In Q2 2024, the company's net income and non-IFRS net income reached a record high. The semiconductor market demand rebounded, and the company seized the industry development opportunities, resulting in year-on-year growth in overall business revenue. The product structure was further optimized, with an increase in the proportion of high-end products, resulting in year-on-year profit growth.
On August 25th, Silica Powder leader Novoray Corporation released its semi-annual report for 2024.
In the first half of 2024, Novoray Corporation achieved a total operating revenue of 0.443 billion yuan, a year-on-year increase of 41.15%; a net income attributable to the parent company of 0.117 billion yuan, a year-on-year increase of 60.86%; a non-IFRS net income attributable to the parent company of 0.106 billion yuan, a year-on-year increase of 70.32%; the net cash flow from operating activities was 0.1 billion yuan, a year-on-year decrease of 9.84%.
In Q2 2024, the company's net income and non-IFRS net income reached a record high.
In the second quarter, Novoray Corporation achieved a net income attributable to the parent company of 0.066 billion yuan, an increase of 27.36% compared to the previous quarter; a non-IFRS net income attributable to the parent company of 0.06 billion yuan, an increase of 32.02% compared to the previous quarter.
Regarding the performance changes, Novoray Corporation stated that during the reporting period, the semiconductor market demand rebounded, and the company seized the industry development opportunities, resulting in year-on-year growth in overall business revenue. The product structure was further optimized, with an increase in the proportion of high-end products, resulting in year-on-year profit growth.
Novoray Corporation's main business involves the research, manufacturing, and sales of inorganic fillers and granular carrier products in the semiconductor industry. The company's silica powder products are mainly divided into angular silica powder and spherical silica powder, including crystalline silica powder, fused silica powder, spherical silica powder, spherical alumina powder, and nitride powder materials, which are used in areas such as epoxy encapsulants for chip packaging, electronic circuit boards, thermal interface materials, special honeycomb ceramic carriers, and 3D printing materials.
Novoray Corporation stated that during the reporting period, the company focused on advanced packaging for high-end chips (AI, 5G, HPC, etc.), advanced packaging for heterogeneous integration (Chiplet, HBM, etc.), new generation high-frequency and high-speed copper-clad laminates (M7, M8, etc.), advanced technologies for downstream applications in the new energy autos sector, introducing a variety of specifications, low-CUT points, surface modifications, Lowα micron/submicron spherical silicon powder, low-loss copper-clad laminates for high-frequency and high-speed applications, and micron/submicron spherical aluminum oxide powder for new energy autos with high thermal conductivity.
According to the statistics of the Ministry of Industry and Information Technology, from January to May this year, the added value of China's electronic information manufacturing industry above a certain scale increased by 13.8% year-on-year. The rise of AI servers has driven the rebound in PCB demand. According to TrendForce's forecast, the demand for HBM in 2024 is expected to grow by nearly 200%, and it is expected to double again in 2025.
Regarding the demand in the downstream market for high-frequency and high-speed copper-clad laminates, in April of this year, Novoray Corporation stated during institutional research that in recent years, the increased demand for HPC, AI, and 5G communication has promoted the development of high-frequency and high-speed copper-clad laminates, especially in the area of high-speed copper-clad laminates. The market demand for copper-clad laminates of M6 grade and above is accelerating.
However, some market analysts believe that in the upstream silicon powder industry for advanced packaging, there are many small and medium-sized enterprises. Driven by industrial policies, with the continuous expansion of market demand, more capital may enter the silicon powder industry in the future. Novoray Corporation may face more intense market competition, and intensified competition may lead to a decline in the overall industry profit capabilities.
"Science and Technology Innovation Board Daily" journalists noticed that against the backdrop of increasing market demand, during the reporting period, Novoray Corporation added two expansion projects, including the construction project for electronic grade functional powder materials for integrated circuit and the production line construction project for advanced integrated circuit ultrafine spherical powder materials.
Regarding the progress of the construction project for electronic grade functional powder materials for integrated circuit, according to news from Lianyungang in July, the main structure of the project has been completed. Material debugging is expected to take place in August, and the project is expected to be completed and put into operation in December, with an annual production capacity of 0.0252 million tons of electronic grade functional powder materials.
In other project advancement, according to the company's semi-annual report, during the reporting period, Novoray Corporation's projects, such as the high-performance substrate with high dielectric and low loss spherical titanium dioxide development project, the aluminum nitride development project for thermal interface materials, the boron nitride development project for thermal interface materials, and the key technology R&D project for submicron spherical silicon powder for advanced packaging, have entered the engineering phase. The low-loss ultra-high-speed substrate spherical silicon dioxide development project has been industrialized and completed.