Kunshan Kinglai Hygienic Materials Co., Ltd. (Kinglai Hygienic Materials, 300260) (300260)

Individual Stock Analysis Report | Industry: Key components for high-purity fluid and vacuum systems, aseptic food packaging | Report date: September 13, 2026 | As of the close on September 11, 2026; market data, technical indicators, and fund flow data are based on the disclosure standards of the research notes, and some indicators may differ due to statistical windows or data source standards.

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Kinglai Hygienic Materials achieved operating revenue of RMB 1.546 billion in the first half of 2026, up 9.69% year-on-year, but net profit attributable to parent declined 7.52% year-on-year to RMB 100 million, non-GAAP net profit attributable to parent declined 10.20% year-on-year, and gross margin declined 1.04 percentage points year-on-year to 23.42%, showing a coexistence of revenue growth and profit pressure. By business segment, pan-semiconductor revenue was RMB 565 million, up 28.12% year-on-year, pharmaceutical revenue grew 26.54% year-on-year, but food revenue declined 2.36%, and the food business remains the segment with the highest revenue share.

The company's business covers pan-semiconductor high-purity fluid and vacuum components, biopharmaceutical clean systems, and liquid food aseptic packaging. In 2025, food, pan-semiconductor, and pharmaceutical revenue accounted for 58.97%, 31.89%, and 9.01%, respectively. The pan-semiconductor business has passed relevant certifications from top-ranked U.S. semiconductor equipment manufacturers and achieved volume supply, and the Huai'an base has entered the mass production stage; the company disclosed that its order backlog remains at a good level and expects the semiconductor business to maintain rapid growth in subsequent quarters.

Profit recovery still lacks sufficient verification. In 2025, the company's operating revenue was RMB 2.998 billion, up 5.22% year-on-year, net profit attributable to parent was RMB 175 million, down 22.66% year-on-year, gross margin was 24.84%, and net sales margin was approximately 5.8%; in the first half of 2026, revenue growth improved somewhat, but single-quarter net profit attributable to parent declined 17.49% year-on-year, and net cash flow from operating activities declined 35.44% year-on-year. As of September 11, 2026, the company's share price was RMB 52.04, down approximately 18% from the August 17 high, below MA5, MA10, and MA20, with a weak short-term technical pattern.

The company's current total market capitalization is approximately RMB 21.222 billion, with a dynamic P/E ratio of approximately 106x to 131x depending on the data source standard, and valuation is relatively sensitive to future profit growth delivery. Market consensus expectations project gradual growth in revenue and net profit attributable to parent from 2026 to 2028, but few institutions cover the stock, and historical forecasts have shown deviations, so such growth expectations are more suitable as scenario references rather than certain outcomes.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Pan-semiconductor: key components for high-purity vacuum systems, key components for high-purity gas transmission systems, and semiconductor precision parts. Main products include vacuum chambers, vacuum valves, flanges, gas pipelines, pipe fittings, gas valves, gas showerheads, process kits, and aluminum chambers. Main brands include "AdvanTorr" and "NanoPure."
• Biopharmaceutical: ASME BPE standard pipelines and fittings, high-purity diaphragm valves, aseptic valves, aseptic pumps, heat exchangers, filters, biological fermentation tanks, and supporting systems.
• Food safety: mainly conducted through Shandong Bihai and related subsidiaries. Products include paper-aluminum-plastic composite liquid food aseptic packaging materials, aseptic carton filling machines, liquid food packaging production lines, and supporting equipment.
• 2025 revenue structure: food revenue RMB 1.768 billion, accounting for 58.97%; pan-semiconductor revenue RMB 956 million, accounting for 31.89%; pharmaceutical revenue RMB 270 million, accounting for 9.01%; other revenue RMB 3.9021 million, accounting for 0.13%.
• 2025 product structure: aseptic packaging materials revenue RMB 1.411 billion, accounting for 47.07%; high-purity and ultra-high-purity application materials revenue RMB 956 million, accounting for 31.89%; clean application materials revenue RMB 413 million, accounting for 13.78%; food equipment revenue RMB 218 million, accounting for 7.26%.

2.3 Position in the Industry Chain Upstream and Downstream and Cost-Profit Structure

Kinglai Hygienic Materials is positioned in the midstream key components segment of high-purity fluid and vacuum systems, while also extending toward semiconductor core components and liquid food aseptic packaging at both ends. The company is not an upstream resource-based enterprise, nor a downstream enterprise controlling terminal brands. It mainly relies on clean manufacturing, vacuum and aseptic processes, customer certifications, and product portfolio to generate profits.

