CTS Corporation 4th Quarter and Full-Year 2025 Earnings Call February 10, 2026 Cautionary Statement Regarding Forward-Looking Statements Readers are cautioned that the statements contained in this document regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are, or may be deemed to be, "forward-looking statements" as defined by the "safe harbor" provisions in the Private Securities Litigation Reform Act of 1995. Such statemen ...

Core Viewpoint - The article explores why Huaqiangbei, a district in Shenzhen, can continuously produce hardware innovations with minimal venture capital involvement, contrasting it with the Silicon Valley model that relies heavily on venture capital funding [4][6][18]. Group 1: System's Minimum Unit - Huaqiangbei is often referred to as "China's Electronics First Street," characterized by a vast network of trade, solution providers, and factories, functioning as a large API interface [10][12]. - The minimum unit in Huaqiangbei consists of sharp traders, solution companies, supporting factories, and a network of trust, allowing for a "Lego-style" survival philosophy where components can be easily assembled [13][14]. - This "physical open-source" approach lowers the hardware development barrier, enabling non-technical entrepreneurs to thrive [14][15]. Group 2: Why VC Fails Here - The business model in Huaqiangbei inherently rejects the venture capital logic due to different return cycles and exit mechanisms [18][22]. - Entrepreneurs in Huaqiangbei prioritize cash flow and quick returns, often completing product cycles in a matter of weeks or months, which does not align with the long-term investment horizon of VCs [22][24]. - A unique distributed financial system based on "familiar credit" allows entrepreneurs to leverage supplier credit and customer deposits to fund operations, bypassing traditional capital requirements [23][24]. Group 3: Innovation Funnel and Market Dynamics - Huaqiangbei's innovation logic is based on survival of the fittest, where low barriers to entry lead to a high volume of product experimentation [32][34]. - The market acts as the ultimate judge, with a rapid feedback loop that results in a high failure rate (95% of products) and a few successes that can become major hits [37][38]. - Unlike Silicon Valley, which reduces uncertainty through lab testing, Huaqiangbei eliminates it through market trials and rapid iteration [38]. Group 4: The Role of Chaos - Huaqiangbei's chaotic environment, often criticized for producing "high copies," is actually a source of its vitality, allowing for rapid innovation without stringent regulations [42][44]. - The lack of strict order fosters a low-cost environment for innovation, enabling entrepreneurs to test ideas quickly and adapt based on market response [45][46]. - This chaotic ecosystem has historically contributed to the development of a robust supply chain and skilled workforce in China, despite its controversial reputation [48]. Group 5: Future Challenges - Looking ahead to 2026, Huaqiangbei faces challenges from the hollowing out of hardware value due to the rise of AI and cloud computing, which may render traditional hardware innovation less relevant [56][57]. - The emergence of digital supply chain platforms could threaten Huaqiangbei's role as an intermediary, raising questions about the future of its business model [58][59]. - Despite these challenges, Huaqiangbei is evolving from a product-selling hub to a capability-selling entity, positioning itself as a global hardware innovation factory [60][61].

证券研究报告 | 浙商早知道 ：wanghe@stocke.com.cn 市场总览 重要推荐 ❑ 【浙商电子 王凌涛/沈钱】鸿富瀚（301086）公司深度：精密制造平台化延展，液冷与自动化驱动全新成长极 — —20260209 重要观点 ❑ 【浙商 ESG 祁星】专题研究：国内首个金融 ESG 国标与可持续信息鉴证准则发布，加速推进信息披露体系标准 化——20260210 报告日期：2026 年 02 月 11 日 浙商早知道 2026 年 02 月 11 日 ：王禾 执业证书编号：S1230512110001 ：021-80105901 ❑ 大势：2 月 10 日上证指数上涨 0.13%，沪深 300 上涨 0.11%，科创 50 上涨 0.91%，中证 1000 上涨 0.2%，创业板 指下跌 0.37%，恒生指数上涨 0.58%。 ❑ 行业：2 月 10 日表现最好的行业分别是传媒（+4.27%)、综合（+2.15%)、家用电器（+1.11%)、煤炭（+0.88%)、 社会服务（+0.74%)，表现最差的行业分别是房地产（-1.4%)、食品饮料（-1.31%)、商贸零售（-0.87%)、美容护 理（-0 ...

