yr ultra-high-purity project; Detail: Total investment CNY 110 million, of which fixed assets CNY 100 million; uses existing buildings
Aug 2025: Initiative: Zhenjiang 37,000 t/yr ultra-high-purity project; Detail: Total investment CNY 288.8 million, approved by the state-owned asset regulator; builds on the 9,000 t project and a 28,000 t supplementary agreement
Aug 2025: Initiative: Simplified-procedure private placement; Detail: Proposed to fund expansion; share count unchanged at 385,637,248 through Q3 FY2026
Dec 2025: Initiative: Environmental approval for the 37,000 t project; Detail: Zhenjiang ETDZ approval no. 镇经开审批环审【2025】86号
Jan–Aug 2026: Initiative: Change of control to Shanghai SASAC; Detail: Intended to integrate Shanghai state resources in semiconductors "across market, R&D, capital and talent dimensions"
Feb 2026: Initiative: Treasury management; Detail: Board authorised use of idle own funds for wealth-management products (CNY 440.8 million held at 30 Sep 2026)
Jun 2026: Initiative: Structural simplification; Detail: Deregistration of the Shandong subsidiary; capital increase into Zhenjiang
Jul 2026: Initiative: Fuxin minority buy-out; Detail: Acquires the founder's 15.5% of Fuxin
2025–2026: Initiative: Dividend policy; Detail: Interim plus final dividends with an annual payout above 30%
Medium-term targets and guidance
JHM does not publish numeric medium-term financial targets or formal annual guidance. Management's qualitative message from the October 2026 results briefing is continued volume growth from Zhenjiang and semiconductor customers, and margin pressure from raw materials and depreciation in the near term.
Products & Services
JHM sells several hundred specification-level SKUs. Its two reporting families and their principal products are listed below. The company does not publish list prices; contract prices are negotiated per customer and grade.
Ultra-clean high-purity reagents (general-purpose wet chemicals)
| Product | Description and specification | Main applications and customers | Grade status |
|---|---|---|---|
| Electronic-grade sulphuric acid | Made from sulphur trioxide (SO₃). Metal impurities at ppb/ppt level. | Wafer cleaning (SPM piranha clean), photoresist removal; 8–12-inch fabs | G2–G5 |
| Electronic-grade hydrogen peroxide | Purified from 50% industrial-grade H₂O₂. | SC-1/SC-2 RCA cleans and SPM; core 12-inch fab chemical | G5 produced at Zhenjiang and in volume supply to 12-inch benchmark customers |
| Electronic-grade ammonia (ammonium hydroxide) | Made from liquid ammonia. | SC-1 cleaning, particle removal | G5 at Zhenjiang |
| Electronic-grade isopropanol (IPA) | Purified from specific-grade IPA. | Wafer drying (IPA vapour dry), rinsing | G5 at Zhenjiang |
| Electronic-grade hydrofluoric acid | Purified from 49% first-grade HF. | Oxide etch, wafer cleaning, solar texturing | G2–G4 (G5 qualification ongoing) |
| Electronic-grade nitric acid, hydrochloric acid, acetic acid | High-purity acids. | Cleaning, etching, metal removal; displays and semiconductors | G2–G4 |
| Electronic-grade phosphoric acid | Purified from first-grade phosphoric acid. | Silicon nitride etching (hot phosphoric) and aluminium etch formulations | G2–G4 |
| Ammonium fluoride / buffered oxide etch (BOE) | Mixed HF/NH₄F systems. | SiO₂ wet etch in displays and semiconductors | Functional grade |
| Electronic-grade solvents (acetone, ethanol, NMP and others) | High-purity organic solvents. | Cleaning, photoresist thinning, display array processes | G2–G4 |
| Potassium hydroxide / sodium hydroxide (electronic grade) | Alkaline solutions. | Solar texturing, cleaning | G1–G3 |
Photoresist ancillary reagents (functional wet chemicals)
| Product | Description and specification | Main applications | Notes |
|---|---|---|---|
