Analysis of the Balance Between Short-Term Performance and Long-Term Technology Investment of Juhe Materials

Based on collected company announcements, industry research reports and market data, I have prepared this in-depth analysis report on Juhe Materials’ strategy for balancing short-term performance and long-term technology investment.

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Juhe Materials (688503.SS), founded in 2015, is a high-tech enterprise focusing on the R&D, production and sales of new electronic pastes such as photovoltaic conductive silver paste. It was listed on the STAR Market in December 2022. With the vision of “becoming a world-leading material technology group”, the company’s main business covers the photovoltaic conductive paste field, and it is actively expanding into emerging sectors such as consumer electronics, automotive electronics and semiconductors[1][2].

As a national-level specialized and sophisticated “Little Giant” enterprise and a manufacturing single champion enterprise, Juhe Materials occupies a leading global position in the photovoltaic conductive silver paste field. According to the company’s Hong Kong Stock Exchange listing application materials, the company ranks first in the world in terms of photovoltaic conductive paste sales revenue, and its market share of N-type photovoltaic conductive paste reached 77.87% in 2024[1][3].

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In 2024, the company achieved operating revenue of

, representing a . This growth mainly benefited from the steady growth of global photovoltaic demand and the rapid iteration of N-type cell technology. Global new photovoltaic installed capacity reached 530GW in 2024, a 29% YoY increase, of which China’s new photovoltaic installed capacity was 277.57GW, a 28.3% YoY increase[2].

From a quarterly perspective, the company achieved revenue of approximately RMB 10.607 billion in the first three quarters of 2025, continuing its steady growth trend. The company’s revenue in 2023, 2024 and the first three quarters of 2025 was approximately RMB 10.230 billion, RMB 12.390 billion and RMB 10.607 billion respectively[3].

In 2024, the company achieved net profit attributable to shareholders of listed companies of

, a ; its net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was , a [2].

The profit decline was mainly affected by the following factors:

• Continuous rise in silver prices
  : As of March 26, 2025, the price of Shanghai Silver rose 11% to RMB 8,345/kg, and the price of photovoltaic silver paste rose 10% to RMB 8,199/kg, putting pressure on the company’s cost side[4]
• Gross profit margin under pressure
  : The company’s gross profit margin was 9.2%, 7.8% and 6.5% in 2023, 2024 and the first three quarters of 2025 respectively, showing a downward trend[3]
• Intensified industry competition
  : The photovoltaic industry has entered a period of technological iteration, and price competition has become increasingly fierce

In 2024, the company’s shipment volume of photovoltaic conductive silver paste was

, maintaining its leading position in the industry. Among them, the shipment volume of N-type photovoltaic conductive silver paste was , accounting for , a significant increase compared to the previous year, reflecting the company’s competitive advantage in next-generation cell technology[2].

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In 2024, the company’s R&D investment reached

, accounting for of its operating revenue, which is a relatively high level in the photovoltaic auxiliary materials industry. As of December 31, 2024, the company held , reflecting its continuous emphasis on technological innovation[1][2].

The company has built a full-scenario technology matrix covering

, and achieved multiple milestone breakthroughs in metallization technology[2]:

Technical Field	Core Breakthrough	Customer Value
TOPCon	High-performance silver paste for LECO (Laser Enhanced Contact) and UV-resistant attenuation silver paste technology	Cumulative annual efficiency gain of +0.2%
HJT	Silver-coated copper paste with silver content ≤30% in mass production	Significant reduction in silver paste costs
X-BC	Mass production of high-efficiency silver paste for steel plate printing in P and N regions	Meets the needs of high-efficiency cells
Copper Paste Technology	Pioneered low-temperature sintered copper paste in air atmosphere	Breakthrough cost reduction solution
Perovskite	Ultra-low temperature curing (≤130℃) back electrode paste	Removes barriers to mass production of tandem modules

In response to the industry pain point of continuously rising silver prices, the company has proactively laid out silver-saving/silver-free technologies:

:

• By adding self-developed antioxidants and sintering agents to copper powder, pure copper paste can be rapidly sintered at
  300℃ in an air atmosphere
• Eliminates the need for traditional nitrogen protection processes, fundamentally overcoming the technical bottleneck of copper’s easy oxidation in air
• Introduced “seed layer” technology, significantly reducing the recombination loss caused by direct contact between copper ions and the cell silicon substrate
• Has completed internal testing with multiple leading customers and achieved small-scale shipments[5][6]

:

• Paste with silver content as low as 20% or less has achieved mass production
• Achieved ton-scale mass production and launched commercial shipments in March 2025
• Has been maturely applied in HJT technology and began to penetrate into the TOPCon cell field[3][6]

The company has currently made breakthroughs in high-activity, print-friendly metal powder routes. With the commissioning of the new powder factory, relevant powder products will gradually achieve mass production, which will ensure the company’s supply chain security and technological iteration capabilities from the raw material end[2].

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The company provides financial support for high-intensity R&D investment (6.74%) by maintaining steady revenue growth (21.35%). This “support R&D with production” model ensures the sustainability of technological innovation while avoiding the negative impact of excessive R&D investment on the company’s short-term profitability.

In response to the industry-wide challenge of rising silver prices, the company has adopted a two-pronged strategy:

1. Upstream Expansion
   : Lay out powder self-sufficiency capabilities to reduce dependence on raw material procurement costs
2. Downstream Transmission
   : Reduce silver consumption per wafer through technological innovation, converting the pressure of rising silver prices into customer cost reduction value

According to the company’s data, through breakthroughs in “ultra-narrow linewidth printing technology” and “copper paste sintering technology”, silver consumption per wafer has been significantly reduced, enabling the company to create cost reduction value for customers even against the backdrop of rising silver prices[2].

