Summary of the Conference Call for Platinum Materials (铂科新材) Company Overview - **Company**: Platinum Materials (铂科新材) - **Industry**: Magnetic materials and components, specifically focusing on inductors and related products Key Financial Performance - **Revenue Growth**: - 2025 H1 revenue reached 860 million CNY, a year-on-year increase of approximately 8% [3] - Q2 revenue was 477 million CNY, with a year-on-year growth of 3.5% and a quarter-on-quarter increase of 24% [3] - **Profitability**: - Net profit for H1 was 191 million CNY, a year-on-year increase of about 3% [3] - Q2 profit was 117 million CNY, with a significant increase of nearly 60% quarter-on-quarter [2][3] - **Gross Margin**: - Overall gross margin approached 40% in H1, with a Q2 margin increase of approximately three percentage points [6] Product Line Performance - **Core Products**: - Magnetic core products accounted for 76% of total revenue, with a quarter-on-quarter growth of 25% [4] - Ceramic powder revenue was approximately 27 million CNY, with a 10% quarter-on-quarter increase [4] - Chip inductors and components saw a revenue decline to nearly 170 million CNY year-on-year [4] Industry Segmentation - **Market Segments**: - Photovoltaic sector contributed 46%-47% to total revenue, with growth driven by installation rush [5] - Automotive sector accounted for 12% of revenue, with significant growth in charging stations and new energy vehicles [11] - Communication and power supply sectors contributed 10%-34% [5] Capacity and Production Strategy - **Production Capacity**: - Current magnetic core capacity is approximately 20,000 tons, expected to reach 40,000-50,000 tons by year-end [7] - Total production capacity across two bases is about 70,000 tons, with dynamic adjustments based on market conditions [8] - **Future Plans**: - New projects aimed at expanding inductor production capacity are expected to generate at least 600 million CNY in output by 2026 [8] Research and Development - **R&D Investment**: - R&D expenses increased from 5% to over 7% of revenue, primarily for module inductor development [2][9] - New product developments include DDR5 and DDR6, with DDR5 already in mass production and DDR6 expected to enter large-scale production by 2027 [12][14] Market Trends and Future Outlook - **Growth Drivers**: - Chip inductors are identified as a key growth area, with expectations for significant revenue increases in H2 2025 [12] - The company is focusing on high-value projects and partnerships with semiconductor firms to enhance product offerings [12] - **Profitability Expectations**: - Anticipated slight decline in gross margins in early 2026 due to new facility depreciation, but overall profitability is expected to improve as production scales up [18] Competitive Landscape - **Market Position**: - Major competitors in the chip inductor market include companies like Flex, TI, ADI, and Infineon, with limited global suppliers [13] - Platinum Materials is positioned to capture market share through innovative solutions and direct customer engagement [29] Conclusion - **Strategic Focus**: - The company is committed to vertical integration, ensuring quality control from powder production to final products [32] - Future growth will be driven by advancements in AI, GPU applications, and expanding into new markets while maintaining a focus on high-margin products [15][16]

2 3 3 2Q25 Gross Profit and Gross Margin were impacted by $6.4 million in non-cash charges related to obsolete inventory adjustments and write-down of capitalized costs related to incomplete projects $8.0 $8.8 $9.8 $10.6 $11.8 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2Q24 3Q24 4Q24 1Q25 2Q25 $ in millions Over Last 5 Quarters 5 Repeat and Recurring Service Revenue All comparisons are Q2 -2025 year-over-year, unless otherwise noted Service Revenues consist of repeat charging service revenues, recurring network fee ...