Jones Tech Overview
Jones Tech solves reliability problems in electronic devices by selling functional materials and components for heat and electromagnetic interference. Its anchor product is synthetic high-thermal-conductivity graphite film, where it calls itself the global leader, citing Fuji Keizai. Around that franchise it has built a portfolio covering thermal interface materials, heat pipes, vapor-chamber (VC) wick and VC modules, thermal modules, EMI shielding, adhesives and seals, and since 2025 liquid-cooling cold plates. Roughly three-quarters of revenue comes from five global customers in consumer electronics, led by a North American smartphone and device maker, with Samsung, Microsoft, Google, Amazon, Honor and a large Chinese handset maker also on the customer list. The company is now repositioning as a "materials–components–modules–liquid cooling" thermal platform for AI. It ships VC modules to optical-transceiver makers, TIM and module components to server makers, and cold plates through its newly acquired Zhongshi Xunleng subsidiary. Zhongji Innolight, the world's largest optical-module maker, bought 10.47% of the company in September 2026, which ties Jones Tech's next growth leg to 800G/1.6T optical modules and co-packaged optics.
What the company does
Jones Tech describes its main business as solving technical problems in thermal management and electromagnetic compatibility for customers, and earning revenue from the functional materials, components and modules it sells as part of those solutions. It calls itself a global leader in functional polymer materials and thermal-management solutions. It focuses on core materials and components, follows the "AI+" industry trend, and supplies integrated reliability solutions for electronic equipment.
In practice the company:
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Develops and produces functional materials in-house. These include synthetic graphite film made by high-temperature carbon sintering, polymer-composite TIMs, EMI shielding elastomers and foams, adhesives and sealing materials.
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Converts those materials into die-cut components to customer drawings, for example graphite die-cut stacks for phones, tablets and notebooks.
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Builds two-phase heat-transfer devices (heat pipes, vapor chambers and VC wick) and thermal modules. For optical transceivers these are integrated VC modules.
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Since late 2025, supplies liquid-cooling products: cold plates for connectors and NPO/CPO (near- and co-packaged optics) architectures, and integrated TIM plus cold-plate solutions for AI servers.
Business and revenue model
Revenue is almost entirely product revenue from manufactured materials, components and modules. There is no meaningful service, subscription or licensing income. The company reports one principal product line, "thermal materials" (导热材料). In the first half of 2026 it generated CNY 805.5 million, 97.3% of revenue, at a gross margin of 33.72%. The remaining 2–3% is EMI-shielding and other products and other business income.
The model has three defining features:
Design-in, project-based selling: Products are qualified into specific customer device programmes. Revenue follows the launch cycle of a handful of flagship devices, so the third quarter is seasonally strong.
High customer concentration: The top five customers accounted for 73.51% of FY2025 revenue.
Cash-rich, low-leverage balance sheet: with a high payout. The company held CNY 1.08 billion of cash and short-term wealth-management products at end-2025, had essentially no borrowings, and has paid out 65–100% of earnings in recent years.
Value-chain position
Jones Tech is a tier-2/tier-1.5 supplier. It buys polyimide film, silicone, metal powders and copper. It supplies device brands either directly (the brands qualify Jones Tech materials) or through their contract manufacturers and module assemblers. In optical communications it supplies transceiver makers such as Innolight. In servers it supplies thermal-module makers and server OEMs. In connectors it is in the supply base of a leading connector maker, with a vendor code.
Customer types and end-markets
| End-market (company definition) | Typical devices / applications | Products supplied | Named or identified customers |
|---|---|---|---|
| Consumer electronics | Smartphones (including foldables), tablets, notebooks, wearables (VR/AR/MR, smartwatches, TWS earbuds), smart-home devices, game consoles, drones | High-thermal-conductivity graphite, TIM, EMI shielding, VC wick, VC, heat pipes, thermal modules | North American major customer, Samsung, Microsoft, Google, Amazon, "H customer", Honor, DJI, Xiaomi, OPPO |
| Digital infrastructure | Optical transceivers (800G/1.6T), AI servers, data centres, 5G/next-generation base stations | TIM, VC modules, heat pipes, cold plates and liquid-cooling modules, EMI shielding | Leading domestic and overseas optical-communication makers, server makers, a leading connector customer, Nokia |
| Smart transportation | New-energy vehicle electric drivetrains ("three-electric" systems), automotive electronics, smart cockpits | Synthetic graphite, TIM, environmental sealing | — |
| Clean energy | Power electronics, energy storage | TIM, sealing, shielding | — |
Consumer electronics: Typical devices / applications: Smartphones (including foldables), tablets, notebooks, wearables (VR/AR/MR, smartwatches, TWS earbuds), smart-home devices, game consoles, drones; Products supplied: High-thermal-conductivity graphite, TIM, EMI shielding, VC wick, VC, heat pipes, thermal modules; Named or identified customers: North American major customer, Samsung, Microsoft, Google, Amazon, "H customer", Honor, DJI, Xiaomi, OPPO
Digital infrastructure: Typical devices / applications: Optical transceivers (800G/1.6T), AI servers, data centres, 5G/next-generation base stations; Products supplied: TIM, VC modules, heat pipes, cold plates and liquid-cooling modules, EMI shielding; Named or identified customers: Leading domestic and overseas optical-communication makers, server makers, a leading connector customer, Nokia
Smart transportation: Typical devices / applications: New-energy vehicle electric drivetrains ("three-electric" systems), automotive electronics, smart cockpits; Products supplied: Synthetic graphite, TIM, environmental sealing; Named or identified customers: Not publicly disclosed
Clean energy: Typical devices / applications: Power electronics, energy storage; Products supplied: TIM, sealing, shielding; Named or identified customers: Not publicly disclosed
Company's own description (2025 annual report and 2026 interim report). The company says it focuses on thermal management and electromagnetic compatibility for electronic products. It cites technical barriers in high-temperature carbon-material sintering, functional polymer composites and two-phase heat transfer. It says it has achieved "basically full coverage of head customers in the 3C industry", and that the "VC + graphite" composite heat-spreading solution has become mainstream in flagship consumer devices.
