Industrial Dynamics Report on Fluorine Chemical and New Materials Listed Companies such as Juhua Co., Ltd.

Recently, the fluorine chemical industry has been driven by multiple positive factors, including overseas policy adjustments for refrigerants, domestic substitution in the semiconductor industry, and capacity expansion in new energy storage. Prices of third-generation refrigerants continue to rise, and the pace of domestic substitution for high value-added products such as fourth-generation refrigerants, electronic-grade fluoropolymers, and electronic specialty gases is accelerating. Several A-share listed companies have successively announced industrial actions such as capacity commissioning, large orders, and the landing of new projects. The following reports on these companies one by one:

I. Juhua Group: PTFE capacity expanding steadily, semiconductor-grade PFA achieves import substitution

On June 2, Juhua Group disclosed the latest capacity and customer expansion progress for its fluoropolymer business on the investor interaction platform. The company's core product, PTFE (polytetrafluoroethylene), is widely used in aerospace and military, semiconductor electronics, fine chemicals, high-end medical, and other fields due to its excellent heat resistance, corrosion resistance, and flame retardancy. As of the end of 2025, the company has built a PTFE capacity of 28,000 tons/year, with 37,000 tons/year under construction simultaneously. Upon the completion of the projects under construction, the total PTFE capacity will reach 65,000 tons/year, firmly placing it in the first tier of the domestic industry. At this stage, the company is accelerating engagement with customers in the electronics and semiconductor supply chains to promote the commercialization of high-end PTFE products.

In the field of high-end fluororesins, the company's 10,000 tons/year high-quality melt-processable fluororesin (PFA) production line has been completed and put into operation. The products have been tested by leading semiconductor manufacturers, and metal ion indicators meet the SEMI F57 international standard. They can meet the needs of semiconductor wet cleaning, high-purity chemical storage and transportation, and core component manufacturing for wafer equipment. This breaks the long-term monopoly of overseas giants and becomes a key raw material for import substitution in the domestic semiconductor industry. Batch supply has already been achieved.

At the industry level, in 2026, refrigerants are supported by global quota management and the delayed phase-out policy of third-generation HFCs in Europe and the US. Prices of products such as R32 and R134a continue to rise. Coupled with the demand for high-end PTFE driven by high-frequency substrate materials for AI servers, the company's dual businesses of refrigerants and fluoropolymers are entering a boom cycle.

II. Tinci Materials: Electrolyte long-term agreement expands again, supply volume to Chu Neng increases to 1.01 million tons

On the evening of June 2, Tinci Materials announced that its wholly-owned subsidiary, Jiujiang Tinci High-Tech Materials, signed a supplementary supply agreement with Chu Neng New Energy. Based on the original procurement agreement valid until December 31, 2030, the expected total supply volume of electrolyte series products was increased from not less than 550,000 tons as originally agreed to not less than 1.01 million tons, an increase of 460,000 tons. The new procurement entity includes Xiangyang Chu Neng, fully covering Chu Neng's various battery production bases in Hubei.

The first round of cooperation between the two parties landed in July 2025. This supply scale has nearly doubled, mainly relying on the capacity expansion demand of the energy storage and power battery industries. According to industry information, relying on the integrated production advantage of lithium hexafluorophosphate, Tinci has significant cost advantages in electrolyte production compared to peers. In the past year, it has intensively secured multiple long-term agreements for power batteries and energy storage electrolytes, cumulatively locking in a future supply volume of over 3.4 million tons. The long-term agreements only stipulate the total supply volume and do not lock in the product selling price; product prices float with market conditions. The landing of orders is expected to continue to solidify the company's market share as the electrolyte leader, benefiting revenue growth from 2026 to 2030.

III. Shenzhen Xinxing: Boron trifluoride project obtains safety production license, full industry chain closed loop officially enters mass production

On June 2, Shenzhen Xinxing announced that the boron trifluoride project invested and constructed by its wholly-owned subsidiary, Ganzhou Songhui Fluorine New Materials, successfully passed the completion acceptance of safety facilities and obtained the "Safety Production License" issued by the Jiangxi Provincial Emergency Management Department, marking the project's transition from the construction phase to the formal large-scale production phase.

