Breaking Down Shenzhen Qingyi Photomask Limited Financial Health: Key Insights for Investors

From its founding in August 1997 as a specialist in high-precision photomasks to its STAR Market listing on November 20, 2019, Shenzhen Qingyi Photomask Limited has carved a measured path in displays and semiconductors, boasting 2024 operating revenue of ¥1.112 billion and net income of ¥172 million (up 28.80% year-on-year), while moving to raise approximately ¥1.2 billion in August 2024 to expand production capacity; with 313.08 million shares outstanding (insiders holding 52.36%), a float of 120.11 million shares, registered capital of ¥31.48 million, and a market capitalization near ¥9.08 billion as its stock hovered around ¥29.00 in December 2025, Qingyi-now a national high-tech enterprise and a support unit for Shenzhen and Guangdong R&D centers-leverages imported precision equipment and services across flat panel displays, semiconductors, touch panels and PCBs, employs 592 people (a 2.60% headcount increase), and positions a dual-wing strategy of FPD and chip masks against trailing and forward P/E ratios of 47.52 and 36.05 respectively to drive its competitive mission.

Shenzhen Qingyi Photomask Limited (688138.SS): Intro

Shenzhen Qingyi Photomask Limited (688138.SS) is a China-based developer and manufacturer of high-precision photomasks used in flat panel displays, semiconductors and other microfabrication industries. The company combines R&D, design, production and sales across a vertically integrated photomask business.

History

• Founded: August 1997 - specialized from inception in high-precision photomask R&D and manufacturing.
• Dec 2008 - designated among the first batch of Shenzhen 'National High-tech Enterprises,' a recognition of sustained technological innovation and IP development.
• Nov 20, 2019 - listed on the Shanghai Stock Exchange STAR Market (ticker: 688138), expanding capital access for capacity and technology investment.
• Aug 2024 - announced a private placement aiming to raise ≈1.2 billion yuan to build advanced high-precision photomask production facilities.
• Nov 2025 - workforce expanded to 592 employees, a 2.60% year-over-year increase, reflecting scaling operations.
• Dec 12, 2025 - stock price: 29.00 yuan; market capitalization: 9.08 billion yuan.

Ownership & Corporate Structure

• Publicly traded on SSE STAR Market (688138.SS) - free float and institutional investors alongside strategic shareholders typical of Chinese tech manufacturing firms.
• Capital raising via equity (e.g., Aug 2024 private placement ~1.2 billion yuan) to fund capacity expansion and technology upgrades.

Mission

• Deliver precision photomask solutions that enable advanced display and semiconductor manufacturing processes.
• Invest in R&D and production capability to meet higher resolution and tighter process tolerances demanded by next-generation fabs.

For the company's formal guiding principles, see: Mission Statement, Vision, & Core Values (2026) of Shenzhen Qingyi Photomask Limited.

How It Works - Technology & Production

• Core product: high-precision photomasks (binary, phase-shift, and advanced mask types) for LCD/OLED displays and IC lithography steps.
• R&D-driven process: mask design, pattern generation (EBL/laser writers), defect inspection, pellicle and packaging integration.
• Production steps: substrate prep → resist coating → pattern writing → etch/repair → inspection → delivery to panel/wafer fabs.
• Quality metrics: critical dimension control, defect per unit area (DPA), overlay accuracy - all essential to premium pricing and customer qualification.

How It Makes Money - Business & Revenue Drivers

• Product sales: primary revenue from photomask orders to display manufacturers and semiconductor fabs, often multi-year supply agreements for qualified mask types.
• Value-added services: mask engineering, faster turnaround, repair, and qualification services that command premium margins.
• Capacity expansion: capital raises (e.g., Aug 2024 private placement ~1.2 bn yuan) increase production throughput and enable larger contract wins.
• Market drivers: increasing display resolutions, OLED adoption, advanced node semiconductor demand, and localization of supply chains in China.

Selected Milestones & Key Metrics

Shenzhen Qingyi Photomask Limited (688138.SS): History

• Registered capital: 31.48 million yuan (reported May 2025).
• Shares outstanding: 313.08 million (as of October 21, 2025), up 7.28% year-over-year.
• Float: 120.11 million shares available for public trading.
• Insider ownership: 52.36%-indicating strong internal control.
• Institutional ownership: 2.31%-modest external institutional interest.
• Board update: Mr. Tang William Harry Jiasheng appointed Independent Non-Executive Director (August 2025).