Independent characterisation. Jones Tech is a high-quality but concentrated consumer-electronics materials supplier that is trying to become an AI-infrastructure thermal platform. Its graphite franchise is mature, and a growing share of smartphone thermal content is moving to vapor chambers. The company is responding by moving upstream into VC wick, where it has completed qualification with the North American major customer, and downstream into VC modules and liquid cooling for optical modules and servers. Innolight's equity stake improves the odds of the second transition, but the financial evidence so far is modest. Revenue growth was 10.7% in the first half of 2026 and 15.4% in the first nine months.
Strategy
Stated strategy (2025 annual report and 2026 interim report)
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Serve leading customers. Build capacity close to key customers and position facilities in the core regions of the global supply chain.
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Two growth engines: consumer electronics and digital infrastructure.
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In consumer electronics, defend the graphite leadership position, grow die-cut component share, and move upstream into VC wick.
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In digital infrastructure, treat optical communications, AI servers and data centres as the "second growth curve".
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Build a full thermal stack: materials, components, modules and liquid cooling. Optical-module heat is addressed at chip, module and system level with TIM, VC modules and liquid cooling.
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Technology leadership in three core platforms: high-temperature carbon-material sintering, functional polymer composites and two-phase heat transfer.
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Globalisation: Singapore as overseas headquarters and Thailand as overseas production base.
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Digital operations across the group on SAP ERP.
The corporate motto is "pursuing specialization, winning on the right track, and encouraging creative thinking."
Initiatives in the last 24 months
| Initiative | Timing | Detail and targets |
|---|---|---|
| VC wick industrialisation | 2024–2026 | Heavy R&D investment. High-performance wick qualified with the North American major customer in H1 2026 and ready for mass delivery |
| VC modules for optical communications | 2025–2026 | Certified with leading domestic and overseas optical-module makers. Integrated VC module in introduction. Validation for CPO/NPO/XPO architectures |
| Liquid-cooling build-out | Dec 2025 onwards | Acquired 51% of Zhongshi Xunleng for CNY 35.7 million. Vendor code with a leading connector maker. 1.6T connector cold plates and NPO liquid cooling under development. The company estimates the liquid-cooling market at more than CNY 100 billion, of which cold-plate components are about CNY 30–40 billion |
| Yixing thermal-module capacity | 2025–2026 | Plan to inject up to CNY 200 million of placement proceeds (CNY 47 million injected so far) |
| Thailand phase 2 | 2,026 | EPC contract of about CNY 198.6 million, 50% complete at mid-2026 |
| 5G thermal-module project close-out | Due 31 Dec 2026 | CNY 616.7 million committed, 90.61% invested |
| Strategic investment from Innolight | Aug–Sep 2026 | 10.47% stake. Both companies say the aim is to match Jones Tech's thermal technology to Innolight's 800G/1.6T modules |
| Equity incentive buyback | Approved 20 Jul 2026 | CNY 30–60 million at up to CNY 90 per share, within 12 months, for equity incentives or the ESOP |
| Auditor rotation | Oct 2025 | Zhonghui CPAs replaced Baker Tilly China after many consecutive years |
VC wick industrialisation: Timing: 2024–2026; Detail and targets: Heavy R&D investment. High-performance wick qualified with the North American major customer in H1 2026 and ready for mass delivery
VC modules for optical communications: Timing: 2025–2026; Detail and targets: Certified with leading domestic and overseas optical-module makers. Integrated VC module in introduction. Validation for CPO/NPO/XPO architectures
Liquid-cooling build-out: Timing: Dec 2025 onwards; Detail and targets: Acquired 51% of Zhongshi Xunleng for CNY 35.7 million. Vendor code with a leading connector maker. 1.6T connector cold plates and NPO liquid cooling under development. The company estimates the liquid-cooling market at more than CNY 100 billion, of which cold-plate components are about CNY 30–40 billion
Yixing thermal-module capacity: Timing: 2025–2026; Detail and targets: Plan to inject up to CNY 200 million of placement proceeds (CNY 47 million injected so far)
Thailand phase 2: Timing: 2026; Detail and targets: EPC contract of about CNY 198.6 million, 50% complete at mid-2026
5G thermal-module project close-out: Timing: Due 31 Dec 2026; Detail and targets: CNY 616.7 million committed, 90.61% invested
Strategic investment from Innolight: Timing: Aug–Sep 2026; Detail and targets: 10.47% stake. Both companies say the aim is to match Jones Tech's thermal technology to Innolight's 800G/1.6T modules
Equity incentive buyback: Timing: Approved 20 Jul 2026; Detail and targets: CNY 30–60 million at up to CNY 90 per share, within 12 months, for equity incentives or the ESOP
Auditor rotation: Timing: Oct 2025; Detail and targets: Zhonghui CPAs replaced Baker Tilly China after many consecutive years
Medium-term targets
Management has not published numerical revenue, margin or return targets. Its dividend policy aims to keep cash payouts "consistent, reasonable and stable". Its five-year average payout ratio exceeds 90%, and the payout was 96.19% in FY2024.
