Group 1 - The global server market is entering a new growth cycle starting in 2024, driven by the increasing demand for AI computing power, with an expected CAGR of 18.8% from 2024 to 2029 [2] - The PCB industry is recovering from a phase of adjustment due to weak consumer electronics and inventory cycles, with emerging demands from AI servers and high-performance infrastructure expected to drive growth from 2024 [2][3] - Domestic PCB manufacturers are actively expanding production and increasing capital expenditures, focusing on high-end products such as HDI and multi-layer boards [2][3] Group 2 - The global PCB equipment market is projected to reach 51 billion yuan in 2024, with a year-on-year growth of 9.0%, and a CAGR of 4.9% from 2020 to 2024 [3] - The demand for PCB equipment is significantly boosted by AI computing infrastructure, with the market expected to grow to 77.5 billion yuan by 2029, reflecting a CAGR of 8.7% from 2024 to 2029 [3] - Drilling, exposure, and testing equipment represent the highest value segments in the PCB equipment market, accounting for 20.75%, 16.99%, and 15.00% respectively in 2024 [3] Group 3 - The drilling equipment segment is expected to benefit from increased demand for high-end HDI, with both mechanical and laser drilling seeing growth due to the rising complexity of HDI designs [3] - The exposure equipment market is currently dominated by foreign brands, with low domestic penetration, particularly in LDI technology which is more suited for HDI [4] - The demand for plating equipment is increasing due to the higher number of plating cycles required for advanced HDI, alongside quality control pressures [5] Group 4 - Major equipment manufacturers are showing a clear upward trend, with expectations for accelerated performance in the future [6] - Key players in the drilling segment include Dazhu CNC (301200), while the exposure segment is led by Xinqi Micro (688630) and Tianzhun Technology (688003) [7] - The plating segment is highlighted by Dongwei Technology (688700), with Keg Precision (301338) noted for its role in the solder paste printing segment [7]

Summary of Conference Call Records Industry Overview - The records focus on the **PCB (Printed Circuit Board)** manufacturing industry, particularly high-layer and HDI (High-Density Interconnect) boards, and the associated equipment demands. Key Points and Arguments Equipment Demand and Market Dynamics - There is a strong demand for equipment in the production of high-layer and HDI boards, particularly for **LDI (Laser Direct Imaging) exposure machines**, **vacuum two-fluid etching lines**, **PN type presses**, **direct drilling**, and **vertical plating lines** [1][2][3] - The production of a 22-layer 5-stage HDI board requires multiple processes including laser processing, pressing, mechanical drilling, and plating, leading to a significantly higher equipment capacity requirement compared to traditional PCBs [1][5] - The high-end press market is dominated by foreign brands such as **Burkle** and **Lasa**, which have long lead times, prompting some companies to assemble domestically to reduce delivery times [1][10][11] - The laser drilling machine market is primarily led by **Mitsubishi**, known for high capacity and efficiency, making it essential in modern electronic manufacturing [1][13] Technological Trends - The vertical continuous plating line is favored for its automation and environmental benefits, utilizing pulse current to enhance impedance ratios [1][16] - The LDI technology is rapidly developing in China, with companies like **New Flag Technology** showing strong competitiveness in fine line applications [1][17] - The mechanical drilling and forming machine market is mature, with domestic manufacturers like **Dazhu Laser** and **Weijia** gaining significant market share [1][18][19] Investment Value - The investment value in the electroplating segment of PCB manufacturing is substantial, with high-end VCP systems costing significantly more than exposure machines, leading to total investments in modern factories reaching billions [2][30][31] - The complexity of ASIC product designs, such as those from **Google** and **Microsoft**, necessitates multiple drilling, plating, and pressing operations, which increases the demand for advanced equipment [2][29][33] Market Challenges and Opportunities - Domestic manufacturers are gradually entering the press market, but top-tier clients still prefer established foreign brands due to reliability concerns [1][12] - The market for laser equipment is competitive, with key players including **Dazhu Laser** and **ESI**, but challenges remain due to tariff impacts and the need for technological advancements [1][14][15] - The PCB equipment market is characterized by a high degree of customization, leading to significant price variations based on specifications and requirements [1][36] Key Equipment and Processes - The manufacturing process for high-layer boards involves multiple critical steps, including pressing, drilling, electroplating, and testing, each requiring specialized equipment [1][9][29] - The use of Q fabric in drilling applications presents challenges due to its hardness, leading to increased wear on drilling tools [1][25][26] Additional Important Content - The records highlight the importance of automated visual inspection (AVI) and final quality control (FQC) in ensuring product quality throughout the manufacturing process [1][3] - The domestic PCB equipment market shows varying levels of localization, with certain areas like drilling machines achieving high localization rates, while others, such as high-end electroplating lines, still rely heavily on foreign technology [1][21][23] This summary encapsulates the critical insights from the conference call records, providing a comprehensive overview of the current state and dynamics of the PCB manufacturing industry.

Group 1: Company Performance and Financials - The company achieved a revenue of 959,848,668.68 CNY in Q1 2025, representing a year-on-year growth of 27.89% [8] - The net profit attributable to shareholders for the same period was 116,773,485.23 CNY, showing an increase of 83.60% compared to the previous year [8] - The company’s revenue growth in 2024 was 104.56%, primarily driven by drilling equipment, which accounted for 62.84% of total revenue [22] Group 2: Market Trends and Industry Outlook - The global PCB industry is expected to grow by 6.8% in 2025, with a compound annual growth rate (CAGR) of 5.2% projected from 2024 to 2029 [19] - The demand for PCB products is increasing due to advancements in AI, 5G technology, and the recovery of consumer electronics [7][22] - The company is focusing on high-tech products such as high-layer boards and IC packaging substrates to meet market demands [15] Group 3: Strategic Initiatives and Future Plans - The company plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its capital base [13] - There is an emphasis on expanding into Southeast Asian markets, leveraging partnerships with local clients to adapt to regional supply chain dynamics [11][16] - The company is committed to developing energy-efficient PCB equipment in response to green manufacturing demands [6] Group 4: Customer Base and Market Position - The company serves 80% of the top 100 global PCB companies and has established relationships with numerous domestic and international clients [4] - It ranks first in the CPCA Top 100 list for specialized equipment for 15 consecutive years, indicating a strong market position [18] Group 5: Challenges and Responses - The company acknowledges the impact of stock price decline since its IPO, with a 40% drop from the issue price, and is focused on improving operational management [3] - In response to raw material supply challenges, the company is enhancing its procurement strategies and building relationships with key suppliers [10]