Breaking Down Novoray Corporation Financial Health: Key Insights for Investors

Discover how Novoray Corporation-founded in 2002 and listed on the Shanghai Stock Exchange as 688300 in 2019-has grown into a leading Chinese producer of advanced inorganic non‑metallic powders, reporting 960 million yuan in revenue for 2024 (up 34.94% year‑on‑year) and a net profit of 251 million yuan (up 44.47%); with a March 2025 cash dividend of 0.5 yuan per share totaling 92.87 million yuan (36.95% of parent net profit), a market capitalization near 13.71 billion yuan (up 42.03% over the year), and 241.47 million shares outstanding-insiders holding 23.57% and institutions 15.80%-the company combines a vertically integrated R&D‑to‑production model (R&D spending = 6.25% of 2024 revenue) with expanding high‑end products (spherical silica revenue of 549 million yuan, +48.79% in 2024), strategic investments (25 million yuan into Dongguan Jundu Shengyi in 2023), and capacity plans including a 25,200‑ton electronic‑grade project and a 3,000‑ton ultra‑fine line-positioning Novoray to capture demand driven by a 627.6 billion USD global semiconductor market in 2024 and pursue projected revenues of 1.192 billion yuan in 2025, 1.444 billion yuan in 2026 and 1.724 billion yuan in 2027.

Novoray Corporation (688300.SS): Intro

• Founded in 2002 to research, develop and produce advanced inorganic non‑metallic powder materials for electronics, ceramics, coatings and related sectors.
• IPO on the Shanghai Stock Exchange in 2019 under ticker 688300, enabling capital for capacity expansion and R&D.
• Product portfolio expanded into high‑end specialty silicas (e.g., Lowα spherical silica, LowDf ultra‑fine spherical silica) certified by overseas customers for advanced packaging applications.
• By 2025 the company's market capitalization reached ~13.71 billion yuan, up 42.03% year‑over‑year, reflecting rising investor confidence.

• Publicly listed entity on SSE (688300.SS) with institutional and retail shareholders; management and founder holdings combined provide strategic continuity.
• Major shareholders typically include manufacturing investment funds, semiconductor supply chain partners and executives - supporting long‑term R&D and capacity investments.

• Mission: deliver high‑purity, high‑performance inorganic powders that enable next‑generation electronics and advanced materials applications.
• Strategic focus: vertical integration of powder synthesis, surface modification and quality controls to meet stringent semiconductor and packaging requirements.
• See formal corporate direction here: Mission Statement, Vision, & Core Values (2026) of Novoray Corporation.

• R&D centers develop synthesis routes for spherical silica and ultra‑fine powders with controlled particle size distribution, low alpha particle emission (Lowα) and low dielectric factor (LowDf).
• Manufacturing comprises pilot lines → scaled reactors → surface treatment facilities → clean packaging for semiconductor‑grade customers.
• Quality systems target metrics: particle size mean and variance, impurity parts per million (ppm), alpha emission counts and Dk/Df for dielectric performance.

• Direct sales of specialty inorganic powders to electronics (packaging, substrates), ceramic formulators, coatings and polishing industries.
• Higher‑margin advanced products (Lowα, LowDf spherical silica) sold under supply agreements and certification milestones to overseas packaging vendors.
• OEM and long‑term contracts with tier‑1 semiconductor materials suppliers, plus licensing or co‑development fees for bespoke formulations.

• Competitive advantage from proprietary synthesis, impurity control and certifications for packaging/semiconductor customers.
• Revenue growth driven by migration to higher‑performance materials, overseas certification wins and expanded production capacity.
• Dividend policy and rising market cap signal capital returns while retaining cash for R&D and capacity expansion.

Novoray Corporation (688300.SS) History

• Shares outstanding (Dec 2025): 241.47 million (↑ 1.79% year-over-year)
• Insider ownership: 23.57%
• Institutional ownership: 15.80%
• Public float: 128.38 million shares
• Major strategic investment: 25 million yuan into Dongguan Jundu Shengyi (Mar 2023)

• Product sales: proprietary imaging systems and lithography equipment to medical and industrial customers
• Service & maintenance: recurring revenue from service contracts and consumables
• Licensing & partnerships: tech licensing and joint development agreements
• Strategic investments: minority stakes (e.g., 25M yuan in 2023) to access complementary technologies and markets

Novoray Corporation (688300.SS): Ownership Structure

Novoray Corporation (688300.SS) is a leading developer and producer of advanced inorganic non-metallic powder materials, with a corporate mission focused on innovation, sustainability, and customer-centric quality.

• Mission: Research, development, and production of advanced inorganic non-metallic powder materials to deliver high-quality products to customers across electronics, ceramics, coatings, and related industries.
• R&D emphasis: R&D expenditures represented 6.25% of revenue in 2024, underscoring a strong commitment to technological innovation.
• Sustainability: Prioritizes environmentally friendly production processes and materials to reduce emissions and waste across manufacturing.
• Customer focus: Strives to meet evolving industry needs with tailored material solutions and technical support.
• Integrity & transparency: Operates with governance practices aimed at building trust and reliability with partners and clients.
• Culture: Encourages collaboration and excellence, enabling employees to contribute to continual improvement.

How Novoray makes money:

• Product sales: Revenue primarily from high-purity inorganic powders for electronics, ceramics, coatings, and specialty industrial markets.
• Value-added services: Technical customization, formulation support, and long-term supply contracts with OEMs.
• Export and licensing: Sales to overseas customers and licensing of proprietary material processes.

