Company Overview - Dongshan Precision Manufacturing Co., Ltd. is located in Suzhou, Jiangsu Province, and was established on October 28, 1998. It was listed on April 9, 2010. The company specializes in the manufacturing and service of precision sheet metal parts and precision castings, as well as flexible circuit board design, production, and sales [1]. Business Segmentation - The main business revenue composition is as follows: electronic circuit products account for 65.23%, touch panels and LCD display modules for 17.98%, precision components for 13.93%, LED display devices for 1.69%, and others for 1.17% [1]. Stock Performance - On January 6, Dongshan Precision's stock fell by 5.09%, closing at 80.35 yuan per share, with a trading volume of 2.414 billion yuan and a turnover rate of 2.13%. The total market capitalization is 147.17 billion yuan [1]. Fund Holdings - The Dongshan Precision stock is a significant holding in the Oriental Alpha Fund, specifically in the Oriental Alpha Select Mixed A Fund (005358), which reduced its holdings by 92,500 shares in the third quarter, now holding 88,700 shares, representing 2.99% of the fund's net value [2]. Fund Performance - The Oriental Alpha Select Mixed A Fund was established on February 8, 2018, with a current size of 178 million yuan. Year-to-date returns are 1.53%, ranking 5113 out of 8816 in its category, while the one-year return is 28.28%, ranking 4154 out of 8081. Since inception, the fund has a slight loss of 0.07% [2]. Fund Management - The fund manager of the Oriental Alpha Select Mixed A Fund is Wu Qiusheng, who has been in the position for 4 years and 306 days. The total asset size under management is 212 million yuan, with the best fund return during the tenure being 25.82% and the worst being -7.99% [3].

Group 1 - The core theme of the 2026 CES is edge AI, with terminal manufacturers in smartphones, PCs, and smart cars launching new products equipped with AI capabilities, accelerating the migration of AI from the cloud to devices [2] - The consumption electronics ETF closely tracks the CSI Consumer Electronics Theme Index, which selects 50 listed companies involved in component production and brand design to reflect the overall performance of the sector [2] - As of December 31, 2025, the top ten weighted stocks in the CSI Consumer Electronics Theme Index account for 54.35% of the index, including companies like Luxshare Precision, Cambricon, and BOE Technology Group [2] Group 2 - The CES event features significant presentations from industry leaders, including AMD's CEO Lisa Su and Lenovo's Chairman Yang Yuanqing, showcasing advancements in mixed AI technology [1] - NVIDIA will demonstrate its solutions driving innovation in various fields such as automotive, gaming, content creation, AI agents, physical AI, and robotics during CES [1]

Group 1 - The core point of the article is that Dongshan Precision (002384) has reported a total of 81,673 shareholders as of December 31, 2025 [1]

