Summary of Glass Fiber Industry Conference Call Industry Overview - The glass fiber industry is expected to see a recovery in 2025, driven by significant demand from wind power installations, which are projected to increase by 138 GW globally, alongside strong performance in the electric vehicle and home appliance markets. However, demand from the construction sector has decreased to around 20% of total demand [1][5] - Exports saw a slight decline in the first three quarters of the year, but there was improvement in September. The demand for roving is expected to remain resilient in 2026, with stable growth in automotive demand and sustained high demand in wind power [1][5] Key Insights and Arguments - The net production capacity of domestic roving has increased by approximately 300,000 tons, with leading companies expected to maintain good profitability levels for high-end products. Overall, roving prices are anticipated to remain stable [1][2] - New production capacity for ordinary electronic yarn is expected to come primarily from Jushi Huai'an and International Composites, totaling around 100,000 tons, but the net increase will be limited. The supply-demand balance for ordinary electronic yarn is expected to remain favorable, with prices potentially stabilizing or even increasing [1][2] - Specialty electronic fabrics are benefiting from advancements in AI and high-speed communication technologies, with low dielectric and low thermal expansion coefficient materials seeing significant demand. These materials are widely used in AI servers, high-end switches, and Apple devices [1][7] Market Dynamics - The demand for low thermal expansion electronic fabrics is projected to increase significantly, with Nitto Denko planning to triple its production capacity by the end of next year, indicating a substantial market opportunity [3][9] - Domestic companies such as China National Materials, Honglu Technology, and Jushi have a leading advantage in the specialty electronic fabric sector and are actively expanding production and achieving technological breakthroughs [3][4][14] Price and Profitability Outlook - Prices for specialty electronic fabrics are expected to remain high or even increase, driven by strong demand for second-generation and low thermal expansion products. The market has high expectations for the price and volume of specialty electronic fabrics [11][12] - The overall profitability of the industry is expected to remain good, with limited new production capacity and stable prices anticipated for traditional glass fiber products in 2026 [15] Competitive Landscape - The industry has a few key players capable of mass-producing specialty electronic fabrics, primarily from Japan and Taiwan, but domestic companies are rapidly catching up. For instance, China National Materials plans to significantly increase its production capacity, while Honglu Technology and others are also expanding [14] - The competitive landscape is evolving, with domestic firms expected to gradually increase their global market share [14] Future Outlook - The overall industry outlook for 2026 is positive, with traditional glass fiber demand showing growth potential and limited new capacity. The increase in GB300 shipments is expected to drive significant demand for second-generation and low thermal expansion products, contributing to a favorable industry environment [15]

Core Viewpoint - The company is actively engaged in the production of advanced 224G single-channel high-speed communication cables, which are in high demand and have established stable partnerships with leading clients in the industry [1] Group 1: Product Overview - The company primarily supplies Amphenol with 224G single-channel high-speed communication cables, which constitute a significant portion of its product offerings [1] - The 224G single-channel high-speed communication cable is currently the most advanced product in the market, outperforming lower-speed products in transmission performance, testing frequency, wire size, and reliability [1] Group 2: Competitive Advantages - The company's high-speed communication cables exhibit excellent high-frequency performance, bend resistance, low cost, high reliability, and a well-established industrial chain [1] - The company possesses leading technical strength and key equipment reserves in the industry, which enhances its competitive position [1] Group 3: Market Potential - The existing market conditions indicate substantial application areas and market demand for the company's high-speed communication cables [1] - The company plans to continuously strengthen its R&D capabilities and product iteration to keep pace with industry trends and the needs of leading clients [1]

Group 1 - The company is currently developing samples for a single-channel 448G high-speed line [1] - The company aims to keep pace with industry technological trends and actual customer needs [1] - The company will maintain agile development capabilities and focus on innovation and iteration of key products such as high-speed communication lines to strengthen its industry-leading position [1]