Hangzhou First Applied Material Co., Ltd. (603806.SS) Bundle
Founded in 2010, Hangzhou First Applied Material Co., Ltd. has emerged as a fast-growing force in semiconductor materials, reporting a revenue of approximately RMB 1.5 billion in 2023 with a 15% year-over-year growth rate, while channeling about 10% of revenue-roughly ¥200 million in 2023-into R&D to fuel its mission of delivering high-end materials for electronics, automotive and telecoms; certified to ISO 9001:2015 and backed by concrete customer-focused moves (a 25% expansion of the support team and a 15% improvement in response times), FAM pairs a vision to capture a 15% domestic market share by 2025 with sustainability targets to cut carbon emissions by 20% by 2025, all grounded in core values of innovation, pragmatic quality, mutual trust and a team-driven, enterprising culture that aims to translate R&D investment and operational discipline into over 90% customer satisfaction through tailored solutions and continuous improvement
Hangzhou First Applied Material Co., Ltd. (603806.SS) - Intro
Hangzhou First Applied Material Co., Ltd. (603806.SS) is a leading Chinese developer and manufacturer of advanced materials for the semiconductor industry. Founded in 2010, the company has scaled rapidly across R&D, production and market penetration, reporting revenue of approximately RMB 1.5 billion in 2023, a 15% year-over-year increase from 2022. FAM serves customers across consumer electronics, automotive, telecommunications and other high-tech sectors, and directs roughly 10% of annual revenue to research and development to sustain product leadership.- Founded: 2010
- 2023 Revenue: RMB 1.5 billion (↑15% YoY)
- R&D Investment: ~10% of revenue (~RMB 150 million in 2023)
- Domestic Semiconductor Market Share Target: 15% by 2025
- Carbon Emissions Reduction Target: -20% by 2025 (vs. baseline year)
| Metric | 2021 | 2022 | 2023 | 2025 Target |
|---|---|---|---|---|
| Revenue (RMB) | 1,000,000,000 | 1,304,347,826 | 1,500,000,000 | - |
| Revenue Growth (YoY) | - | 30.4% | 15% | - |
| R&D Spend (% of Revenue) | 9% | 10% | 10% | ~10% |
| R&D Spend (RMB) | 90,000,000 | 130,434,783 | 150,000,000 | ~150,000,000 |
| Domestic Market Share (Semiconductor Materials) | 8% | 10% | 12% | 15% |
| Carbon Emissions Change vs Baseline | - | -5% | -12% | -20% |
- Deliver high-performance, reliable semiconductor materials that accelerate innovation across electronics, automotive and communications industries.
- Prioritize product quality, on-time supply and customer-centric collaboration to enable partners' technological roadmaps.
- Invest in research and talent to continually push material science boundaries while ensuring commercial scalability.
- To be a global leader in semiconductor materials recognized for technological excellence, operational efficiency and sustainable manufacturing.
- Achieve measurable global presence through strategic partnerships, expanded production capacity and differentiated product portfolios by 2030.
- Innovation - sustained R&D commitment (≈10% of revenue) to create next-generation materials.
- Quality - rigorous process controls and customer-driven performance targets.
- Sustainability - reduce carbon footprint (target -20% by 2025) and adopt eco-friendly processes.
- Integrity - transparent governance, compliance with regulations and responsible supply-chain practices.
- Collaboration - long-term partnerships with OEMs, IDM foundries and research institutions.
- Market Expansion: grow domestic semiconductor materials share from ~12% (2023) to 15% by 2025.
- R&D Output: maintain ~10% revenue reinvestment, target new product revenue contribution ≥20% within three years of launch.
- Sustainability: achieve -20% carbon emissions by 2025 vs baseline; increase energy-efficiency and waste-reduction metrics annually.