• Core product: photomasks (reticles) used in semiconductor lithography; revenue from mask sales and mask sets for logic, memory, and specialty ICs.
• Value-added services: mask design verification, repair, metrology, and packaging-level mask solutions commanding higher margins.
• Customer mix: revenues from foundries, IDM customers, advanced packaging vendors and niche optoelectronics clients.
• Pricing drivers: technology node complexity, mask layers per wafer, turnaround time (rush orders premium), and materials/cleanroom cost pass-throughs.
• Scale & capacity: incremental capacity expansions funded through capital management reflected in the 7.28% share increase over prior year.

• Gross margin improvement by shifting to higher-complexity masks and services.
• Working capital efficiency driven by customer prepayments and staged production.
• Capital investment focused on EUV/DUV-capable processes and metrology to capture node migration demand.

Shenzhen Qingyi Photomask Limited (688138.SS): Ownership Structure

• Mission and values: committed to becoming the most competitive high-precision mask-making enterprise in China, driving the domestic high-end mask-making industry upward through technological leadership and quality.
• Technology focus: core activities center on photomask R&D, precision manufacturing and commercial supply to semiconductor and flat-panel display (FPD) customers.
• Strategic recognition: certified as a national high-tech enterprise and designated as a support unit for Shenzhen and Guangdong Photomask Technology R&D Centers.
• August 2024 strategic update: announced a dual-wing global strategy prioritizing flat panel display masks and semiconductor chip masks for mutual promotion and cross-market scale advantages.

• Management and strategic investors align capital and long-term R&D plans to accelerate precision mask capability upgrades.
• Institutional and public backing provides liquidity and funding access for capacity expansion and equipment investment in advanced photomask lines.
• Partnerships with regional R&D centers and industry peers leverage ownership ties to translate lab innovation into commercial mask products for FPD and semiconductor customers.

Shenzhen Qingyi Photomask Limited (688138.SS): Mission and Values

• Product scope: Qingyi produces tailor-made photomasks that carry customers' proprietary design patterns for photolithographic pattern transfer across multiple manufacturing nodes.
• Key equipment: The company operates high-precision laser writers, chemical processing lines, and automatic optical inspection (AOI) systems-largely imported from Sweden, Germany, Japan, and Korea-to achieve sub-micron pattern fidelity and repeatability.
• Process flow: customer design submission → mask data preparation (OPC, RET, e-beam/laser layout) → writing/exposure → chemical development and etch → metrology and AOI → pellicle mounting / cleaning → delivery.
• Vertical capabilities: in-house mask data preparation (MDP), quality metrology (CD-SEM, interferometry), pellicle mounting and repair, and specialized cleaning/recycling services for reused masks.

• Primary products: chrome-on-glass (COG) masks, phase shift masks, reticles for FPD and semiconductor lithography, and large-area masks for touch panel displays.
• Value-added services: product handling, cleaning, pellicle remount, mask recycling and archive management, controlled shipping and banked mask libraries for major customers.
• End markets: flat panel displays (TFT-LCD / OLED), semiconductor wafer fabs (logic, memory, specialty fabs), touch-panel manufacturers, and PCB photolithography houses.

• Direct sales of photomasks (single-layer and multi-layer reticles) to OEMs and fabs - pricing driven by mask complexity (AIMS/Resolution class), size and turnaround time.
• Recurring service revenue from cleaning, remounting pellicles, mask maintenance contracts, and mask banks (subscription-style contracts for reserved masks and rapid replacement).
• Premium engineering services: mask data optimization, shrink/RET consulting, and small-run prototyping for new process nodes and display generations.
• Export sales and licensing to international customers, leveraging equipment and process compatibility with global fabs.

