In-depth Analysis of Domestic Substitution of Functional Composite Film Materials and Commercialization Feasibility of Qingrong Technology

Based on the obtained industry data and the detailed information you provided, I offer the following comprehensive analysis:

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According to the information you provided, the global functional film market size reached

in 2024, which is a huge market. As high-end electronic materials, functional composite film materials play an irreplaceable role in emerging fields such as 5G communication, new energy vehicles, AI servers, and millimeter wave radar.

From industry data, Shengyi Technology (600183.SS), a leading enterprise in the copper clad laminate industry, had a strong stock performance in 2025 with an annual increase of over

and a market value of [0]. This reflects the capital market’s high recognition and strong growth expectations for the copper clad laminate and high-frequency material track.

High-frequency copper clad laminate is a core material in communication, automotive electronics, radar and other fields. It is expected that the global high-frequency copper clad laminate market size will exceed

by 2028 [0]. Currently, this market is mainly monopolized by international giants such as Rogers (USA) and Panasonic (Japan).

• 5G Communication:
  Millimeter wave bands have an urgent need for low dielectric loss materials
• New Energy Vehicles:
  77-79GHz millimeter wave radar has become a standard configuration for high-end models
• AI Servers:
  High-speed data transmission requires materials with excellent high-frequency performance
• Consumer Electronics:
  The trend of high-frequency and high-speed promotes material upgrading

High-temperature and high-energy storage capacitor film is a key material for power electronics, new energy vehicles, and energy storage systems. With the increase in new energy vehicle penetration and the explosion of the energy storage market, the demand for capacitor films with high energy storage density and high temperature resistance is growing rapidly.

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• Mid-to-low-end products:
  Localization has been achieved to a large extent, with domestic enterprises such as Shengyi Technology, Kingboard, and Huzheng New Materials occupying major market shares
• High-end products:
  Still heavily dependent on imports, especially PTFE (polytetrafluoroethylene) and hydrocarbon-based high-frequency materials, with Rogers (USA) occupying an absolute dominant position

• Ordinary BOPP film:
  High localization rate
• High-temperature and high-energy storage film:
  Mainly dependent on imports from Toray (Japan), Bolloré (France), etc., and localization is in the initial stage

1. Supply chain security:
   Sino-US trade frictions accelerate the domestic substitution process
2. Cost advantage:
   Domestic materials are usually 30-50% cheaper than imported ones
3. Service response:
   Local enterprises have obvious advantages in technical support and delivery speed
4. Policy support:
   The new material field has received key support from national industrial policies

• High technical barriers:
  High-frequency materials require precise control of material microstructure and formula
• Long certification cycle:
  Downstream customers are extremely cautious about the introduction of new materials, and the verification cycle is usually 1-2 years
• Low brand awareness:
  International giants have deep accumulation in the high-end market
• Patent barriers:
  Core material formulas and process patents are held by foreign manufacturers

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Technical Indicator	Qingrong Technology	Industry Benchmark (Rogers)	Evaluation
Dielectric Loss (Df)	≤0.001	0.0009-0.002	Reaches international advanced level
Dielectric Constant (Dk)	1.8-10.7 adjustable	2.1-10.2	Wider range and flexible adjustment
Application Frequency	77-79GHz	Millimeter wave band	Meets high-end application requirements

Technical Indicator	Qingrong Technology	Industry Mainstream Level	Evaluation
Energy Storage Density	5J/cm³	3-4J/cm³	Significantly better than existing products
Temperature Resistance	150℃	105-125℃	Stronger temperature adaptability

1. Strong team background:
   Tsinghua University material science team with deep technical accumulation
2. Excellent indicators:
   Core performance parameters reach or exceed international advanced levels
3. Material innovation:
   May have made breakthroughs in basic material formulas or composite processes
4. Application-oriented:
   Products are designed for high-end application scenarios such as millimeter wave radar

1. From laboratory to mass production:
   There is a gap between excellent laboratory indicators and large-scale production stability
2. Patent risk:
   Need to confirm whether it infringes on core patents of foreign manufacturers
3. Cost control:
   Can the mass production cost of new materials be competitive?
4. Reliability verification:
   Long-term use stability needs time to test

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1. Huge market space:
   The global high-frequency copper clad laminate market will exceed 44 billion yuan in 2028
2. Domestic substitution window:
   Under the current geopolitical environment, downstream customers have a strong motivation to introduce domestic materials
3. Strong downstream demand:
   High-speed growth in fields such as 5G, new energy vehicles, and AI servers
4. Technical leadership:
   Performance indicators reach international advanced levels, with substitution basis

• Assume Qingrong Technology gains 1% share in the high-frequency copper clad laminate market
• Corresponding market size is about
  440 million yuan/year
• Assume net profit margin is 20%, annual net profit is about
  88 million yuan

According to the information you provided, the company has sent samples for verification to the following customers:

• Millimeter wave radar manufacturers
• Leading PCB enterprises

• Preliminary verification:
  1-3 months
• Small-batch trial production:
  3-6 months
• Batch introduction:
  6-12 months
• Comprehensive certification:
  12-24 months

It is reasonable to complete production line debugging and deliver the first batch of orders in 2026.

