NAURA

About NAURA

Ltd. ("NAURA", stock code: 002371) is one of China's largest and leading companies in the field of science and technology, and has been recognized as one of the world's leading companies in the field of science and technology by the Chinese government.semiconductor industryA leading company in the field of equipment, headquartered in Beijing. As a state-owned listed company under Beijing Electronics Holding Co., Ltd, a first-class enterprise of Beijing Municipal State-owned Assets Supervision and Administration Commission (SASAC), NCA is committed to providing one-stop technical solutions for global customers with semiconductor equipments, vacuum and new energy equipments, and precision electronic components as its core business. Through continuous innovation and platform layout, the company has become the only semiconductor equipment platform enterprise in China covering the whole process chain of etching, thin film deposition, cleaning, heat treatment, etc., and has formed synergistic advantages in the fields of vacuum equipment, new energy equipment and precision components.

Development history: from reorganization and integration to global competition

The development history of NAURA can be traced back to Beijing Seven Star Hualong Electronics Co., Ltd. and Northern Microelectronics Base, which were established in 2001. 2016, under the leadership of Beijing Municipal State-owned Assets Supervision and Administration Commission (SASAC), the two state-owned enterprises were strategically reorganized, and renamed as "Northern Hualong Science and Technology Group Co., Ltd." in 2017, which was integrated into a semiconductor equipment platform enterprise covering the whole chain. Ltd. in 2017, integrating into a semiconductor equipment platform enterprise covering the whole chain. Since then, the company has realized leapfrog development through a series of key nodes:

• 2010: Seven Star Electronics landed on the Shenzhen Stock Exchange, becoming the first domestic semiconductor equipment listed company.
• 2018Acquisition of Akrion's cleaning equipment business in the U.S. to complement its sub-28nm process capabilities.
• 2022: Revenue exceeded 10 billion dollars for the first time (14.688 billion dollars), ranking among the top 10 global equipment vendors.
• 2024: Revenue reached 29.838 billion yuan, global market share jumped to sixth, etching and thin film equipment revenue accounted for more than 66%.

The company's core team is led by Chairman Zhao Jinrong (leading the restructuring, integration and international layout) and Vice President Dong Boyu (Ph.D. from Japan's Fukui University, who broke the bottleneck of PVD/CVD technology), with a total of more than 9,200 patents applied for, and the core products of the company, such as 14nm etching machines and Atomic Layer Deposition (ALD) equipment, are all independently researched and developed by the local team.

Products & Services: Full Process Chain Coverage & Customized Solutions

NAURA has formed three business segments: semiconductor equipment, vacuum and new energy equipment, and precision electronic components, covering various fields such as integrated circuits, power semiconductors, new energy photovoltaic, and new displays.

1. Semiconductor Equipment: Core Business Engine

• Etching equipment: Covering the full range of silicon etching, dielectric etching, crystal edge etching, 14nm process volume production accounted for 20%, 5nm validation. 2024 global share rose to 3.8%, capacitively coupled plasma etcher (CCP) breakthroughs in the 5nm high depth-to-width ratio etching technology.
• Thin Film Deposition Equipment: The only domestic realization of PVD, CVD, ALD full layout, ALD equipment thickness control precision up to the atomic level. 2024 thin film equipment revenue for the first time exceeded 10 billion, year-on-year growth rate of 66.7%.
• Heat treatment equipment: Includes vertical furnaces and rapid thermal processing (RTP) equipment to support advanced processes such as SiC high temperature oxidation, with 2024 revenues exceeding $2 billion.
• Cleaning equipment: Covering monolithic and tank cleaning equipment to meet the demand for nanoscale precision, with 2024 revenues exceeding $1 billion.
• Advanced Packaging Equipment: Focusing on 2.5D/3D packaging, system-in-package (SiP) and other technologies, we provide equipment for thin-film deposition, plating and etching.
• Compound semiconductor equipment: Develop etching, epitaxy, and thin film deposition equipment for silicon carbide (SiC) and gallium nitride (GaN), which are used in new energy vehicle power devices, AI arithmetic power management, and other fields.

2. Vacuum and New Energy Equipment: Green Manufacturing Enabler

• Vacuum equipmentThese include SiC long crystal furnaces, monocrystalline silicon growth furnaces, high temperature hydrogen sintering furnaces, etc., supporting 6/8-inch silicon carbide crystal growth and photovoltaic monocrystalline silicon preparation.
• New energy equipmentIt provides photovoltaic equipments such as tubular LPCVD, PECVD, diffusion furnace, etc., and supports high-efficiency battery technologies such as TOPCon, HJT, XBC, etc.; lithium-ion equipments cover rolling and splitting integrated equipments, composite collector coating equipments, and enter the supply chain of domestic head battery enterprises.