Ownership structure (approximate):

For additional context on corporate purpose and guiding principles, see: Mission Statement, Vision, & Core Values (2026) of Novoray Corporation.

Novoray Corporation (688300.SS): Mission and Values

• Vertically integrated operations: in-house R&D → pilot lines → mass production → sales & after-sales, reducing time-to-market and protecting IP.
• R&D investment: a dedicated research team focused on materials science, process engineering and application development; R&D headcount exceeds 100 specialists and annual R&D spending typically represents a high-single-digit percentage of revenue (company guidance and past filings indicate ~8-10%).
• Production facilities: multiple GMP-like production lines with automated mixing, milling, spray-drying and calcination equipment; annual production capacity measured in thousands of tonnes for core powder products to serve volume demand.
• Quality control: lab-equipped QC at raw material intake, in-process checkpoints and finished-goods testing (particle size distribution, surface area, phase purity, moisture content, contamination limits) with ISO-aligned procedures.
• Customer base and applications: diversified across electronics (solder pastes, conductive ceramics), advanced ceramics, coatings (functional pigments, fillers), and specialty chemical formulators; the company serves both domestic OEMs and international customers via export channels.
• Distribution network: direct sales teams for key accounts plus an established network of distributors and logistics partners to ensure timely delivery across domestic and overseas markets; export share has been growing year-over-year.

• Product sales: primary revenue from proprietary powder materials sold under commercial grades and custom formulations for OEMs and tier-1 suppliers.
• Custom development and toll-manufacturing: engineering services, application-specific R&D and contract production for customers who require bespoke specifications.
• Licensing and technology services: selective licensing of process technologies and joint development agreements with strategic partners.

• Advanced equipment: high-precision mills, spray-dryers, controlled-atmosphere furnaces and automated packaging lines to maintain batch consistency and throughput.
• Process control: statistical process control (SPC) and in-line monitoring to reduce variability and waste.
• Traceability: batch-level documentation from raw material lot to shipped product to support customer audits and regulatory compliance.

• Domestic channels: direct OEM contracts and regional distributors servicing China's electronics, ceramics and coatings clusters.
• International reach: exports to Asia-Pacific, Europe and North America for specialty applications; logistics partnerships support lead-time-sensitive deliveries.
• Market diversification strategy: expand into higher-margin specialty segments and downstream integrated solutions to improve overall profitability.

• End-to-end control over materials and processes - enabling rapid iteration and tight quality tolerance for demanding applications.
• Focused R&D pipeline targeting improved performance, cost reduction and greener processing routes.
• Scalable manufacturing footprint allowing incremental capacity additions aligned with demand.

Novoray Corporation (688300.SS): How It Works

Novoray Corporation (688300.SS) commercializes advanced inorganic non-metallic powder materials - notably crystalline silica, fused silica and spherical silica - serving electronics, ceramics, coatings and other industrial markets. The company combines proprietary production processes, targeted R&D and strategic partnerships to convert materials technology into diversified revenue streams.

• Core products: crystalline silica powder, fused silica powder, spherical silica powder, specialty functional powders.
• Key end markets: semiconductor and electronic packaging, precision ceramics, optical coatings, abrasive and polishing industries.
• Sales channels: direct OEM/systems integrator supply, distribution partners, long-term supply contracts and customized engineering services.

Primary mechanisms by which Novoray generates revenue and value:

• High-margin specialty powders - particularly spherical silica - sold into high-growth electronics and advanced ceramics segments.
• Customized formulations and technical services that command premium pricing and strengthen customer lock-in.
• Capacity expansion and vertical integration to reduce COGS and capture more downstream margin.
• Strategic equity investments and joint ventures that produce financial returns and cross-selling opportunities (e.g., a 25 million yuan investment in the Dongguan Jundu Shengyi Equity Investment Partnership).
• Continuous product upgrade strategy shifting sales mix toward higher-end, higher-value materials.

Operational highlights that support revenue generation:

• Advanced production lines for micron- and sub-micron spherical particles that meet semiconductor and optical specs, allowing premium pricing.
• R&D pipeline focused on high-purity, narrow-distribution particle size and surface treatments for enhanced performance in coatings and electronic packaging.
• Export and domestic sales balance to mitigate single-market exposure; partnerships and equity stakes provide non-operational income and strategic market access.

Strategic investment example: Novoray's 25 million yuan commitment to the Dongguan Jundu Shengyi Equity Investment Partnership both diversifies income and creates channels for industrial collaboration and downstream product integration.

Novoray Corporation (688300.SS): How It Makes Money

• Market position: recognized as a key domestic supplier of electronic‑grade micro‑powder with strategic emphasis on high‑end product lines for advanced electronics.
• Product mix: premium specialty powders (spherical silica variants) sold into semiconductor packaging, printed circuit board, and electronic adhesives/resins markets.
• Revenue drivers: price and volume of high‑end powders, long‑term supply contracts with chip and packaging manufacturers, and value‑added R&D/customization services.

• Capacity expansion: new projects totaling 28,200 tons of targeted production (25,200 + 3,000) slated to ramp in 2025 to capture rising volume demand.
• Product innovation: focus on Lowα and LowDf ultra‑fine spherical silica to meet performance requirements for lower alpha particle emission and dielectric properties in advanced packaging.
• Strategic outlook: growing semiconductor industry (USD 627.6B in 2024) and Novoray's emphasis on high‑end materials support projected revenue growth through 2027.