Summary of Key Points from Conference Call Records Industry Overview - The focus is on the technology sector, particularly in cloud PCB and optical module businesses, with a strong emphasis on AI computing hardware and its implications for the industry [2][6][8]. Company Insights 东山精密 (East Mountain Precision) - **Optical Module Sales Forecast**: Expected total sales of optical modules in 2026 to reach 9.3 million units, broken down into 3 million units of 400G, 6 million units of 800G, and 300,000 units of 1.6T, generating an estimated revenue of 20 billion RMB and a profit of approximately 6 billion RMB [2][3]. - **Client Base**: Major clients include Microsoft, Meta, and XAI, with efforts to expand to potential clients like NVidia and Google [2][3]. - **PCB Business Expansion**: Plans to invest around 7 billion RMB in PCB business expansion, primarily in Zhuhai and Thailand, with expectations of a significant revenue surge in 2027, particularly in the Mutek division, projected to achieve 2 to 3 billion USD in revenue [2][3]. - **Traditional Business Contributions**: Other business segments, such as those related to electric vehicles and Apple, are stable but contribute less to profit elasticity. The LED business is underperforming, and divestment may be considered [4]. 金测科技 (Jin Ce Technology) - **Investment Recommendation**: Recommended as a "gold stock" due to its potential to reach 70% of the market value of a competitor, 飞测科技 (Fei Ce Technology). Recent orders include 430 million RMB for HBM and advanced packaging storage, indicating strong growth potential [5]. 华丰科技 (Hua Feng Technology) - **Growth Potential**: Anticipated significant growth in 2026 due to the release of Huawei's Ascend 950 series, with potential procurement from ByteDance reaching hundreds of billions RMB [9]. Market Trends AI Computing Hardware - **Investment Trends**: Continuous increase in investment in AI computing hardware, with major companies maintaining or increasing their investment levels. The hardware investment cycle is expected to last longer due to the extended development timeline of AGI [6][7]. - **Optical Module Demand**: The role of optical modules in AI computing is becoming increasingly critical, with demand expected to rise significantly as GPU node counts increase [8]. Gaming Market - **Market Size and Growth**: The Chinese gaming market is projected to reach approximately 350 billion RMB in 2025, with growth rates between 7% and 8%. Mobile and mini-games are experiencing significant growth, with mini-games maintaining over 30% growth [12][14]. - **Policy Impact**: New policies for mini-game platforms are expected to enhance revenue sharing for developers, promoting a healthier ecosystem [14]. Additional Insights - **AI Applications**: The AI application landscape is evolving rapidly, with significant changes expected during the upcoming Spring Festival as major companies promote new offerings [10][11]. - **Investment Opportunities**: The AI industrialization process is creating new investment opportunities in various sectors, including AI advertising, e-commerce, and education, as well as the integration of AI with gaming [17][18]. This summary encapsulates the critical insights and projections from the conference call records, highlighting the strategic directions and anticipated market dynamics within the technology sector.

Investment Rating - The report recommends a positive investment outlook for the technology sector, specifically highlighting key stocks for January 2026 [6]. Core Insights - The report identifies several key companies within the technology sector, including Eastcompeace, Jincheng Electronics, Xinyi Technology, Tax Friend, Haiguang Information, Giant Network, and Perfect World, as potential investment opportunities [6][8][9][10][11][12][13][14]. Summary by Category Electronics - **Eastcompeace**: The company is entering a growth phase driven by AI technology breakthroughs, leading to increased capital expenditure from cloud vendors and a surge in demand for data servers. The acquisition of Solstice Optoelectronics enhances its position in optical communication [8]. - **Jincheng Electronics**: The company reported a revenue of 889 million yuan in Q3 2025, a year-on-year increase of 25.4%. The semiconductor business is expected to grow significantly, with an order backlog of approximately 1.791 billion yuan [9]. Communication - **Xinyi Technology**: As a leading manufacturer of high-speed optical modules, the company has made significant inroads with major clients like Amazon and is expected to see substantial profit growth from 2025 to 2027, with projected net profits of 94.97 million yuan, 166.16 million yuan, and 217.76 million yuan respectively [10]. - **Huafeng Technology**: The company is positioned to benefit from the high demand for AI applications and is expected to see net profits grow from 3.53 million yuan in 2025 to 8.73 million yuan by 2027 [10]. Computer - **Tax Friend**: The company is a leader in the financial IT sector, leveraging AI and big data to provide comprehensive solutions for businesses. It aims to enhance its product offerings and customer engagement through innovative AI-driven solutions [11]. - **Haiguang Information**: The company is a key player in the domestic high-end CPU market, expected to benefit from the growing demand for AI computing power. It aims to establish a comprehensive AI computing platform [12]. Media - **Giant Network**: The company is experiencing stable commercialization with new game releases and updates expected to drive user engagement and revenue growth [13]. - **Perfect World**: The company is preparing for the launch of its new game "Yihuan," which has shown strong pre-launch interest, and is also focusing on expanding its esports business [14].

