鴻騰六零八八精密科技股份有限公司*（「本公司」，連同其附屬公司為「本集團」） 董事會（「董事會」）謹此宣佈，本公司將於二零二五年八月十二日（星期二）舉行董 事會會議，藉以（其中包括）(i)考慮及批准本集團截至二零二五年六月三十日止六 個月之中期業績；及(ii)考慮派發中期股息（如有）。 承董事會命 鴻騰六零八八精密科技股份有限公司* 董事會主席 盧松青 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成立的有限公司， 並以鴻騰六零八八精密科技股份有限公司於香港經營業務） （股份代號：6088） 董事會會議日期 香港，二零二五年七月三十一日 截至本公告日期，董事會包括執行董事盧松青先生、盧伯卿先生及PIPKIN Chester John先生；非執行董事張傳旺先生及黃碧君女士；以及獨立非執行董事 CURWEN Peter D先生、鄧貴彰先生及陳永源先生。 * 於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成 ...

Investment Rating - The industry investment rating is "Overweight" as the report anticipates that the interconnection bandwidth demand will experience rapid growth due to the "multiplier effect" [4][90]. Core Insights - The report identifies four major trends in the AI computing interconnection sector: 1. Computing hardware demand is shifting from being anchored to cloud vendors' CapEx to being anchored to the number of tokens processed. 2. The landscape of computing chips is evolving from reliance on GPUs to a coexistence of GPUs and ASICs. 3. Technological iterations are transitioning from product-level upgrades (like optical modules, PCBs, switches, and network cards) to overall upgrades at the network architecture level. 4. The focus of network interconnection upgrades is expanding from Scale Out to Scale Up, enhancing both types of networks and increasing single-chip bandwidth [5][81][85]. Summary by Sections Section 1: Market Trends - The demand for computing power is increasingly linked to the number of tokens processed rather than just cloud vendor capital expenditures [5][81]. - The growth of AI models has led to a significant increase in the demand for high-bandwidth, low-latency interconnections, particularly in the context of large-scale AI training [21][25]. Section 2: Product Innovations - New products like Sora and GB200 are driving demand for multimodal inference, with Sora requiring significantly more inference computing power compared to previous models [27][35]. - The report highlights that the performance of new interconnection technologies, such as GB200, is substantially superior to older models, enhancing overall computational efficiency [75][76]. Section 3: Capital Expenditure Trends - Capital expenditures from major cloud service providers (CSPs) are expected to continue increasing, with a notable shift towards AI computing capabilities [35][37]. - The report estimates that the ratio of NVIDIA's data center revenue from cloud vendors to the capital expenditures of five major cloud vendors has increased from 5% in Q1 2023 to approximately 30% by the second half of 2024 [37][38]. Section 4: Investment Opportunities - The report suggests that various interconnection methods, including optical, copper, and PCB connections, are likely to benefit from the anticipated growth in interconnection demand. Key companies identified include: - Optical interconnection: Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Yuanjie Technology, Changguang Huaxin, Changxin Bochuang, Shijia Photon, Zhizhi Technology, Taicheng Light. - Copper interconnection: Zhaolong Interconnection, Zhongji Xuchuang, Hongteng Precision. - PCB: Shenghong Technology, Jingwang Electronics, Hudian Co., Shengyi Technology [4][90].

