Shanghai Hengfeng New Material Technology Co., Ltd. (hereinafter referred to as "Hengfeng New Material") recently completed a Pre-B round of financing worth tens of millions of yuan. This round of financing was led by Yida Capital, with Lingang Digital Technology Fund and Shangyan Xingong Fund following suit, and existing shareholder Yaotu Capital continuing to invest. Shijing Capital served as the exclusive financial investment advisor. The cumulative amount from the two rounds of financing has exceeded 100 million yuan, which will aid in upgrading the company's product supply system and expanding its strategic presence in the electronic-grade specialty phenolic resin and specialty phenolic epoxy resin markets.

  Hengfeng New Materials was founded in 2018. It boasts a senior team with 20 years of experience in the phenolic resin and epoxy resin industries, drawn from universities such as East China University of Science and Technology. The team covers various fields including technology, production, and sales. With a forward-looking development strategy of "Polymerizing Technology, Sealing the Future", Hengfeng New Materials is committed to shaping itself into a global leader in electronic-grade specialty phenolic resin and specialty phenolic epoxy resin technology.

  Currently, there is a high demand for electronic-grade specialty phenolic resins and specialty phenolic epoxy resins, which are heavily reliant on imports. Achieving "Smart Manufacturing in China" is of utmost urgency. Hengfeng New Materials' product matrix is widely used in various scenarios such as copper-clad laminates, epoxy molding compounds, photoresists, electronic adhesives, and other composite materials. We seek growth opportunities for product localization and have received high recognition from leading domestic and international enterprises. Currently, Hengfeng has established modern production lines in Anhui and Taizhou.

  While maintaining its strong growth momentum, Hengfeng New Materials plans to accelerate the localization and substitution process of electronic-grade specialty phenolic resin and specialty phenolic epoxy resin categories in the future. The production base in Bengbu, Anhui is about to commence production, providing customers with sufficient capacity guarantee. Facing the current situation of international tension and changes in tariff policies, Hengfeng will turn challenges into opportunities and continue to create maximum value for shareholders and customers.

  Investor perspective:

  Huang Liqun, a partner at Yida Capital, said, "The founders and core team of Hengfeng New Materials have many years of experience as senior executives in foreign companies, with rich technical expertise and extensive customer resources. The company's products are key materials in the semiconductor packaging field, and the technical barriers for high-end products are relatively high. In line with the general trend of domestic substitution, we are very much looking forward to Hengfeng achieving both quantitative breakthroughs and qualitative leaps in this regard. At the same time, we also hope that the company can manage its cash flow well during the expansion process and strengthen product quality management during the ramp-up of production capacity."

  The head of Lingang Digital Technology Fund stated that Hengfeng New Materials possesses a well-established and experienced R&D, operation, and sales team that integrates technology and market, and has mastered the core database for product research and development in the electronic-grade phenolic resin industry. The company has established stable cooperative relationships with leading customers and well-known manufacturers in the semiconductor packaging and molding materials industry, and has gained recognition from top customers in the industry. In the future, Hengfeng New Materials will occupy an important industry position in the electronic-grade specialty phenolic resin and specialty phenolic epoxy resin markets. Lingang Digital Technology Fund will continue to promote and support the company's development.

  Song Ye, Managing Director of Yaotu Capital, said, "In recent years, Hengfeng has seen a continuous influx of professional talents, an expanding product matrix, the smooth implementation of mass production lines, and a rapid increase in revenue. The company's excellent performance has further strengthened Yaotu Capital's confidence in it, leading to continuous investment. Yaotu Capital will continue to deeply engage in the intelligent manufacturing industry, journey alongside entrepreneurs, and build an intelligent manufacturing ecosystem."