Products & Services
High-thermal-conductivity graphite products
| Product | Description and capability | Target customer | Status |
|---|---|---|---|
| Synthetic graphite film (人工合成石墨膜) | Made by carbonising and graphitising polyimide film at high temperature. Highly conductive in-plane. Single-layer thick film and multi-layer composite variants | Smartphones, tablets, notebooks, wearables | Flagship. The company cites Fuji Keizai for its global leadership claim |
| Multi-layer composite graphite film | Stacked layers for higher heat flux | Flagship phones, tablets | Volume production |
| Foldable / flexible graphite | Withstands repeated bending at foldable-phone hinges | Foldable smartphones | Volume production. Development continues for thinner, higher-performance devices |
| Natural graphite | Lower-cost spreader | Mid-range consumer devices | Volume production |
| Graphene high-thermal-conductivity film | Higher conductivity and thickness | Premium devices | Volume production |
| P-type graphite | New-generation graphite | Consumer electronics | Developed in 2024, small-batch production |
| Graphite die-cut assemblies | Converted stacks with adhesives and insulation films | Brand owners and EMS providers | The company is gaining share; applications are extending from phones to tablets and notebooks |
| Graphite for wireless charging | Graphite in phone wireless-charging coils | Smartphones | Volume production |
| Graphite for MR headsets | Spreaders in the North American customer's mixed-reality headset | AR/VR/MR | Adopted in 2023 |
Thermal interface materials (TIM)
| Product | Description | Target applications |
|---|---|---|
| Thermally conductive gap pads | Silicone or non-silicone pads that fill gaps between heat source and spreader | Base stations, servers, optical modules, automotive electronics, consumer devices |
| Thermal gels (dispensable) | Dispensable gels for automated assembly | Optical modules, ECUs, smartphones |
| Thermal greases | Thin-bond-line pastes | CPUs/GPUs, power modules |
| Phase-change materials | Soften at operating temperature to minimise thermal resistance | Processors, AI accelerators |
| Thermal storage materials | Absorb transient heat peaks | Mobile devices |
| Interface graphite products | Graphite-based TIMs | High-power chips |
| High-performance TIM for AI | High-conductivity TIMs at chip and module level | Optical modules, AI servers |
Two-phase devices and modules
| Product | Description | Status |
|---|---|---|
| Ultra-thin heat pipes | Phone-grade heat pipes. Capacity of 2 million units a month since 2020 | Volume production |
| Vapor chambers (VC) | Including 3D VC, large VC and integrated VC modules | Volume production for consumer, data-centre and server customers |
| VC wick (吸液芯) material | The capillary structure inside a VC. The company treats it as an upstream core process step | High-performance wick qualified with the North American major customer in H1 2026 and ready for mass delivery |
| Thermal modules | Heat-pipe/VC fin assemblies | Volume production for data-centre communications, servers and medical devices |
| VC modules for optical transceivers | Functional materials plus VC module, for 800G/1.6T modules | Qualified with leading domestic and overseas optical-communication makers and in volume supply. Integrated VC module solution being introduced |
Liquid cooling (Zhongshi Xunleng and Yixing)
| Product | Description | Status |
|---|---|---|
| Liquid-cooling modules | Cold-plate modules for data centres and servers | Customised design and volume production capability; first mass deliveries in 2024 |
| Connector liquid-cooling plates | Next-generation cold plates for high-speed connectors | In the supply base of a leading connector customer with a vendor code; some products in volume delivery |
| NPO / CPO / XPO liquid cooling | Cooling for near-packaged, co-packaged and other new optics architectures | Development, validation and customer introduction |
| AI-server integrated solution | High-performance TIM plus cold plate | Being offered to AI-server customers |
EMI shielding, adhesives and sealing
| Product | Description | Applications |
|---|---|---|
| EMI shielding materials | Conductive elastomers, conductive foams, shielding gaskets | 5G base stations, telecom, consumer devices |
| Adhesive materials | Functional adhesives and tapes | Device assembly |
| Sealing and IP environmental protection | Environmental sealing products | Telecom outdoor units, automotive |
| Legacy EMC lines | EMI filters, signal filters, EMI/EMC design consulting and remediation | Rail, medical, industrial (heritage businesses) |
Solutions offered by end-market
Management describes three standard solution stacks:
Consumer electronics: graphite plus VC composite heat spreading.
High-speed optical modules: functional materials plus VC modules.
AI servers: high-performance thermal materials plus integrated cold plates.
For optical modules the company frames its offer as covering "chip level, module level and system level" heat.
Pricing is per part and set in project quotes. The company does not disclose prices.
Financial Narrative
Income statement
FY2021 growth is measured against FY2020 revenue of CNY 1,148.6 million.