Market Overview - US President Trump has issued new tariff policy letters to 14 countries, leading to a rebound in Hong Kong stocks, with the Hang Seng Index rising 1.09% to 24,148.07 points, ending a three-day decline [1] - The total trading volume for the day was HKD 213.29 billion, indicating active market participation [1] - The Hong Kong Monetary Authority has withdrawn HKD 59.072 billion in liquidity since June 28, tightening liquidity expectations in the short term [1] Blue Chip Performance - Xinyi Solar (00968) led blue-chip gains, rising 5.43% to HKD 2.91, contributing 1.04 points to the Hang Seng Index [2] - Kuaishou-W (01024) and Chow Tai Fook (01929) also saw significant increases of 5.16% and 4.42%, respectively [2] - However, Orient Overseas International (00316) and China Biologic Products (01177) experienced declines, dragging down the index [2] Sector Highlights - Large tech stocks rebounded, with Kuaishou rising over 5% and Meituan and JD.com both increasing over 2% [3] - Stablecoin concept stocks surged, with Jinyong Investment (01328) skyrocketing 533.17% after announcing a partnership with AnchorX [3] - The Macau gaming sector showed strong performance, with total gaming revenue for the first six days of July reaching MOP 4.3 billion, indicating a robust recovery [6] Solar Industry Insights - The solar sector saw strong gains, with New Special Energy (01799) up 12.65% and GCL-Poly Energy (03800) up 10.81% [5] - Recent government meetings emphasized the need to address low-price competition and improve product quality in the solar industry, suggesting potential for supply-side reforms [5] Gaming Sector Developments - Macau's gaming stocks continued to rise, with Wynn Macau (01128) up 6.4% and MGM China (02282) up 3.29% [6] - Morgan Stanley's report indicated that Macau's gaming revenue is expected to see double-digit year-on-year growth in July, marking a cyclical turning point for the industry [6] New Consumption Trends - New consumption stocks performed well, with brands like Blukoo (00325) and Cha Ba Dao (02555) seeing significant increases [6][7] - Gold stocks also rebounded, with Tongguan Gold (00340) rising 6.37% [7] Stablecoin Regulatory Developments - Jinyong Investment announced a strategic partnership with AnchorX to explore potential collaborations in digital asset management and stablecoin applications [4] - The Hong Kong Monetary Authority is consulting the market on regulatory guidelines for stablecoins, with expectations for a limited number of licenses to be issued [4] Logistics Sector Performance - Jitu Express-W (01519) reached a new high, with a reported 23.5% year-on-year increase in package volume for Q2 2025 [9] - The company achieved a total package volume of 139.9 billion for the first half of 2025, reflecting strong growth in the logistics sector [9] AI and Technology Sector Insights - Hongteng Precision (06088) saw an increase of 8.82%, driven by growing demand for AI-related solutions [10] - The company is expected to benefit from its parent group's resources and the increasing demand for AI computing power [10]

Group 1 - The Hang Seng Index rose by 0.78%, gaining 185 points to close at 24,073 points, while the Hang Seng Tech Index increased by 1.29% [1] - The trading volume in Hong Kong reached HKD 117.2 billion in the morning session [1] - Stablecoin-related stocks surged, with Guotai Junan International rising by 16%, Multi-Point Smart increasing by 8%, and OSL Group also up by 8% [1] Group 2 - Jinyong Investment experienced a 150% surge due to a strategic partnership with AnchorX to explore stablecoin applications [2] - Kuaishou-W saw a 3% increase, with institutions expecting the company's Q2 performance to meet market expectations [2] - Gold stocks rebounded in the morning session, with Tongguan Gold rising by 6% and China Gold International increasing by 3.82% [2] Group 3 - Huitongda Network rose over 7% after applying for full circulation of H-shares, which is expected to enhance stock liquidity and investment attractiveness [3] Group 4 - Basestone Pharmaceuticals-B increased by over 4% after granting commercialization rights for Sugli to Gentili in Western Europe and the UK [4] Group 5 - GCL-Poly Energy rose over 9%, with the polysilicon segment potentially becoming a breakthrough point for reversing internal competition, and the company is expected to achieve profitability [5] Group 6 - China Rare Earth Holdings rose over 7% after a failed transaction involving the sale of an Australian gold mine, and plans to spin off its business through an introduction [6] Group 7 - Hon Teng Precision rose by 8.8%, driven by strong performance in AI servers and iPhone business, with Foxconn showing steady growth in Q2 [7] Group 8 - Zhaoyan New Drug increased by over 10%, assisting in the approval of the restructuring of human coagulation factor VIIa for Chengdu Tianqing [8] Group 9 - Steel stocks saw a midday rally, with Chongqing Steel rising by 11%, as institutions expect improvements in industry supply and demand [9]