Boron trifluoride is a high-end electronic specialty gas and fine fluorine chemical raw material, widely used in semiconductor chip etching, pharmaceutical intermediates, lithium battery solid electrolyte additives, nuclear power boron isotope raw materials, and other fields. The industry has high technical barriers and a low localization rate. The project achieves internal loop matching within the industrial chain: the production raw material potassium fluoroborate is self-sufficient by the company's another wholly-owned subsidiary, Songyan New Energy; the by-products potassium bisulfate and sulfuric acid mixture can flow back to Songyan New Energy to reproduce potassium fluoroborate. The closed-loop utilization of raw materials effectively compresses production costs and forms a unique industrial synergy advantage. After the project is put into production, it becomes a new profit growth point for the company's fluorine chemical new materials.

IV. Weihua New Materials: Fine fluorine chemicals put into production in steps, fourth-generation refrigerants expected to start trial production in June

According to the minutes of the investor relations activity survey on May 28, the fourth-generation environmentally friendly refrigerant project laid out by Weihua New Materials through its holding subsidiary Zhejiang Fanghua Chemical is planned to start trial production in June 2026, and subsequently select an opportunity for formal commissioning after equipment debugging and product performance verification.

Fanghua Chemical's fundraising project for fluorine-containing new materials adopts a construction mode of separate production lines and stages: the trifluoromethylpyridine series of fluorine-containing fine chemicals, which currently have strong market demand certainty, have entered the trial production stage; for chemical production lines currently at the bottom of the cycle with weak demand, the company has slowed down the construction pace and delayed capacity release to match the future recovery cycle of the industry, optimizing project return on investment and controlling operational risks. Fourth-generation refrigerants fit the trend of global low-carbon environmental protection policies. Overseas related patents expire centrally in 2026, and the space for domestic substitution is broad. The landing of the project opens up the growth space for the company's new high-gross-margin products.

V. Dongguan Sunshine: Signs another 10-billion-level computing power long-term order, parallel development of dual main businesses in fluorine chemicals and computing power

On June 1, Dongguan Sunshine announced a heavy contract announcement. Its holding subsidiary Dongguan Sunshine Cloud Intelligent Computing Technology finalized a computing power service procurement contract with partner enterprise B. The total contract amount including tax is in the range of 10-12 billion yuan, and the cooperation cycle lasts for 60 months (5 years) after the order acceptance is completed. According to the cooperation agreement, Sunshine Cloud Intelligent Computing is fully responsible for the procurement, deployment, and operation and maintenance of high-performance computing power servers, delivering products via a computing power leasing model, and the partner settles service fees monthly.

This is the company's second 10-billion-yuan computing power order this year. In May, the company just landed a 16-19 billion yuan computing power long-term order. The company's traditional main business focuses on fluorine chemical new materials, holding domestic head-level third-generation refrigerant production quotas. In 2026, the rise in refrigerant product prices will drive an improvement in the profitability of the chemical sector. Relying on the advantage of self-produced fluorinated liquid cooling raw materials, it extends into new tracks such as AI liquid cooling and computing power leasing, forming an industrial pattern where traditional fluorine chemicals support emerging computing power businesses, achieving dual-wheel drive development.

Industry Briefs

In the first half of 2026, the overall prosperity of the fluorine chemical industry rose. Third-generation refrigerants were affected by rigid global quota management and the delayed HFCs reduction policies of the UK and the US, leading to robust overseas procurement demand and a significant year-on-year increase in domestic prices of R32 and R134a. The expansion of downstream semiconductor, new energy, and AI computing power industries continues to drive the acceleration of import substitution for electronic-grade fluororesins, electronic specialty gases, and fine fluorides. Domestic fluorine chemical enterprises are accelerating their transformation and upgrading from basic raw materials to high-end new materials.