• Pan-semiconductor and clean fluid products mainly use stainless steel pipes, plates, bars, and high-purity stainless steel materials; products such as semiconductor chambers also use aluminum alloy materials.
• Main supporting parts include valves, pumps, flanges, and seals; main outsourced or in-house processing steps include machining, welding, electropolishing, cleaning, and clean packaging.
• Food aseptic packaging materials mainly use paper, aluminum foil, polymer films, adhesives, and other composite packaging materials.
• In 2025, purchases from the top five suppliers amounted to RMB 707 million, accounting for 29.58% of total annual procurement; the largest supplier accounted for 9.28% of total procurement. Supplier concentration is generally not extremely high, but the company is still affected by price fluctuations in stainless steel, aluminum materials, packaging substrates, and energy.
• The company has certain substitution and supply chain management capabilities for ordinary metal materials, but may still be a price taker for specific specification high-purity materials, key seals, and certified supporting components; cost pass-through of food packaging material raw materials to dairy and beverage customers usually lags.
• Pan-semiconductor customers include semiconductor equipment manufacturers, wafer fabrication companies, and facility system suppliers; the company has passed certification for relevant products from top-ranked U.S. semiconductor equipment manufacturers and become a first-tier supplier, but it is not a complete wafer fabrication equipment manufacturer.
• Biopharmaceutical customers include pharmaceutical companies, biopharmaceutical engineering companies, and aseptic production line integrators; this business has a long certification and validation cycle, but is affected by pharmaceutical companies' capital expenditures, innovative drug financing environment, and biopharmaceutical project construction cycles.
• Food safety customers are mainly from the liquid food industry such as dairy products, fruit juice, and beverages; Shandong Bihai has formed a combined model of aseptic packaging materials and filling equipment.
• In 2025, sales to the top five customers amounted to RMB 741 million, accounting for 24.72% of operating revenue; the largest customer accounted for 6.51%. This data is disclosed in the company's 2025 annual report, specific customer names were not publicly disclosed, and it is impossible to determine the company's actual dependence on any single semiconductor equipment manufacturer, wafer fab, or dairy company based on this.
• Semiconductor customers typically have strong quality review, price negotiation, and annual price reduction capabilities, but certification and validation create certain switching costs; food packaging material customers have large procurement scale and strong bargaining power, and the company faces pressure from inability to timely pass through raw material increases, customer promotions, and terminal consumption fluctuations.
• As of December 31, 2025, accounts receivable book value was RMB 840 million, accounting for 14.83% of total assets, approximately 28.0% of full-year operating revenue; inventory book value was RMB 1.648 billion, accounting for 29.11% of total assets, approximately 55.0% of full-year operating revenue; accounts receivable turnover days were approximately 98 days, and inventory turnover days were approximately 255 days. Prepayments were RMB 13.67 million, accounts payable for materials were RMB 664 million, accounts payable for construction was RMB 44.83 million, and accounts payable for equipment was RMB 55.31 million. Contract liabilities have two standards: RMB 4.6891 million and approximately RMB 107 million, which may be due to differences in reporting standards or consolidation scope presentation, and the audited annual report consolidated balance sheet should prevail. Overall, the company has relatively significant occupation of funds in accounts receivable and inventory, and accounts payable for materials partially alleviates funding pressure, but this is not sufficient to prove that the company has strong payment terms.
• In 2025, the top five suppliers accounted for 29.58% of procurement, and the largest supplier accounted for 9.28%; the top five customers accounted for 24.72% of sales, and the largest customer accounted for 6.51%. The above data are all for the 2025 fiscal year, and specific customer and supplier names were not publicly disclosed, so it can only be judged that overall concentration is not high, and further judgment cannot be made on actual dependence on a single customer or supplier.

The company is in the midstream manufacturing segment with relatively high added value: semiconductor clean materials, vacuum and high-purity gas components have certain technical certification barriers, food aseptic packaging materials and filling equipment belong to midstream manufacturing, and biopharmaceutical clean systems have high certification attributes but are affected by capital expenditure cycles. The overall gross margin of approximately 25% does not represent the standalone gross margin of the semiconductor business; in 2025, the pan-semiconductor business gross margin was approximately 26.60%, and profitability differs among businesses. Future profit improvement mainly depends on an increased share of high value-added semiconductor parts, improved utilization of Huai'an and Huaibei bases, completion of validation and volume ramp-up of the Fangxin Precision project, improved cost pass-through capability in food packaging materials, and recovery in pharmaceutical business demand and reduced asset impairment pressure.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2025 fiscal year is the latest complete annual report (disclosed 2026-04-28/29), net profit attributable to parent was RMB 175 million (175,062,842.87 yuan), non-GAAP net profit attributable to parent was RMB 176 million (YoY -22.49%), gross margin was 24.84% (YoY -0.88pct), net sales margin was 5.8% (YoY -2.14pct), and period expense ratio was 17.0%. The 2026 Q1 report (disclosed 2026-04-28) revenue was +3.34% QoQ, net profit attributable to parent was +77.13% QoQ, non-GAAP net profit attributable to parent was RMB 44 million (YoY -13.02%), single-quarter gross margin was 22.20% (YoY -1.61pct, QoQ -5.76pct), and net sales margin was 6.8%. The 2026 semi-annual report (disclosed 2026-08-31, latest financial report) non-GAAP net profit attributable to parent was RMB 95 million (YoY -10.2%), gross margin was 23.4% (YoY -1.0pct), net sales margin was 6.4% (YoY -1.3pct), and period expense ratio was 15.9%; Q2 single-quarter revenue was RMB 778 million (+5.6%, QoQ +1.3%), net profit attributable to parent was RMB 47 million (-17.5%, QoQ -10.9%). Historical comparison: 2022 revenue RMB 2.620 billion, attributable net profit RMB 344.8 million; 2023 revenue RMB 2.711 billion (+3.49%), attributable net profit RMB 235.9 million (-31.58%); 2024 revenue RMB 2.849 billion (+5.08%), attributable net profit RMB 226.3 million (-4.05%), non-GAAP net profit RMB 227 million (-0.93%), basic EPS RMB 0.56, weighted ROE 12.05%, net operating cash flow RMB 426 million (+94.48%), dividend RMB 0.6 per 10 shares. Uncertainty: the 2024 earnings flash report (2025-02-27) previously disclosed net profit attributable to parent of RMB 249 million (+5.73%), which differs from the official annual report figure of RMB 226.3 million (-4.05%) dated 2025-04-29 by approximately RMB 23 million, so references to 2024 profit must be based on the annual report; in addition, the difference between 2025 net profit of RMB 173.8 million (ifeng standard) and RMB 175.1 million (attributable to parent) given by some third-party sites is a difference between net profit and net profit attributable to parent standards, not a contradiction.

