Analysis of Juhe Materials (688503)'s Expansion in Communication and Automotive Electronics Fields

Based on collected information, I provide a systematic analysis of Juhe Materials’ expansion effects in the communication and automotive electronics fields.

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Juhe Materials is a global leader in the photovoltaic conductive paste market. For the nine months ended September 30, 2025, its photovoltaic conductive paste sales revenue ranked first among all manufacturers worldwide [1][2]. Leveraging the core technical capabilities accumulated in the photovoltaic conductive paste sector, the company is strategically expanding into adjacent growth markets, and has successfully commercialized pastes and adhesives for applications in communication, consumer electronics, and automotive electronics [1][2][3].

The company’s products are mainly divided into two categories: (i) Photovoltaic conductive pastes and (ii) Other electronic materials. In non-photovoltaic sectors, the company conducts specialized layout through its subsidiaries:

• Jiangju
  : Responsible for non-photovoltaic conductive paste business, focusing on electronic paste product portfolio
• Delangju
  : Responsible for adhesive series products, covering photovoltaic and non-photovoltaic application scenarios

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In the communication sector, relying on technical accumulation, the company has expanded horizontally into core areas such as 5G communication devices and basic electronic components [4][5]:

Business Direction	Specific Products/Applications	Development Status
5G RF Devices	5G Filter Silver Paste	Passed customer reliability testing and achieved sales
Electronic Components	Specialized pastes for chip resistors, capacitors, inductors	Entered supply chains of multiple leading customers
High-Frequency Components	Multifunctional Composite Paste	Continuous R&D and upgrading in progress

Leveraging platform technologies for electronic pastes, Jiangju has developed specialized pastes suitable for miniaturized and high-frequency components through core technologies such as nanomaterial synthesis, multiphase interface regulation, and surface superdispersion, significantly improving the conductivity efficiency and reliability of devices [4].

The company has broken the monopoly of overseas enterprises in the high-end electronic paste sector, seizing market share with advantages such as product performance and service response speed, and has entered the supply chain systems of leading customers in multiple product areas [5]. However, according to historical data disclosed in the prospectus, the proportion of “other revenue” (mainly conductive silver paste for 5G filters, varistor conductive silver paste, etc.) was only 0.08%-0.31% in 2020-2021, and the scale is still small [6].

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In the automotive electronics sector, the company adopts a vertical integration strategy, entering the three-electric system of new energy vehicles, covering scenarios such as battery electrodes, sensors, and on-board circuits [4][5]:

Subsidiary	Product System	Application Scenarios
Jiangju	Automotive-Grade Conductive Pastes	Meeting high temperature resistance, vibration resistance, and long service life requirements of new energy vehicles
Delangju	Complete Adhesive Solutions	Thermal conductive structural adhesives, conductive adhesives, IGBT potting adhesives, magnetic steel bonding adhesives, etc.

• Jiangju
  : Its paste products have obtained automotive-grade certification, meeting the stringent requirements of new energy vehicles for high temperature resistance, vibration resistance, and long service life. It is also extending to multifunctional composite pastes and developing cutting-edge materials for third-generation semiconductor packaging [4]
• Delangju
  : Based on different systems such as epoxy, silicone, and acrylate, it has developed high-performance conductive adhesive products, maintaining industry leadership, and has launched complete adhesive solutions within the automotive electronics category [5]

The company’s automotive electronics products have formed a complete product matrix covering the three-electric system of new energy vehicles, and have a strong synergistic effect with the “Double Carbon” goal. However, according to the 2025 semi-annual report data, Shanghai Delangju, the subsidiary responsible for non-photovoltaic adhesive business, recorded a net profit of -14.4308 million yuan in the first half of 2025, remaining in a loss state [5][7].

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According to data disclosed in the prospectus, the revenue structure of Juhe Materials is as follows [1][2][8]:

Indicator	2023	2024	Jan-Sep 2025
Operating Revenue	10.23 Billion Yuan	12.39 Billion Yuan	10.607 Billion Yuan
Net Profit	441 Million Yuan	410 Million Yuan	234 Million Yuan
Gross Profit Margin	9.2%	7.8%	6.5%

: Photovoltaic conductive paste remains the core main business. The revenue share of “other electronic materials” (including communication and automotive electronics businesses) is relatively small, and the specific proportion has not been disclosed separately.