Margins (%)
Revenue CAGR, FY2021–FY2025: 10.1%. Net income CAGR over the same period: 26.6%.
Commentary. The five-year record has three phases.
FY2021–FY2022: share gains at thin margins: Wins at Korean and domestic Android handset makers lifted revenue to a record CNY 1.59 billion in FY2022. Lower-priced Android programmes and price concessions kept gross margin at 26–28%.
FY2023: consumer-electronics downturn: Revenue fell 21% and operating leverage worked in reverse. Operating margin dropped to 5.9% because the fixed costs of the Thailand and Yixing build-outs (D&A up from CNY 46.9 million to CNY 66.0 million) stayed in place.
FY2024–FY2025: mix-led re-rating of profitability: Gross margin rose 11 points in two years, from 25.0% to 36.0%. Management gives three drivers: more high-value-added products, specifically the North American customer's programmes beyond phones and VC and thermal modules; lean-production cost cuts; and asset optimisation. Operating expenses grew far more slowly than gross profit, so operating margin roughly tripled to 20.9%. FY2025 net income excluding non-recurring items (CNY 341 million, +95.3%) slightly exceeded reported net income, so the profit improvement came from the core business.
Interim trend, FY2025–9M 2026
In the first nine months of 2026 revenue was CNY 1,498.6 million (+15.43%), attributable net profit CNY 284.7 million (+13.12%) and net profit excluding non-recurring items CNY 278.3 million (+17.68%). Gross margin was 33.47%, against 33.92% a year earlier. The implied Q3 2026 gross margin is about 33.1%, down from 37.46% in Q3 2025, so profit grew more slowly than revenue in the peak quarter. Finance costs turned to an expense of CNY 3.49 million, from income of CNY 0.25 million a year earlier, because of foreign-exchange losses. Government subsidies in other income fell 53.5% to CNY 2.03 million. A lower income-tax charge (CNY 22.9 million against CNY 33.1 million) partly offset these items.
Balance sheet
The company has no long-term bank borrowings. Equity attributable to shareholders was CNY 2,182 million at end-FY2025 (+7.3%).
Latest balance sheet. At 30 June 2026 total assets were CNY 2,574.8 million. They fell 4.56% from year-end after the CNY 7.40-per-10-share dividend was paid. The balance sheet held CNY 473.5 million of cash and CNY 431.7 million of trading financial assets, and short-term borrowings were nil. Inventory rose from CNY 184 million to CNY 287 million as the company stocked up for new business. Construction in progress jumped from CNY 3.57 million to CNY 103 million because of the Thailand plant expansion. By 30 September 2026 total assets had recovered to CNY 2,808.2 million and the debt-to-assets ratio was 21.56%.
Cash flow
Commentary. Cash conversion was strong through FY2024 but weakened in FY2025. Operating cash flow covered only 83% of net income because receivables grew CNY 105 million, with DSO rising to about 118 days. Capex more than doubled to CNY 172.5 million for Thailand and Yixing. Free cash flow of CNY 107 million did not cover the CNY 194 million of dividends paid, so the payout was partly funded from the CNY 1.1 billion liquidity reserve.
In 2026 operating cash flow was CNY 172.1 million in the first half (+40.4%) but only CNY 149.7 million for the nine months. That means cash flow was negative in Q3 2026 as working capital grew in the peak shipment quarter.
Ratios
ROIC is calculated as operating income × (1 − 15% high-tech enterprise tax rate) ÷ (equity + debt − cash − trading financial assets).
Interest coverage is not meaningful because the company earns net finance income on its cash (net finance income of CNY 7 million in FY2024).
Commentary. Return on operating capital is very high: ROIC of 28.7% in FY2025 on less than CNY 1.2 billion of net operating capital. Book ROE is held down by the roughly CNY 1.1 billion cash pile, about 40% of total assets, which earns a wealth-management yield. The deteriorating ratio is DSO. Receivables have grown faster than revenue for two years, which fits a customer base dominated by large brands with long payment terms.
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View Subscription PlansFinancial Detail
Product Lines
| Product line | Contents | H1 2025 revenue (CNY Mn) | H1 2026 revenue (CNY Mn) | YoY | H1 2026 gross margin | Change in gross margin | Share of H1 2026 revenue |
|---|---|---|---|---|---|---|---|
Thermal materials | Graphite, TIM, heat pipes, VC/VC wick, thermal modules, liquid cooling | 716.9 | 805.5 | +12.36% | 33.72% | +2.16 pt | 97.3% |
Other (EMI shielding, adhesives, other income) | Shielding, sealing, other | 31.2 | 22.3 | −28.5% | — | — | 2.7% |
Total | — | 748.1 | 827.8 | +10.66% | 33.78% | — | 100% |
“—” = not publicly disclosed.