The photovoltaic industry has obvious cyclical characteristics. To reduce dependence on a single sector, the company is accelerating its horizontal expansion into non-photovoltaic segments:

• Consumer Electronics
  : Successfully expanded conductive technology and bonding interface technology to the OLED LIPO encapsulation adhesive field
• Automotive Electronics
  : Developed conductive pastes and adhesives suitable for automotive-grade electronic components
• Semiconductors
  : Entered the core link of the semiconductor industry chain by acquiring the SKE blank photomask business[2][3]

The company is planning to issue H-shares and list on the Hong Kong Stock Exchange. This strategic initiative will:

• Broaden financing channels to support R&D investment and capacity expansion
• Enhance international brand awareness and comprehensive competitiveness
• Provide a capital platform to support overseas business layout[1]

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Indicator	2023	2024	YoY Change
Operating Revenue (RMB 100 million)	102.9	124.88	+21.35%
Net Profit Attributable to Shareholders (RMB 100 million)	4.42	4.18	-5.45%
R&D Investment (RMB 100 million)	7.06	8.42	+19.26%
R&D as a Percentage of Revenue	6.86%	6.74%	-0.12pct
Paste Shipment Volume (tons)	-	2,024	-
N-type Share	-	77.87%	-

It can be seen from the data that the company’s R&D investment maintains a high growth rate (19.26%), which is basically matching the revenue growth rate. Despite a slight decline in net profit, the company still maintains high-intensity R&D investment, reflecting the management’s strategic determination in technological innovation. This strategy of “trading short-term profits for long-term barriers” is of great strategic significance in the photovoltaic industry with accelerated technological iteration.

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According to data from industry research institutions, the global photovoltaic conductive paste market grew from RMB 14.7 billion in 2020 to

in 2024, and is expected to grow to by 2029, with a compound annual growth rate (CAGR) of expected from 2025 to 2029[3].

Silver paste still dominates (market size of RMB 49.6 billion in 2024, accounting for 98.4%), but new material systems such as silver-coated copper are developing rapidly. The market size of new pastes is expected to reach RMB 6 billion by 2029, accounting for 5.3%, with a CAGR of as high as

from 2025 to 2029[3].

In the photovoltaic silver paste field, Juhe Materials, Dike Co., Ltd. and Suzhou Jinyin have formed an oligopolistic competitive landscape. In the face of industry changes, each company’s response strategy has its own focus:

Enterprise	Core Strategy
Juhe Materials	Full-stack independent R&D + copper paste breakthrough + powder self-sufficiency
Dike Co., Ltd.	Silver price transmission mechanism + copper paste mass production
Suzhou Jinyin	Mass production of low-temperature silver-coated copper paste

Based on a comprehensive judgment of technical maturity and cost reduction effects:

• Short-term (2026)
  : Silver-coated copper paste has the highest cost performance and will achieve large-scale mass production
• Mid-term (2027)
  : The cost advantage of copper electroplating is expected to become prominent
• Long-term
  : The maturity of copper paste technology may bring about a subversion of the profit model (shifting from “silver price + processing fee” to “direct pricing”)

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• The long-term stability and efficiency loss (0.5%-1%) of copper paste technology still need to be verified
• Different cell technical routes have different requirements for pastes, and there is uncertainty in technical adaptation

• Cyclical fluctuations in the photovoltaic industry may affect demand
• Sharp fluctuations in silver prices may impact the company’s cost side
• Overcapacity in the industry may lead to intensified price competition

• The yield rate of copper paste is currently only 20%-30%, far lower than that of silver paste (over 99%)
• Customer verification cycle and import progress may fall short of expectations

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Juhe Materials has achieved an effective balance between short-term performance and long-term technology investment through the following core strategies:

1. Steady Growth Lays the Foundation
   : Supports high-intensity R&D investment of RMB 842 million with 21.35% revenue growth
2. Technological Innovation Builds Barriers
   : Builds a full-scenario technology matrix and makes breakthroughs in silver-saving/silver-free technologies
3. Diversified Layout Resists Cycles
   : Horizontally expands into consumer electronics, automotive electronics and semiconductor sectors to spread photovoltaic cyclical risks
4. Internationalization Expands Space
   : The H-share listing plan will provide capital and brand support for the company’s long-term development

Looking forward to the future, with the mature mass production of copper paste technology and the acceleration of the silver-saving process, the company is expected to shift from “cost-side pressure” to “profit model upgrading”, and achieve a strategic leap from a paste supplier to a material technology group. R&D investment and technological innovation will be the core driving forces for the company to navigate cycles and maintain its leading position.

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[1] Baidu Encyclopedia - Changzhou Juhe New Materials Co., Ltd. (https://baike.baidu.com/item/常州聚和新材料股份有限公司/20018198)

[2] 2024 Annual Report of Changzhou Juhe New Materials Co., Ltd. (http://static.cninfo.com.cn/finalpage/2025-04-28/1223347795.PDF)

[3] Zhitong Finance - Juhe Materials (688503.SH) Submits Listing Application to Hong Kong Stock Exchange (https://hk.investing.com/news/stock-market-news/article-1269987)

[4] Soochow Securities - In-Depth Industry Research on TOPCon Route (https://pdf.dfcfw.com/pdf/H3_AP202504051651732763_1.pdf)

[5] Time Weekly - Accelerated Silver Reduction, Juhe Materials Takes the Lead (https://time-weekly.com/post/323799)

[6] Tianfeng Securities - Company Research Report on Boqian New Materials (https://pdf.dfcfw.com/pdf/H3_AP202503031644013160_1.pdf)