Tongcheng New Materials, a Chinese new materials supplier founded in 1999, completed its H-share listing on September 29, bringing a dual-segment business — tire rubber additives and semiconductor electronic materials — to the Hong Kong market.

The company's electronic materials segment posted revenue of 693 million yuan in H1 2026, up 56.9% year on year, accounting for 32.5% of total revenue. The tire rubber additive business generated 1.32 billion yuan in the same period, up 14.4%, representing 61.9% of revenue, according to prospectus data.

The listing arrives as price inflation moves through the semiconductor supply chain. Since the start of the year, advanced electronic materials including MLCC, fiberglass cloth and photoresist have seen successive price increases, driven by demand from large language models and generative AI computing.

Japanese suppliers are tightening supply economics. According to Shanghai Securities News, JSR and Tokyo Ohka Kogyo will raise global quotations by 15% starting October 1, with price increases on high-end ArF immersion long-term agreements running at 16%–22%. Japanese manufacturers currently hold more than 60% of global photoresist market share, and control 85%–90% of supply in advanced process segments.

Domestic substitution gaps remain wide. Guojin Securities data shows localization exceeding 30% for G/I-line photoresist, ranging from 1% to 8% for KrF, below 1% for high-end ArF, and near zero for EUV.

Product matrix and capacity

Tongcheng ranked first among local semiconductor photoresist suppliers in China in 2025, per Frost & Sullivan. Its product matrix spans G-line, I-line, KrF and ArF processes:

• G/I-line: more than 100 products on sale, with stable mass production and large-scale supply capability.
• KrF: more than 60 products on sale; the company has achieved technical breakthroughs in high-resolution KrF and KrF negative photoresist, serving as a main domestic supplier for 8-inch and 12-inch IC production lines.
• ArF: several ArF dry and ArFi (immersion) products have passed customer certification and entered advanced processes in limited volume.

The company operates the largest photoresist production capacity in China, anchored by a thousand-ton line at its Shanghai base covering multiple process nodes and application scenarios. In display materials, the company also ranked first among local TFT array photoresist suppliers in 2025, with mass production in TFT-LCD array positive photoresist and sample deliveries in low-temperature cured organic insulating films and OLED organic light-emitting materials.

Upstream integration provides margin defense. Tongcheng develops its own phenolic resin and PHS resin base materials, closing the loop between resin inputs and final formulations.

Financial trajectory

Electronic materials revenue reached 560 million yuan in 2023, 750 million in 2024 and 990 million in 2025, a 32.5% CAGR. High-end ArF photoresist revenue grew more than 800% year on year in 2025; ArF and BARC products grew close to 300% in H1 2026. Segment net profit rose nearly 180% year on year in H1 2026, outpacing revenue growth — an indicator the business has moved past the heavy-investment, long-verification early stage.

Rubber additives as cash base

The tire rubber additive segment anchors the balance sheet. Frost & Sullivan data places Tongcheng first in sales in both global and Chinese markets for tire phenolic resin rubber additives in 2025, with customers covering the world's top 20 tire manufacturers. The top five global suppliers hold more than 95% market share in the category. Certification cycles at major international tire makers run 2–3 years, creating high switching barriers.

The global tire rubber additive market held a roughly 2% CAGR from 2021 to 2025. Frost & Sullivan projects the market to reach 24.1 billion yuan by 2030, with a CAGR around 1.9%.

Listing details

Cornerstone investors subscribed approximately 126.4 million USD in the prospectus phase, covering about 35.1% of the global offering. The company expects to direct proceeds toward accelerated R&D of advanced photoresist products and development of overseas production bases.