Where to Begin
On August 4, the Shenzhen Stock Exchange issued a regulatory notice to Do-Fluoride New Materials Co., Ltd. regarding information disclosure violations. The notice revealed that the company failed to fully and accurately disclose key details about its semiconductor-grade hydrofluoric acid business, including the relatively low revenue contribution of the product.
Details of the Violation
On June 26, 2026, Do-Fluoride published an "Investor Relations Activity Record," which stated that the company had an existing production capacity of 40,000 tons for semiconductor-grade hydrofluoric acid, with utilization rates remaining at a high level and market prices rising by approximately 20% to 30%. It also noted that electronic-grade hydrofluoric acid is a "small-volume but irreplaceable" key material in semiconductor manufacturing, with a low share of total chip costs, and that downstream customers prioritize supply stability and quality consistency. The record further claimed that the company's independently developed semiconductor-grade hydrofluoric acid (G5 grade) had been steadily supplied in bulk to leading global logic and memory manufacturers such as TSMC, Samsung, Hua Hong, and ChangXin Memory Technologies.
Subsequently, the company's stock experienced abnormal trading fluctuations. On July 1, Do-Fluoride disclosed a "Stock Trading Anomaly Fluctuation Announcement," stating that sales of semiconductor-grade hydrofluoric acid products in fiscal year 2025 and the first quarter of 2026 accounted for less than 2% of total revenue, and would not have a significant impact on the company's performance. The Shenzhen Stock Exchange determined that Do-Fluoride failed to prudently, objectively, and completely disclose in the "Investor Relations Activity Record" that the product's revenue contribution was low and would not substantially affect performance. This information is crucial for investors to make value judgments and investment decisions, and could have a significant impact on the company's stock and derivative trading prices. The disclosure was therefore deemed to contain material omissions.
Company Background and Recent Performance
Do-Fluoride is primarily engaged in the research, development, production, and sale of high-performance inorganic fluorides, electronic information materials, and new energy batteries and materials. Its electronic information materials include semiconductor-grade hydrofluoric acid, electronic-grade silane, and other electronic-grade chemicals. In 2025, the company reported revenue of 9.434 billion yuan, up 14.37% year-on-year, and a net profit attributable to shareholders of 213 million yuan, reversing a loss of 308 million yuan in the prior year. Electronic information materials contributed 409 million yuan in revenue, accounting for 4.33% of total revenue. In July, the company issued a profit forecast for the first half of 2026, expecting a significant increase in net profit attributable to shareholders to between 450 million and 560 million yuan, a year-on-year increase of 776.68% to 990.98%. The company attributed this to improvements in the core product lithium hexafluorophosphate, driven by optimized industry supply-demand dynamics, and substantial growth in the new energy battery business, without mentioning semiconductor-grade hydrofluoric acid.