Core Points - The company held its 13th meeting of the 10th Board of Directors on September 29, 2025, where several resolutions were passed, including a capital increase for its subsidiary and amendments to corporate governance documents [1][2][4][28]. Group 1: Capital Increase for Subsidiary - The company approved a capital increase of $600,000 for its subsidiary, Shantou Ultrasonic Printed Circuit Board Company, with the company contributing $450,000 and the foreign partner contributing $150,000, raising the subsidiary's registered capital to $2,850,000 [28][29]. - The subsidiary specializes in the production of double-sided and multi-layer printed circuit boards, and the capital increase aims to enhance competitiveness by updating equipment and attracting talent [32][30]. Group 2: Amendments to Corporate Governance - The company proposed amendments to its Articles of Association, transferring the powers of the Supervisory Board to the Audit Committee of the Board, which will lead to the abolition of related systems [4][24]. - The company also plans to revise the rules governing shareholder meetings and board meetings, as well as establish new management measures for external directors and the remuneration and assessment system for directors and senior executives [7][10][17][20]. Group 3: Upcoming Shareholder Meeting - The company announced that the 2025 First Extraordinary General Meeting of Shareholders will be held on October 16, 2025, with provisions for both on-site and online voting [36][38]. - The meeting will address the resolutions passed by the Board, including the capital increase and amendments to governance documents, which require approval from shareholders [39][40].

Core Viewpoint - The PCB industry is in a golden era, with the drilling equipment market being a standout segment driven by strong demand from AI computing and steady growth in the server market [4][13]. PCB Industry - The PCB industry is experiencing a significant boom, with 42 listed PCB companies in mainland China achieving a total revenue exceeding 120 billion yuan in the first half of the year, reflecting a year-on-year growth of at least 25-30% [4]. - The industry is at the beginning of a prosperous cycle, with strong demand expected to continue for at least the next three years [4]. Products and Orders - The company manufactures three main products: ordinary mechanical drilling machines (approximately 500,000 yuan), high-end CCD back drilling machines (1.6-1.8 million yuan), and forming machines (450,000-500,000 yuan) [5]. - The company has shipped over 1,800 units from January to August 2025, a year-on-year increase of about three times, with current orders reaching approximately 800 units, extending delivery times to March 2026 [5][6]. Profit and Pricing - The gross margin for ordinary mechanical drilling machines is around 30-40%, while for CCD back drilling machines, it can reach 70-80% or higher [7]. - The pricing strategy is strong, requiring a 30% deposit, 30% upon shipment, and 40% after installation [7]. Supply Chain Challenges - Capacity constraints are a primary bottleneck, with the factory operating at full capacity and plans for a second phase of construction to meet demand [8]. - Key components, particularly spindles, are in short supply, with the company relying on two main suppliers [8]. Technology Aspects - The demand for high-density interconnect (HDI) boards driven by AI requires high precision in drilling equipment [9]. - CCD back drilling machines offer superior accuracy compared to ordinary drilling machines, making them essential for complex drilling processes [9]. Competitive Landscape - The PCB drilling equipment market is dominated by companies like Germany's Schmoll, Japan's Hitachi, and China's Dazhu CNC [10]. - Domestic and Taiwanese manufacturers are positioned to capitalize on the current demand surge due to their quick response capabilities [10]. Downstream and Global Trends - Downstream demand is primarily driven by AI computing and server needs, with major clients including Nvidia, Microsoft, Amazon, and Huawei [11]. - The shift of PCB manufacturers to Southeast Asia due to tariffs presents opportunities for domestic and Taiwanese equipment suppliers [11]. Equipment Lifespan and Production Line Configuration - The lifespan of the company's products is estimated at 10-15 years, while competitors like Dazhu CNC have a shorter lifespan of 5-8 years [12]. - A high-end HDI production line typically requires five mechanical drills for every back drill [12]. Future Outlook - The PCB drilling equipment industry is expected to enter a golden three-year period, with increasing demand driven by AI computing [13]. - The rapid expansion of leading manufacturers is anticipated to extend to smaller firms, further amplifying market demand [13].