In full-year 2025, revenue grew slightly by 5.22% year-on-year, but net profit attributable to parent declined 22.66% year-on-year, showing a pattern of revenue growth without profit growth, with both gross margin and net margin under pressure. In the 2026 Q1 report, revenue was +14.15% year-on-year, net profit attributable to parent was +3.65% year-on-year and rebounded sharply by 77.13% QoQ, but non-GAAP net profit attributable to parent was -13.02% year-on-year, and single-quarter gross margin declined 5.76pct QoQ, so earnings quality still needs improvement. In the 2026 semi-annual report, revenue was +9.7% year-on-year, net profit attributable to parent and non-GAAP net profit attributable to parent were -7.5% and -10.2% year-on-year respectively, and gross margin and net sales margin continued to decline year-on-year; Q2 single-quarter net profit attributable to parent was -17.5% year-on-year and -10.9% QoQ, with Q2 profitability weakening. By business segment, in 2025 food was RMB 1.768 billion (+5.20%), pan-semiconductor/high-purity and ultra-high-purity was RMB 955.8 million (+11.07%), and pharmaceutical was RMB 270.2 million (-11.36%); in 2026H1 food was RMB 826.1 million (-2.4%, accounting for 53.44%, gross margin 22.89%), pan-semiconductor was RMB 565.1 million (+28.1%, accounting for 36.56%, gross margin 24.19%), and pharmaceutical was RMB 154.6 million (+26.5%, accounting for 10.00%, gross margin 23.43%). Pan-semiconductor and pharmaceutical grew relatively fast, while food declined slightly. In terms of structure, the share of the higher-margin semiconductor business increased. Overall, the company's revenue maintained growth but the profit side continued to be pressured by declining gross margin and expenses, and performance recovery still depends on the pace of volume ramp-up in pan-semiconductor and other businesses.

3.2 Earnings Forecast

Forecast data comes from East Money consensus expectations (Choice aggregation, as of early September 2026): 2026E/2027E/2028E are all forecasts from 4 institutions; operating profit 2026E RMB 267.3 million, 2027E RMB 381.3 million, 2028E RMB 537.0 million; net assets per share 2026E RMB 5.7197, 2027E RMB 6.5113, 2028E RMB 7.6190; ROE 2026E 10.19%, 2027E 13.08%, 2028E 15.73%. Individual institution details: Soochow Securities (2026-08-31, Accumulate) 2026/2027/2028 net profit attributable to parent RMB 230/330/500 million, EPS RMB 0.57/0.82/1.24 (that report's 2026E revenue was only RMB 3,018 million, +0.68% year-on-year, an abnormally low growth rate, suspected to be related to assumptions about order revenue recognition pace, and should be cited with caution); Sinolink Securities (2026-04-28, Buy) 2026/2027/2028 net profit attributable to parent RMB 250/370/510 million, +45%/+48%/+36% year-on-year, EPS RMB 0.62/0.92/1.24; China Post Securities (2025-11-24, Buy) 2025/2026/2027 revenue RMB 3.019/3.434/3.953 billion, net profit attributable to parent RMB 192/258/357 million; Huaxi Securities (2025-10-29, Accumulate) 2025/2026/2027 EPS RMB 0.47/0.57/0.72; CITIC Construction Investment (2025-10-26, Buy) EPS RMB 0.52/0.72/0.93. Tonghuashun iNews (2026-08-31) stated that in the past six months, 2 institutions forecast 2026 net profit at a maximum of RMB 253 million, a minimum of RMB 233 million, and an average of RMB 243 million (+38.86% versus the prior year). The number of forecasting institutions is only 2-4, a very small sample, making this a low-coverage consensus expectation; and historical backtesting shows relatively large institutional forecast deviations (Guohai Securities forecast 2024 attributable net profit of RMB 261 million in early 2025, actual was RMB 226 million; Soochow Securities forecast 2025E attributable net profit of RMB 255 million in October 2025, actual was RMB 175 million; Securities Star stated that the analyst at Sinolink Securities had an earnings forecast accuracy of only about 30.26% over the past three years), so the 2026-2028 forecasts, especially the high-growth assumptions for 2027/2028, should be regarded as optimistic scenarios rather than certain values.

3.3 Valuation Level and Institutional Ratings

As of the close on 2026-09-11, the share price was RMB 52.04 (that day -1.56 yuan/-2.91%, previous close 53.60, open 53.03, high 53.25, low 50.24, turnover rate 2.79%, trading value RMB 415 million); total market capitalization RMB 21.222 billion, circulating market capitalization RMB 14.969 billion; total share capital 408 million shares, circulating share capital 288 million shares. Valuation: dynamic P/E 106.15x, P/E (TTM) 127.13x, P/E (static) 121.23x, P/B 9.72x-9.81x; one-year low/high RMB 36.30/107.60. Multi-source cross-verification: stcn, East Money, Cailian Press, and Baidu Finance were consistent on total market capitalization of RMB 21.222 billion and PE(TTM) 127.13; the 2026-09-08 snapshot was RMB 55.14, total market capitalization RMB 22.486 billion, PE(TTM) approximately 125-131, showing a share price decline of approximately 5-6% over the past week; slight differences in PE(TTM) across sources (125-133) are due to different calculation standards and pricing time points. Based on the current total market capitalization of RMB 21.2 billion and consensus 2026E attributable net profit of RMB 237.7 million, the corresponding 2026 dynamic PE is approximately 89x; based on Sinolink Securities' 2026E of RMB 250 million, it is approximately 85x, basically consistent with the 80-104x 2026E PE range from various institutions. Institutional rating statistics (East Money, as of early September 2026): over the past year, 3 Buy ratings and 2 Accumulate ratings (5 in total), composite rating Buy (rating coefficient 4.60); over the past 6 months, 1 Buy and 1 Accumulate (2 in total). Target price missing: among the institutional rating records checked, none provided a clear target price (the target price column in the Sina rating table is empty), and Tonghuashun also explicitly stated that Soochow Securities did not provide a target price, so no institutional consensus target price can be given, and only the PE valuation range can be used as an indirect reference. Risk of earnings forecast accuracy should be noted: historical backtesting shows relatively large institutional forecast deviations (Guohai Securities forecast 2024 attributable net profit of RMB 261 million in early 2025, actual was RMB 226 million; Soochow Securities forecast 2025E attributable net profit of RMB 255 million in October 2025, actual was RMB 175 million; the Sinolink Securities analyst had earnings forecast accuracy of approximately 30.26% over the past three years), and the 2026-2028 forecasts, especially the high-growth assumptions for 2027/2028, should be regarded as optimistic scenarios rather than certain values. Data timeliness: financial reports use the exchange/company official disclosure standard (as of 2025-12-31, 2026-06-30, 2026-03-31), consensus expectations are as of early September 2026 (coverage is only 2-4 institutions), and price/valuation data are a 2026-09-11 market snapshot; China Post Securities forecast details are only seen in Hibor/Chaguwang reprints, consensus expectation details are based on East Money F10, and original research report PDFs were not checked institution by institution.