Group Entities
| Entity | Ownership | Function | H1 2026 revenue (CNY Mn) | H1 2026 net profit (CNY Mn) | Total assets (CNY Mn) |
|---|---|---|---|---|---|
Jones Tech PLC (parent, Beijing) | — | HQ, R&D, sales, production | — | — | — |
Beijing Zhongshi Weiye Technology Wuxi Co., Ltd. (无锡中石) | 100% | Main manufacturing base (graphite, TIM, die-cut parts) | 525.1 | 83.1 | 911.8 |
Beijing Zhongshi Weiye Technology Yixing Co., Ltd. (宜兴中石) | 100% | Thermal modules, heat pipes, VC, liquid-cooling modules | 77.9 | −10.0 | 468.6 |
Jones Tech (Thailand) Co., Ltd. | 100% (sub-subsidiary) | Overseas production: graphite, die-cut, TIM, shielding, adhesives | 144.2 | 52.3 | 602.0 |
Jones Tech Singapore Pte. Ltd. | 100% | Overseas headquarters and holding company | — | — | — |
JONES TECH (USA), INC. | 100% | US engineering centre and customer support | — | — | — |
Sumaide Electronics (Dongguan) Co., Ltd. (速迈德) | 100% | Electronic components and conversion | — | — | — |
Wuxi Zhongshi Kuluojie Technology Co., Ltd. (库洛杰) | 100% | Heat pipes and two-phase devices | — | — | — |
Zhongshi Xunleng Cooling Technology (Dongguan) Co., Ltd. (中石讯冷) | 51% via Yixing Zhongshi | Liquid-cooling cold plates and modules | — | — | — |
Shanghai Anbitai New Materials Co., Ltd. (安彼太) | Controlled | Declared bankrupt 25 February 2026; in liquidation | — | — | — |
Revenue by Segment and Revenue by Segment (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Top-5 customer revenue (CNY Mn) | 682 | 1,072 | 714 | 1,023 | 1,349 |
Top-5 share of revenue (%) | 54.63 | 67.37 | 56.78 | 65.30 | 73.51 |
Largest customer share (%) | 21.68 | 24.35 | 21.40 | 20.37 | 28.51 |
Second-largest customer share (%) | 19.40 | 23.72 | 20.06 | 19.40 | 16.68 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 1,247.6 | 1,592.2 | 1,257.9 | 1,566.0 | 1,834.7 |
Revenue growth (%) | 8.6 | 27.6 | -21.0 | 24.5 | 17.1 |
Gross profit (CNY Mn) | 325.2 | 448.0 | 314.9 | 480.4 | 660.4 |
Operating income (CNY Mn) | 121.3 | 209.4 | 74.1 | 211.3 | 383.9 |
Depreciation & amortisation (CNY Mn) | 46.9 | 56.1 | 66.0 | 67.0 | 66.7 |
EBITDA (CNY Mn) | 168.2 | 265.6 | 140.1 | 278.2 | 450.6 |
Pre-tax income (CNY Mn) | 145.7 | 217.2 | 92.3 | 236.8 | 380.3 |
Net income attributable (CNY Mn) | 131.7 | 193.4 | 73.8 | 201.4 | 338.6 |
Net income excluding non-recurring items (CNY Mn) | — | — | 53.0 | 174.0 | 341.0 |
EPS basic (CNY) | 0.47 | 0.69 | 0.26 | 0.68 | 1.14 |
EPS diluted (CNY) | 0.47 | 0.69 | 0.25 | 0.67 | 1.13 |
Dividend per share (CNY) | 0.43 | 0.65 | 0.24 | 0.65 | 0.74 |
“—” = not publicly disclosed.
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View Subscription PlansMargin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 26.1 | 28.1 | 25.0 | 30.7 | 36.0 |
Operating margin (%) | 9.7 | 13.2 | 5.9 | 13.5 | 20.9 |
EBITDA margin (%) | 13.5 | 16.7 | 11.1 | 17.8 | 24.6 |
Pre-tax margin (%) | 11.7 | 13.6 | 7.3 | 15.1 | 20.7 |
Net margin (%) | 10.6 | 12.1 | 5.9 | 12.9 | 18.5 |
Revenue History
| Quarter | Revenue | YoY revenue growth | Net income attributable |
|---|---|---|---|
Q1 2025 | 349.0 | +16.4% | 61.7 |
Q2 2025 | 399.1 | — | 59.7 |
Q3 2025 | 550.2 | +21.8% | 130.2 |
Q4 2025 | 536.4 | +14.1% | 86.9 |
Q1 2026 | 389.1 | +11.5% | 64.8 |
Q2 2026 | 438.7 | +9.9% | 73.2 |
Q3 2026 | 670.8 | +21.9% | 146.7 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (CNY Mn) | 1,963 | 2,291 | 2,262 | 2,523 | 2,698 |
Cash & equivalents (CNY Mn) | 668.3 | 369.2 | 300.9 | 338.4 | 372.2 |
Trading financial assets (CNY Mn) | 158.3 | 563.9 | 725.7 | 831.9 | 710.0 |
Receivables (CNY Mn) | 361.5 | 424.3 | 358.9 | 486.1 | 591.6 |
Inventory (CNY Mn) | 151.8 | 191.5 | 150.9 | 159.4 | 183.6 |
Total current assets (CNY Mn) | 1,362 | 1,563 | 1,552 | 1,840 | 1,882 |
PP&E (CNY Mn) | 463.6 | 616.1 | 578.5 | 560.0 | 609.4 |
Goodwill & intangibles (CNY Mn) | 77.4 | 78.0 | 78.0 | 78.9 | 104.1 |
Total current liabilities (CNY Mn) | 290.7 | 550.9 | 360.0 | 479.4 | 480.3 |
Short-term debt (CNY Mn) | 0 | 103.3 | 0 | 14.4 | 6.6 |