1. International giants:
   • Rogers (USA): Absolute leader in high-frequency copper clad laminates
   • Panasonic (Japan): Leading capacitor film manufacturer
   • Taiwan TECO: Important supplier of mid-to-high-end copper clad laminates

2. Domestic enterprises:
   • Shengyi Technology (600183.SS): Leader in copper clad laminates, market value 180.97 billion USD, 217% increase in 2025 [0]
   • Kingboard (002636.SZ): Important copper clad laminate enterprise, market value 12.52 billion USD [0]
   • Huzheng New Materials, Nanya New Materials, etc.

• Focus on high-end segmented markets (high frequency, high temperature, high energy storage)
• Technical indicators are better than existing domestic products
• Aim to break Rogers’ monopoly in the top market

Key nodes:

• September 2024:
  Company establishment
• 2024-2025:
  Sample verification and product optimization
• 2026:
  Production line debugging and first batch of order delivery
• 2027-2028:
  Large-scale mass production

• Production line construction: Hundreds of millions of yuan level
• R&D investment: Continuous high intensity
• Operating funds: At least support until the first batch of orders are delivered in 2026

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1. Mass production stability:
   Laboratory performance is difficult to stably reproduce on the production line
2. Yield control:
   New material production processes are complex, and yield affects cost competitiveness and profitability
3. Technical iteration:
   International giants continue to research and develop, and the technical gap may narrow

1. Customer certification failure:
   Downstream customers may refuse to adopt new materials
2. Price competition:
   International giants may block domestic substitution through price reduction
3. Demand fluctuation:
   Downstream industries (such as new energy vehicles) have cyclical demand fluctuations

1. Capital chain pressure:
   It takes 2 years from establishment to mass production to generate revenue
2. Valuation pressure:
   Startups need multiple rounds of financing to support development
3. Profit time point:
   It may take 3-5 years to achieve break-even

1. Team experience:
   Academic team entrepreneurship, may lack commercial operation experience
2. Supply chain management:
   Need to establish raw material procurement, production management, and quality control systems
3. Talent competition:
   High-end material talents are scarce, facing competition from large enterprises

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Qingrong Technology’s technical breakthrough

Supporting basis:

1. Scientific research strength of Tsinghua University material science team
2. Core technical indicators reach international advanced levels
3. Designed for clear downstream pain points and needs

It is to achieve commercial breakthroughs in the high-frequency copper clad laminate and capacitor film markets

Dimension	Success Probability	Key Factors
Technical feasibility	70%	Team strength, excellent indicators
Mass production capacity	50%	Leap from laboratory to factory
Customer introduction	60%	Domestic substitution window, sample verification in progress
Large-scale profitability	40%	Fierce competition, large capital demand

1. 2025-2026 customer verification results:
   Determine whether it can enter the mainstream supply chain
2. Mass production yield:
   Determine cost competitiveness and profitability
3. Financing capacity:
   Determine whether it can support until break-even
4. Patent layout:
   Determine whether it can establish a technical moat
5. Team building:
   Need to introduce commercial operation talents

If Qingrong Technology seeks financing or investment, it is recommended to pay attention to:

• High track ceiling (hundreds of billions of yuan market)
• Leading technical indicators
• Domestic substitution trend
• Excellent team background

• High uncertainty in the early stage
• Need long-term capital investment
• Face competition from international giants
• Commercial operation experience to be verified

• Early stage: Focus on team and technology
• After sample verification: Based on customer progress and mass production feasibility
• After mass production: Based on market share and profitability

1. Focus on segmented markets:
   First establish benchmark cases in segmented fields such as millimeter wave radar and high-end PCB
2. Quickly complete customer verification:
   2025 is a key year
3. Control cash flow:
   Finely plan capital use to ensure support until the first batch of revenue
4. Strengthen patent layout:
   Establish technical protection barriers
5. Introduce commercial talents:
   Supplement sales, operation, and supply chain management experience

1. Active verification:
   Seize the opportunity of domestic substitution to reduce supply chain risks
2. Technical cooperation:
   Deeply cooperate with Qingrong Technology to optimize products together
3. Long-term binding:
   Early cooperation can lock in priority supply rights and pricing advantages

1. Long-term perspective:
   The new material field needs 3-5 years of cultivation
2. Phased investment:
   Gradually invest according to milestone nodes
3. Risk diversification:
   New material projects should be part of portfolio allocation

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1. Accelerated domestic substitution process:
   The domestic substitution of high-end electronic materials such as high-frequency copper clad laminates and capacitor films is in a critical window period, with urgent market demand and strong policy support

2. High credibility of technical breakthroughs:
   Qingrong Technology’s core technical indicators have reached international advanced levels, and the Tsinghua University team background provides endorsement for technical credibility

3. Commercialization is feasible:
   It is more likely to achieve breakthroughs in segmented markets such as millimeter wave radar and high-end PCB, but large-scale profitability still takes 3-5 years

4. Risks and opportunities coexist:
   The project faces multiple challenges such as mass production, customer certification, and capital, but after success, it will share hundreds of billions of market incremental space

If Qingrong Technology can successfully complete customer verification and production line construction in 2025-2026, , but it needs continuous capital support, strong execution, and a certain amount of luck

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[0] Jinling AI Financial Database - Company profiles and market data of Shengyi Technology (600183.SS) and Kingboard (002636.SZ)