Market Performance - Jinli Permanent Magnet (06680) rose over 17% due to significant increases in overseas medium and heavy rare earth prices, which are expected to gradually transmit to the domestic market [1] - Zhixing Technology (01274) increased over 3% after securing a platform-based logistics vehicle contract with a leading domestic brand [1] - Weimeng Group (02013) surged over 9% as its upgraded Weimeng Guide Agent product is anticipated to benefit from the growth of WeChat e-commerce [1] - Zhaoke Ophthalmology-B (06622) gained over 8% following FDA approval for a new drug trial application for cyclosporine eye gel [1] - Zai Ding Pharmaceutical (09688) rose over 5% after reporting excellent data from the low-dose group of ZL-1310 [1] - Lianlian Digital (02598) saw a mid-session increase of over 5% as it partnered with BVNK to provide stablecoin payment solutions for its merchants [1] - Reading Group (00772) increased over 7% after acquiring a 26.67% stake in Yihua Kaitian, with its IP+AI strategy expected to unlock more value [1] - NIO opened nearly 4% higher, projecting a year-on-year revenue growth of 11.8%-15% for Q2 [1] - Kuaishou-W (01024) rose over 6% as its Kecing AI recently launched a new 2.1 series model, with institutions optimistic about its profitability [1] - Meituan (03690) surged over 3%, reaching a nearly two-month high, with southbound funds continuing to accumulate for 13 consecutive days [1] US Market Highlights - Applied Digital (APLD.US), a stock related to Nvidia, surged nearly 30%, with a 94% increase over three trading days, as long-term contracts are expected to generate $7 billion in revenue [2] - Tesla (TSLA.US) fell 3.55% due to declines in both the Chinese and European automotive markets, with a 15% year-on-year drop in China's May wholesale sales of new energy passenger vehicles [2] - MongoDB (MDB.US) saw a nearly 15% increase in after-hours trading following better-than-expected Q1 results and an $800 million stock buyback plan [2] - Broadcom (AVGO.US) rose over 3% before earnings, reaching a new historical high, with Morgan Stanley stating that AI is operating at full speed, expecting strong Q2 results [3] - Meta increased over 3% as it was reported to be accelerating the development of ultra-lightweight open-headset projects [3] - Guidewire Software (GWRE.US) surged over 16% after exceeding Q3 earnings expectations and raising its guidance [3] - Dollar Tree (DLTR.US) fell over 8% after warning of potential 50% declines in adjusted earnings due to tariffs and weak consumer spending [3] - STMicroelectronics (STM.US) rose nearly 11% amid reports that Italy and France are considering splitting its joint management rights [3]

Group 1 - The telecommunications equipment sector in Hong Kong has shown strength, with notable gains in several companies [1] - VITEC (06133.HK) increased by 5.88%, indicating strong market performance [1] - Hongteng Precision (06088.HK) rose nearly 4%, contributing to the overall positive trend in the sector [1] Group 2 - Other companies such as Huiju Technology (01729.HK), BYD Electronics (00285.HK), and ZTE Corporation (00763.HK) also experienced upward movement in their stock prices [1]

Investment Rating - The investment rating for the company is "Accumulate" and is maintained [9] Core Views - The company relies on a "3+3" strategy, balancing external mergers and internal growth, quickly entering high-growth sectors, and is expected to form three growth poles: high-voltage connectors for electric vehicles, AI optical modules, and consumer electronics acoustics. The recovery of the main business, along with the resonance of AI, new energy, and consumer electronics acoustics, combined with global capacity layout cost reduction, is expected to continuously release profits [2][6] Summary by Sections Company Overview - In Q1 2025, the company achieved revenue of 1,102.91 million USD, a year-on-year increase of 14.28%, while net profit from continuing operations was 6.24 million USD, a year-on-year decrease of 38.80% [6] Business Developments - The company showcased its CDFP SMT connectors and passive direct-connect copper cables at DesignCon 2025, achieving efficient signal transmission for PCI Express 6.0 and PCIe 7.0, which are suitable for modular architecture in data centers [9] - The company announced the launch of Smart Mobility in partnership with Saleh Suleiman Alrajhi & Sons, focusing on the EV charging market in Saudi Arabia, with the Voltaira charging station series already certified for the local market [9] - The company is optimizing its global capacity layout to respond to market changes and customer demands, enhancing manufacturing capabilities in emerging markets like Southeast Asia and India [9] Financial Projections - The company projects revenues of 4,915 million USD, 5,454 million USD, and 6,097 million USD for 2025, 2026, and 2027 respectively, with net profits of 177 million USD, 204 million USD, and 238 million USD for the same years [9]