4. Recent News and Announcements

4.1 2026 Semi-Annual Report Disclosure (Announcement Date 2026-08-29)

The company disclosed its 2026 semi-annual report: operating revenue RMB 1,545,836,236.66, +9.69% year-on-year; net profit attributable to parent RMB 99,959,723.94, -7.52% year-on-year; non-GAAP net profit attributable to parent RMB 95,385,820.03, -10.20% year-on-year; net cash flow from operating activities RMB 84,166,663.85, -35.44% year-on-year; basic earnings per share RMB 0.25 (prior-year period RMB 0.27); weighted average ROE 4.56% (prior-year period 5.39%); total assets RMB 6,093,026,013.24, +7.59% versus the end of the prior year; net assets attributable to parent RMB 2,184,029,568.28, +4.21% versus the end of the prior year; first-half gross margin 23.42%, -1.04pct year-on-year. Main revenue composition: aseptic packaging materials 44.51%, high-purity and ultra-high-purity application materials 36.56%, clean application materials 14.04%, food equipment 4.89%. Revenue by industry: pan-semiconductor RMB 565,099,611.81 (+28.12%); food RMB 826,148,835.51 (-2.36%); pharmaceutical RMB 154,587,789.34 (+26.54%). Single Q2: revenue RMB 778 million (+5.61%, QoQ +1.29%); net profit attributable to parent RMB 47.1122 million (-17.49%, QoQ -10.85%); non-GAAP net profit RMB 51.0898 million (-7.61%, QoQ +15.34%). Semi-annual report profit distribution plan: no cash dividend, no bonus shares, no capital reserve conversion. Total number of ordinary shareholders at the end of the reporting period was 47,084. Top ten shareholders (including restricted shares): Li Shuibo 25.06% (102,200,850 shares, including 76,650,637 restricted shares), Shen Anyun 16.71% (68,145,300 shares), Li Baihua 6.90%, Li Baiyuan 6.88%. Sources: https://newzzbcx.cs.com.cn/cxnews.html?name=new20260829130917hbnheuej ; https://www.cnfin.com/announ/detail/index.html?id=841259428621&code=300260 ; research report review http://stock.finance.sina.com.cn/stock/go.php/vReport_Show/kind/search/rptid/841629786066/index.phtml

4.2 Investor Relations Activity Record (Announcement No. 2026-010, Activity Date 2026-08-31, Announcement Date 2026-09-01)

Reception format: specific-object survey/analyst meeting/earnings briefing/teleconference; location: company meeting room; reception personnel: CFO Huang Shihua, Deputy General Manager and Board Secretary Zhu Mengyong. There are differences in the number of institutions: Tonghuashun iNews said "26 institutions," while Sohu/21 Finance said "15 institutions" — the same record sheet, different statistical standards, should be noted when using. Key statements: order backlog remains at a good level, downstream demand is strong; the company stated it "will seize the dual opportunities of the semiconductor expansion peak and import substitution, and expects the semiconductor business to maintain rapid growth in subsequent quarters." Regarding liquid cooling: implemented by controlling subsidiary/subsidiary Lükangputing Precision, mainly engaged in CDU (coolant distribution units), manifolds, and system integration, targeting server and data center liquid cooling scenarios; the company clearly stated that this business "is still in the early stage of market expansion, is cooperating with core customers on sample testing, has not yet formed scale revenue, and still has significant uncertainty" (see interactive platform response on 2026-08-07). Regarding the Huai'an base: "the self-built plant in Huai'an has officially entered the mass production stage, and is currently continuing to advance capacity release as planned to match downstream order demand" (interactive platform 2026-08-07). Regarding overseas customers: "has passed certification for special processes from the top two U.S. semiconductor application equipment manufacturers and become a first-tier supplier, and currently has volume supply"; it has production bases in the United States, Taiwan, China, and Malaysia. Sources: https://www.cnfin.com/announ/detail/index.html?id=841598910500&code=300260 ; https://m.21jingji.com/timeline/40a6fc6cde607083a03afb98f3211f96.html ; https://m.21jingji.com/timeline/5d6553ad148bd87011ab7d9b2b9ad334.html ; https://stcn.com/article/detail/4169377.html ; interactive platform response https://www.stcn.com/quotes/index/sz300260.html

4.3 Institutional Research Report Reviews (Non-Announcements, for Cross-Reference)

CITIC Construction Investment 2026-09-01 (Xu Guangtan/Chen Xuanlin/Wu Yuxuan): H1 revenue +9.69%, pan-semiconductor +28.12%, pharmaceutical +26.54%; profit pressure mainly due to lower food gross margin and exchange losses pushing up financial expense ratio (H1 financial expenses +136.32% year-on-year). Huaxi Securities 2026-08-31 (Huang Ruilian): maintained "Accumulate"; adjusted 2026-2027 revenue RMB 3.509/4.381 billion, net profit attributable to parent RMB 222/301 million, EPS RMB 0.54/0.74, added 2028 revenue RMB 5.199 billion, net profit RMB 409 million, EPS RMB 1.00; based on 2026-08-28 share price of RMB 59.28, corresponding PE 109/80/59. Note: the above are forecasts from one/two securities firms, not multi-broker consensus expectations, and are research report views rather than company disclosures.

