As artificial intelligence and high-performance computing reshape the global semiconductor industry, lithography equipment, a core component of chip manufacturing, is entering a critical period of technological iteration and market transformation.
Against this backdrop, CFMEE (09630) launched its initial public offering from June 17 to June 23, planning a global offering of approximately 12.84 million shares, with an expected listing date of June 26.
Having already listed on the Shanghai Stock Exchange's STAR Market in 2021, the company's pursuit of a dual primary listing in both the A-share and H-share markets aims to facilitate its global expansion and production capacity growth.
According to its prospectus, based on projected 2024 revenue, the company has become the world's largest supplier of PCB direct imaging equipment, capturing a 15.0% market share.
What are the key highlights of CFMEE's Hong Kong listing bid?
From PCBs to Semiconductors
Since its establishment in 2015, CFMEE has consistently focused on the research, development, and commercialization of micro-nano direct-write lithography technology.
This technology is a lithography process that transfers patterns directly onto substrates via digitally controlled beams without the need for physical photomasks.
Compared to traditional mask-based lithography, it offers significant advantages in compatibility, flexibility, and shortening process chains, making it particularly suitable for applications like PCB manufacturing, advanced packaging, and IC substrate production.
The company's main product lines are divided into two segments: PCB direct imaging equipment and automated line systems, and semiconductor direct-write lithography equipment and automated line systems.
In terms of revenue structure, the PCB business is the absolute pillar.
In 2025, PCB direct imaging equipment and systems contributed revenue of 1.08 billion yuan, accounting for 76.7% of total operating revenue, up from 71.2% in 2023.
Revenue from semiconductor direct-write lithography equipment and systems was 233 million yuan, representing 16.6% of the total.
While the scale of the semiconductor business is much smaller, its gross margin is significantly higher, at 53.8% in 2025 compared to 34.5% for PCB equipment.
This structure, where the PCB business contributes scale and the semiconductor business contributes profitability, has remained stable over the past three years.
CFMEE is also noted as the only company globally with commercialized products covering all applications in PCB, IC substrate, advanced packaging, and photomask manufacturing.
As of December 31, 2025, the company had provided nearly 100 types of equipment to over 600 customers, including all of the world's top ten PCB manufacturers and 70% of the global top 100 PCB manufacturers.
Within the advanced packaging sector, the company serves 16 clients.
In 2025, the top five customers contributed 41.6% of revenue, up from 23.5% in 2023, reflecting a deepening of cooperation with key clients and strengthening customer loyalty, forming a stable ecosystem of major customers.
Financial Resilience Amid High Growth
Geographically, the company shows a healthy development trend of "domestic demand as the foundation, international expansion accelerating."
In 2025, revenue from mainland China was 1.134 billion yuan, accounting for 80.5%, indicating a solid domestic base.
The Thailand market grew from scratch to contribute 140 million yuan, or 10.0% of revenue in 2025, while revenue from Japan increased from 17.58 million yuan in 2023 to 56.51 million yuan.
This shift aligns closely with the industry trend of global PCB production capacity moving to Southeast Asia, with over 30 of the world's top 40 PCB manufacturers having announced plans to establish production bases in Thailand, Vietnam, or Malaysia.
The company has established a wholly-owned subsidiary in Thailand and secured BOI investment promotion incentives, demonstrating initial success in its globalization strategy.
Looking at the revenue growth trajectory, CFMEE is in a phase of rapid expansion.
From 2023 to 2025, operating revenue grew from 829 million yuan to 954 million yuan, then surged to 1.408 billion yuan, representing a three-year compound annual growth rate of 30.3%.
The year-on-year growth rate for 2025 was 47.6%, indicating robust growth momentum and strong market demand.
Net profit was 179 million yuan in 2023, experienced a temporary dip to 161 million yuan in 2024, before rebounding strongly to 290 million yuan in 2025, an 80.4% year-on-year increase, signaling a return to a high-growth profitability track.
The comprehensive gross margin was 40.9% in 2023, adjusted to 35.5% in 2024, and recovered to 39.1% in 2025.
The temporary decline in 2024 was attributed to increased costs from offering longer warranty periods for new models and inventory optimization adjustments due to technological and product upgrades, which are normal operational adjustments during a high-growth phase.
With continuous optimization of the product mix and increasing scale effects, the company's gross margin has shown a clear upward trend, and profitability is expected to strengthen further.
Accelerating Global Strategy in a Vast Market
In terms of the competitive landscape, the top five suppliers in the global PCB direct imaging equipment market hold a combined share of approximately 55.1%.
CFMEE leads with a 15.0% market share, establishing its leadership position.
While the gap with the second-place player at 13.7% is not large, the company has built systematic competitive advantages in R&D investment, customer resources, and product portfolio, suggesting its leading position is likely to be further solidified.
In the higher-value segment of semiconductor-related direct-write lithography equipment, the company currently holds a 1.5% market share.
Although there is a gap compared to the over 70% industry concentration held by international giants, this precisely indicates vast growth potential.
In semiconductor sub-segments like advanced packaging and IC substrates, direct-write lithography technology, with its core advantages of maskless operation and suitability for large-sized substrates, is experiencing a period of rapid adoption.
As one of only two domestic companies with commercialized products covering advanced packaging applications and one of only three covering photomask applications, CFMEE has secured a favorable starting position in this wave of domestic substitution.
To seize this historic market opportunity, the company plans to allocate a significant portion of the listing proceeds to strengthen R&D capabilities, expand production capacity, and pursue strategic acquisitions.
Particularly noteworthy is the overseas expansion plan to add capacity for 50 to 100 units in Thailand, with an expected capacity utilization rate of 80% to 90%.
Considering that the utilization rate at the Hefei base currently exceeds 170%, capacity bottlenecks have become a key factor constraining further performance growth.
Overseas capacity expansion is not only an effective measure to alleviate these bottlenecks but also a strategic choice to be closer to Southeast Asian customers and deepen the global supply chain layout.
From a downstream demand perspective, CFMEE's growth thesis is closely tied to the demand for high-end PCBs and advanced packaging driven by emerging technologies like AI, HPC, and 5G.
Market research predicts the global AI server market will grow from 754.8 billion yuan in 2024 to 2.8 trillion yuan by 2030, a compound annual growth rate of 24.4%.
The global advanced packaging market is projected to increase from 306.4 billion yuan in 2024 to 546.4 billion yuan by 2030, with a compound annual growth rate of 10.1%.
The demand from these high-growth sectors for advanced PCB and packaging processes represents the ideal application scenarios for CFMEE's equipment, positioning the company to directly benefit from this industrial upgrade.
In summary, CFMEE's H-share prospectus outlines a Chinese high-end equipment manufacturer with core technology, first-mover advantages in its niche, and a period of rapid growth.
Its high-performance growth trajectory and leadership in the PCB field are evident.
Amid the broader trend of rising domestic semiconductor equipment manufacturers, CFMEE is steadily advancing towards its goal of becoming a global leader in micro-nano direct-write lithography equipment, backed by solid technological accumulation and a clear strategic vision.
Comments