Total debt including leases (CNY Mn) | 11.7 | 107.9 | 4.3 | 23.5 | 8.3 |
Total liabilities (CNY Mn) | 299.1 | 554.3 | 367.3 | 491.9 | 488.5 |
Total equity (CNY Mn) | 1,664 | 1,737 | 1,895 | 2,031 | 2,209 |
Net cash (CNY Mn) | 814.9 | 825.2 | 1,022.0 | 1,147.0 | 1,074.0 |
Working capital (CNY Mn) | 1,071 | 1,012 | 1,192 | 1,360 | 1,402 |
Cash Flow and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow (CNY Mn) | 158.5 | 349.2 | 189.7 | 239.9 | 279.6 |
Capital expenditure (CNY Mn) | 227.3 | 128.5 | 79.4 | 61.5 | 172.5 |
Free cash flow (CNY Mn) | -68.8 | 220.7 | 110.3 | 178.4 | 107.1 |
Dividends paid (CNY Mn) | 177.1 | 122.2 | 182.8 | 71.7 | 193.8 |
Share buybacks (CNY Mn) | 0.2 | 0.7 | 20.0 | 15.5 | 15.6 |
OCF / net income (x) | 1.20 | 1.81 | 2.57 | 1.19 | 0.83 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on year-end equity (%) | 7.9 | 11.1 | 3.9 | 9.9 | 15.3 |
ROA on year-end assets (%) | 6.7 | 8.4 | 3.3 | 8.0 | 12.5 |
ROIC (%) | 12.1 | 19.5 | 7.2 | 20.3 | 28.7 |
Current ratio (x) | 4.69 | 2.84 | 4.31 | 3.84 | 3.92 |
Debt / equity (%) | 0.7 | 6.2 | 0.2 | 1.2 | 0.4 |
Net debt / EBITDA (x) | -4.85 | -3.11 | -7.30 | -4.12 | -2.38 |
Asset turnover (x) | 0.64 | 0.69 | 0.56 | 0.62 | 0.68 |
Days sales outstanding (days) | 105.7 | 97.3 | 104.1 | 113.3 | 117.7 |
Days inventory outstanding (days) | 60.1 | 61.1 | 58.4 | 53.6 | 57.1 |
Revenue by Region and Revenue by Region (%)
| Metric | FY2019 | FY2024 |
|---|---|---|
Domestic revenue (CNY Mn) | 390 | 967.8 |
Overseas revenue (CNY Mn) | 380 | 598.2 |
Overseas share of revenue (%) | 49.4 | 38.2 |
Share Price & Returns
| Date | Close (CNY) | Market cap (CNY Bn) |
|---|---|---|
27 Dec 2017 (IPO issue price) | 8.00 | — |
24 May 2024 | 18.40 | 5.5 |
31 Oct 2024 | 22.02 | 6.6 |
25 Apr 2025 | 23.20 | 6.9 |
29 Sep 2025 | 41.47 | 12.4 |
10 Nov 2025 | 42.70 | 12.8 |
13 Aug 2026 | 56.13 | 16.8 |
17 Aug 2026 | 80.83 | 24.2 |
30 Sep 2026 | 108.10 | 32.4 |
9 Oct 2026 | 92.98 | 27.8 |
3 Nov 2026 | 63.32 | 19.0 |
5 Nov 2026 | 69.81 | 20.9 |
Valuation Snapshot
| Multiple | Value |
|---|---|
P/E, trailing 12 months (net profit CNY 371.6 million) | 56x |
P/E, FY2025 actual (EPS CNY 1.14) | 61x |
P/E, 2026E consensus (EPS CNY 1.49) | 47x |
P/E, 2027E consensus (EPS CNY 2.44) | 29x |
P/B (equity attributable at 30 June 2026: CNY 2,071 million) | 10.1x |
EV/Sales, trailing 12 months (revenue CNY 2,035 million) | 9.8x |
EV/EBITDA (FY2025 EBITDA CNY 450.6 million) | 44x |
Income Statement and Per-Share Data
| Metric | FY2025A | FY2026E | FY2027E | FY2028E |
|---|---|---|---|---|
Revenue (CNY Mn) | 1,835 | 2,623 | 4,170 | 6,079 |
Net income (CNY Mn) | 339 | 445 | 733 | 1,120 |
EPS (CNY) | 1.14 | 1.49 | 2.44 | 3.74 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (CNY) | 0.43 | 0.65 | 0.24 | 0.65 | 0.74 |
Payout ratio (%) | 97 | 100 | 97 | 96 | 65 |
Analyst Conclusions
Management guidance
Management gives no numerical guidance. It points to:
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Continued growth from the North American customer's new products and VC wick ramp.
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Rising VC-module deliveries to optical customers.
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Liquid-cooling volume deliveries through the connector channel.
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Completion of the 5G thermal-module project by 31 December 2026 and Thailand phase 2.
Bull case
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Content step-up at the anchor customer. VC wick qualification moves Jones Tech from graphite (about CNY 10s of value per device) into VC core materials across the largest smartphone franchise. This should support a higher share in FY2027.
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Optical and liquid-cooling optionality with an anchor buyer. Innolight's CNY 1.75 billion stake effectively pre-qualifies Jones Tech for 1.6T, CPO and NPO thermal content. The datacom optical market is expected to nearly double by 2030.
