Group 1 - The company is currently in the material research phase for its 800g optical module PCB substrate and has not yet reached mass production conditions, making it unable to confirm specific mass production timelines, target customers, or order status [2] - The overall production and operation of the company is orderly, with the operating rate maintained at a reasonable level [2] - The company emphasizes the importance of market capitalization management and plans to continue increasing investment in technology research and development to enhance core competitiveness and create value for investors [2]

Core Viewpoint - The company is proposing a plan for a private placement of A-shares to specific investors, aiming to raise up to 1.98 billion RMB for investment projects, particularly in the artificial intelligence and high-density interconnection circuit board industry [4][8][9]. Group 1: Issuance Plan - The company intends to issue A-shares to no more than 35 specific investors, including its controlling shareholder, Huanxin Fangke, which will subscribe for up to 23.5% of the total issuance [5][6]. - The issuance price will not be lower than 80% of the average trading price over the 20 trading days prior to the pricing date [7][8]. - The total amount raised from the issuance will not exceed 1.98 billion RMB, with the funds allocated primarily to the artificial intelligence and circuit board projects [8][9]. Group 2: Shareholder Meeting Details - The first extraordinary general meeting of shareholders is scheduled for June 27, 2025, at 14:30 in Guangdong Province [2][3]. - Shareholders can participate in the meeting either in person or through a proxy, and the voting will be conducted via a designated online system [2][3]. Group 3: Related Transactions - The issuance involves related transactions, particularly with Huanxin Fangke, which requires the related shareholders to abstain from voting on these matters [10][11]. - The company has signed a conditional subscription agreement with Huanxin Fangke, which constitutes a related party transaction [22][23]. Group 4: Financial Measures - The company has proposed measures to mitigate the dilution of immediate returns resulting from the issuance, ensuring that the interests of minority investors are protected [19][20]. - A three-year shareholder return plan (2025-2027) has been developed to enhance profit distribution transparency and ensure investors benefit from the company's growth [20]. Group 5: Regulatory Compliance - The company confirms compliance with relevant laws and regulations regarding the issuance of A-shares, including the need for approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission [4][5]. - The company will not need to prepare a report on the use of previous fundraising as it has not raised funds through public offerings in the last five years [14].

Industry Overview - Substrate-like PCB (SLP) is a new type of circuit board positioned between traditional PCBs and semiconductor packaging substrates, experiencing rapid development in recent years [1][4] - The global SLP market size is projected to reach 31.5 billion yuan in 2024, with a year-on-year growth of 6.06% [1][15] - SLP technology meets the increasing demand for miniaturization and high performance in electronic products, with line width/spacing reduced to 20/35 microns, allowing for double the component density compared to traditional HDI [1][15] Industry Development History - The SLP industry in China has gone through four stages: the initial stage (2010-2016), the startup phase (2017-2020), the scaling phase (2021-2023), and the internationalization phase (2024-present) [4][5][6] - The introduction of SLP technology by Apple in the iPhone X marked its commercial application, leading to increased demand from consumer electronics [4][5] - Chinese manufacturers like Pengding Holdings and Shenzhen Sannan Circuit began to break the technological monopoly of international firms during the startup phase [5][6] Industry Chain - The upstream of the SLP industry chain includes raw materials (copper foil, resin, glass fiber cloth, etc.) and production equipment (laser drilling machines, plating equipment, etc.) [9] - The midstream involves the manufacturing of SLP, while the downstream applications include smartphones, wearable devices, automotive electronics, data centers, and 5G communication devices [9] Market Size - The SLP market is expected to continue growing, driven by advancements in technology and increasing demand for high-density circuit boards [15][24] - The market is projected to expand further by 2030, particularly in China, due to the proliferation of 5G networks and upgrades in consumer electronics [24] Key Companies' Performance - Pengding Holdings, a leading PCB manufacturer, has achieved significant revenue growth, with SLP-related income accounting for over 45% of total revenue in 2024 [21] - Shenzhen Sannan Circuit has made advancements in SLP technology, achieving mass production of 25μm line width/spacing and continuously pushing towards 20μm [19][21] - Shenzhen Jingwang Electronics has established a strong position in the high-end PCB market, with a focus on SLP technology and significant revenue growth in 2025 [19][21] Industry Development Trends - The SLP technology is advancing towards higher density and finer lines, with line width/spacing shrinking to below 15/15 microns for applications in AR/VR and 6G communication [6][23] - The demand for high-performance PCBs is expected to drive industry expansion, with companies focusing on capacity expansion and technological upgrades to meet market needs [24][25] - Increased competition is anticipated, leading to higher market concentration, with leading companies solidifying their positions through innovation and market integration [25]

