Summary of Conference Call on Low CTE Material Demand for iPhone 17 Industry and Company Involved - **Industry**: Electronic Materials, specifically Low CTE (Coefficient of Thermal Expansion) materials - **Company**: Apple Inc. (iPhone 17) Key Points and Arguments iPhone 17 and Low CTE Material Demand - iPhone 17 is expected to adopt INFOP packaging technology, increasing the demand for Low CTE materials. The projected shipment volume for iPhone 17 in 2026 is 223 million units, leading to a total demand of approximately 56.77 million square meters of Low CTE fabric, with raw material demand estimated at about 84.45 million meters per year after yield compensation [1][3] - The introduction of LCD wave fabric in iPhone 17 will reduce the usage of ordinary wave fabric by approximately 0.06 square meters per unit, resulting in an annual total demand of about 54 million square meters [1][6] Supply Situation of Low CTE Materials - The supply of Low CTE fabric is currently tight, with major suppliers including Asahi and Zhi Dong Fang, while domestic supplier Honghe Technology is beginning small-scale production [1][4] - The demand for Low CTE materials is expected to continue increasing due to requirements from AR chips, GPUs, ASIC chips, and Nvidia's packaging technologies [1][4] Pricing and Market Dynamics - The market prices for ordinary electronic fabrics 1,017 and 1,027 are approximately 120 RMB overseas and 90 RMB domestically. Low CTE electronic fabrics are priced about three times higher than ordinary fabrics [2][7] - The average price of Low CTE glass fiber fabric is around 145 RMB per square meter, significantly higher than traditional glass fiber materials [31] Future Demand Projections - The growth of AI chips, including Nvidia GPUs and ASICs, is expected to double the demand for Low CTE materials next year. AI chip substrates typically require new boards with Low CTE glass fiber, which will further increase demand [2][32] - Global monthly demand for Low CTE materials is close to 1 million square meters, with overseas demand accounting for 600,000 to 700,000 square meters [23] Supplier Strategies and Capacity Expansion - Apple has begun stockpiling materials for iPhone 17, with a global stockpile estimate of 120 million units, primarily sourced from Japanese suppliers [2][12] - Suppliers like Honghe are actively expanding production capacity, with Honghe's factory in Huangshi adding 50,000 square meters of capacity per month [24] Material Usage in iPhone 17 - Each iPhone 17 is estimated to require about 0.25 square meters of fabric, with Low CTE materials accounting for approximately 0.025 square meters per unit [27][28] - The proportion of Low CTE fabric in iPhone 17 is about 1/9, indicating a significant increase in usage compared to previous models [43] Conclusion - The demand for Low CTE materials is set to rise significantly due to advancements in technology and the introduction of new products like the iPhone 17. The supply chain dynamics, pricing strategies, and supplier capabilities will play crucial roles in meeting this demand in the coming years [1][2][4][32]

Core Viewpoint - The company reported a revenue of 2.711 billion yuan for 2024, marking a year-on-year increase of 9.87%, and a net profit attributable to shareholders of 131 million yuan, up 3.37% year-on-year. However, in Q1 2025, revenue decreased by 0.46% to 639 million yuan, and net profit fell by 18.12% to 45 million yuan [2][3]. Group 1: Business Segments Performance - The electronic new materials segment achieved a revenue of 678 million yuan in 2024, a significant year-on-year growth of 43.38%, with a gross margin of 22.12%, up 2.75 percentage points [3]. - The polymer composite materials segment generated a revenue of 330 million yuan, reflecting a year-on-year increase of 3.94%, with a notable gross margin improvement to 39.89%, up 6.11 percentage points [3]. - The energy-saving and environmental protection products and services segment reported a revenue of 1.702 billion yuan, a year-on-year growth of 1.54%, but with a gross margin of 20.08%, down 3.92 percentage points [3]. Group 2: Technological Advancements and Market Position - The company's target material business has a high technical barrier, with the ITO target material project officially commencing production in 2024. The market share of the optical target material business is gradually expanding, with significant growth in the new silver alloy target material for AMOLED applications [4]. - The company is actively developing multiple tracks in the ITO target material sector, including perovskite and heterojunction stacked batteries, achieving a breakthrough in electronic mobility rates with its self-developed high mobility HITO target material [4]. - The successful production of the 500-ton ITO target material project in July 2024 alleviated capacity bottlenecks [4]. Group 3: Strategic Initiatives in Lithium Battery Recycling - The company has focused its extraction agent business on lithium battery recycling, establishing stable strategic partnerships with leading enterprises across various sectors, including nickel-cobalt separation and rare earths [5]. - In 2024, the company successfully launched a high-performance extraction agent project with an annual production capacity of 60,000 tons, increasing its production capacity from 20,000 tons/year to 80,000 tons/year, with projected annual output value rising from 400 million yuan to 2.7 billion yuan [5]. - The upcoming peak period for retired power batteries presents new opportunities for the application of wet extraction technology and products in the recycling and circular economy sector [5].