Yunnan Germanium Industry (002428.SZ): The company and Xinyao currently have no specific plans for large-scale mass production of 6-inch indium phosphide wafers

According to the Zhitong Finance App, Yunnan Germanium Industry (002428.SZ) issued an announcement. The cumulative deviation value of the closing price increase of the company's shares exceeded 20% within two consecutive trading days (August 19, 2025, August 20, 2025). According to the relevant regulations of the Shenzhen Stock Exchange, this is an abnormal fluctuation in stock trading.

The company learned that a domestic R&D institution recently announced matters relating to its technological breakthrough in the field of 6-inch indium phosphide epitaxial growth process. According to the company's understanding, the following risks are highlighted:

(1) The main business of Yunnan Xinyao Semiconductor Materials Co., Ltd. (hereinafter referred to as “Xinyao Company”), the holding subsidiary of the Company, is the production and sale of indium phosphide wafers (substrates) and gallium arsenide wafers (substrates). Similar to other semiconductor materials, III-V compound semiconductor substrates, including gallium arsenide and indium phosphide wafers, also need to continuously evolve to larger sizes. However, at present, the size specifications of indium phosphide wafers actually used by downstream customers are 2 to 4 inches, and domestically, they are mainly 2 inches and 3 inches. Whether the future can smoothly evolve into larger-sized products, in addition to technological breakthroughs in all links of the entire industry chain, is also affected by factors such as process reliability, cost and production capacity, policy and market, and there is uncertainty.

(2) As far as the holding subsidiary Xinyao Company is concerned, after mass production of 2-4 inch indium phosphide wafers, research and development of larger products was carried out to meet future market demand, but there is still great uncertainty from R&D to large-scale production. The company and Xinyao currently have no specific plans for large-scale mass production of 6-inch indium phosphide wafers. Next, under the premise that market and demand risks and technical risks are manageable, the company will consider relevant plans. If there is a relevant plan, the company will publicly disclose it in accordance with regulations.