Core Viewpoint - The company, Founder Technology Group Co., Ltd., has announced the resolutions from its 2025 third meeting of the 13th Supervisory Board, focusing on the approval of a plan to issue A-shares to specific investors, which requires further approval from the shareholders' meeting [1][2][8]. Group 1: Issuance of A-Shares - The Supervisory Board confirmed that the company meets the conditions for issuing A-shares to specific investors as per relevant laws and regulations [1][2]. - The proposed issuance will involve domestic listed RMB ordinary shares (A-shares) with a par value of RMB 1.00 per share [2]. - The issuance will be conducted through a specific object issuance method, with the issuance price not lower than 80% of the average trading price over the 20 trading days prior to the pricing benchmark date [5][6]. Group 2: Subscription Details - The issuance will include up to 35 specific investors, with the controlling shareholder, Zhuhai Huashi Huanxin Fangke Investment Enterprise (Limited Partnership), committing to subscribe for no more than 23.50% of the total issuance amount, capped at RMB 46,500.00 million [3][4]. - Other investors will include qualified institutional investors as defined by the China Securities Regulatory Commission (CSRC) [3][4]. Group 3: Fundraising and Project Investment - The total amount to be raised from the issuance is capped at RMB 198,000.00 million, with the funds allocated primarily to the construction of an artificial intelligence and high-density interconnection circuit board industrial base project [6][7]. - If the actual net fundraising amount is less than the planned investment, the company will cover the shortfall through self-raised funds [7]. Group 4: Lock-up Period and Shareholder Rights - Shares subscribed by Zhuhai Huashi Huanxin Fangke will be subject to an 18-month lock-up period, while shares subscribed by other investors will have a 6-month lock-up period [7][8]. - Post-issuance, all shareholders will share the undistributed profits accumulated before the issuance according to their respective shareholding ratios [8]. Group 5: Future Plans and Reports - The company plans to submit various proposals related to the issuance, including feasibility analysis reports and shareholder return plans, for approval at the upcoming shareholders' meeting [9][10][11]. - The company has also proposed a stock incentive plan to attract and retain talent, which will be presented for shareholder approval [11][12].

Group 1: Financial Performance - The company achieved an operating revenue of 112,821.67 million yuan in 2024, representing a growth of 74.57% compared to the previous year [3] - The net profit attributable to shareholders was 3,386.44 million yuan, reflecting a year-on-year increase of 28.16% [3] - In the first quarter of 2025, operating revenue increased by 20.69%, but the net profit attributable to the parent company was only 500,000 yuan due to high costs during the ramp-up phase of the Zhuhai factory [4] Group 2: Research and Development - The significant increase in R&D investment in 2024 was primarily influenced by the consolidation of Taihe Circuit [2] - The company is currently in the product development phase for glass substrate, with samples completed but no substantial revenue generated yet [3] Group 3: Sales and Marketing Strategy - Sales expenses grew by 104.23% due to increased business volume and market expansion, with potential for a decrease in sales expense ratio as business stabilizes [3] - The company plans to enhance service capabilities, deepen customer relationships, and optimize supply chain management to expand overseas markets, particularly in Europe and the US [2] Group 4: Operational Efficiency - The company has implemented a multi-factory layout to optimize resource allocation, focusing on business collaboration and resource sharing to improve operational efficiency and market competitiveness [3] - The company is leveraging automation and digitalization to drive smart manufacturing, aiming to enhance production efficiency and reduce costs [4] Group 5: Financial Management - The increase in financial expenses was attributed to higher loan interest payments, with plans to expand financing channels and optimize financing structure to reduce financial costs [3]