4.4 Patent Authorization (Authorized 2026-09-08, Media Report 2026-09-11)

Newly obtained utility model patent "A Flow Switch and Gas Delivery System" (application number CN202522051539.6, authorization date 2026-09-08). Data source is Tianyancha APP (not a company announcement); the report also stated that "so far this year, Kinglai Hygienic Materials has obtained 15 new patent authorizations, flat versus the same period last year"; 2026 first-half R&D investment was RMB 54.9676 million, -2.41% year-on-year. Source: http://stock.stockstar.com/RB2026091100010301.shtml

4.5 2025 Annual Equity Distribution Implementation (Announcement Date 2026-07-08, Announcement No. 2026-019)

Cash dividend of RMB 0.500000 per 10 shares (tax included); based on total share capital of 407,806,752 shares excluding 2,013,571 shares in the repurchase account, or 405,793,181 shares, total cash dividend RMB 20,289,659.05 (tax included), accounting for 11.59% of 2025 net profit attributable to parent. Record date 2026-07-14; ex-rights/ex-dividend date/payment date 2026-07-15; no bonus shares, no capital reserve conversion. Sources: https://www.cnfin.com/announ/detail/index.html?id=836781593025&code=300260 ; East Money dividend page https://emweb.securities.eastmoney.com/BonusFinancing/Index?type=soft&code=SZ300260 . Historical dividend reference: 2024 annual RMB 0.6 per 10 shares (implemented 2025-07-18); 2023 annual RMB 0.602977 per 10 shares; 2022 annual no distribution; 2021 annual 10 shares converted to 8 shares with RMB 1.6 dividend.

4.6 2026 Daily Related-Party Transaction Forecast (Board of Directors 2026-05-19, Announcement 2026-05-21, Announcement No. 2026-014)

Expected total daily related-party transactions with related parties in 2026 not to exceed RMB 172,769,000 (including purchases of goods, equipment, and warehouse leases, etc.). Directors Li Shuibo, Li Baihua, and Li Baiyuan recused themselves from voting (5 votes in favor, 0 against, 0 abstentions, 3 recusals); to be submitted to the shareholders' meeting for review. Source: https://data.eastmoney.com/notices/detail/300260/AN202605201822497106.html

4.7 2025 Annual Shareholders' Meeting Resolution (Disclosed 2026-05-20)

Reviewed and approved 11 proposals including the 2025 Board of Directors work report, financial final accounts report, and profit distribution plan. Source: http://stockdata.cnstock.com/stock/sz300260.html

4.8 2026 First Extraordinary Shareholders' Meeting (Held 2026-06-05, Announcement No. 2026-017)

Reviewed and approved the "Proposal on the 2026 Daily Related-Party Transaction Forecast"; 357 shareholders attended, representing 231,241,221 shares, or 56.9850% of total voting shares; 352 minority shareholders, representing 4,542,287 shares (1.1194%). Source: https://www.cnfin.com/announ/detail/index.html?id=834004733565&code=300260

4.9 Reduction Plan Expired Without Reduction (Announcement Date 2026-03-25)

The previously disclosed reduction plan by certain directors and senior management expired, and "none reduced company shares." Source: http://stockdata.cnstock.com/stock/sz300260.html

4.10 Reduction Pre-Disclosure (Announcement Date 2025-12-02)

Director Li Shanjun (holding 973,620 shares, or 0.2399%) planned to reduce no more than 243,405 shares (0.0600%) by centralized bidding within 3 months after 15 trading days from the announcement (2025-12-24 to 2026-03-23); director Weng Pengbin (holding 44,591 shares, or 0.0110%) planned to reduce no more than 11,148 shares (0.0027%); director Li Hongqing (holding 45,000 shares, or 0.0111%) planned to reduce no more than 11,250 shares (0.0028%); subsequently on 2026-03-25 it was announced that the above plans expired without reduction (see previous item). Source: http://stockdata.cnstock.com/stock/sz300260.html

4.11 Director Departure (Announcement Date 2026-01-08)

Director Li Shanjun resigned due to personal health reasons and no longer holds any position in the company or its subsidiaries. Source: http://stockdata.cnstock.com/stock/sz300260.html

4.12 Changes in Number of Shareholders (Semi-Annual Report Standard)

As of the end of the reporting period on 2026-06-30, the total number of shareholders was 47,084 (disclosed in the semi-annual report). Historical comparison: 28,626 as of 2024-09-30, 27,329 as of 2024-06-30, 23,489 as of 2024-03-31 — the number of shareholders shows a clear upward trend (dispersion of holdings). Sources: semi-annual report https://www.cnfin.com/announ/detail/index.html?id=841259428621&code=300260 ; https://data.eastmoney.com/stockcalendar/300260.html

4.13 Investment/Asset-Related Announcements (Earlier but Continuity Items)

2025-12-04 board resolution: approved the "Proposal on Wholly-Owned Subsidiary's External Investment and Signing of Capital Increase Agreement." 2025-11-13 announcement: wholly-owned subsidiary leasing assets to a related party and related-party transaction; and announcement of the sixth board of directors ninth meeting resolution. 2025-10-24 announcement: wholly-owned subsidiary signed a project investment framework agreement with the Kunshan Lujia Town People's Government. 2025-10-15 announcement: announcement on abnormal stock trading fluctuations. 2025-10-27/28: 2025 Q3 report earnings communication meeting (full announcement list on China Finance Network). Sources: https://gg.cfi.cn/ggqw/12279/300260.html?client=phone ; https://data.eastmoney.com/stockcalendar/300260.html

4.14 Market and Fund Flow Recent Situation (As Announcement Background, Not the Announcement Itself; Sources and Dates Noted)

Closing price RMB 56.810, down 4.15% (2026-09-01 close, previous close 59.270, Sina quote page snapshot); 2026-08-28 close RMB 59.28 (Huaxi research report standard). Margin financing balance: 2026-09-10 was RMB 485 million (3.15% of circulating market capitalization), margin purchases that day RMB 14.3021 million; 2026-09-07 margin financing balance RMB 512 million. Securities lending balance on 2026-09-10 was approximately RMB 3.1777 million. Sources: http://stock.10jqka.com.cn/20260911/c679811891.shtml ; https://www.stcn.com/quotes/index/sz300260.html. P/E (TTM) approximately 144.81x, P/B (LF) approximately 11.07x, P/S approximately 7.71x (based on 2026-08-28 close, China Securities Network). Source: https://newzzbcx.cs.com.cn/cxnews.html?name=new20260829130917hbnheuej