| Positive-resist developer (TMAH-based, 2.38% and customised) | Tetramethylammonium hydroxide solutions with ppb-level metals. | Photolithography in semiconductor and TFT-LCD/OLED array | Core display product |
| Photoresist stripper (amine/solvent-based) | Formulated with glycol ethers such as diethylene glycol butyl ether. | Post-etch resist removal in display arrays and IC back-end | High-volume display product |
| Thinner / edge-bead remover (EBR) | Solvent blends. | Resist coating, edge cleaning, nozzle rinse | Display and semiconductor |
| Aluminium etchant for integrated circuits | Phosphoric/nitric/acetic mixed acid. | Al interconnect etching in IC and power devices | Holds "Jiangsu Quality Product" (江苏精品) certification |
| ITO etchant | Oxalic or mixed-acid systems. | Transparent electrode etching for displays and touch panels | Display |
| Copper etchant / Mo-Al etchants | Peroxide- or acid-based systems. | Copper and molybdenum-aluminium gate and source/drain lines in TFT | Display (high-generation lines) |
| Chromium etchant | Ceric ammonium nitrate systems. | Colour filter and photomask | Display and photomask |
| Silicon etchants / texturing additives | Alkaline formulations. | Solar texturing and silicon wafer processing | Solar; de-emphasised |
| Post-CMP and residue cleaning solutions | Functional cleaning formulations. | Advanced packaging, 12-inch | Several items reached mass production in 2025 |
Flagship and new-product highlights
G5 general-purpose chemicals at Zhenjiang: Isopropanol, ammonia and hydrogen peroxide reached commercial production under the phase-II project and are in batch supply to 12-inch benchmark customers in memory, logic and power devices.
8–12-inch semiconductor portfolio: It covers large silicon wafers, advanced packaging, third-generation (SiC/GaN) semiconductors and advanced-process applications. Sales were CNY 381 million in FY2025 (+39.74%) and CNY 230.5 million in H1 FY2026 (+37.67%).
"Two-New" product strategy: This means new products for new customers and new products for existing customers. Several functional chemicals moved to mass production in FY2025 in segments formerly dominated by foreign suppliers.
Volume data
| Volume (tonnes) | 9M FY2026 |
|---|---|
| Ultra-clean high-purity reagents, production | 100,637 |
| Ultra-clean high-purity reagents, sales | 97,424 |
| Photoresist ancillary reagents, production | 46,608 |
| Photoresist ancillary reagents, sales | 49,182 |
H1 FY2026 sales were 63,500 t of ultra-clean reagents (+14.6% YoY) and 31,300 t of photoresist ancillary reagents (+19.1%).
Financial Narrative
All figures are in CNY under PRC Accounting Standards for Business Enterprises, from annual reports FY2021–FY2025 and the Q3 FY2026 report. FY2022 figures are the adjusted comparatives shown in the 2024 Annual Report. FY2021 figures are as reported in the FY2022 results release.
Income statement
The FY2023 net profit including minority interests is not separately disclosed (shown as 0). FY2024 total net profit (CNY 81.4 million) was below attributable profit (CNY 98.6 million) because minority holders absorbed part of Zhenjiang's losses before the November 2024 buy-back.
Revenue CAGR FY2021–FY2025 was 11.7%. Attributable net profit CAGR over the same period was 16.7%, but nearly all of that came from the FY2022 step-up.
FY2021 EPS was reported as CNY 0.2883 on the pre-bonus-issue share base. It is not comparable with later years because of two 3-for-10 bonus issues and the November 2022 placement.
EBITDA, operating income as a separate line, and interest expense are not reported as headline figures. Operating profit for 9M FY2026 was CNY 77.8 million (9M FY2025: CNY 91.6 million).
Quarterly trajectory
Quarterly operating cash flow for FY2026 is not disclosed (shown as 0). Cumulative 9M FY2026 operating cash flow was CNY 162.0 million, up 8.92%.