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Quality balance sheet and returns. ROIC of 28.7%, CNY 0.9–1.1 billion of net cash and a high payout limit downside if growth is delayed.
Bear case
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Earnings growth too slow for the valuation. Nine-month 2026 net profit grew 13.1%, yet the stock trades at 47x 2026 consensus EPS. Consensus revenue implies a Q4 that is unrealistic on the nine-month run-rate.
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Concentration and margin pressure. The top five customers are 73.5% of revenue and Q3 2026 gross margin fell about 4 points year on year. Annual price-downs and the new, initially lower-margin module and liquid-cooling businesses (Yixing loss-making) could cap margins.
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Late entrant facing stronger rivals. Feirongda, AVC, Auras and Siquan are larger or growing faster in liquid cooling. The founding family has taken CNY 1.75 billion off the table, and speculative positioning is unwinding (margin balance down 45% in a month).
Catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable | What to watch |
|---|---|---|
| Jan 2027 | FY2026 preannouncement | Net profit against the CNY 445 million consensus |
| Q4 2026 – Q1 2027 | 5G thermal-module project completion (31 Dec 2026) | Capacity use at Yixing; breakeven of module operations |
| H1 2027 | VC wick volume shipments to the North American customer | Revenue mix and gross margin |
| 2,027 | Optical VC module and liquid-cooling revenue disclosure | Whether digital infrastructure becomes a reported revenue line |
| 2,027 | Thailand phase-2 commissioning | Overseas revenue share and Thailand's margins (36% net in H1 2026) |
| Rolling | Innolight joint development and any board representation | Depth of the industrial cooperation |
| Rolling | Buyback execution (CNY 30–60 million) and equity-incentive launch | Alignment of the new leadership team |
| Apr 2027 | FY2026 dividend | Whether the payout stays above 60% |
| Rolling | DSO and operating-cash-flow conversion | Reversal of the receivables build |
| Sep 2027 | End of Innolight's 12-month lock-up | Holding intentions |
Jan 2027: Catalyst / monitorable: FY2026 preannouncement; What to watch: Net profit against the CNY 445 million consensus
Q4 2026 – Q1 2027: Catalyst / monitorable: 5G thermal-module project completion (31 Dec 2026); What to watch: Capacity use at Yixing; breakeven of module operations
H1 2027: Catalyst / monitorable: VC wick volume shipments to the North American customer; What to watch: Revenue mix and gross margin
2027: Catalyst / monitorable: Optical VC module and liquid-cooling revenue disclosure; What to watch: Whether digital infrastructure becomes a reported revenue line
2027: Catalyst / monitorable: Thailand phase-2 commissioning; What to watch: Overseas revenue share and Thailand's margins (36% net in H1 2026)
Rolling: Catalyst / monitorable: Innolight joint development and any board representation; What to watch: Depth of the industrial cooperation
Rolling: Catalyst / monitorable: Buyback execution (CNY 30–60 million) and equity-incentive launch; What to watch: Alignment of the new leadership team
Apr 2027: Catalyst / monitorable: FY2026 dividend; What to watch: Whether the payout stays above 60%
Rolling: Catalyst / monitorable: DSO and operating-cash-flow conversion; What to watch: Reversal of the receivables build
Sep 2027: Catalyst / monitorable: End of Innolight's 12-month lock-up; What to watch: Holding intentions
Analyst verdict
Jones Tech is a well-run, highly profitable specialty-materials company in the middle of a strategic re-positioning, and since August 2026 its share price has run well ahead of its earnings. The core franchise is real. Synthetic graphite film, TIM and die-cut parts are qualified at virtually every global 3C brand. That franchise produced a 36% gross margin and an 18.5% net margin in FY2025, ROIC near 29% and a near-debt-free balance sheet with about CNY 1 billion of liquidity. The two-year recovery since FY2023 was driven by mix, with gross margin up 11 points, rather than by volume alone.
The investment case now rests on a second curve that the reported numbers do not yet show. VC wick for the North American customer, VC modules for optical transceivers and cold plates through Zhongshi Xunleng are all qualified, but the company still reports them inside one undifferentiated "thermal materials" line. The module base at Yixing is loss-making. Group growth slowed to 10.7% in the first half of 2026 and 15.4% for the nine months, net profit growth was only 13%, and Q3 2026 margins fell year on year. Innolight's 10.47% stake confirms the strategy and should speed up qualification in 800G/1.6T and CPO/NPO thermal management. The founders sold that stake, though, and it came with no commercial commitments.
At about CNY 70 per share (roughly CNY 21 billion market cap), the stock trades at about 56x trailing earnings and 47x 2026 consensus. That consensus looks too high given the nine-month run-rate. The roughly 35% fall from the September peak has removed some speculative excess, but the valuation still assumes the AI-thermal businesses scale quickly and profitably in 2027.
