Henan SF Diamond Advanced Materials Co., Ltd. (hereinafter referred to as "SF Diamond" or "the Company") is listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. To meet the capital needs of its business development, enhance its capital strength, and improve profitability, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Administrative Measures for the Registration of Issuance of Securities by Listed Companies," and the "Articles of Association of Henan SF Diamond Advanced Materials Co., Ltd.," among other relevant laws, regulations, and normative documents, the Company proposes to issue A shares to specific objects (hereinafter referred to as "this Offering" or "this Offering to Specific Objects") and raise capital. The Company has compiled this analysis report on the feasibility of the plan for issuing A shares to specific objects.
Unless otherwise specified in this report, the terms used herein have the same meanings as in the "Prospectus for Henan SF Diamond Advanced Materials Co., Ltd.'s 2026 Offering of A Shares to Specific Objects."
I. Background and Objectives of the Offering to Specific Objects
(I) Background of the Offering to Specific Objects
- Policy Support: Synergistic policies from multiple levels support the continuous improvement of the advanced materials industry's support system.
The "15th Five-Year Plan" outlines advanced materials and diamond as key components of the national strategic layout, making systematic arrangements for industrial base rebuilding, high-end new material cultivation, and emerging sectors like integrated circuits. It defines their positioning as key areas for enhancing national industrial competitiveness. Relevant national ministries and commissions have successively introduced supporting policies, including listing functional diamond materials in the encouraged category of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," including polycrystalline diamond tools in the first batch of key new material demonstration applications, and regulating the import and export management of the industry. This builds a comprehensive policy support system covering R&D, market promotion, and supply chain security, guiding the industry towards high-end and functional upgrading.
Henan Province, as a core cluster for the national advanced materials industry, has identified advanced materials as a key development direction for its new materials industry. It has introduced a series of industrial support policies to coordinate breakthroughs in core technologies, major industrial project implementation, and characteristic industrial cluster development. Through provincial key R&D special projects and other channels, it supports the R&D and commercialization of cutting-edge technologies such as large-size, high-performance polycrystalline diamond, providing a favorable policy environment and industrial support for the technological upgrading, capacity expansion, and market development of advanced materials enterprises in the province.
- Downstream Industry Technology Iteration and Upgrading, High-end Drill Bit Market with Long-term Growth Potential
The rapid development of cutting-edge technologies such as artificial intelligence, AI servers, and autonomous driving is driving the continuous iteration of printed circuit boards towards higher layers, higher density, and higher performance. This places higher demands on the hardness, wear resistance, and processing accuracy of drill bits in downstream manufacturing processes, leading to a sustained increase in market demand for high-performance diamond drill bits. According to Frost & Sullivan statistics, the global PCB drill bit market size is expected to grow from RMB 3.5 billion in 2020 to RMB 4.5 billion in 2024. The global PCB drill bit market is expected to maintain steady growth from 2024 to 2029, with a market size potentially reaching RMB 9.1 billion by 2029.