Commentary. FY2025 was a quality year: revenue +12.3%, gross margin +2.1 points to 27.44%, and operating cash flow +71% to CNY 182 million on better collections. FY2026 has brought volume without profit. 9M revenue grew 18.05% to CNY 1,074.1 million, but attributable net profit fell 14.03% to CNY 67.7 million.
Management gives three causes:
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Raw-material inflation. SO₃ cost was up 127% in 9M FY2026, high-purity phosphoric acid +19%, IPA +22% and 49% HF +19%, while average selling prices were roughly flat.
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Depreciation from Zhenjiang phase-II assets entering service.
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Higher R&D spending.
Q2 FY2026 gross margin fell to 22.5% (−3.2 points YoY). The Q3 FY2026 net margin was 5.3%, the lowest in the period reviewed.
Balance sheet
The FY2021 figures are derived from the year-on-year changes disclosed in the FY2022 results release. Equity rose by about CNY 484 million in FY2022, mainly because of Zibo Xinghengtusong's subscription for 41.88 million new shares. FY2024's 15.7% rise in attributable equity reflects the reclassification after the Zhenjiang minority buy-back as well as retained earnings.
Goodwill is not material. JHM has grown organically and its acquisitions have been of minority interests in its own subsidiaries. Intangible assets consist mainly of land-use rights; a breakdown of goodwill and intangibles is not publicly disclosed.
Cash flow
The large 9M FY2026 investing outflow mostly reflects CNY 440.8 million placed in short-term wealth-management products (trading financial assets), plus capex that rose 70% for the Zhenjiang 37,000 t project. JHM has not run any share buy-back programme.
Ratios
ROIC, interest coverage and net debt/EBITDA cannot be computed reliably because EBITDA and interest expense are not reported as headline figures. The company carries no short-term bank debt, and long-term borrowings (mainly the 2024 M&A loan and project loans for Zhenjiang) are about 0.2x equity. The 9M FY2026 weighted ROE was 3.40% (−0.70 points YoY). Data providers put the current ratio at about 4.9x.
Commentary on trends and inflections.
FY2022 inflection: Profit almost doubled as utilisation of Jiangyin phase-II capacity rose and the customer mix shifted toward higher-margin semiconductors.
FY2023–FY2024 plateau: Display demand was flat and solar chemical prices collapsed. Zhenjiang lost CNY 95 million in FY2023 and CNY 74 million in FY2024, while depreciating new G5 assets with low utilisation.
FY2025 recovery: Margins improved as the semiconductor share climbed and Zhenjiang's loss narrowed.
FY2026 squeeze: Input-cost inflation and depreciation offset strong volume growth.
Returns on equity of 5–6% are well below the cost of equity. The investment case therefore depends on Zhenjiang reaching breakeven and on input costs normalising.