• Early entrant advantage: established process know-how and long-term customer relationships with display and semiconductor manufacturers in China and APAC.
• Equipment-driven quality: reliance on best-in-class imported laser writers and AOI systems enables production of advanced mask types required by higher-resolution displays and leading-edge fabs.
• Service ecosystem: comprehensive mask lifecycle services (cleaning, remount, recycling) increase customer stickiness and recurring revenue.
• Strategic goal: to be the most competitive high-precision mask enterprise in China and to drive domestic capability for high-end mask production, reducing reliance on foreign suppliers for critical lithography inputs.

Shenzhen Qingyi Photomask Limited (688138.SS): How It Works

• Founded to serve photomask needs across display and semiconductor supply chains, Shenzhen Qingyi Photomask Limited is publicly listed on the Shanghai Stock Exchange (ticker 688138.SS).
• Ownership is diversified among institutional investors, strategic partners in electronics manufacturing, and retail shareholders, with governance consistent with China A-share listed companies.
• Recognized as a national high-tech enterprise, reflecting sustained investment in process and optical technologies.

• Primary revenue from sale of photomasks used in flat panel displays, semiconductors, touch panels, and printed circuit boards.
• Revenue streams include product sales (standard and custom masks), value-added services (pellicle remount, cleaning, recycling), and service contracts for mask handling and logistics.
• Segment focus: flat panel display masks and semiconductor chip masks-a dual-wing global strategy announced in August 2024 to drive mutual growth between the two lines.

• Photomask manufacturing and supply (single- and multi-layer masks, advanced reticles).
• Pellicle remount and replacement services to extend mask life and reduce particle contamination risk.
• Product handling, cleaning, inspection and recycling programs to minimize client downtime and cost.
• Technical support and customized process integration for large display fabs and IC customers.

• Manufacture-to-order and stock inventory for standardized masks to balance lead times and capital utilization.
• Long-term supply agreements with display panel makers and growing chip foundry/customer engagements under the dual-wing strategy.
• Service fees and recurring revenue from cleaning, remounting, and recycling services that increase lifetime value per customer.
• R&D-driven product differentiation (higher precision masks, contamination control) to capture premium pricing and protect margins.

• Execute dual-wing global strategy: deepen traction in flat panel display masks while scaling semiconductor mask capabilities to serve more advanced nodes.
• Expand value-added service footprint (pellicle, cleaning, recycling) to create stickier client relationships and recurring revenue.
• Leverage national high-tech status to access talent, subsidies, and partner programs supporting equipment and process upgrades.

Shenzhen Qingyi Photomask Limited (688138.SS): How It Makes Money

• History & Ownership: Established as a specialist photomask firm, Qingyi is recognized as a national high-tech enterprise and functions as a support unit for both Shenzhen and Guangdong Photomask Technology R&D Centers. Major shareholders include institutional investors and strategic industry partners (see financial snapshot for market-cap/stock metrics).
• Mission: To deliver high-precision photomasks and enable domestic semiconductor lithography capabilities while expanding advanced manufacturing capacity and R&D collaboration. Related corporate guidance: Mission Statement, Vision, & Core Values (2026) of Shenzhen Qingyi Photomask Limited.

• Photomask Manufacturing - primary revenue from sales of standard and advanced (high-precision) photomasks to foundries, IDM and OSAT customers.
• Design & Process Services - mask data preparation, OPC correction, e-beam write services and mask validation that command service margins.
• Custom/High-value Products - specialty reticles for advanced nodes and specialty applications (COG, CIS, power devices) with higher ASPs.
• R&D & Collaboration Contracts - funded development projects and tech-service contracts through provincial/national R&D centers.
• Capacity Expansion Monetization - proceeds from the ~1.2 billion yuan private placement (Aug 2024) used to build high-precision production lines to increase output and capture higher-margin mask segments.

• Strong market capitalization (9.03 billion yuan as of Oct 21, 2025) and a share price of 28.80 yuan reflect investor confidence in growth prospects.
• High valuation multiples (trailing P/E 47.52; forward P/E 36.05) imply anticipated earnings growth tied to capacity upgrades and increased demand for domestic photomasks.
• Workforce growth to 592 employees (Nov 2025) supports scaling of production and R&D activities required for higher-complexity masks.
• Recognition as a national high-tech enterprise and role in regional R&D centers positions Qingyi to benefit from government support, local supply-chain integration, and increased domestic semiconductor investment.