Subsidiary	Registered Capital	Net Assets (2025H1)	Net Profit (2025H1)
Shanghai Delangju	20 Million Yuan	29.34 Million Yuan	-14.43 Million Yuan
Delangju (Changzhou)	10 Million Yuan	10.09 Million Yuan	-8.13 Million Yuan

: Subsidiaries engaged in non-photovoltaic businesses are generally in a loss state, indicating that this business segment is still in the incubation stage [5][7].

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1. Significant Technology Synergy Effect
   : The company has successfully migrated core capabilities accumulated in the photovoltaic paste sector, such as inorganic and organic material synthesis, formula design, and manufacturing processes, to the communication and automotive electronics sectors
2. Improved Product Portfolio
   : Has formed a multi-dimensional product layout covering RF devices, chip components, conductive adhesives, thermal conductive materials, etc.
3. Customer Resource Introduction
   : Some products have entered the supply chain systems of leading customers, achieving a breakthrough from 0 to 1

1. Low Revenue Share
   : The scale of non-photovoltaic businesses is small, contributing limitedly to overall performance
2. Profitability to Be Verified
   : Major subsidiaries are still in loss, with a long investment payback period
3. Fierce Market Competition
   : Needs to compete with overseas material giants and domestic professional manufacturers, and the process of domestic substitution is ongoing

The company plans to further penetrate the semiconductor material sector by acquiring SKE’s blank mask business, in response to the national strategic goal of semiconductor self-sufficiency [1][2]. With the continuous growth of the 5G communication and new energy vehicle markets, as well as the improvement of the company’s comprehensive capabilities in “customized material development - joint device design - production line process matching and optimization”, non-photovoltaic businesses are expected to become the second growth curve.

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Juhe Materials has achieved initial results in expanding into the communication and automotive electronics sectors, successfully realizing cross-sector replication of technical capabilities and commercialization of products. However, considering the current low revenue share of non-photovoltaic businesses and the loss status of major subsidiaries, this business segment is still in the strategic investment and growth stage. It will contribute limitedly to the company’s overall performance in the short term, but in the long run, with the continuous development of the 5G communication, new energy vehicle, and semiconductor industries, this business segment has great growth potential.

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[1] Zhitong Finance - Juhe Materials Submits Listing Application to HKEX, Ranks First Globally in Photovoltaic Conductive Paste Sales Revenue (https://hk.investing.com/news/stock-market-news/article-1269987)

[2] Investing.com - Juhe Materials Submits Listing Application to HKEX, Ranks First Globally in Photovoltaic Conductive Paste Sales Revenue (https://cn.investing.com/news/stock-market-news/article-3166310)

[3] Securities Times - Juhe Materials Submits Listing Application to HKEX, Huatai International and Jefferies Serve as Joint Sponsors (https://www.stcn.com/article/detail/3593835.html)

[4] Sina Finance - Juhe Materials Submits Listing Application to HKEX, Ranks First Globally in Photovoltaic Conductive Paste Sales Revenue (https://finance.sina.com.cn/stock/hkstock/hkstocknews/2026-01-15/doc-inhhiurv4387084.shtml)

[5] CNINFO - 2025 Semi-Annual Report of Changzhou Juhe New Materials Co., Ltd. (http://static.cninfo.com.cn/finalpage/2025-08-27/1224582703.PDF)

[6] Shanghai Stock Exchange - Prospectus of Changzhou Juhe New Materials Co., Ltd. (http://static.sse.com.cn/stock/disclosure/announcement/c/202206/000959_20220627_AHND.pdf)

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

[8] Economic Information Daily - 2023 Annual Report of Changzhou Juhe New Materials Co., Ltd. (http://www.jjckb.cn/pdfdownload/sjskcb/576951145574233.pdf)