On July 2, Dingtai Hi-Tech disclosed that its wholly-owned subsidiary, Guangdong Dingtai Intelligent Technology Co., Ltd., has partnered with individual Xu Wei to establish Guangdong Dingtai Vacuum Coating Technology Co., Ltd., boasting a registered capital of 50 million yuan.

The new subsidiary secured its industrial and commercial registration on June 30 and has been incorporated into the consolidated financial statements. Its business scope encompasses vacuum coating processing, new material R&D, manufacturing and sales of optical glass and optoelectronic devices, as well as R&D of electronic specialty materials. Dingtai Hi-Tech stated that this investment aims to capitalize on its existing technological strengths, concentrate on the application of vacuum coating in high-end fields such as optical devices, push technological boundaries, and achieve specialized operations.

This strategic maneuver comes amid a period of explosive growth for the company. In 2025, Dingtai Hi-Tech reported revenue of 2.144 billion yuan and a net profit attributable to shareholders of 434 million yuan. In the first quarter of 2026, revenue reached 814 million yuan, with a net profit attributable to shareholders of 261 million yuan. During the same period, the gross margin surged from 42.34% in 2025 to 53.25%, and the net profit margin rose from 20.14% to 31.96%.

In terms of production capacity, the monthly output of drill bits has hit 130 million units; the Thai base boasts a monthly capacity of 6 million units, expected to climb to 15 million units by year-end. The company also plans to invest 5 billion yuan in Houjie, Dongguan, to construct an intelligent manufacturing headquarters base. Abundant capital and technological reserves provide a robust foundation for venturing into this new industry sector.

Simultaneously, capital operations are progressing swiftly. On June 30, Dingtai Hi-Tech initiated its Hong Kong public offering of H shares, with a maximum offering price of 380 Hong Kong dollars per share. Based on a global offering of 12.632 million shares, if priced at the upper limit, the net proceeds would approximate 4.665 billion Hong Kong dollars.

The company previously attempted to list on the Hong Kong Stock Exchange in 2025 but was unsuccessful. This marks its second foray into listing H shares, having secured overseas issuance approval from the China Securities Regulatory Commission in May 2026. It is currently in the public offering stage, inching closer to a dual A+H listing.

In the realm of functional film materials, Dingtai Hi-Tech's business generated revenue of 73.6855 million yuan in 2025, accounting for 3.44% of total revenue. However, the operating profit was a negative 5.1282 million yuan, with a gross margin of -6.96%, indicating an actual loss.

The company previously announced that its vacuum coating equipment is primarily utilized for coating processes on drill bits and cutting tools, with relevant technologies and design experience in diamond-like carbon (DLC) nano-coating equipment being transferable to fields such as optics, decoration, new energy, and semiconductors. The significance of the newly established subsidiary lies in elevating the original auxiliary supporting business into an independent strategic sector, with a sharper focus on penetrating high-end scenarios such as optics.

However, transitioning from PVD coatings for cutting tools to PVD coatings for optics is not merely a matter of repurposing production lines but represents a technological leap. Coatings for cutting tools prioritize mechanical protection, whereas optical coatings demand exponentially higher precision in controlling film uniformity, defect density, and spectral transmittance/reflectance.

In addition to physical vapor deposition (PVD), optical coatings often involve more intricate processes such as chemical vapor deposition (CVD) or ion-assisted deposition. Accumulating relevant process know-how and introducing and integrating high-end equipment pose the initial challenges for the new company.

Opportunities and challenges abound. As of July 2, 2026, the company's static price-to-earnings ratio has surpassed 500 times, suggesting that the market has already factored in exceedingly high growth expectations. Once growth decelerates, the pressure for a market correction cannot be overlooked. Moreover, uncertainties persist in strategic synergy, market expansion, and team integration for the newly established subsidiary.

From a broader perspective, the domestic vacuum coating industry is fiercely competitive, with international giants like Bühler and Leybold, as well as numerous local companies accelerating their deployments. Whether Dingtai Hi-Tech, as a newcomer, can swiftly gain a foothold with its precision manufacturing management experience and capital advantages remains to be seen over time.

From PCB drill bits to optical vacuum coatings, Dingtai Hi-Tech is striving to extend its reach from PCB precision manufacturing to a pan-precision manufacturing platform. This market leader, with a valuation exceeding 200 billion yuan, is quietly opening up a second front in the high-end optical manufacturing sector.

For the optical industry, the entry of a player with robust manufacturing capabilities and ample capital will introduce new variables to the application of vacuum coating technologies. For the company itself, whether it can foster a second growth curve while sustaining high growth in its main business will be a focal point of market attention in the next one to two years.

The establishment of the subsidiary serves as both a strategic declaration and the commencement of practical operations. The competitive landscape in the optical coating sector may thus undergo subtle shifts. OFweek Optical will continue to monitor developments.