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Industry revenue (CNY Mn)
| Industry revenue (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Semiconductors | 498.9 | 582.8 | 710.8 |
Flat-panel displays | 408.8 | 431.3 | 455.3 |
Solar cells | 87.4 | 55.5 | 44.1 |
Total main business | 995.1 | 1,069.6 | 1,210.2 |
Industry gross margin (%)
| Industry gross margin (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Semiconductors | 29.76 | 27.77 | 29.32 |
Flat-panel displays | 25.72 | 25.76 | 28.25 |
Solar cells | 12.63 | 1.89 | -1.74 |
Main business blended | 25.92 | 25.62 | 27.79 |
Industry YoY growth (%)
| Industry YoY growth (%) | FY2024 | FY2025 |
|---|---|---|
Semiconductors | 16.81 | 21.97 |
Flat-panel displays | 5.50 | 5.56 |
Solar cells | -36.47 | -20.52 |
Share of main business (%)
| Share of main business (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Semiconductors | 50.1 | 54.5 | 58.7 |
Flat-panel displays | 41.1 | 40.3 | 37.6 |
Solar cells | 8.8 | 5.2 | 3.6 |
Product revenue (CNY Mn)
| Product revenue (CNY Mn) | FY2024 | FY2025 | 9M FY2026 |
|---|---|---|---|
Ultra-clean high-purity reagents | 688.3 | 775.1 | 650.0 |
Photoresist ancillary reagents | 381.3 | 435.1 | 385.6 |
Base revenue (CNY Mn)
| Base revenue (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Jiangyin (parent company) | 0 | 893.4 | 947.3 |
Zhenjiang Jianghua Micro | 47.1 | 68.2 | 143.8 |
Sichuan Jianghua Micro | 0 | 204.4 | 248.2 |
Base revenue, disclosed years (CNY Mn)
| Base revenue, disclosed years (CNY Mn) | FY2024 | FY2025 | H1 FY2026 |
|---|---|---|---|
Jiangyin (parent company) | 893.4 | 947.3 | 500.0 |
Zhenjiang Jianghua Micro | 68.2 | 143.8 | 110.0 |
Sichuan Jianghua Micro | 204.4 | 248.2 | 135.0 |
Subsidiary net profit (CNY Mn)
| Subsidiary net profit (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Zhenjiang Jianghua Micro | -95.2 | -74.2 | -55.0 |
Income statement (CNY Mn)
| Income statement (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue | 792.1 | 939.2 | 1,029.9 | 1,099.2 | 1,233.8 |
Total profit (pre-tax) | 61.6 | 94.7 | 82.2 | 90.7 | 120.3 |
Net profit attributable to shareholders | 56.5 | 105.7 | 105.3 | 98.6 | 104.8 |
Net profit attributable, excluding non-recurring items | 53.2 | 99.7 | 101.3 | 91.6 | 96.3 |
Profitability (CNY Mn)
| Profitability (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Gross profit | 268.3 | 278.2 | 338.6 |
Net profit incl. minority interests | 0 | 81.4 | 105.0 |
Margins (%)
| Margins (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Pre-tax margin | 7.8 | 10.1 | 8.0 | 8.3 | 9.7 |
Attributable net margin | 7.1 | 11.3 | 10.2 | 9.0 | 8.5 |
Gross margin (%)
| Gross margin (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Consolidated gross margin | 26.05 | 25.31 | 27.44 |
Growth (%)
| Growth (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue YoY | 18.56 | 9.66 | 6.73 | 12.25 |
Attributable net profit YoY | 87.19 | -0.46 | -6.29 | 6.27 |
Per share (CNY)
| Per share (CNY) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Basic EPS | 0.3149 | 0.2729 | 0.2558 | 0.2718 |
Diluted EPS | 0.3149 | 0.2729 | 0.2558 | 0.2718 |
EPS excl. non-recurring items | 0.2971 | 0.2628 | 0.2375 | 0.2498 |
Quarterly revenue (CNY Mn)
| Quarterly revenue (CNY Mn) | Q1 FY2025 | Q2 FY2025 | Q3 FY2025 | Q4 FY2025 | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 |
|---|---|---|---|---|---|---|---|
Revenue | 275.4 | 305.0 | 329.4 | 324.0 | 322.0 | 358.0 | 393.7 |
Attributable net profit | 26.8 | 21.3 | 30.7 | 26.0 | 28.8 | 18.2 | 20.8 |
Operating cash flow | 31.3 | 59.0 | 58.5 | 33.2 | 0 | 0 | 0 |
Balance Sheet
| Balance sheet (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 2,248.2 | 2,884.0 | 2,707.4 | 2,625.4 | 2,675.9 |
