Core Viewpoint - Dazhu CNC Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for enhancing R&D and operational capabilities, expanding overseas sales, increasing PCB equipment production capacity, and supplementing working capital [2] Industry Background - China is the largest PCB production base globally, with a projected PCB output value of $41.2 billion in 2024, accounting for approximately 56% of the global market, expected to rise to $49.7 billion by 2029 [2] - The Chinese PCB industry is undergoing a structural transformation, shifting from traditional through-hole boards to high-end HDI, packaging substrates, and high-frequency boards, with increasing demand for high-precision PCB equipment driven by AI and smart electric vehicles [2] Company Overview - Dazhu CNC has over 20 years of experience in the PCB equipment sector, providing end-to-end solutions for manufacturers in various industries, including automotive electronics and consumer electronics [3] - The global PCB equipment market is competitive and fragmented, with the top five manufacturers holding about 20.9% of the market share; Dazhu CNC is the largest PCB equipment manufacturer in China, with a market share of 10.1% [3] R&D and Innovation - R&D is a core competitive advantage for Dazhu CNC, with 742 R&D personnel, representing 25.5% of total employees, and 72.2% holding a bachelor's degree or higher [5] - The company has established several research centers to enhance its technological capabilities, focusing on laser processing equipment for packaging substrates and other key areas [5] Product and Production Capacity - Dazhu CNC's product range covers critical PCB production processes, including drilling, exposure, lamination, forming, and testing, with sales across over 10 countries [5] - Sales data for key equipment types: - **Drilling Equipment**: Sales of 2,514 units in 2022, 1,129 in 2023, and projected 3,119 in 2024, with varying production and sales rates [5] - **Exposure Equipment**: Sales of 132 units in 2022, 79 in 2023, and 141 in 2024, with production rates reflecting market conditions [6] - **Testing Equipment**: Sales of 519 units in 2022, 400 in 2023, and 446 in 2024, with a noted decrease in production rates due to inventory levels [6] - **Forming Equipment**: Sales of 463 units in 2022, 289 in 2023, and 596 in 2024, maintaining stable production rates [6] - **Attachment Equipment**: Sales of 74 units in 2022, 183 in 2023, and 206 in 2024, with production rates indicating market adaptation [7] - **Lamination Equipment**: Introduced in 2024 with initial sales of 2 units, reflecting early market entry challenges [7]

香港聯合交易所有限公司與證券及期貨事務監察委員會對本申請版本的內容概不負責，對其準確性或完整性亦 不發表任何申明，並明確表示概不就因本申請版本全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 SHENZHEN HAN'S CNC TECHNOLOGY CO., LTD. 深圳市大族數控科技股份有限公司 的申請版本 （於中華人民共和國註冊成立的股份有限公司） 警 告 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」） 的要求而刊發，僅用作提供資料予香港公眾人士。 本申請版本為草擬本，其內所載資料並不完整，亦可能會作出重大變動。瀏覽本文件即表 示 閣下知悉、接納並深圳市大族數控科技股份有限公司（「本公司」，連同其子公司統稱「本集 團」）、其獨家保薦人、整體協調人、顧問或承銷團成員表示同意： 本公司招股章程根據香港法例第32章公司（清盤及雜項條文）條例送呈香港公司註冊處處長登記前， 不會向香港公眾人士提出要約或邀請。倘於適當時候向香港公眾人士提出要約或邀請，有意投 資者務請僅依據與香港公司註冊處處長登記的本公司招股章程作出投資決定；招股章程的文本 將 ...

Summary of Dazhu CNC Conference Call Company Overview - **Company**: Dazhu CNC - **Industry**: AI and PCB (Printed Circuit Board) manufacturing Key Points and Arguments Industry and Market Dynamics - The global AI business is experiencing rapid growth, with major companies like Nvidia, Google, and Amazon significantly increasing their computing power [2][7] - Dazhu CNC has positioned itself as a key player in the AI sector, particularly in the PCB market, collaborating closely with Shenghong, a major PCB supplier for Nvidia [2][4] Financial Performance - In the first half of 2025, Dazhu CNC achieved approximately 50% revenue growth, with profits growing slightly faster than revenue [3] - The primary driver of this growth is the rapid development of the AI industry, especially in the PCB sector [3] Strategic Adjustments - Dazhu CNC has adjusted its strategy to focus on AI, reallocating resources from non-AI sectors to enhance its capabilities in AI applications [4][9] - The company aims for AI business to constitute over 30% of total revenue in 2025, with a target of exceeding 50% in the future [4][29] Production and Capacity - The company operates an integrated assembly production model, which has allowed for an 80% increase in capacity in the first half of 2025, aligning with order growth [11] - Current production capacity is under moderate tension but can be flexibly adjusted based on operational needs [11] Product Development and Technology - Dazhu CNC has developed ultra-fast laser technology to serve high-end markets, collaborating with companies like Pengding and Xinxin to enhance multilayer and HDI capabilities [2][12] - The company is focusing on high-value, AI-specific equipment rather than general-purpose devices, reflecting a shift in product strategy [17][18] Competitive Landscape - Dazhu CNC faces competition from foreign brands in high-end markets, particularly in multilayer boards, but maintains a strong position in lower-tier markets [15][16] - The company is working to break the monopoly of Mitsubishi in the CO2 drilling machine market by enhancing its technological capabilities [21] Future Outlook - The company anticipates that the AI market will continue to grow, with significant investments expected in the second half of 2025 and into 2026 [8][13] - Dazhu CNC is preparing for potential capacity expansions based on customer plans, particularly in regions like Vietnam and Taiwan [14] Supply Chain and Component Strategy - Dazhu CNC primarily sources core components externally but aims to integrate the best parts to enhance overall system performance [30] - The company prioritizes domestic suppliers when possible, especially for critical components, while still relying on international sources for certain technologies [31] Profitability and Margin Expectations - The company aims to maintain a gross margin of over 40%, with expectations for improvement as AI technology and equipment value increase [32][35] - High-value machines, particularly in the AI sector, are expected to yield significantly higher margins compared to standard machines [28] Challenges and Risks - The company is aware of the risks associated with market saturation and competition in lower-tier markets, prompting a strategic focus on high-value opportunities [34] - Dazhu CNC is adapting to material changes in AI applications, which may affect laser technology compatibility and processing efficiency [27] Additional Important Insights - The shift towards AI applications is not just a trend but a fundamental change in the market landscape, requiring companies to innovate and adapt quickly [33] - Dazhu CNC's collaboration with leading clients like Shenghong is crucial for accessing significant application scenarios and enhancing technological development [19]