Shenggong Holdings Benefits from Market Recovery with Non-GAAP Earnings Up 161.6%, Second Growth Curve Strengthened as Silicon Components Revenue Reaches 54%

Yangtze Business Daily News ● Yangtze Business Reporter Xu Yang

Shengong Co., Ltd. (688233.SH) has achieved significant growth in its operating performance.

According to the annual report, in 2025, Shengong Co. realized a net profit attributable to shareholders of listed companies (hereinafter referred to as “net profit attributable to parent”) of 102 million yuan, a year-on-year increase of 147.96%; net profit excluding non-recurring gains and losses (hereinafter referred to as “non-recurring net profit”) of 100 million yuan, up 161.64%.

Shengong Co. is a semiconductor materials and components company rooted in the Chinese domestic market. The Yangtze Business Daily reporter noted that benefiting from downstream customers’ localization breakthroughs, silicon component revenue now surpasses large-diameter silicon materials, further strengthening the company’s second growth curve.

The financial report shows that in 2025, Shengong’s silicon component products achieved operating revenue of 237 million yuan, a 100.15% increase, accounting for 54.1% of total revenue.

Steady performance with a dividend payout ratio of 30.76%

Shengong Co. was founded in July 2013 in Jinzhou City, Liaoning Province, and listed on the STAR Market of the Shanghai Stock Exchange in 2020. Market fluctuations and other factors caused some volatility in the company’s operating performance.

From 2020 to 2022, the company’s operating revenues were 192 million yuan, 504 million yuan, and 539 million yuan, respectively; net profits attributable to parent were 100 million yuan, 221 million yuan, and 158 million yuan.

In 2023, the company’s revenue was 135 million yuan, a decrease of 74.96% year-on-year; net loss attributable to parent was 69.11 million yuan. The company explained that industry cycles and the global economic environment significantly impacted, leading to a sharp decline in large-diameter silicon material revenue and decreased capacity utilization. Additionally, the company made provisions for inventory write-downs.

In 2024, the company’s performance reversed. Revenue and net profit attributable to parent were 303 million yuan and 41.15 million yuan, respectively. The company stated that seizing the opportunity of recovering downstream demand for large-diameter silicon materials and increased demand for silicon components, it adjusted its product structure, resulting in substantial growth in revenue and net profit.

In 2025, Shengong’s operating performance continued to grow rapidly, with revenue reaching 438 million yuan, a 44.68% increase; net profit attributable to parent was 102 million yuan, up 147.96%; non-recurring net profit was 100 million yuan, up 161.64%. The profit growth rate far exceeded revenue growth.

Regarding the continued doubling of performance, Shengong explained that the global semiconductor market is recovering steadily, capacity utilization is improving, scale effects are emerging, and the company is actively reducing costs and increasing efficiency, as well as refining internal controls to enhance profitability.

In 2025, Shengong’s gross profit margin reached 44.75%, an increase of 11.06 percentage points year-on-year; net profit margin was 27.98%, up 12.54 percentage points.

Good investor returns are the foundation for long-term growth in the capital market. In 2025, Shengong plans to distribute a cash dividend of 1.85 yuan (tax included) for every 10 shares to all shareholders, totaling approximately 31.39 million yuan (tax included), representing 30.76% of net profit attributable to parent.

In the secondary market, Shengong’s stock performance has also been impressive. On March 21, 2025, the closing price was 24.12 yuan per share; by March 20, 2026, the intraday high reached 74.89 yuan per share, an increase of over 210% in one year.

Organic and external expansion

Since its establishment, Shengong has focused on the production, R&D, and sales of large-diameter silicon materials and their application products. With years of accumulation and strategic layout, the company maintains a leading position in the large-diameter silicon materials field, mastering all technical processes for 22-inch and smaller crystals. It is one of the few domestic integrated manufacturers capable of “from crystal growth to silicon electrode finished products.” The company can supply large-diameter silicon materials to global downstream manufacturers on a large scale, with high quality and reliability, ranking among the top tier worldwide.

The annual report shows that in 2025, the proportion of high-margin products over 16 inches further increased to 56.72%, with a gross margin of 76.09%, positively impacting the overall gross margin of this business. Overall, Shengong’s large-diameter silicon materials business achieved revenue of 188 million yuan, up 8.11% year-on-year; gross margin was 69.87%, an increase of 6.02 percentage points.

While consolidating its leading position in silicon materials, Shengong has also expanded into downstream high-value silicon components and wafers in recent years. The silicon component business started in 2016, making it one of the earliest domestic companies to develop this market, and one of the few integrated manufacturers capable of “from crystal growth to finished silicon components.”

The annual report indicates that in 2025, Shengong’s silicon component revenue reached 237 million yuan, a 100.15% increase, accounting for 54.1% of total revenue; gross margin was 54.03%, up 14.48 percentage points. The silicon component segment has become a key driver of the company’s performance growth, surpassing large-diameter silicon materials.

Currently, Shengong’s large-diameter silicon materials customers are mainly semiconductor material companies; silicon components are supplied to domestic plasma etching equipment manufacturers and integrated circuit manufacturers. The target customers for 8-inch low-defect polished silicon wafers are domestic and international IC manufacturers, including SMIC, Huahong, and others.

The company continues to increase R&D investment, focusing on profitability and tailoring research activities to meet specific evaluation and certification requirements of downstream clients. From 2023 to 2025, R&D expenditures were 22.47 million yuan, 25.01 million yuan, and 33.41 million yuan, respectively, representing 16.64%, 8.26%, and 7.63% of annual revenue.

As of the end of 2025, Shengong employed 87 R&D personnel, accounting for 20.23% of the total workforce; the company has obtained 18 invention patents, 95 utility model patents, and 6 software copyrights.

While strengthening internal development, Shengong also seeks faster growth through external expansion. In December 2025, the company announced plans to act as a limited partner, contributing 60 million yuan to jointly establish Jiangcheng Guotai Haitong Shengong (Wuhan) Venture Capital Partnership (Limited Partnership) (“Venture Fund”), with a contribution ratio of 30%.

The fund will leverage Shengong’s industry advantages, focusing on key equipment, components, and materials needed for wafer manufacturing. Its investment scope will primarily be within China, with a global perspective, targeting high-tech, high-capacity overseas companies that can be introduced domestically. By the end of 2025, the fund had completed registration procedures.

Editor: ZB