4.15 Uncertainties/Limitations to Be Noted

1) As of this search, no 2026 Q3 earnings forecast or flash report from the company was found; 2026Q3-related forecasts "not yet retrieved," and the October disclosure window (2026-10) should be monitored subsequently. The planned "October 2026 announcement" search was not completed due to step limits and is a blank item. 2) The number of institutions in the institutional survey is inconsistent (26 vs. 15), due to differences in statistical methods across data sources; it is recommended to rely on the original record sheet on CNINFO/Shenzhen Stock Exchange. 3) Some data such as patent counts and "opponents" come from Tianyancha APP and third-party media, not official company announcements, and are for reference only. 4) Closing prices, margin balances, and valuation multiples all come from third-party quote/information page snapshots and are time-sensitive; moreover, some financial portal quote components are JS-rendered and may differ from actual trades. 5) Reduction and related-party transaction amounts are based on announcement disclosure standards; related-party transactions are "estimated upper limits," not actual amounts incurred. 6) Major uncertain matters: the company itself states that the liquid cooling business is "in an early stage and has not yet formed scale revenue"; semi-annual report net profit declined and the food business is under pressure — these should be viewed separately from the "semiconductor high-growth" narrative to avoid optimistic interpretation from a single source. (The above information is based on public search results as of 2026-09-11.)

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, the share price had fallen approximately 18.0% from the August 17 high, and the closing price was below MA5, MA10, and MA20, with moving averages showing a bearish alignment tendency of MA5 < MA10 < MA20. RSI(14) is approximately 31, and the share price is close to the lower Bollinger band, indicating a short-term weak and low-level zone, with possible technical rebound, but no confirmed trend reversal has formed. On the fund flow side, on September 11 extra-large, large, and medium orders all had net outflow, while small orders had net inflow, and the overall trend over the past 5 trading days was bearish. MACD lacks specific values stably corresponding to the latest close, and the related judgment is only inferred from price structure.

5.3 Short-Term Trend Outlook (Next Week, Scenario Deduction, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario deduction based on the September 11, 2026 close and public historical market data, does not constitute investment advice, and is not a certain prediction of future share prices.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high subjective weight, approximately 50%-60%; not statistical probability): price range RMB 51.5-55.5. Trigger conditions include the share price finding support near RMB 51.7, trading value remaining at approximately RMB 400-600 million, and no consecutive volume-backed break below RMB 50.2. RSI is at a low level and the share price is close to the lower Bollinger band, so weak consolidation or a technical rebound is possible, but before regaining MA5 and MA10, it is more appropriate to view this as oversold repair observation rather than confirmed trend reversal
• Weaker downside (moderate subjective weight, approximately 30%; not statistical probability): price range RMB 48.5-51.5. Trigger conditions are an effective close below RMB 50.2, while trading value clearly expands to above RMB 650 million, and main funds continue to show net outflow from large and medium orders. If the decline is accompanied by reduced volume, it may appear as weak bottoming; if accompanied by increased volume, it indicates selling pressure has not been fully released
• Rebound strengthening (relatively low subjective weight, approximately 10%-20%; not statistical probability): price range RMB 55.5-58.5. Trigger conditions are regaining RMB 54.2-55.0 and further breaking above MA10 at approximately RMB 55.9-56.0, while single-day trading value expands to above RMB 650-700 million, and main funds shift from consecutive net outflow to net inflow for at least two consecutive trading days. If it breaks above MA10, it may further test MA20 at approximately RMB 57.4-58.1; if volume shrinks in the RMB 57.4-59.3 area, the risk of a pullback after a spike still needs to be watched

③ Fund and Liquidity Background

As of September 11, 2026, the turnover rate was 2.79%, and trading value was approximately RMB 415 million; from September 7 to September 11, 2026, single-day trading value was approximately RMB 377-684 million, with an average trading value of approximately RMB 520 million over the past 5 trading days. Compared with multiple high-volatility trading days exceeding RMB 1 billion during August 11-19, 2026, current trading activity has declined, but active selling pressure still exists during the decline. Shareholder structure data as of March 31, 2026, announcement date April 28, 2026: the top ten shareholders together held approximately 57.59%, and the actual controller family Li Shuibo, Shen Anyun, Li Baihua, and Li Baiyuan together held approximately 55.55%; although institutions or foreign-type accounts such as Hong Kong Central Clearing, Goldman Sachs, Barclays, and Southern CSI 1000 ETF appear among the top ten shareholders, each single holding ratio is relatively low, showing no highly concentrated public fund or social security fund holding structure. The above shareholder data is quarterly lagged and may have changed due to share price fluctuations, fund rebalancing, and margin financing/securities lending changes. Concentration of holdings by the controlling family means free-floating chips are relatively limited, and when trading value is low, buy and sell orders may be more easily affected by a small number of large orders; currently large and medium orders are outflowing while small orders are inflowing, and the quality of short-term chip absorption still needs observation.

If subsequent single-day trading value can reach approximately RMB 650 million or more for two consecutive days, while the share price rises above RMB 55.5-56.0 and main funds no longer show consecutive net outflow, this can be used as an observation signal of short-term improvement in the fund side; if trading value expands but the share price continues to break below RMB 50.2, it more likely reflects volume-backed distribution rather than active participation.

④ Key Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Observe whether the RMB 51.7-52.2 area can stabilize on reduced volume; the above is a technical level observation idea, not a buy or sell instruction.
• Observe whether there is an effective volume-backed break below the RMB 50.2 area; the above is a risk signal observation idea, not a buy or sell instruction.
• Observe whether the rebound can effectively withstand resistance at RMB 54.2-56.0 and further repair to the MA20 area near RMB 57.4; the above is a technical structure observation idea, not an operational instruction.
• Observe whether trading value can consecutively reach approximately RMB 650 million or more, and whether large and medium order funds shift from net outflow to net inflow; the above is a fund-side observation idea, not a buy, sell, or hold instruction.