Equity attributable to shareholders | 1,155.1 | 1,638.8 | 1,635.4 | 1,892.7 | 1,964.0 |
Balance Sheet (FY2025–30 Sep 2026)
| Balance sheet detail (CNY Mn) | FY2025 | 30 Sep 2026 |
|---|---|---|
Cash and bank balances | 566.5 | 161.7 |
Trading financial assets (wealth-management products) | 0.0 | 440.8 |
Accounts receivable | 412.9 | 474.6 |
Receivables financing (bank acceptances) | 63.4 | 41.7 |
Inventories | 96.2 | 106.7 |
Fixed assets | 1,267.0 | 1,190.6 |
Construction in progress | 58.6 | 188.7 |
Short-term borrowings | 0.0 | 0.0 |
Long-term borrowings | 424.0 | 469.6 |
Total liabilities | 711.3 | 868.0 |
Total equity | 1,964.6 | 1,999.1 |
Total assets | 2,675.9 | 2,867.1 |
Margin Analysis (%) and Financial Ratios (x)
| Leverage (ratio) | FY2025 | 30 Sep 2026 |
|---|---|---|
Liabilities / assets (%) | 26.6 | 30.3 |
Long-term debt / equity (x) | 0.22 | 0.23 |
Net cash (cash + trading assets − long-term borrowings), CNY Mn | 142.5 | 132.9 |
Cash flow (CNY Mn)
| Cash flow (CNY Mn) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Net cash from operating activities | 122.4 | 145.6 | 106.3 | 182.0 |
Cash dividends declared for the year | 20.8 | 32.8 | 34.7 | 34.7 |
Cash flow, nine months (CNY Mn)
| Cash flow, nine months (CNY Mn) | 9M FY2025 | 9M FY2026 |
|---|---|---|
Net cash from operating activities | 148.8 | 162.0 |
Cash paid for fixed and other long-term assets (capex) | 83.7 | 141.9 |
Free cash flow (OCF − capex) | 65.1 | 20.1 |
Net cash from investing activities | -130.5 | -578.4 |
Net cash from financing activities | -108.7 | 7.6 |
Cash and equivalents at period end | 304.0 | 116.9 |
Returns (%)
| Returns (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Weighted ROE | 9.68 | 6.27 | 6.35 | 5.44 |
Weighted ROE excl. non-recurring | 9.13 | 6.07 | 5.90 | 5.00 |
ROA (attributable net profit / average assets) | 4.11 | 3.77 | 3.70 | 3.96 |
Asset turnover (x) | 0.37 | 0.37 | 0.41 | 0.47 |
Region revenue (CNY Mn)
| Region revenue (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
East China | 457.3 | 515.1 | 614.8 |
Other regions | 537.8 | 554.4 | 595.4 |
Region growth (%)
| Region growth (%) | FY2024 | FY2025 |
|---|---|---|
East China | 12.64 | 19.35 |
Other regions | 3.10 | 7.38 |
Region gross margin (%) | FY2024 | — |
East China | 23.95 | — |
Other regions | 27.16 | — |
Share Price & Returns
| Reference point | Price (CNY) |
|---|---|
IPO price (10 Apr 2017, before bonus adjustments) | 24.18 |
SPA price to Shanghai Fuxun (19 Jan 2026) | 20.00 |
Close on 20 Jan 2026 (limit-up after the announcement) | 23.56 |
2026 low | 17.78 |
2026 high | 59.50 |
Close on 30 Sep 2026 | 28.83 |
Close on 2 Nov 2026 | 22.24 |
Market capitalisation on 5 Nov 2026 (CNY Bn) | 9.10 |
Valuation Multiples
| Multiple | JHM |
|---|---|
P/E on FY2025 EPS (x) | 86.8 |
P/E on trailing-12-month net profit of CNY 93.8 M (x) | 97.1 |
P/B on 30 Sep 2026 equity (x) | 4.55 |
EV/Sales trailing 12 months (x) | 6.4 |
Dividend yield on FY2025 dividends (%) | 0.38 |
Per-Share Data and Income Statement
| Consensus (2 brokers, as of Aug 2026) | FY2026E | FY2027E | FY2028E |
|---|---|---|---|
EPS (CNY) | 0.36 | 0.44 | 0.55 |
Net profit (CNY Mn) | 139 | 170 | 212 |
Dividends (CNY per share, as declared)
| Dividends (CNY per share, as declared) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Cash DPS | 0.090 | 0.070 | 0.085 | 0.090 | 0.090 |
Payout ratio (%) | 31 | 20 | 31 | 35 | 33 |
Analyst Conclusions
Management guidance
There is no numeric guidance. Management expects continued volume growth from the semiconductor and G5 businesses and the Zhenjiang ramp, and has flagged near-term pressure from raw materials and depreciation. Management says the new controller will support the company in market access, R&D, capital and talent.
