On December 18, the Star Daily reported (Reporter Yu Jiaxin) that "Looking ahead, the trend of recovery in the semiconductors industry still exists, and more fields are raising higher requirements for materials, with more high value-added filler products markets being opened up." This was stated by Li Xiaodong, Chairman, General Manager, and Acting Financial Officer of Novoray Corporation at the Earnings Conference in the third quarter of 2024.

This year, Novoray Corporation has maintained stable growth in performance, with revenue reaching 0.694 billion yuan in the first three quarters, an increase of 35.79% year-on-year; the net income attributable to the parent company was 0.185 billion yuan, an increase of 48.1% year-on-year.

At the Earnings Conference, Li Xiaodong stated that the company's products are widely used in epoxy molding compounds (EMC), liquid molding compounds (LMC), and underfill materials for chip packaging, copper-clad laminates (CCL) for printed circuit boards, laminated adhesive films, thermal interface materials (TIM), adhesives for solar photovoltaic applications; eco-friendly and energy-saving construction adhesives, honeycomb ceramic carriers; as well as ultra high pressure electrical insulating products, 3D Printing materials, dental materials, and other emerging businesses.

Birlin, Secretary of the Board of Directors of Novoray Corporation, stated that since the beginning of this year, with the rapid development of fields such as AI and HPC, there has been a market demand for the iteration of advanced packaging materials, and the company has maintained a relatively good operating situation with further improvement in capacity utilization of spherical products.

Since the beginning of this year, sales of filler products used in the thermal interface field are gradually increasing," said Li Xiaodong, Chairman, General Manager, and Acting Financial Officer of Novoray Corporation.

Regarding the revenue expectations for the fourth quarter that investors are concerned about, Li Xiaodong stated, "Based on the situation in the first three quarters, the company's product sales prices are relatively stable, and the overall change in gross profit is mainly due to the increased share of mid-to-high-end products in the product structure, which has driven the continued improvement of sales net margin. The company's operating status remains stable in the fourth quarter, in line with the company's development expectations."

Currently, spherical-related products of Novoray Corporation are receiving attention. In an institutional research in November, the company stated that the Lowα spherical alumina series products contain radioactive elements Uranium (U) and Thorium (Th) at levels below 5 ppb, with the minimum being below 1 ppb, and they possess excellent properties such as high density and smooth surface, and have already successfully matched with industry-leading customers in stable mass production. In the first three quarters of 2024, Lowα spherical alumina maintained a high growth rate.

At this Earnings Conference, Li Xiaodong stated that, in addition to silicon-aluminum-based oxide products, a series of spherical Titanium and liquid filler products for high dielectric (Dk6 and Dk10) high-frequency substrates have been certified by domestic and international customers and are being shipped in bulk. In terms of product reserves, the company continues to invest in research and development of silicon-based nitride powder, aluminum-based nitride powder, boron-based nitride powder, and spherical magnesium oxide.

Meanwhile, on December 17 of this year, information from the National Intellectual Property Administration shows that Novoray Corporation has obtained a patent for a product named "a black spherical silicon dioxide and its preparation method," with announcement number CN118619292B and an application date of July 2024.

In this regard, Li Xiaodong stated that black spherical silicon dioxide not only has the black pigment function of carbon black but also possesses electric insulation properties and low dielectric loss characteristics that carbon black lacks, making it applicable to black circuit substrates, among others.

Regarding application fields, Li Xiaodong mentioned, "The company continues to focus on advanced technologies in downstream application fields like packaging for high-end chips (AI, 5G, HPC, etc.), heterogeneous integrated advanced packaging (Chiplet, HBM, etc.), next-generation high-frequency and high-speed copper-clad laminates (M7, M8, etc.), and high thermal conductivity interface materials for new energy vehicles."

Among them, industry insiders pointed out that the AI Chip field is expected to welcome rapid growth. Recently, several U.S. stock chip companies have reported impressive Earnings Reports, and Broadcom revealed that it is currently developing AI Chips with three very large clients, with an expected market size of $15 billion - $-20 billion for the company's AI chips next year.

Regarding the AI market, Li Xiaodong stated that the current mainstream packaging technology globally is mainly CSP and BGA, while chips in the AI field need to have high-performance computing capabilities and often adopt advanced packaging forms such as System-in-Package (SIP), 3D packaging, and fan-out wafer-level packaging (FOWLP). Such technologies demand higher requirements for packaging processes and materials, and for packaging fillers, in addition to ultra-fine particle size, low CUT points, and high thermal conductivity, high purity and safety characteristics are also required.

"The company's products can be applied in AI Chip packaging materials and maintain good cooperative relationships with downstream customers," Li Xiaodong stated.

Regarding mergers and acquisitions, Li Xiaodong indicated that since the company was established in 1984, it has consistently focused on advanced functional inorganic non-metallic powder materials. Based on deeply cultivating its main business, the company will comprehensively consider future development strategies and market demands.