[Zhongchuan Specialty Gas Recent Update] Guojin Electronics

English summary

Tungsten hexafluoride: 1) Capacity and utilization: 26Q1 utilization not full, 26Q2 full production, theoretical utilization up to 120%. Current capacity 2,000 tons, Handan 1,000 tons expected to start production Q2 2027, Shanghai 1,000 tons expected no later than Q1 2028. 2) Price: mainly quarterly pricing. 26Q1 was cost-pass-through price increase, reflected in Q2 results; 26Q2 began supply-demand driven increase, elasticity expected in Q3 and after. Supply-demand focus on Korea tungsten powder exports, domestic expansion, and downstream 3D NAND expansion. 3) Customers: currently mainly domestic, global major customers all in volume supply except Samsung. 4) Molybdenum hexafluoride: technical reserves available. Other: 1) Nitrogen trifluoride expected to follow raw material price increase; 2) Hydrogen fluoride capacity 50 tons, hexafluorobutadiene capacity 200 tons, precursors and targets still in R&D stage.