Hz info,On August 28, Jiangsu Kuangshun Photosensitivity New-Material Stock Co.,LTD. (hereinafter referred to as “Kuangshun Materials”) released its 2025 semi-annual report. The report shows that the company achieved operating revenue of RMB 233 million in the first half of the year, a year-on-year decrease of 10.38%; net profit attributable to shareholders of the listed company was RMB 13.5411 million, a year-on-year decrease of 51.38%; and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 11.7784 million, a year-on-year decrease of 58.89%.

Photovoltaic Adhesive Business Drags Down Overall Performance, Functional Coatings Grow Against the Trend

Kuangshun Materials stated in the report that the decline in performance was mainly due to the drag from its photovoltaic BC battery insulating adhesive business. Under factors such as increasing cost-reduction pressures in the photovoltaic industry and clients introducing second-source bidding, the revenue of this business plummeted by 83.47% year-on-year, reaching only RMB 5.6231 million.

Additionally, the company’s photoresist and supporting materials business overall achieved revenue of RMB 145 million, a year-on-year decrease of 15.57%, accounting for 62.02% of total revenue. Among these, PCB photoresist, as a stabilizing business, performed steadily with revenue of RMB 139 million, a year-on-year increase of 1.62%; while display photoresist revenue was only RMB 23,800, a drastic year-on-year decrease of 95.66%, reflecting the severe impact of the continued downturn in the semiconductor display industry on Kuangshun Materials’related business.

It is worth noting that the functional coatings segment demonstrated strong risk resistance, achieving revenue of RMB 88.637 million, a year-on-year increase of 1.05%, with its proportion of total revenue rising to 37.97%. Within this segment:

● Consumer electronics coatings revenue was RMB 42.0125 million, a year-on-year increase of 5.12%;

● Automotive coatings revenue was RMB 2.8967 million, a year-on-year decrease of 38.07%;

● Functional film and metal packaging coatings revenue was RMB 37.9309 million, a year-on-year increase of 7.73%;

● High-performance special functional coatings revenue was RMB 430,000;

● Other industrial coatings revenue was RMB 5.3668 million, a year-on-year decrease of 31.74%.

Functional Coatings Blossom in Multiple Areas, Transformation Shows Results

In recent years, Kuangshun Materials has actively promoted strategic transformation, optimizing its asset structure through organic growth, mergers and acquisitions, and cash acquisitions. The business segments have evolved from a single PCB photoresist business to two new functional material business segments: functional coatings,and photoresist and supporting materials.

In the field of photoresist, Kuangshun Materials continues to deepen its presence in the PCB photoresist market while also expanding into emerging applications such as semiconductor display photoresist and photovoltaic adhesive. Although the photovoltaic adhesive business is under short-term pressure, the company stated that it will continue to strengthen technology research and development and enhance product performance to cope with market competition.

The functional coatings segment has become an important growth engine for Kuangshun Materials. The company has made breakthrough progress in key areas such as marine coatings, high-performance special functional coatings, and metal packaging coatings. In marine coatings, Kuangshun Materials has developed environmentally friendly graphene-modified water-based heavy-duty anticorrosive coatings and graphene-modified solvent-free high-solid anticorrosive coatings. These products outperform industry standards in performance indicators and have passed international authoritative certifications such as NORSOK M-501, gradually replacing imported products.

In the field of high-performance special functional coatings, during the reporting period, Kuangshun Materials developed high-performance special functional coating materials such as environmentally friendly self-drying two-component high-temperature-resistant coatings through continuous research and innovation. These coatings feature fast drying, excellent adhesion, good weather resistance, strong rust prevention, low VOCs content, and the ability to withstand high-temperature environments. They will be widely used in industries such as petrochemical refining, steel, thermal power, and steel pretreatment.

In the consumer electronics and automotive coatings sector, its wholly-owned subsidiary Jiangsu Hongtai’s “HIPRO” brand continues to deepen its expertise in UV curing technology. This technology offers advantages such as environmental friendliness, high efficiency, energy savings, and outstanding performance. It is widely used in consumer electronics housings, automotive lights, interior and exterior parts, and cosmetic packaging. Currently, this segment is positioned for “stabilization and recovery,” growing steadily with the recovery of the consumer electronics industry and expanding into the automotive coatings market.

In the packaging coatings field, Kuangshun Materials has gradually enriched its product applications in high-end cosmetic packaging coatings, metal food packaging coatings, and functional film coatings. It has also developed environmentally friendly solvent-free UV curing coatings for metal food packaging. Currently, functional film and metal packaging coatings have become the fastest-growing segment for Kuangshun Materials. The revenue of this business was approximately RMB 50 million in 2023, rapidly increased to approximately RMB 90 million in 2024, and reached approximately RMB 38 million in the first half of 2025 alone, demonstrating significant market potential and explosive growth.

Strategic Layout and Future Outlook

Kuangshun Materials is currently advancing a strategic transformation based on centralized production in the South China market base. This involves further integrating resources for centralized production, optimizing non-core assets, and focusing on breaking through strategic core markets. After completion, the project will achieve an annual production capacity of 50,000 tons of electronic materials and supporting materials.

The report points out that with the implementation of Kuangshun Materials’ small-scale rapid private placement and the further release of production capacity at the Longnan base, the company’s comprehensive production capacity and assets will be further optimized. This will help steadily improve operational standards. Coupled with the rapid expansion of new product applications such as functional film and metal packaging coatings, marine coatings, and high-performance special functional coatings, these will become new performance growth points for Kuangshun Materials, further enhancing its core competitiveness.

At the same time, Kuangshun Materials will focus on developing strategic core markets for marine coatings in harsh corrosive environments such as marine equipment, maritime mining, and port facilities. It will deeply engage with customer scenarios to develop heavy-duty anticorrosive coatings and high-performance special functional coating solutions that address multiple needs, expanding into broader industrial high-end equipment and facility protection markets to inject new momentum into the company’s performance growth.