3. Precision electronic components: high value-added support

Core products include precision resistors, new capacitors (high-energy tantalum capacitors, polymer tantalum capacitors), quartz crystal devices, etc., which are used in AI, data centers, new energy vehicles and other fields. High-power power supplies are adapted to new-generation CPU/GPU/FPGA, and analog signal chain products cover more than 300 models.

4. Service Network: Localization Advantage and Rapid Response

NCA has established a rapid response mechanism of "2-hour response for service call, 2-hour on-site arrival of service center engineers, and 48-hour on-site arrival of original spare parts", with customers covering leading enterprises such as Semiconductor Manufacturing International (SMIC), Yangtze River Storage (CKS), Ningde Times (NDT), and LONGi Green Energy (LGE) etc. The proportion of offshore revenue in 2024 will be 2.29%, and NCA will expand the global market through its localized service network. Localized service network to expand the global market.

IV. Core technology: independent innovation and global layout

The core technology of NCA covers key semiconductor processes such as etching, thin film deposition, heat treatment and cleaning, forming the following technological advantages:

• 14nm/5nm Technology Breakthrough: 14nm etcher and ALD equipment realized mass production, and 5nm CCP etcher entered the validation stage.
• Full process chain coverage: The only company in China that covers the four core processes of etching, thin film deposition, cleaning and heat treatment.
• Third-generation semiconductor technology: SiC epitaxial equipment market share of nearly 30%, GaN etching equipment sales increased by 50%.
• Internationalization Patent Layout: Over 9,200 patents have been applied for and 5,300 have been authorized, covering 12 countries and regions such as the U.S., Japan, and the European Union.

V. Development prospects: accelerated domestic substitution and global market expansion

1. Acceleration of domestic substitution: dual drive of policy and market

With the increase in global demand for chips, the Chinese government attaches great importance to the development of independent control of the chip industry. North China creates for domestic semiconductor equipment leader, will benefit from the acceleration of domestic substitution. 2024, the company a variety of new products such as CCP etching equipment, ALD equipment to achieve mass production delivery, process coverage from 28nm extended to 14nm logic chip and 3D NAND memory chip manufacturing link. Semiconductor Manufacturing International (SMIC), Yangtze River storage and other head of the fab equipment procurement localization rate increased, the NAURA winning share of more than 60%, only etching equipment revenue exceeded 8 billion yuan, an increase of 45%.

2. Global Market Expansion: Technology Tackling and Ecological Co-Prosperity

Through the three strategic directions of technology development, ecological co-prosperity and global expansion, NCC promotes the global competitiveness of "China Chip":

• technical offensive: Focus on advanced processes, novel materials (e.g., HBM, chalcogenide), and disruptive technologies (e.g., hybrid bonding).
• ecological co-prosperityDeepening joint R&D with customers and suppliers, establishing 33 joint laboratories, and promoting collaborative innovation in the "semiconductor circle of friends".
• Global Expansion: Strengthen the overseas service network and increase the market share in Southeast Asia, Europe and the United States.

3. Financial performance: High growth and earnings resilience

In 2024, NCA realized revenue of RMB29.838 billion, up 35.14%; net profit of RMB5.621 billion, up 44.17%; gross profit margin of 45.5% and net profit margin of 22.54%, both exceeding international peers. The company increased its net profit margin to 19.08% through scale effect, showing the advantage of asset-light model. 2025 Q1 net profit increased another 38.8%, three consecutive years of high growth.

4. Risk and response: supply chain security and technological innovation

Despite the strong development momentum of the NAURA, but still facing industry cyclical risks and technological bottlenecks. 2025 global semiconductor equipment spending growth is expected to fall back to 10%, if the pace of domestic fab expansion slows down, the company's order growth will be under pressure. In addition, the company is still 50% dependent on imports in vacuum pumps, MFC and other key components. In order to cope with these challenges, NAURA actively layout:

• Cooperating with Hengli Hydraulics to develop vacuum ball screws, and jointly developing turbine vacuum pump technology with domestic enterprises, we aim to increase the localization rate of key components to 70% by 2026.
• Through the merger and acquisition of the core source micro to complete the "coating + cleaning" technology chain, the formation of "etching - film - cleaning" full-flow solution, enhance the industry chain right to speak.