Summary of Conference Call on Taiwan Electronic Copper Foil Industry Industry Overview - The high-frequency and high-speed electronic copper foil market is primarily dominated by Taiwanese and Japanese suppliers, such as Nanya, Chang Chun, and Mitsui, with overall supply being relatively tight, especially for high-end products [1][4][6]. Key Insights - **High-End Copper Foil Demand**: There is a strong demand for high-end electronic copper foil (third and fourth generation HVOP), mainly used in ultra-high-speed transmission servers, AI, and cloud transmission, with optimistic market growth expected in the coming years [1][6]. - **COOP Technology Impact**: The COOP technology route significantly influences the electric film formation field, requiring a balance between adhesion and electrical performance for high-end HVOP copper foil. Demand for HBOP3 and HBOP4 grades is increasing, but production technology is still immature [1][7][8]. - **Emerging Demand from COF Technology**: COF technology may create new demand for ultra-thin glass substrate copper foil, currently produced only by Mitsui in Japan and its Malaysian factory, indicating substantial future growth potential despite high technical barriers [1][9]. - **Domestic Competitors**: Domestic companies like Defu Technology are making strides in the substrate copper foil sector but still lag behind international leaders like Mitsui in adhesion and product formulation, needing to address intellectual property issues [1][10]. Production and Cost Insights - **Processing Fees**: The processing fees for HVOP copper foil vary by generation, with first-generation fees at 60-80 RMB/kg and fourth-generation fees exceeding 200 RMB/kg. The demand for fourth-generation products is expected to exceed 1,000 tons/month by 2027 [1][19][17]. - **Market Supply and Demand**: The copper foil market is expected to remain in a supply-demand imbalance through 2026 due to long certification cycles and limited supplier options for end manufacturers, despite overall copper foil capacity being sufficient [2][24][25]. Competitive Landscape - **Global Capacity Overview**: Major players in the global high-frequency and high-speed electronic copper foil market include Taiwanese companies (Nanya, Chang Chun) and Japanese firms (Mitsui, Fukuda). Specific capacities include Mitsui's 6,000 tons total capacity, with 3,000 tons for HVLP [4][5]. - **Challenges for Domestic Manufacturers**: Domestic manufacturers face challenges in entering the high-end market due to brand reliance and the need for specific imported equipment, which limits their competitiveness against established foreign brands [28]. Future Outlook - **High-End Product Demand Growth**: The demand for high-end HLP copper foil is projected to quadruple by 2026, reaching 400 tons/month, with potential to exceed 1,000 tons/month by 2027 as AI penetration and product upgrades drive growth [21][22]. - **Potential Supply Shortages**: There may be future supply shortages for high-end HLP products, depending on the pace of AI integration and terminal product upgrades, as well as the progress of supply chain certification [23]. Additional Considerations - **Technical Equipment Limitations**: The expansion of production capacity for high-end copper foil is constrained by the need for specialized equipment and technology, which are not readily available [26][27]. - **Production Losses**: Transitioning production from first-generation to fourth-generation copper foil can result in significant capacity losses, highlighting the challenges in meeting evolving market demands [42]. This summary encapsulates the key points discussed in the conference call regarding the electronic copper foil industry, focusing on market dynamics, technological advancements, and competitive challenges.

Group 1 - Zhongyi Technology (301150) closed at 25.57 yuan, with a decline of 5.16% [1] - The company was listed on the Shenzhen Stock Exchange's ChiNext board on April 21, 2022, with an initial public offering (IPO) of 16.837 million shares at a price of 163.56 yuan per share [1] - The total funds raised from the IPO amounted to 2.754 billion yuan, with a net amount of 2.603 billion yuan, exceeding the original plan by 1.887 billion yuan [1] Group 2 - In June 2022, the company announced a cash dividend of 20 yuan per 10 shares, totaling 134.69 million yuan, and a stock bonus of 5 shares for every 10 shares held, increasing the total share capital to 101.02 million shares [2] - In June 2023, the company declared a cash dividend of 13 yuan per 10 shares, totaling 131.33 million yuan, and a stock bonus of 3 shares for every 10 shares held, raising the total share capital to 131.33 million shares [2] Group 3 - In May 2024, the company announced a dividend plan of 1 yuan per 10 shares, with a stock bonus of 4 shares for every 10 shares held [3] - In May 2025, the company revealed a dividend plan with no cash dividend, but a stock bonus of 3 shares for every 10 shares held, increasing the total share capital to 233.23 million shares [3]

Core Viewpoint - Zhongyi Technology (301150.SZ) is currently experiencing a decline in stock price, with a closing price of 22.28 yuan and a market capitalization of 5.196 billion yuan, indicating it is in a state of underperformance since its IPO [1] Group 1: IPO and Fundraising - Zhongyi Technology was listed on the Shenzhen Stock Exchange's ChiNext board on April 21, 2022, with an initial public offering (IPO) of 16.837 million shares at a price of 163.56 yuan per share [1] - The total amount raised from the IPO was 2.754 billion yuan, with a net amount of 2.603 billion yuan, exceeding the original plan by 1.887 billion yuan [1] - The funds raised are intended for a project to produce 10,000 tons of high-performance electronic copper foil, a technology research and development center, and to supplement working capital [1] Group 2: Dividend Distribution - On June 2, 2022, Zhongyi Technology announced a cash dividend of 20 yuan per 10 shares (including tax), totaling 134.694 million yuan, along with a capital reserve transfer of 5 shares for every 10 shares held, increasing total shares to 101.020 million [2] - On June 16, 2023, the company declared a cash dividend of 13 yuan per 10 shares (including tax), totaling 131.327 million yuan, and a capital reserve transfer of 3 shares for every 10 shares, raising total shares to 131.327 million [2] - For the 2023 annual equity distribution, announced on May 7, 2024, the company plans to distribute a cash dividend of 1 yuan per 10 shares and transfer 4 shares for every 10 shares held [3] - The 2024 annual equity distribution, announced on May 28, 2025, will involve a transfer of 3 shares for every 10 shares held, increasing total shares to 233.233 million, with no cash dividend or bonus shares [3]

Core Viewpoint - The company anticipates steady growth in demand for high-end copper foil products, particularly in the PCB and lithium battery sectors, despite current competitive pressures in the lithium battery copper foil market [2][3]. Industry Overview - The PCB copper foil industry is experiencing a mild recovery, with long-term demand expected to grow steadily, especially for high-end products [2]. - The lithium battery copper foil sector is facing intensified competition, but future trends indicate a shift towards ultra-thin and high tensile strength products [2]. Company Performance - In 2024, the company produced 54,011 tons of copper foil and sold 55,087 tons, generating revenue of 4.719 billion yuan, with a net loss of 156.34 million yuan [5]. - For Q1 2025, the company reported revenue of 1.395 billion yuan and a net profit of 4.75 million yuan, indicating a year-on-year revenue increase of 56.29% and a net profit increase of 117.16% [7]. Strategic Direction - The company plans to continue its high-end strategy, optimizing product structure and expanding profit channels by enhancing the production of high-performance copper foil products [4]. - The focus will be on developing ultra-thin, high-density, and high tensile strength copper foil products to improve profitability [4]. Financial Metrics - The company's debt ratio stands at 26.42%, with investment income of 3.7494 million yuan and financial expenses of 10.284 million yuan, resulting in a gross margin of 2.72% [7]. - The company has seen a net inflow of 6.4344 million yuan in financing over the past three months, indicating positive market sentiment [7].