The above scenario deduction is based on the September 11, 2026 close and historical prices and technical indicator calculations. Short-term share prices will also be disturbed by multiple factors such as news, fund flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy or sell advice. Please make independent judgments in light of the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

Kinglai Hygienic Materials spans three sub-industries: semiconductor clean materials and equipment components, liquid food aseptic packaging, and biopharmaceutical high-purity fluid systems. There is no pure comparable company in the A-share market with exactly the same business structure.

6.2 Competitive Landscape

• Semiconductor clean materials and equipment components: products need to meet requirements such as high cleanliness, low particles, corrosion resistance, high temperature resistance, low outgassing, and high vacuum; customer certification cycles are long, and switching costs are high after entering equipment manufacturers' and wafer fabs' supply chains. Overseas manufacturers have long occupied the high-end market, while domestic manufacturers benefit from import substitution, supply chain security, and localized services.
• In the semiconductor field, Kinglai Hygienic Materials covers vacuum systems, high-purity gas systems, clean pipelines, pumps and valves, and some semiconductor process components, and uses food and biopharmaceutical high-purity businesses as its customer and process foundation, but it does not have an absolute monopoly position in any single component.
• Liquid food aseptic packaging: the industry has long been dominated by international manufacturers such as Tetra Pak and SIG, while domestic companies such as Greatview Aseptic Packaging, Xinjufeng, and Shandong Bihai are advancing import substitution. Equipment and packaging materials have a strong binding relationship, and suppliers usually enhance customer stickiness through "filling equipment + packaging materials + after-sales service."
• Kinglai Hygienic Materials provides both aseptic packaging materials and filling equipment through Shandong Bihai, giving it some product portfolio differentiation, but it faces competition from international giants, strong bargaining power of downstream dairy companies, and insufficient pass-through of raw material costs.
• Biopharmaceutical high-purity fluid systems: core competitive factors include international standard certifications such as ASME BPE, aseptic and clean design capabilities, product validation records and quality traceability, long-term cooperation with pharmaceutical engineering companies and pharmaceutical companies, and stable operation capability in pharmaceutical production lines. Industry prosperity is related to pharmaceutical companies' capital expenditures, innovative drug financing environment, and project construction cycles, and revenue volatility may be higher than in the food business.
• The company has not disclosed unified total production capacity covering all businesses. The Huai'an clean pipeline project involves an annual production capacity of 7.2 million meters of clean pipelines, but this figure belongs to project planning or designed capacity. As of the public response in July 2026, the project was still continuously releasing capacity and had not yet reached full production, and should not be regarded as actual 2025 output.
• Fangxin Precision plans to invest approximately RMB 2 billion to build a semiconductor core components project. As of May 8, 2026, it was still in the preliminary preparation stage, with uncertainty in land, construction, and production timelines, and cannot yet be included in existing capacity. Claims that some projects will have annual output value exceeding RMB 1.5 billion after reaching production are securities firm citations or project planning data, and have not been cross-confirmed by the company's annual report on actual capacity utilization.

6.3 Main Competitors

Kinglai Hygienic Materials' comparative advantage lies in simultaneously covering high-purity fluids, vacuum systems, some semiconductor core components, and food aseptic packaging, with cross-industry customer and process foundations; however, its business structure is diversified, with semiconductor revenue accounting for approximately 32% of 2025 operating revenue, and it cannot be directly compared one-to-one in overall terms with companies with higher semiconductor business purity. The company as a whole is closer to a midstream key components and system materials supplier, and profit improvement depends on volume ramp-up of high value-added semiconductor components, improved capacity utilization, cost pass-through in food packaging materials, and recovery in the pharmaceutical business.

7. Risk Warnings

• Risk of profit recovery falling short of expectations: in the first half of 2026, revenue grew 9.69% year-on-year, but net profit attributable to parent declined 7.52% and non-GAAP net profit attributable to parent declined 10.20%, while Q2 net profit attributable to parent declined 17.49% year-on-year. If revenue growth cannot translate into gross margin improvement, profit growth may continue to lag revenue growth.
• Risk of dependence on pan-semiconductor customers and certifications: although the company has passed relevant certifications from top-ranked U.S. semiconductor equipment manufacturers and achieved volume supply, customers typically have strong quality review, price negotiation, and annual price reduction capabilities; changes in customer orders, certification progress, or supply chain strategy may affect volume ramp-up in the semiconductor business.
• Risk of profit pressure in the food business: in 2025, food revenue accounted for 58.97% of company revenue, and in the first half of 2026 food revenue declined 2.36% year-on-year; this business faces bargaining from dairy, juice, and beverage customers, as well as pressure from inability to timely pass downstream increases in raw materials such as paper, aluminum foil, polymer films, and adhesives.
• Risk of working capital occupation: as of the end of 2025, accounts receivable book value was RMB 840 million, approximately 28% of full-year operating revenue, inventory was RMB 1.648 billion, approximately 55% of full-year operating revenue, accounts receivable turnover days were approximately 98 days, and inventory turnover days were approximately 255 days; if orders or demand change, this may bring cash flow pressure and inventory impairment risk.
• Risk of capacity construction and project delivery: although the Huai'an base has entered the mass production stage, it is still continuously releasing capacity and has not yet reached full production; the Fangxin Precision semiconductor core components project with planned investment of approximately RMB 2 billion was still in the preliminary preparation stage as of May 2026, and land, construction, production, and full-production timelines are uncertain, and planned output value cannot be equated with actual revenue.
• Risk of uncertainty in the liquid cooling business: the company's liquid cooling business mainly involves CDUs, manifolds, and system integration. It is currently still in the early stage of market expansion, cooperating with core customers on sample testing, and has not yet formed scale revenue. Its contribution to company performance in the short term is highly uncertain.
• Risk of valuation decline: as of September 11, 2026, the company's share price was RMB 52.04, total market capitalization approximately RMB 21.222 billion, dynamic P/E approximately 106x-131x, and P/B approximately 9.67x-10.10x; if semiconductor business growth, profit margin, or consensus expectations are not delivered, the relatively high valuation may face contraction pressure.
• Risk of weak technical and fund-side conditions: the share price has fallen approximately 18% from the August 17, 2026 high, and is currently below MA5, MA10, and MA20, with MA5 < MA10 < MA20; on September 11, extra-large, large, and medium order funds all had net outflow. If it subsequently breaks below support near approximately RMB 50.2 on increased volume, short-term volatility risk may increase further.