Market Overview - The market is expected to experience style differentiation as it approaches the Spring Festival, maintaining a structural trend under narrow fluctuations[4] - Key focus areas include the release of December and annual economic data in late January and a concentrated period of earnings forecasts[4] Investment Strategy - The strategy emphasizes three main lines: 1. High-growth and high-elasticity sectors, including AI hardware (e.g., optical modules), energy storage, lithium batteries, and non-ferrous metals[4] 2. Market hot tracks such as commercial aerospace, robotics, and cultural tourism[4] 3. Low-position large financial sectors, focusing on high-certainty performance in brokerage, insurance, and banks with dividend expectations[4] Recommended Stocks - **Metals**: Yun Aluminum Co., Ltd. (000807.SZ) with a projected EPS of 1.87 in 2025 and a PE of 17.6[28] - **Chemicals**: Yara International (000893.SZ) with a projected EPS of 2.06 in 2025 and a PE of 23.3[28] - **New Energy**: Slin Smart Drive (301550.SZ) with a projected EPS of 1.32 in 2025 and a PE of 105.0[28] - **Machinery**: Hengli Hydraulic (601100.SH) with a projected EPS of 2.19 in 2025 and a PE of 50.2[28] - **Aerospace**: AVIC Xi'an Aircraft Industry Group (000768.SZ) with a projected EPS of 0.42 in 2025 and a PE of 60.3[28] - **Banking**: Jiangsu Bank (600919.SH) with a projected EPS of 1.76 in 2025 and a PE of 5.9[28] - **Non-Banking**: New China Life Insurance (601336.SH) with a projected EPS of 11.82 in 2025 and a PE of 5.9[28] - **Social Services**: Jin Jiang International (600754.SH) with a projected EPS of 0.89 in 2025 and a PE of 28.3[28] - **Electronics**: Dongshan Precision (002384.SZ) with a projected EPS of 0.77 in 2025 and a PE of 109.8[28] - **Telecommunications**: Zhongji Xuchuang (300308.SZ) with a projected EPS of 9.47 in 2025 and a PE of 64.4[28] Risk Factors - Economic recovery may fall short of expectations, leading to slow growth or stagnation[34] - Significant changes in individual stock fundamentals could adversely affect performance[34]

Market Overview - The component sector declined by 1.6% on December 31, with Junya Technology leading the drop [1] - The Shanghai Composite Index closed at 3968.84, up 0.09%, while the Shenzhen Component Index closed at 13525.02, down 0.58% [1] Top Gainers in the Component Sector - Zhongying Technology (300936) closed at 39.00, up 6.97% with a trading volume of 44,200 shares and a transaction value of 171 million [1] - Shengye Electric (920128) closed at 27.90, up 6.16% with a trading volume of 26,700 shares [1] - Kexiang Co., Ltd. (300903) closed at 19.29, up 5.99% with a trading volume of 486,200 shares and a transaction value of 941 million [1] - Tianjin Pulin (002134) closed at 26.79, up 5.22% with a trading volume of 182,400 shares and a transaction value of 481 million [1] Top Decliners in the Component Sector - Junya Technology (603386) closed at 15.33, down 6.24% with a trading volume of 411,800 shares [2] - Jingwang Electronics (603228) closed at 73.09, down 4.24% with a trading volume of 189,100 shares and a transaction value of 1.401 billion [2] - Dongshan Precision (002384) closed at 84.65, down 3.15% with a trading volume of 338,900 shares and a transaction value of 2.894 billion [2] Capital Flow Analysis - The component sector experienced a net outflow of 2.346 billion from institutional investors, while retail investors saw a net inflow of 1.687 billion [2][3] - Major stocks like Shengyi Technology (600183) had a net inflow of 1.51 billion from institutional investors, while retail investors had a net outflow of 1.07 billion [3] - Kexiang Co., Ltd. (300903) saw a net inflow of 85.14 million from institutional investors, but a net outflow of 97.73 million from retail investors [3]

