Group 1 - The company held its fifth board meeting on August 10, 2025, with all seven directors present, ensuring compliance with legal regulations and company bylaws [1][2] - The board approved an investment proposal to increase capital in Shenzhen New Sound Semiconductor Co., Ltd., with a total investment of 269 million yuan, of which the company will contribute 125 million yuan [1][2] - After the investment, the company will hold a 3.8238% equity stake in Shenzhen New Sound Semiconductor [1] Group 2 - The independent directors of the board approved the investment proposal with a voting result of 3 in favor, 0 against, and 4 abstentions [2] - Related directors recused themselves from the vote to ensure impartiality [2] - Relevant documents regarding the board's decisions are available for review [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]