8. Conclusion and Outlook

The company's medium- to long-term growth logic mainly comes from import substitution in the pan-semiconductor business, customer certifications, and order volume ramp-up, as well as an increased share of high value-added vacuum, gas transmission, and semiconductor precision components. In the first half of 2026, pan-semiconductor revenue growth was significantly higher than the company's overall revenue, and the pharmaceutical business also showed recovery growth; Huai'an capacity release, volume supply to overseas customers, and subsequent validation of new projects may provide support for improving the revenue structure. The food business, through the combination of aseptic packaging materials and filling equipment, forms certain customer stickiness and provides the company with a relatively large revenue base, but its growth and profitability are still affected by raw material prices and downstream customer bargaining.

Whether performance can continue to improve depends crucially on whether high growth in the semiconductor business can translate into higher gross margin and net profit margin, whether Huai'an base utilization can continue to increase, whether projects such as Fangxin Precision can complete validation and form actual volume ramp-up, and the cost pass-through situation in the food business and recovery in pharmaceutical demand. The liquid cooling business is currently still in the early stage of market expansion and has not yet formed scale revenue, and cannot be regarded as a certain source of performance growth at this stage.

Against the background that revenue growth has not yet fully translated into profit growth and cash flow and working capital occupation still need improvement, the company's relatively high valuation demands a high degree of earnings delivery. Subsequently, focus should be placed on pan-semiconductor orders and revenue growth, overall gross margin, non-GAAP net profit, operating cash flow, changes in inventory and accounts receivable, and whether the share price can repair short-term moving averages and fund flow can strengthen.

Data Sources

• Kinglai Hygienic Materials (300260)_Company Announcements_Kinglai Hygienic Materials: 2025 Annual Report Summary Sina Finance_Sina
• Kinglai Hygienic Materials (300260)_Company Announcements_Kinglai Hygienic Materials: 2025 Annual Report Sina Finance_Sina
• Kinglai Hygienic Materials: Huai'an self-built plant has officially entered mass production stage_Company_Semiconductor_Products
• Securities code: 300260
• Kinglai Hygienic Materials controlling subsidiary RMB 50 million project environmental assessment receives preliminary approval | National Business Daily
• Kinglai Hygienic Materials (300260) Financial Indicators_Sina Finance_Sina
• Kinglai Hygienic Materials (300260) historical P/E, historical P/B, historical dividend yield, news, financial reports, research reports, data - Dashiyetouzi
• 2025 Annual Report & 2026 Q1 Report Review: Semiconductors lead growth, optimistic about the company continuing to benefit from pan-semiconductor & liquid cooling layout - Macro Research Report _ Data Center _ East Money
• Current status and competitive analysis of China's aseptic packaging industry: import substitution trend increasingly prominent_Guanyan Report Network
• "Regarding Shenyang Fortune Precision Equipment Co., Ltd. Initial Public Offering"
• [Restructuring Inquiry Letter Response Report

Shandong Xinjufeng Technology Packaging Co., Ltd.

Rongcheng Special Zi [2023] No. 100Z1034](https://pdf.dfcfw.com/pdf/H2_AN202306161591038875_1.pdf?utm_source=openai)

• Kinglai Hygienic Materials (300260) by product category - Company main business composition - China Business Industry Research Institute Database - AskCI
• 300260 Kinglai Hygienic Materials
• Kinglai Hygienic Materials: 2025 Annual Report Summary_Jiufang Zhitou - Global Index
• Kinglai Hygienic Materials
• 300260 Operating revenue - Stocks
• Kinglai Hygienic Materials listed company information
• Kinglai Hygienic Materials (300260)_Stock Overview_Stock Price_Real-time Quotes_Trend Chart_News_Stock Reviews_Financial Reports_FinScope-AI makes investing simpler
• Kinglai Hygienic Materials - Kinglai Hygienic Materials
• Kinglai Hygienic Materials (300260.SZ) - Quick Quote
• Kinglai Hygienic Materials: 2025 Q1 net profit RMB 50.9877 million
• Kinglai Hygienic Materials: 2024 H1 net profit RMB 140 million, up 26.91% year-on-year
• Kinglai Hygienic Materials: 2024 net profit RMB 226 million, plans RMB 0.6 per 10 shares - China Securities Intelligent Financial News Kinglai Hygienic Materials (300260) disclosed its 2024 annual report on April 29
• Kinglai Hygienic Materials: 2024 net profit RMB 226 million, plans RMB 0.6 per 10 shares - Hot:
• Kinglai Hygienic Materials (300260) Performance Collection_Data Center_East Money
• Kinglai Hygienic Materials: 2024 net profit RMB 249 million, up 5.73% year-on-year
• Bank of China (Hong Kong) Limited
• Kunshan Kinglai Hygienic Materials Co.,Ltd. (300260.SZ) income statement – Yahoo Finance - Shenzhen - Delayed Quote CNY
• Kinglai Hygienic Materials (300260) Financial Reports_Financial Overview_Stock Financial Indicator Analysis_Investing.com - Kinglai Hygienic Materials (300260)
• Kinglai Hygienic Materials - Kinglai Hygienic Materials
• [Kunshan Kinglai Hygienic Materials Co.,Ltd. Reports Earnings Results for the Full Year Ended December