Consensus expectations
Two brokers forecast net profit of CNY 139 million in FY2026 rising to CNY 212 million in FY2028 (EPS CNY 0.36 to 0.55). That implies about a 26% earnings CAGR from the FY2025 base of CNY 104.8 million. The FY2026 figure looks too high given 9M results.
Bull case
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Shanghai ownership unlocks customers. Shanghai Huayi and Shanghai SASAC give JHM privileged access to Shanghai fabs and capital. That could speed up 12-inch qualifications and lift the semiconductor share above the current 61%.
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Zhenjiang reaches breakeven. The base's revenue doubled in FY2025 and grew 121% in H1 FY2026. Turning its roughly CNY 55 million FY2025 loss into a profit would by itself add about 50% to group earnings.
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Input costs normalise. If the 127% SO₃ spike reverses, gross margin could recover to the 27–28% of FY2025 on higher volumes, with operating leverage on fixed costs.
Bear case
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Valuation is not supported by earnings. At about 97x trailing earnings and 4.5x book, with ROE near 5%, the stock prices in years of growth that 9M FY2026 (−14% net profit) has not yet delivered.
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Structural margin squeeze. JHM is not upstream-integrated, unlike Xingfu, and its ASPs are flat. Commodity input spikes therefore pass straight to its margins.
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Capex ahead of demand. About CNY 400 million of new Zhenjiang capacity will add depreciation before qualifications complete, as the 2022–2024 Zhenjiang episode shows.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Expected timing | What to watch |
|---|---|---|
| Appointment of a new CFO and integration of the Shanghai team | Q4 FY2026 – Q1 FY2027 | Management stability; Huayi secondments |
| FY2026 annual report and dividend | April 2027 | Whether net profit stabilises; payout above 30% |
| Zhenjiang 37,000 t project commissioning | 2,027 | Capex, utilisation and Zhenjiang breakeven |
| Raw-material prices (SO₃, HF, IPA) | Quarterly operating data | Gross-margin recovery from the Q2 FY2026 low of 22.5% |
| New 12-inch customer qualifications in Shanghai and East China | Ongoing | Share of 8–12-inch products |
| Possible equity raising or asset injection from Shanghai Huayi | After the 12-month no-restructuring period (from Aug 2027) | Dilution versus strategic value |
| Fuxin minority purchase completion and Shandong deregistration | H2 FY2026 – FY2027 | Structural clean-up |
- Appointment of a new CFO and integration of the Shanghai team — Expected timing: Q4 FY2026 – Q1 FY2027; What to watch: Management stability; Huayi secondments
FY2026 annual report and dividend: Expected timing: April 2027; What to watch: Whether net profit stabilises; payout above 30%
Zhenjiang 37,000 t project commissioning: Expected timing: 2027; What to watch: Capex, utilisation and Zhenjiang breakeven
Raw-material prices (SO₃, HF, IPA): Expected timing: Quarterly operating data; What to watch: Gross-margin recovery from the Q2 FY2026 low of 22.5%
-
New 12-inch customer qualifications in Shanghai and East China — Expected timing: Ongoing; What to watch: Share of 8–12-inch products
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Possible equity raising or asset injection from Shanghai Huayi — Expected timing: After the 12-month no-restructuring period (from Aug 2027); What to watch: Dilution versus strategic value
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Fuxin minority purchase completion and Shandong deregistration — Expected timing: H2 FY2026 – FY2027; What to watch: Structural clean-up
Analyst verdict
Jiangyin Jianghua Micro-electronic Materials is a credible second-tier Chinese wet electronic chemicals maker that is moving from display to semiconductors. The fundamentals are clear. Revenue has compounded at about 12% a year since FY2021 to CNY 1.23 billion. Semiconductors now provide more than three-fifths of core sales, and 8–12-inch fab products are growing at 35–40% a year. The company has completed its SEMI G5 portfolio and is supplying 12-inch customers from Zhenjiang. Operating cash flow is solid, leverage is modest and dividends are steady at about a third of earnings.