Group 1: Industry Insights - Nvidia (NVDA.US) is expected to release its next-generation Rubin series products in the second half of next year, utilizing M9 materials and orthogonal backplanes, which significantly increases processing difficulty and leads to a rise in both quantity and price of PCB drill bits [1] - The global PCB drill bit industry is currently facing a shortage, with the top five companies (CR5) holding a combined market share of 75.2% as of the first half of 2025, with DingTai High-Tech leading with a sales volume of 500 million units and a market share of 28.9% [2] - The demand for high-performance drill bits is expected to increase significantly due to the higher requirements for drill bit length, breakage rates, and processing performance associated with advanced materials [1][2] Group 2: Company Developments - Minexplosion Optoelectronics (301362.SZ) announced plans to acquire 100% of Xiamen Maida's stake in Xiamen Precision, focusing on the production of PCB, FPC, IC substrates, and AI PCB tungsten micro-drills, with a product size range of 0.09mm to 0.35mm [1] - DingTai High-Tech (301377.SZ) is set to benefit from the technological iteration in the PCB drill bit market, leveraging its scale and self-manufacturing capabilities to maximize profits amid the current shortage [2] - Wald (688028.SH) has made progress in internal verification of PCD drill bits, focusing on high-hardness and brittle materials for PCB and semiconductor applications, with the ability to process over 8,000 holes in M9 boards without breakage [3] - Xiamen Precision, established in 1995, has a strong technical foundation and plans to expand its production capacity from the current 15 million units per month to over 50 million units in the next 2-3 years [3]

Company Overview - Corning Incorporated (NYSE: GLW) is a leading player in the electronics industry, known for its innovations in glass and ceramics, and serves various sectors including telecommunications and life sciences [1] Insider Transactions - On February 9, 2026, Senior Vice President Kammerud Jordana Daryl sold 30,000 shares of the company's common stock at approximately $127.67 each, leaving her with 2,772 shares, which may signal her perspective on the company's future performance [2][6] Institutional Interest - Lantz Financial LLC acquired 4,932 shares of Corning, valued at around $405,000, indicating growing interest in Corning's stock among institutional investors, alongside significant investments from other hedge funds like Norges Bank and WCM Investment Management LLC [3][6] Financial Metrics - Corning's financial metrics reveal a P/E ratio of 70.8, suggesting high expectations for future growth, and a price-to-sales ratio of 7.21, indicating strong market confidence [4][6] - The enterprise value to sales ratio is 7.65, and the enterprise value to operating cash flow ratio is 44.36, showing that operating cash flow can cover the enterprise value multiple times [5] - Corning's debt-to-equity ratio is 0.71, indicating a moderate level of debt, while a current ratio of 1.59 reflects good liquidity to cover short-term liabilities [5]

Summary of Conference Call Notes Company and Industry Involved - **Company**: 长江电子 (Changjiang Electronics) - **Industry**: PCB (Printed Circuit Board) Technology Core Points and Arguments - **Emerging PCB Technologies**: The market is currently flooded with various new PCB technology solutions as the Rubin cabinet approaches shipment and the RubinUltra cabinet plan becomes clearer. There is still no definitive choice between orthogonal backplane and copper cable technology paths for the RubinUltra cabinet [1] - **Focus on CoWoP Technology**: Among the various PCB technology solutions, the CoWoP (Chip-on-Wafer-on-Panel) technology has a strong likelihood of successful implementation and is progressing rapidly. It is expected to transition from the laboratory phase to small-scale production by the end of 2027 and to gradually ramp up to mass production in 2028 [2] - **Cost and Efficiency Benefits**: CoWoP technology allows chips to be directly bonded to PCBs via a silicon interposer, which reduces signal transfer losses, enhances heat dissipation efficiency, and eliminates the need for ABF substrates, thereby lowering costs and addressing substrate capacity shortages [2] - **Value Increase of SLP Products**: The value of SLP (Substrate-like PCB) products used in CoWoP technology is projected to exceed 400,000 yuan per square meter for 24-layer and above SLPs, which is nearly ten times the price of HDI (High-Density Interconnect) and high-layer count products currently used in AI servers [3] Additional Important Content - **Key Players in CoWoP Development**: - **鹏鼎控股 (Pegatron)**: Has a stable mass production capability for high-end SLP products and is actively involved in the CoWoP technology development for NVIDIA [3] - **深南电路 (Shennan Circuits)**: Gradually entering overseas computing power supply due to steady release of substrate capacity and participation in CoWoP technology development [3] - **兴森科技 (XingSen Technology)**: Has strong technical capabilities in substrate technology and is deeply involved in CoWoP technology development since July 2025, anticipating product volume growth [3] - **Other Companies to Watch**: - **沪电股份 (Unimicron)**: Recently announced a $300 million capital expenditure directed towards PCB substrate technology [3] - **胜宏科技 (Shenghong Technology)**: Preparing for production with mSAP equipment, expecting an annual output value of over 1.5 billion yuan [3] - **景旺电子 (Jingwang Electronics)**: Currently ramping up SLP production capacity at its Zhuhai Jinwan factory [3]