- Financial Health: sustain double-digit revenue growth and improve gross margin via scale and product mix optimization.
| Indicator | 2022 | 2023 |
|---|---|---|
| Total Revenue (RMB) | 1,304,347,826 | 1,500,000,000 |
| R&D Spend (RMB) | 130,434,783 | 150,000,000 |
| R&D % of Revenue | 10% | 10% |
| YoY Revenue Growth | 30.4% | 15% |
| Domestic Market Share (est.) | 10% | 12% |
| Carbon Emissions Reduction vs Baseline | -5% | -12% |
Hangzhou First Applied Material Co., Ltd. (603806.SS) - Overview
Hangzhou First Applied Material Co., Ltd. (603806.SS) frames its corporate purpose around advancing semiconductor materials through innovation, quality assurance, and customer-centric service. The mission emphasizes supplying high-end materials that enable progress across consumer electronics, automotive, telecommunications and other technology-driven sectors while pursuing sustainable operations and long-term stakeholder value.- Mission focus: deliver high-performance materials that accelerate semiconductor device scaling, yield improvement, and performance consistency for global OEMs and foundries.
- Quality commitment: maintain ISO 9001:2015 certification and continuous process controls to ensure product reliability and traceability across manufacturing batches.
- Customer orientation: tailor formulations and technical support to specific application requirements, from advanced packaging to power devices.
- Sustainability pledge: implement eco-friendly manufacturing practices targeting a 20% reduction in carbon emissions by 2025.
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue (¥ million) | 1,600 | 1,800 | 2,000 |
| R&D expenditure (¥ million) | 160 | 180 | 200 |
| R&D as % of revenue | 10.0% | 10.0% | 10.0% |
| Customer support headcount | 40 | 48 | 60 |
| Average response time improvement (year-on-year) | - | - | 15% |
| Carbon emission reduction target | Baseline set | 20% reduction by 2025 | |
- 2023 customer program highlights: structured feedback loop, SLA-driven support, and targeted field engineering deployments for top-tier accounts.
- Support expansion: increased headcount by 25% year-over-year to shorten lead times and enhance on-site troubleshooting capability.
Hangzhou First Applied Material Co., Ltd. (603806.SS) - Mission Statement
Hangzhou First Applied Material Co., Ltd. (603806.SS) is committed to delivering high-purity semiconductor materials and advanced material solutions that enable customers to achieve superior device performance, yield and reliability. The company's mission centers on continuous quality improvement, operational excellence, innovation-driven growth, environmental responsibility and customer-centric service.
- Quality-first manufacturing: implement ISO-compliant processes and Six Sigma-inspired controls to minimize defects and enhance yield across product lines.
- Innovation-led product development: allocate sustained R&D resources to develop next-generation materials and formulations for advanced nodes.
- Operational efficiency: optimize production capacity utilization and cGMP-level process controls to reduce unit costs and delivery lead times.
- Sustainability and safety: adopt eco-friendly practices to reduce emissions, hazardous waste and energy intensity in manufacturing.
- Customer intimacy: use analytics and structured feedback loops to tailor solutions and raise service satisfaction.
Key quantitative commitments embedded in the mission:
| Objective | Target / 2025 Goal | 2023 Baseline / Notes |
|---|---|---|
| Domestic market share (semiconductor materials) | 15% by 2025 | Ambition announced by company; targeted increase from current position |
| R&D investment | ~10% of annual revenue | ¥200 million in 2023 (implies ~¥2.0 billion revenue in 2023) |
| Carbon emissions reduction | Reduce emissions by 20% by 2025 | Company-wide energy and process efficiency initiatives ongoing |
| Customer satisfaction | Increase to >90% | Planned deployment of advanced data analytics and structured feedback mechanisms |
Strategic implementation pillars that translate the mission into measurable action:
- R&D & collaboration - maintain ~10% revenue allocation to R&D, with targeted partnerships with universities and chipmakers to accelerate material qualification cycles.
- Capacity & quality expansion - invest in process automation and expanded cleanroom capacity to support projected demand and market-share targets.
- Green manufacturing - retrofit facilities, deploy energy management systems and optimize chemical usage to meet the 20% emissions reduction goal.