Profitability has not kept up with the growth. ROE has fallen from almost 10% in FY2022 to about 5%. Zhenjiang has absorbed about CNY 225 million of losses over three years, and 2026's raw-material spike shows how little pricing power the company has. Nine-month FY2026 net profit is down 14% on 18% higher revenue.
The August 2026 change of control is the defining event. Shanghai SASAC, through Shanghai Huayi, paid CNY 1.84 billion for 23.96%, a strong statement of strategic intent. Shanghai's integrated-circuit ecosystem is the most natural home for a domestic wet-chemicals supplier, and the founder is contractually retained for five years. The new owner's commitments rule out restructuring for a year and major asset injections for three, so any benefit has to come through operations: customer access, procurement synergies with a chemical group, and cheaper capital.
The investment debate therefore rests on two questions. The first is execution: Zhenjiang breakeven and margin repair. The second is valuation: the stock trades at nearly 100x trailing earnings, a premium that assumes Shanghai's support turns into earnings quickly. On current evidence the business is a sound strategic asset priced for a recovery that has not yet shown up in the numbers. FY2026 results and the first concrete steps under Shanghai Huayi will show whether the premium is justified.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Board role | Nominated by / background | Notes |
|---|---|---|---|
Shang Zhaocong | Chairman, legal representative | Shanghai Fuxun / Shanghai Huayi | Elected Chairman after the 28 Aug 2026 EGM; legal-representative change registered with the Wuxi Data Bureau |
Du Lijun | Non-independent director | Shanghai Fuxun | Elected Aug 2026 |
He Nan | Non-independent director | Shanghai Fuxun | Elected Aug 2026 |
Zhu Yonggang | Non-independent director; Deputy General Manager | Shanghai Fuxun slate | Deputy GM since Jan 2026 |
Yin Fuhua | Non-independent director; General Manager | Founder; second-largest shareholder (13.63%) | Born Jan 1968; junior college education; with the company since Aug 2001; Chairman until Aug 2026; nearly 30 years in electronic chemicals |
Yin Zi | Employee-representative director | Elected by the workers' congress | Member of the remuneration and appraisal committee in the January 2026 line-up |
Wu Liangwei | Independent director | Elected at the 9 Feb 2026 EGM | Failed election on 22 Jan 2026 because a major holder's online vote was cast in error |
Chen Chunhua | Independent director (accounting professional) | Shanghai Fuxun | Elected Aug 2026; expected audit committee chair |
Ling Hao | Independent director | Shanghai Fuxun | Elected Aug 2026 |
Executive Leadership Team
| Name | Title | Background |
|---|---|---|
Yin Fuhua | General Manager | Founder. Executive director of the Trading and Fuxin subsidiaries; Chairman of Zhenjiang Jianghua Micro. Under the transfer agreement he committed to five years of non-resignation, non-competition and non-solicitation, and not to seek control. |
Shao Yong | Deputy General Manager | Born 1981; bachelor's degree; with the company since 2004; legal representative of Sichuan Jianghua Micro |
Zhu Yonggang | Deputy General Manager and director | Appointed Deputy GM Jan 2026 |