Group 1 - The Guo Index concept rose by 1.64%, ranking fourth among concept sectors, with eight stocks increasing in value, including Changying Precision (+9.49%), Lens Technology (+4.07%), and Lante Optics (+2.70%) [1] - The leading decliners in the sector included Dongshan Precision (-0.68%), Pengding Holdings (-0.27%), and Luxshare Precision (-0.26%) [1] - The main inflow of funds into the Guo Index concept sector was 1.229 billion yuan, with six stocks receiving net inflows, and five stocks exceeding 100 million yuan in net inflows [1] Group 2 - Leading stocks by net inflow included Lingyi iTech with 376 million yuan, followed by Luxshare Precision (332 million yuan), Lens Technology (258 million yuan), and Changying Precision (240 million yuan) [2] - The net inflow ratios for Lingyi iTech, Lens Technology, and Luxshare Precision were 7.36%, 6.97%, and 5.74% respectively [2] - The trading turnover rates for these stocks were 4.52% for Lingyi iTech, 2.55% for Lens Technology, and 13.39% for Changying Precision [2]

Meeting Overview - The company held its fourth extraordinary general meeting for the year 2025 on December 29, 2025, combining on-site voting and online voting [3][4] - The meeting was convened by the board of directors and chaired by Chairman Yuan Yonggang [4] Attendance - A total of 1,002 shareholders attended the meeting, representing 988,164,324 shares, which is 54.2123% of the total voting shares [5] - Among them, 13 shareholders attended in person, representing 610,669,123 shares (33.5023%), while 989 shareholders participated via online voting, representing 377,495,201 shares (20.7100%) [6][7] Resolutions and Voting Results - The meeting approved several resolutions regarding guarantees for various subsidiaries: - A guarantee of 2 billion yuan for Dragon Electronix Holdings Inc. received 99.7217% approval [11] - A guarantee of 1.27 billion yuan for Hong Kong Dongshan Holding Limited received 99.7219% approval [13] - A guarantee of 7 billion yuan for Multek Group (Hong Kong) Limited received 99.7219% approval [15] - A guarantee of 200 million yuan for Chaowei Microelectronics (Yancheng) Co., Ltd. received 99.7221% approval [18] - A guarantee of 500 million yuan for Suzhou Aifu Electronics Communication Co., Ltd. received 99.7203% approval [22] - A guarantee of 500 million yuan for Suzhou Chengjia Precision Manufacturing Co., Ltd. received 99.7204% approval [24] - A guarantee of 2 billion yuan for Suzhou Yongchuang Communication Technology Co., Ltd. received 99.7203% approval [27] - A guarantee of 1.4 billion yuan for Yancheng Dongchuang Precision Manufacturing Co., Ltd. received 99.7209% approval [29] - A guarantee of 600 million yuan for Yancheng Dongshan Precision Manufacturing Co., Ltd. received 99.7209% approval [31] - A guarantee of 200 million yuan for Jingduan Display Precision Electronics (Suzhou) Co., Ltd. received 99.7205% approval [33] - A guarantee of 500 million yuan for GROUPE MECANIQUE DECOUPAGE S.A. received 99.7201% approval [36] - A guarantee of 1 billion yuan for Source Photonics Holdings (Cayman) Limited received 99.7201% approval [38] - A guarantee of 30 million yuan for Suzhou Tengran Electric Equipment Co., Ltd. received 99.7204% approval [40] Legal Opinion - The legal opinion provided by Anhui Chengyi Law Firm confirmed that the meeting's convening, procedures, attendance, proposals, voting processes, and results complied with relevant laws, regulations, and the company's articles of association [45]

Group 1 - The company, Dongshan Precision, announced that it will hold the fourth extraordinary general meeting of shareholders for the year 2025 on December 29, 2025 [2] - The agenda includes the proposal to conduct foreign exchange hedging business among other resolutions [2]