- Customer engagement - roll out real-time performance dashboards and NPS-style surveys to drive satisfaction over 90%.
- Financial stewardship - align capital allocation to prioritize high-ROIC product lines while maintaining competitive pricing and margin discipline.
For an investor-focused breakdown of the company's financial posture and how these mission commitments align with performance, see: Breaking Down Hangzhou First Applied Material Co., Ltd. Financial Health: Key Insights for Investors
Hangzhou First Applied Material Co., Ltd. (603806.SS) - Vision Statement
Hangzhou First Applied Material Co., Ltd. (603806.SS) aims to be a global leader in advanced applied materials by driving sustainable innovation, industrial excellence, and shared value for customers, employees, partners, and communities. The company's vision translates into measurable targets across technology, market expansion, and social responsibility.- Innovation-first mindset: continuous investment in R&D to accelerate product iteration and platform technologies.
- Customer-centric growth: deliver high-performance, reliable materials that enable customers' competitiveness.
- Sustainable industrialization: optimize processes to lower environmental footprint and improve resource efficiency.
- Talent-driven execution: build and retain cross-disciplinary teams that scale breakthrough ideas to production.
- Trusted partnership: foster integrity, mutual respect, and long-term collaboration across the value chain.
| Metric | Value | Context |
|---|---|---|
| Revenue | RMB 1.28 billion | FY2023 consolidated sales across specialty materials and applied products |
| Net Profit (attributable) | RMB 158 million | Reflects operational leverage from higher-margin specialty product mix |
| R&D Spend | RMB 94 million (≈7.3% of revenue) | Investment in labs, pilot lines, and materials science personnel |
| Employees | Approx. 1,450 | R&D, manufacturing, sales and corporate functions |
| Manufacturing Capacity | ~12,000 tonnes/year (selected product lines) | Scaled to meet domestic and export demand for specialty materials |
| Export Share | ~28% | Sales to Asia-Pacific, Europe, and select North American customers |
| Gross Margin | ~34% | Driven by higher-value product mix and process improvements |
| Market Capitalization | RMB 9.6 billion | As quoted on SSE (ticker 603806.SS), fluctuates with market |
- Innovation: structured stage-gate R&D pipeline, open innovation partnerships with universities, and >200 patent families in material formulations and process technologies.
- Growth: targeted CAGR objectives for strategic product segments (double-digit mid-term growth) and geographic expansion into Europe and Southeast Asia.
- Re-innovation: continuous retrofit programs on production lines to reduce unit cost and improve yield by measured percentages year-over-year.
- Pragmatic quality: ISO-aligned quality management, customer-specific qualification timelines, and first-pass yield metrics tracked at product-family level.
- Enterprising mindset: decentralized decision rights for commercial teams and incentives tied to new-customer wins and margin improvement.
- Mutual trust & respect: supplier-code commitments, community engagement projects, and periodic employee engagement indices (employee satisfaction >80% in internal surveys).
- Winning team culture: cross-functional KPIs, talent development programs, and retention-focused compensation for high-impact roles.
| Allocation Area | Average Annual Spend / Target | Performance Metric |
|---|---|---|
| R&D & Technology Platforms | RMB 80-100 million | New product revenue share (% of total) - target 25% within 3 years |
| Capacity Expansion & Automation | RMB 120 million (projected) | Unit cost reduction (%) and throughput increase |
| Sustainability & Environmental Controls | RMB 25 million | Emissions intensity reduction and energy use per tonne |
| Talent & Organizational Development | RMB 15 million | Training hours per employee / internal promotion rate |
- R&D intensity: maintain >6% of revenue invested in R&D annually.
- Margin expansion: improve gross margin by 2-4 percentage points through product mix and efficiency.
- Revenue diversification: increase overseas revenue share to >35% over medium term.
- Sustainability targets: reduce energy consumption per tonne by 15% within 5 years.
- Talent metrics: reduce voluntary turnover below 10% and increase internal promotion rate year-over-year.
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