Revenue exceeds RMB 7 billion; carbomer leader returns to growth

Recently, Guangzhou Tinci Materials Technology Co., Ltd. (hereinafter referred to as “Tinci Materials”) released its 2025 semi-annual report. Key financial highlights: 1. Revenue and profit growth In the first half of 2025, Tinci Materials achieved operating revenue of RMB 7.029 billion, an increase of 28.97% year-on-year; net profit attributable to shareholders was RMB 268 million, up 12.79% year-on-year; and net profit attributable to shareholders excluding non-recurring gains and losses was RMB 235 million, up 26.01% year-on-year. This indicates a certain expansion in business scale and an overall upward trend in operating performance. 2. Pressured profitability Both the company’s net profit margin and gross margin have declined year-on-year for three consecutive years. In H1 2025, the net profit margin fell to 3.77%, and the gross margin dropped to 18.69%. On a quarterly basis, Q2 2025 gross margin stood at 18.18% and net profit margin at 3.32%, both down year-on-year and quarter-on-quarter—reflecting mounting pressure on cost control and product pricing, and signaling room for improvement in profitability. 3. Revenue growth without commensurate profit growth The net profit growth rate (12.79%) significantly lagged behind the revenue growth rate (28.97%), primarily due to: ① Intense industry competition: Rapid capacity expansion across the lithium battery materials sector has triggered fierce price wars, squeezing profit margins. ② Volatility in raw material prices: Although falling prices for raw materials such as lithium carbonate have reduced costs, price adjustments for finished products exhibit lag, eroding gross margins in the short term. ③ Substantial R&D investment: R&D expenses surged by 43.56% year-on-year to RMB 439 million in H1 2025. While this temporarily dampens profits, it lays critical groundwork for future technological positioning. Tinci Materials—full name Guangzhou Tinci Materials Technology Co., Ltd.—is engaged in the research, development, production, and sale of fine chemical new materials, operating within the fine chemicals industry. Its core products include lithium-ion battery materials, daily chemical materials, and specialty chemicals. 1. Lithium-ion battery materials business Primarily comprises lithium-ion battery electrolytes and cathode material lithium iron phosphate—both key raw materials for lithium-ion batteries; no further elaboration required. 2. Daily chemical materials and specialty chemicals business Includes surfactants, silicone oils, water-soluble polymers, cationic conditioning agents, organosilicon compounds, rubber auxiliaries, and other product lines. Daily chemical materials are widely used in personal care products—including shampoos, conditioners, body washes, hand soaps, disinfectants, and skincare products—as well as household and textile cleaning and care applications, such as bathroom/kitchen hard-surface cleaners, leather care waxes, and laundry detergents. Specialty chemicals serve industrial sectors; the company’s products and application technologies deliver innovative solutions for papermaking, construction, agrochemicals, oilfield services, organosilicon manufacturing, rubber & plastics, and textile dyeing & finishing. By business segment: 1. Lithium-ion battery materials business Revenue amounted to RMB 6.302 billion, accounting for 89.66% of total revenue, up 33.18% year-on-year.

Dongfang Tantalum Industry Research Report, 20260512

1. Electronics & Information Sector Sunlord Electronics: Domestic leader in chip-type inductors and tantalum capacitors. Accounts for ~4% of total revenue; annual procurement volume: ~20 tons. Hongda Electronics: Core military-grade tantalum capacitor manufacturer. Accounts for ~4.5% of total revenue; annual procurement volume: ~25 tons. 2. Semiconductor Sector SMIC (Semiconductor Manufacturing International Corporation): Key supplier of tantalum sputtering targets (used as diffusion barrier layers in chips). Yangtze Memory Technologies (YMTC): Part of the 3D NAND flash memory supply chain. Tantalum is classified as a “thin-film material consumable” in wafer fabrication, with an extremely low cost share—approximately 0.2%–0.5%. 3. Aerospace & Defense China Aerospace Science and Industry Corporation (CASIC); domestic aero-engine manufacturers (tantalum used as a high-temperature alloy additive). 4. Large-Scale Scientific Facilities ITER (International Thermonuclear Experimental Reactor): Niobium superconducting materials. Shanghai Synchrotron Radiation Facility and China Spallation Neutron Source: Niobium superconducting cavities. III. Customer Structure (2025 Annual Report) Top five customers: Sales of RMB 660 million, representing 42.76% of total revenue. Geographic distribution: Domestic sales account for 68.16%; overseas sales account for 31.84%. IV. Downstream Application Breakdown Electronics & Information (48%): Consumer electronics, automotive electronics, 5G infrastructure, AI servers. Aerospace & Defense (20%): Aero-engines, aerospace equipment. Semiconductors (15%): Tantalum sputtering targets for chips. Superconductivity & New Energy (15%): Nuclear fusion, medical MRI systems, corrosion-resistant chemical equipment. V. Dongfang Tantalum Industry’s core competitors fall clearly into two categories: global top-tier players and major domestic rivals—resulting in a market structure dominated by three global giants, supplemented by strong regional players. International Top-Tier Competitors (Global Tier-1) 5.1 Cabot Corporation (CBT, NYSE) Position: Undisputed global leader in tantalum powder, especially dominant in high-end markets. Advantages: World-leading technology in high-capacitance, ultra-high-purity tantalum powder for military, aerospace, and automotive-grade applications. Deep strategic partnerships with top-tier capacitor manufacturers such as Vishay and KEMET—yielding exceptionally high customer stickiness. Market share: ~30%–35% of global capacitor-grade tantalum powder market—the strongest rival to Dongfang Tantalum Industry. Cabot Corporation (NYSE: CBT) is a global leader in specialty chemicals and high-performance materials. Core products include carbon black, conductive additives, fumed silica, and aerogels. Its primary B2B manufacturing customers span four major end-use sectors: tires & rubber, electric vehicle batteries, industrial plastics, and inks & coatings. 5.2 Key Customer Segments (by Industry) 1. Tire & Rubber Manufacturing (largest customer group, ~45%–50% of revenue) Cabot is the world’s premier supplier of reinforcing carbon black for tires. Its customer base includes all leading global tire manufacturers: Michelin Bridgestone — long-standing core customer; in February 2026, Cabot acquired Bridgestone’s carbon black plant in Mexico to deepen collaboration. Goodyear Continental Sumitomo Rubber

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