Fei Zhuhai | Board Secretary; outgoing CFO | Formerly CFO and IT director of Jiangsu Riying Electronics (Oct 2010–Nov 2019). He resigned as CFO on 4 Aug 2026, effective on appointment of a successor, and stays Board Secretary. |
Miao Chunshuang | Securities Affairs Representative | Born 1990; bachelor's degree; with the company since Nov 2011 |
Major Shareholders
| Rank | Shareholder | Shares | % |
|---|---|---|---|
| 1 | Shanghai Fuxun Technology Co., Ltd. | 92,382,329 | 23.96 |
| 2 | Yin Fuhua | 52,568,237 | 13.63 |
| 3 | Hong Kong Securities Clearing Co. (Northbound) | 12,113,085 | 3.14 |
| 4 | Ji Wenqing | 8,800,058 | 2.28 |
| 5 | Zhenjiang Jiehua Investment Co., Ltd. | 6,454,633 | 1.67 |
| 6 | GF Securities – Guotai CSI Semiconductor Materials & Equipment ETF | 5,864,129 | 1.52 |
| 7 | Chen Yongqin | 3,149,261 | 0.82 |
| 8 | Bank of China – E Fund CSI Semiconductor Materials & Equipment ETF | 2,903,300 | 0.75 |
| 9 | UBS AG | 2,676,509 | 0.69 |
| 10 | Tang Yan | 2,607,700 | 0.68 |
| — | Top 10 total | 189,567,241 | 49.14 |
Competitive Landscape
Key Competitors
| Competitor | Home market | Overlap with JHM | Positioning |
|---|---|---|---|
Hubei Xingfu Electronic Materials (688545) | China | Electronic-grade phosphoric and sulphuric acid, H₂O₂, functional etchants and cleaners for 12-inch fabs | Domestic leader in IC phosphoric acid (≈70% domestic share in 2023) and sulphuric acid (31%); backed by Hubei Xingfa Group |
Jingrui Electronic Materials (300655) | China | High-purity H₂O₂, sulphuric acid, ammonia; photoresist | Suzhou-based; broader portfolio including photoresist |
Shanghai Sinyang Semiconductor Materials (300236) | China | Cleaning and etching chemicals; plating chemistries | Strong in advanced-packaging plating and IC functional chemicals |
Hangzhou Greenda Electronic Materials (603931) | China | TMAH developer for displays and semiconductors | Specialist developer supplier; overlaps JHM's display franchise |
Zhongju Hi-tech / Zhongjuxin (688549) | China | Electronic-grade HF, nitric acid, gases | Juhua Group-backed fluorine chemistry |
Shenzhen Capchem (300037) | China | Display and semiconductor wet chemicals | Diversified electrolyte maker with an electronic-chemicals arm |
Xilong Scientific (002584) | China | Commodity and electronic-grade reagents | Lower-end wet chemicals |
Guanghua Technology (002741) | China | PCB and electronic chemicals | Partial overlap |
Jiangyin Runma Electronic Materials | China (Jiangyin) | Ultra-pure acids and etchants | Local private competitor |
BASF | Germany | Full wet-chemical range for fabs | Global leader with high-end fab qualification |
Kanto Chemical | Japan | High-purity reagents and etchants | Major supplier to Japanese and Chinese fabs |
Stella Chemifa | Japan | Ultra-high-purity HF and fluorides | Global leader in HF |
Mitsubishi Chemical | Japan | Sulphuric acid, H₂O₂, cleaning solutions | Major advanced-node supplier |
Soulbrain / Dongwoo Fine-Chem (Sumitomo Chemical) | Korea | Etchants, cleaners, display chemicals | Strong in Korean and Chinese display and memory |
Honeywell / Entegris | USA | Ultra-pure reagents, formulated cleans | Advanced-node formulated chemistry |
Peer Comparison FY2025
| Metric | JHM FY2025 | Xingfu Electronic FY2024 |
|---|---|---|
Revenue (CNY Mn) | 1,233.8 | 1,137.0 |
Revenue growth (%) | 12.3 | 29.4 |
Attributable net profit (CNY Mn) | 104.8 | 159.0 |
Net margin (%) | 8.5 | 14.0 |