Investment Rating - The report maintains a BUY rating for FIT Hon Teng with a new target price of HK$3.48, reflecting a potential upside of 69.8% from the current price of HK$2.05 [3][17]. Core Insights - FIT Hon Teng's 1Q25 revenue grew by 14% year-over-year, but net profit declined by 38% year-over-year, primarily due to lower gross profit margin (GPM) and foreign exchange headwinds [1][9]. - The management has lowered the 2025 guidance for smartphone sales by 15% year-over-year and for system products by 5% to 5% year-over-year, citing macroeconomic uncertainties and the impact of US tariffs [1][9]. - Despite near-term challenges, the report remains optimistic about the demand for AI server products, the ramp-up of AirPods production in India, and progress in automotive mergers and acquisitions in 2025 [1][9]. Financial Performance Summary - For FY25E, revenue is projected at US$5,132 million, reflecting a 15.3% year-over-year growth, while net profit is expected to reach US$225.5 million, a 46.1% increase year-over-year [2][16]. - The report indicates a decrease in earnings per share (EPS) estimates for FY25-26E by 10-18% due to the 1Q25 results and revised guidance [1][17]. - The gross profit margin is expected to improve to 20.5% in FY25E, with operating profit margin projected at 7.8% [16][24]. Segment Performance - In 1Q25, smartphone and system product revenues declined by 6% and 4% year-over-year, respectively, while networking, computing, and automotive segments showed strong growth of 46%, 13%, and 89% year-over-year [9][14]. - The management anticipates a revenue decline of 15% year-over-year for smartphone/system products in 2Q25, while networking/mobility is expected to grow by 15% year-over-year [9][14]. Valuation Metrics - The stock is currently trading at a price-to-earnings (P/E) ratio of 8.3x for FY25E and 6.3x for FY26E, which is considered attractive compared to industry peers [3][18]. - The report highlights that the new target price of HK$3.48 is based on a P/E of 14.1x for FY25E, indicating a favorable valuation outlook [17][18].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months [4]. Core Insights - The company experienced a year-on-year revenue growth of 14% in Q1 2025, reaching $1.103 billion, but net profit declined by 38% to $6.24 million, primarily due to adverse currency fluctuations [1]. - The revenue from the automotive and network businesses showed significant growth, while smartphone revenue decreased. The company has adjusted its revenue growth guidance for smartphone and system terminal products downward for the full year 2025 [1][2]. - The company aims to increase the revenue contribution from its three main business areas—5G AIoT, EV, and Audio—from 33% in 2024 to 40% by 2025 [2]. Summary by Sections Q1 2025 Performance - Revenue for Q1 2025 was $1.103 billion, a 14% increase year-on-year, while net profit was $6.24 million, a 38% decrease year-on-year, with a net profit margin of 0.56% [1]. - Revenue breakdown: smartphone (-6%), network infrastructure (+46%), computers and consumer electronics (+13%), electric vehicles (+89%), and system terminal products (-4%) [1]. Business Growth Areas - The network infrastructure segment is expected to maintain double-digit growth (>15%) in Q2 2025, driven by demand for AI servers and platform upgrades [2]. - The automotive business is also projected to grow at a double-digit rate (>15%) in Q2 2025, aided by localization efforts to mitigate tariff impacts [2]. Acoustic and Consumer Electronics - The acoustic production line's yield exceeded expectations, and a new production line in India is expected to be operational by 2025 [3]. - Smartphone revenue accounted for 17% of total revenue in Q1 2025, with a decline in average selling price (ASP) attributed to an increase in low-end models [3]. Financial Forecasts - The net profit forecasts for 2025-2027 have been revised down to $224 million, $292 million, and $341 million, respectively, reflecting a decrease of 8%, 10%, and 13% from previous estimates [4]. - The projected revenue for 2025 is $5.046 billion, with a growth rate of 13.4% [5].

