Quartz Co., Ltd., high-purity quartz, Sanjian launches simultaneously

( Source: The pattern of a big tree )

Today, let’s talk about this company, Shiying Shares.

This company has a very solid foundation. It has been based in Donghai County of Lianyungang, in the “Crystal Capital,” since 1992. For more than thirty years, it has been locked in on one thing: high-purity quartz. You should know that quartz exists everywhere, but high-purity quartz that can be used inside chips and in photovoltaic manufacturing—this is the real “industrial gold.”

Its business model is actually very clear: “mine + sand + manufactured products” end to end. It holds onto globally scarce mineral sources, purifies the stone into high-purity quartz sand as fine as flour, and then turns it into quartz tubes, rods, quartz crucibles, and other consumables. It’s also a core material for fiber optics, with costs accounting for about 30%. In the past, everyone mainly focused on its photovoltaic business, thinking it was just a seller of shovels. But now the situation has changed: it is transforming from a simple photovoltaic-cycle stock into a platform for semiconductor materials and optical communications materials.

Let’s start with the newly released 2025 annual report. Honestly, the performance looks pretty “sour,” but there’s something hidden inside it. In 2025 full-year revenue was 31.7k yuan, down 16.71%; net profit attributable to the parent company was only 153 million yuan, directly cut in half and then discounted further, down 54.03%. If you only look at these numbers, you’d definitely think the sky is falling—but we need to look at the performance by quarter. Especially in the fourth quarter, revenue actually rebounded, up nearly 20% year over year, which suggests that the worst may already be behind.

Why is the performance so ugly? We need data to speak. This blame mainly falls on the photovoltaic industry. When photovoltaics was booming, quartz sand was “whoever has sand wins.” Now, with excess photovoltaic capacity, everyone is working through inventory, and things are tough. The company is also smart: it didn’t force price cuts to dump goods; instead, it chose a “prudent” strategy—better to sell less and control risk. As a result, the external sales volume of high-purity quartz sand used in photovoltaics fell 32.72%, and the price dropped from the previous sky-high level to 31.7k yuan per ton, a decline of more than 20%. It’s like selling cabbages at bargain prices in the past—you can only sell radishes now, and income naturally shrinks.

But! The key point is this: don’t just focus on photovoltaics. Its semiconductor and fiber-optics businesses are quietly gaining momentum—that’s the “second growth curve” that long-time stockholders should be watching.

Let’s dig into the semiconductor business. This is really the company’s “favorite” right now. The company’s strategy is very clear: semiconductor comes first. Why? Because this field has high barriers, thick margins, and is not subject to the kind of big ups and downs that photovoltaics has.

So what’s the semiconductor industry like now? AI is on fire, demand for memory chips is surging, and the global foundry utilization rate is rebounding. Shiying Shares seized this opportunity. Its quartz fiber cloth (Q-cloth) specialized materials have reached international advanced technical benchmarks, and it’s expected to go into mass production in 2026.

This is a big deal. In the past, this kind of thing was blocked by overseas players at the bottleneck—now they can make it themselves. Moreover, their self-produced sand has passed certification by multiple internationally mainstream equipment manufacturers, and leading domestic foundries are also actively pushing for localization certification. It’s like you used to supply street vendors, but now you’ve gotten an entry ticket to a Michelin restaurant—can your status be the same?

Let’s also talk about the fiber-optics business. This part isn’t as sexy as semiconductors, but it has the advantage of being steady. The world is currently building computing power networks and “two-gigabit” infrastructure. The capacity utilization rate for fiber-optic preform rods has been rising continuously. As a global leader that can purify high-purity quartz at scale, Shiying Shares provides core consumables for the fiber-optic industry—things like furnace core tubes and extending tubes—deeply linking itself with leading companies at home and abroad. This business is the company’s “stabilizer.” No matter how rough the outside storms are, this revenue comes in steadily.

Finally, let’s talk about something practical.

As the Middle East war continues to escalate, global attention to new energy has increased again, and the photovoltaic industry is entering a new wave of recovery and renewed enthusiasm. Shiying Shares’ photovoltaic business is also warming up and improving accordingly. But to this day, many people still treat Shiying Shares as nothing but a pure cyclical stock. They stubbornly believe that as long as the photovoltaic industry cools down, it will sink along with it—this is a seriously wrong way of thinking.

Now, the core value of Shiying Shares has long gone beyond the single label of “a photovoltaic shovel seller.” It is steadily completing its identity leap into a “semiconductor materials platform.” This is the core basis for its value increase. As the only domestic company capable of stable mass production of 4N8-level semiconductor-grade high-purity quartz sand, it has broken through overseas monopolies, passed certifications from international top equipment makers, and is deeply tied to leading semiconductor companies at home and abroad. The scaling up of its semiconductor business is continuously pushing up its long-term value.

In addition, the current fiber-optics industry is entering an epic price-hike wave. Driven by the explosion in AI computing power and smart-computing center demand, fiber-optic prices are rising dramatically. And as high-purity quartz sand is the core raw material for fiber-optic preform rods, its value naturally climbs along with fiber-optic prices. As the absolute leader of domestic high-purity quartz sand for the fiber-optics segment, Shiying Shares firmly occupies the leading position in the industry. It has signed long-term orders with major domestic fiber-optic leaders, fully benefiting from this round of price-hike tailwinds.

Therefore, you need to understand: for high-purity quartz sand, there are only a handful of companies worldwide that can mass-produce it at large scale. Unimin in the U.S. and Norway’s TQC are two big mountains. Shiying Shares is the only one in China that can go head-to-head with them. This combination of resource barriers plus technology barriers is its deepest moat.

Of course, risks also need to be guarded against. Supply-chain security is a big issue, since the best ore is abroad. Also, if downstream demand doesn’t meet expectations, the timing of the recovery will still have to be pushed back. But overall, in this “red sea” of the A-share market, companies like Shiying Shares—those with real technology, real resource sources, and actively transitioning to high-end—are still the ones to look at.

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