The balanced view: Jones Tech is a high-quality operator with a credible AI-thermal roadmap. In the near term the shares are likely to stay volatile and dependent on news until the company discloses digital-infrastructure revenue separately and shows that module profitability can approach that of its materials business. The key evidence will be FY2026 results, the VC wick ramp and Thailand phase 2. A sustained gross margin above 33% combined with growth above 25% would support the bull case. Further margin erosion alongside double-digit growth would favour the bear case.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Age | Education | On board since (current role) | FY2025 total pre-tax pay (CNY K) | Direct shareholding (shares) |
|---|---|---|---|---|---|---|
HAN WU (吴憾) | Chair, executive director, General Manager | 41 | Bachelor's, University of Windsor (Canada); Canadian citizen | Director since Sep 2014; GM since Mar 2024; chair since 30 Dec 2025 | 2,595 | 10.87 million |
Wu Xiaoning (吴晓宁) | Director, convener of the strategy committee, legal representative; founder | 68 | Bachelor's | Director since Dec 2015 (founder 1997); chair until 30 Dec 2025 | 1,486 | 42.56 million |
Ye Lu (叶露) | Director; co-founder | 70 | Bachelor's | Dec 2015 | 1,505 | 40.67 million |
Chen Yu (陈钰) | Director, Deputy General Manager | 55 | Bachelor's | Dec 2015 | 1,031 | 290,800 |
Chen Qu (陈曲) | Director, Deputy General Manager | 58 | Bachelor's | Director since Jan 2020; DGM since Dec 2015 | 1,359 | 797,900 |
He Wenjin (何文进) | Non-executive director | 56 | Master's | Jan 2025 | 186 | — |
Lu Zhilong (陆致龙) | Independent director | 62 | PhD | Jan 2025 | 120 | — |
Chen Yawei (陈亚伟) | Independent director | 40 | Master's | Jul 2024 | 120 | — |
Zhang Wenli (张文丽) | Independent director | 65 | Bachelor's | Jan 2022 | 120 | — |
Executive Leadership Team
| Name | Title | Age | Education | Since | FY2025 total pre-tax pay (CNY K) |
|---|---|---|---|---|---|
HAN WU | General Manager (CEO) | 41 | Bachelor's | Mar 2024 | 2,595 |
SHU WU (吴曙) | CFO and head of accounting | 46 | Master's | Apr 2021 | 1,464 |
Zhang Weina (张伟娜) | Board Secretary | 38 | Master's | Jan 2025 | 542 |
Chen Yu | Deputy General Manager | 55 | Bachelor's | Dec 2015 | 1,031 |
Chen Qu | Deputy General Manager | 58 | Bachelor's | Dec 2015 | 1,359 |
Board & Management Changes
| Date | Change |
|---|---|
Mar 2024 | HAN WU becomes General Manager |
Jul 2024 | Chen Yawei joins as independent director |
13 Jan 2025 | New board term: He Wenjin and Lu Zhilong join. Cheng Wenlong leaves after serving as independent director from January 2019. Zhang Weina replaces the former Board Secretary and Deputy GM Wang Jun |
30 Dec 2025 | Founder Wu Xiaoning resigns as chair for personal reasons. HAN WU is elected chair, completing the generational handover |
Major Shareholders
| Holder | Type | Shares | Stake |
|---|---|---|---|
Wu Xiaoning | Controlling shareholder (individual) | 42,560,000 | 14.21% |
Ye Lu | Controlling shareholder (individual) | 40,670,000 | 13.58% |
Zhongji Innolight Co., Ltd. | Strategic corporate investor | 31,372,504 | 10.47% |
HAN WU | Controlling shareholder (individual) | 10,870,000 | 3.63% |
Total | — | — | 41.89% |
Competitive Landscape
Competitors by Segment
| Product area | Competitors | Positioning versus Jones Tech |
|---|---|---|
Synthetic graphite film and die-cut parts | Kaneka (Japan), Panasonic (PGS graphite, Japan), Tanyuan Technology (603133.SH), Siquan New Materials (301489.SZ), Feirongda (300602.SZ) | Jones Tech claims global leadership in synthetic graphite film. Japanese makers lead in ultra-thin premium grades; Chinese peers compete on price |
Thermal interface materials | Henkel (Bergquist), Laird Performance Materials (DuPont), Parker Chomerics, Shin-Etsu Chemical, Fujipoly, Honeywell (phase-change materials), 3M, Feirongda | Global chemical majors lead in high-end server and automotive TIM. Jones Tech competes through domestic substitution and integrated solutions |
Heat pipes, VC, thermal modules | Asia Vital Components (AVC, 3017.TW), Auras Technology (3324.TW), Suzhou Tianmai (301626.SZ), Feirongda, Siquan | The Taiwanese module makers dominate server and PC modules. Jones Tech's angle is VC wick (upstream) and VC modules for optical transceivers (a niche) |
Liquid cooling and cold plates | AVC, Auras, Cooler Master, Boyd, Feirongda, Siquan, Envicool (002837.SZ), Asetek (being acquired by Chunqiu Electronics) | Jones Tech is a late entrant. It is differentiated by its optical-module and connector cold plates and its relationship with Innolight |
EMI shielding | Laird, Parker Chomerics, Feirongda | Feirongda is the larger domestic competitor in shielding |
Peer Comparison FY2025
| Metric | Jones Tech | Feirongda (300602) | Siquan New Materials (301489) |
|---|---|---|---|
Revenue H1 2026 | 827.8 | 3,709 | 521 |
YoY revenue growth (%) | 10.66 | 28.64 | 34.95 |
Net income attributable H1 2026 | 138.0 | 253 | 33.6 |
Net margin (%) | 16.7 | 6.8 | 6.5 |