Summary of Conference Call Notes Industry Overview - The A-share market experienced a strong upward trend on February 9, with all three major indices rising collectively. The Shanghai Composite Index increased by 1.41% to close at 4123 points, the Shenzhen Component Index rose by 2.17%, and the ChiNext Index climbed by 2.98%. The total trading volume reached 2.25 trillion yuan, an increase of over 100 billion yuan compared to the previous trading day. A total of 4612 stocks rose while 759 stocks fell [1][2]. Key Industry Performance - All primary industries under the Shenwan classification saw gains, with the top five performing sectors being: - Communication: +5.17% - Comprehensive: +4.70% - Media: +3.50% - Electronics: +2.97% - Computer: +2.88% - Sectors with relatively lower gains included: - Oil and Petrochemicals: +0.21% - Banking: +0.36% - Food and Beverage: +0.37% - Agriculture, Forestry, Animal Husbandry, and Fishery: +0.42% - Home Appliances: +0.47% [2]. Notable Market News 1. ByteDance launched the Seedance 2.0 video generation model on its Dream platform, featuring a series of technological innovations such as multi-modal reference, generation, and editing integration, which is described as a "revolution in AI video creation efficiency" [2]. 2. The first mass-produced version of the Platinum Smart 4X Robotaxi has officially rolled off the production line, marking a new phase in the strategic cooperation between Pony.ai and Toyota China, as well as GAC Toyota, moving into large-scale production and operation [2]. 3. Elon Musk stated that SpaceX has shifted its focus to building a "self-expanding city" on the Moon, which he expects to achieve within 10 years, while Mars colonization may take over 20 years [2]. Market Outlook - Following a broad-based increase in trading volume, the market is likely to enter a phase of high-level turnover and rotation of hot sectors. There is anticipation for a "spring red envelope" market, with applications of AI video models potentially boosting risk appetite. However, the sustainability of this trend will depend on whether commercialization leads can keep pace [2][3].

Group 1: Core Insights - The 2025 Hurun China 500 list highlights the growing strength of non-state enterprises in Hubei, with three companies making the list, showcasing the steady rise of the local private economy [1] - Gaode Infrared, with a market value of 55 billion yuan, ranks first among Hubei companies and has improved its national ranking from 367th to 279th [1] - Gaode Infrared specializes in infrared thermal imaging technology and has broken the long-standing monopoly of Western giants in this field by developing advanced intelligent equipment [1] Group 2: Company Performance - Gaode Infrared expects a net profit of 700 million to 900 million yuan for 2025, driven by significant growth in its civilian product sector and increased demand for infrared chip applications [2] - Filihua, a new entrant on the list with a market value of 39 billion yuan, anticipates a net profit of 412 million to 472 million yuan for 2025, reflecting a year-on-year growth of 31.12% to 50.22% [2] - Chaoying Electronics, also a new addition with a market value of 35 billion yuan, focuses on PCB development and production, benefiting from local supply chain stability [3] Group 3: Industry Trends - The threshold for entering the 500 list has increased by 7.5 billion yuan to 34 billion yuan, marking a 28% rise [4] - The total value of the 500 companies has grown by 21 trillion yuan, a 38% increase, reaching 77 trillion yuan [4] - Semiconductor, media and entertainment, industrial products, and consumer goods sectors account for half of the total value of the Hurun China 500 [4]

转自：贵州日报 盈阳电子科技有限公司工人加工零件。 贵州日报天眼新闻记者 梅世桂 摄 本报讯（记者 梅世桂）2月4日，在安顺市西秀区的安顺盈阳电子科技有限公司生产车间，自动化生产线高速 运转，工人们有条不紊完成检测、组装、封装等工序，一批批磁性器件产品即将发往新能源车企。 为进一步强化研发能力，2025年，盈阳电子总部在安顺组建产品性能实验室，配备先进的磁芯损耗测试、高 温老化试验等设备，让技术创新更贴近生产一线，为产品迭代升级注入持续动力。 在生产车间的研发试验区，技术人员对新下线的通信基站电源磁性器件进行性能测试。目前，盈阳电子正攻 关国内最新一代通信基站电源核心部件，其研发的高磁通粉芯电感凭借高温稳定性强、功率密度高的优势， 已成功供应铁塔能源、大唐能源等央企，目前正计划布局6G通信技术配套产品研发。 作为江苏常州飞阳电子的全资子公司，盈阳电子自2018年落户安顺以来，已成功获评国家级高新技术企业、 创新型科技企业，正全力冲刺国家级"专精特新"企业。"选择落户安顺，是看中了这里良好的营商环境和区位 优势，西秀区'一窗通办''一网通办'的政务服务让企业少跑腿，航空航天产业城的集群效应更让我们坚定了深 耕的 ...

Core Viewpoint - Strong瑞 Technology (301128) has confirmed that its subsidiary, Alubao Technology, has successfully applied its precision cooling structural components in various clients' servers and chip modules [1] Group 1 - The company has a subsidiary named Alubao Technology that specializes in precision cooling structural components [1] - These products have been widely adopted by clients in the server and chip module sectors [1]