Breaking Through with Innovation: Tianyue Advanced's Sample of Leading Chinese Tech Companies, Second Growth Curve AI Application Already on the Horizon?

Tianyue Advanced's "A+H" capital layout is about to reach a crucial milestone. On July 30, according to Hong Kong Exchanges and Clearing Limited (HKEx) disclosure, Tianyue Advanced has successfully completed the HKEx listing, which means that this leading domestic third-generation silicon carbide (SiC) substrate manufacturer, only one step away from completing its Hong Kong stock market listing.

For Tianyue Advanced, going public will further expand financing channels and support business development. In terms of industry trends, the current 6-inch SiC substrate price decline has opened up the foundation for widespread application of silicon carbide, with the industry expanding from 6 inches to 8 inches, and 12 inches entering a period of technical breakthroughs. Under new circumstances, Tianyue Advanced, which has been focusing on technological innovation since its establishment, will likely rely on its advantages in large-size silicon carbide substrates and technical capabilities to continue leading global development of the silicon carbide industry.

China's Technology Enterprises: Tianyue Advanced Sample

From the company's history, Tianyue Advanced can be said to have a technological innovation story of Chinese technology enterprises. Looking back at the company's development process, Tianyue Advanced has experienced a leap from technological breakthroughs to international leadership.

In the early days, the company started paving the way for silicon carbide substrate materialization. In 2015, it successfully mass-produced 4-inch silicon carbide substrates, and two years later, its 6-inch conductive substrates were recognized and certified.

In the 2020s, Tianyue Advanced entered a period of accelerated growth driven by technological upgrades and market expansion. In 2022, the company landed on the Sci-tech Innovation Board, and the same year, it signed a long-term contract worth 13.93 billion yuan. After that, Tianyue Advanced pioneered the use of liquid-phase methods to prepare low-defect 8-inch crystals and launched its first 12-inch silicon carbide substrate.

As it went along, Tianyue Advanced started with technological innovation and gradually achieved breakthroughs in the industrialization of substrates from 4 inches to 12 inches. Earlier this year, relying on its strong technical capabilities, Tianyue Advanced won the "Semiconductor Electronic Materials" category gold award at the 31st Semiconductor Industry Awards, which is the first time a Chinese company has received this international award.

As the company's technological innovation continues to lead globally, Tianyue Advanced's "friends circle" also expands synchronously. As of the end of the first quarter, Tianyue Advanced had established business cooperation relationships with over half of the top ten global power semiconductor manufacturers, and its global influence is rapidly increasing. The latest example is that Tianyue Advanced recently signed a strategic cooperation agreement with Shunwei Group's subsidiary Shunwei Optics, focusing on silicon carbide optical waveguide plates.

According to financial data, Tianyue Advanced has delivered its best-ever annual performance. In 2024, the company achieved revenue of 17.68 billion yuan, up 41.4% year-on-year; gross profit reached 4.35 billion yuan, equivalent to a gross profit margin of 24.6%, an increase of 10 percentage points; and net profit was 1.79 billion yuan, also at a historical high.

Based on the sales revenue of silicon carbide substrates in 2024, Tianyue Advanced has already become the world's second-largest silicon carbide substrate manufacturer, with a market share of approximately 16.7%. Not only does its industry position stand out, but it also has a strong growth momentum.

For example, according to Yole data, Tianyue Advanced's revenue from N-type silicon carbide substrates increased by 35% year-on-year in 2024, ranking first among the top eight global N-type silicon carbide substrate manufacturers. With its outstanding growth momentum, Tianyue Advanced has successfully lifted its market share of N-type silicon carbide substrates to 15%, an increase of 4 percentage points over last year.

Second Growth Curve on the Horizon

The AI eyeglasses industry is at the threshold of a breakthrough, and the continuous large-scale development of silicon carbide substrates provides a technological foundation for its widespread application in consumer electronics such as AI eyeglasses and smartphones. In the future, companies like Tianyue Advanced, which have mastered advantages in large-size substrates, are likely to seize market opportunities.

In fact, there are many emerging fields with great potential for silicon carbide substrate applications. For example, AI chips and AI data centers have recently seen explosive growth, and NVIDIA's demand for silicon carbide materials has also risen accordingly. According to reports, Tianyue Advanced has already entered the supply chain of NVIDIA.

Looking ahead, the trend towards large-size substrates is clear; at the same time, silicon carbide substrate market expansion will accelerate in existing fields and expand into new application areas. Facing new market opportunities, Tianyue Advanced has the potential to rely on its technological innovation advantages to lead global development of the silicon carbide industry.

From a capital markets perspective, Tianyue Advanced is now poised to accelerate growth, with its growth potential and growth space both expected to further optimize. At this critical moment, Tianyue Advanced seeks to go public in Hong Kong, not only enriching financing channels but also providing support for future growth momentum; at the same time, listing on the Hong Kong stock market is expected to contribute positively to Tianyue Advanced's global breakthrough.