Financial Performance - Revenue for the fiscal year ended December 31, 2024, was $4,451,494 thousand, representing an increase of 6.1% compared to $4,195,550 thousand in 2023[7] - Gross profit increased to $878,646 thousand, with a gross margin of 19.7%, up from 19.2% in the previous year[7] - Operating profit rose to $326,757 thousand, reflecting an operating margin of 7.3%, compared to 6.3% in 2023[7] - Profit attributable to owners of the company was $153,732 thousand, with a profit margin of 3.5%, up from 3.1% in the prior year[7] - The company's revenue for the fiscal year ending December 31, 2024, was $4.451 billion, representing a 6.1% increase compared to the previous year, while operating profit rose by 19.1% to $154 million[19] - Annual profit rose by 19.1% from $130 million in 2023 to $154 million in 2024, with the profit margin increasing from 3.1% to 3.5%[39] Asset and Liability Management - Current assets increased to $3,159,618 thousand, while total assets reached $5,470,183 thousand[7] - Total liabilities increased to $2,987,095 thousand, with current liabilities at $2,241,300 thousand[7] - Cash and cash equivalents decreased from $1,316 million as of December 31, 2023, to $1,113 million as of December 31, 2024[40] - Total bank borrowings increased from $1,383 million in 2023 to $1,538 million in 2024, with short-term borrowings rising from $1,383 million to $904 million[41] - As of December 31, 2024, the company's debt-to-equity ratio was 15.4%, a significant increase from 2.6% as of December 31, 2023[53] Market Segments and Growth Strategies - The electric vehicle market revenue increased by 57.6% year-over-year, driven by the acquisition of FIT Voltaira Group GmbH, which will accelerate the development of the company's EV products[21] - The network infrastructure market revenue grew by 39.1% year-over-year, benefiting from increased demand for AI-driven server solutions and new platform rack connectors and cables[20] - The smartphone component revenue decreased by 9.7% year-over-year due to structural changes in high-end smartphone products and increased competition[19] - The company is focusing on AI-driven solutions and has developed high-speed AIoT connector solutions to meet the demands of new data centers[10] - The company is optimizing its product portfolio to align with next-generation platform demands, including new acoustic solutions and EV charging solutions[10] - Future strategies will leverage the 3+3 transformation to capture opportunities in AI infrastructure investment growth, aiming for sustainable growth and substantial returns for shareholders[14] Operational Efficiency - The average inventory turnover days improved to 87 days from 95 days in 2023, indicating better inventory management[7] - Distribution costs and selling expenses increased by 25.6% from $105 million in 2023 to $131 million in 2024, primarily due to the acquisition of Voltaira, contributing approximately $9 million to the increase[33] - Administrative expenses rose by 26.6% from $191 million in 2023 to $242 million in 2024, with Voltaira's administrative costs contributing approximately $16 million to this increase[35] - Research and development expenses increased by 7.3% from $308 million in 2023 to $330 million in 2024, with Voltaira contributing approximately $3 million to the increase and a focus on AI and acoustic product development[36] Corporate Governance and Management - The company has appointed new independent non-executive directors to strengthen its governance and oversight capabilities[73] - The management team is committed to strategic decision-making based on financial forecasting and analysis to support growth initiatives[68] - The board emphasizes a strong corporate culture based on core values such as integrity and collaboration, which supports the company's long-term strategic goals[194] - The board has established four committees to oversee specific areas of the company's affairs, including the audit committee and the remuneration committee[195] Strategic Partnerships and Acquisitions - The company completed the acquisition of the German automotive component design and manufacturing company Prettl SWH Group in July 2023, now renamed FIT Voltaira Group GmbH, to enhance its EV strategy[86] - A further acquisition of the German Auto-Kabel Group is planned by the end of 2024 to strengthen capabilities in high-voltage systems and automotive wiring harnesses[86] - The company has established a strategic partnership with PacBridge to identify specific projects for market expansion and risk management[155] Employee and Talent Management - The total employee benefits expenditure for 2024 was $927 million, up from $783 million in 2023, despite a decrease in the number of employees from 66,148 to 61,720[55] - Employee compensation is determined based on performance, skills, qualifications, and industry standards, with additional benefits including cash bonuses and retirement plans[55] - The company has experienced a decrease in employee count, indicating potential restructuring or efficiency measures[55] Compliance and Risk Management - The company emphasizes compliance with relevant laws and regulations, as well as maintaining relationships with employees, customers, and suppliers[91] - The company has adopted a prudent foreign exchange hedging policy, with a nominal principal amount of $235 million in forward foreign exchange contracts as of December 31, 2024[58] - The company faces significant foreign exchange risks due to operations in multiple currencies, including USD, EUR, TWD, and RMB, which could impact operational performance[56] Shareholder and Financial Policies - The company does not recommend a final dividend for the fiscal year ending December 31, 2024[89] - The company has entered into agreements with PacBridge Capital Partners (HK) Limited, agreeing to pay a total of $3,000,000 for business consulting services during the reporting period[109] - The beneficial ownership of shares by directors includes 420,651,000 shares (5.77%) held by Lu Songqing, 12,512,000 shares (0.17%) held by Lu Boqing, and 1,790,000 shares (0.02%) held by PIPKIN Chester John[117]