Summary of Conference Call Records Industry Overview - The conference call discusses the PCB (Printed Circuit Board) industry, focusing on advancements in technology and materials driven by companies like NVIDIA and Huawei [1][2][3]. Key Points and Arguments New PCB Solutions and Technology - NVIDIA's new solution integrates chip packaging directly onto the PCB, eliminating the need for traditional ABF substrates, which enhances efficiency and reduces costs [2][6]. - The new PCB design requires high-density interconnect (HDI) technology, with GB200 using 5-layer HDI and GB300 potentially reaching 6 or 7 layers, increasing line density and reducing hole size [1][5]. Material Requirements - The new PCB solutions demand higher uniformity in copper plating and improved properties in glass fiber cloth (low CTE and low DK materials) [1][3][8]. - For 7-layer HDI, approximately 15-16 square meters of glass cloth is needed per square meter of accelerated card, with 9-layer HDI requiring 18 times more [8]. Market Demand and Projections - By Q4 2026, the demand for low e glass cloth is projected to reach 10 million square meters due to the Roping 27 platform [1][9]. - NVIDIA's server demand for the new COVO process is estimated at 10 million meters, with an additional 1 million square meters needed for switches [13]. Cost and Performance Implications - The new PCB solutions, while having a higher unit price, are expected to improve overall performance and signal integrity due to reduced transfer steps [6]. - The price of high-end HDI PCBs can be two to three times higher than traditional boards, with current prices ranging from 10,000 to 12,000 yuan per square meter [16][17]. Competitive Landscape - Major manufacturers capable of producing high-end HDI PCBs include Shenghong, Pengding Holdings, Dongshan Precision, and Shennan Circuit [19]. - Shenghong holds a 75% market share in the accelerator card market, indicating a strong competitive position [21]. Future Trends - The industry is expected to see continued advancements in high-end HDI technology, with potential for 9-layer HDI and further optimization of low TK glass cloth [7]. - The adoption of MSAP (Modified Semi-Additive Process) is anticipated to increase the demand for low-expansion materials by approximately 10 million square meters annually [23]. Specific Applications and Innovations - Huawei's 384 super orthogonal backplane is manufactured by leading domestic companies, with a high production cost of around 200,000 yuan per square meter [12][31]. - The new COVO process requires resin with higher expansion coefficients and improved copper foil uniformity, enhancing performance for high-speed PCBs [14]. Additional Important Insights - The transition from ADF narrow boards to advanced PCB solutions is expected to significantly increase the demand for low CTE glass cloth [23]. - The new packaging method, which integrates chips with larger PCBs, is still in the experimental phase and has not yet reached mass production [29]. This summary encapsulates the critical developments and projections within the PCB industry as discussed in the conference call, highlighting the technological advancements, material requirements, market dynamics, and competitive landscape.

Summary of Conference Call on Quartz Fabric Industry Industry Overview - The quartz fabric industry is currently facing supply constraints for second-generation fabric due to limited glass fiber raw materials, leading to anticipated price increases. Japanese manufacturers are struggling to expand production to meet demand, resulting in a persistent supply-demand imbalance that may impact the CCL (Copper Clad Laminate) industry [2][19]. Key Insights - **Performance of Domestic Companies**: Mainland companies, such as those in Hubei, have shown good performance in individual metrics for quartz fabric testing, but the stability and consistency of mass production still need verification, indicating that large-scale application will take time [2][20]. - **Market Dominance**: The high-end copper foil market is primarily dominated by Japanese and Korean suppliers, with companies like South Korea's Solvay and its Luxembourg subsidiary being preferred for stable and high-volume supply [2]. - **Electronic Materials Contribution**: The electronic materials segment contributes 80% of the company's shipment volume, with significant demand expected for switch products in the second half of next year, particularly for the 1.6T product market [2][28]. - **Material Procurement**: North American IC/CSP manufacturers mainly procure M8U or equivalent materials, which are sufficient for the upcoming 1.6T product demand. Next-generation product solutions are still under observation [2][29]. - **AI Market Dynamics**: In the AI sector, the company utilizes Japanese suppliers, indirectly making them a major player, while their market share in non-AI sectors is relatively low [2][23]. Production and Testing Insights - **Second-Generation Fabric Demand**: Currently, second-generation fabric is in small-batch production with some supply shortages. The cost structure indicates that copper foil accounts for about 30% of total costs, while glass fabric accounts for approximately 20% [5]. - **Testing of New Suppliers**: New suppliers in mainland China, particularly in Shandong and Hubei, are progressing in testing quartz components, with a focus on ensuring diverse technological routes [11]. - **Challenges in Production**: Glass fiber suppliers face challenges when transitioning from producing first or second-generation fabrics to third-generation fabrics, indicating a steep learning curve [12]. Pricing Trends and Market Dynamics - **Price Trends**: The price of second-generation fabric is expected to rise due to fixed raw material costs, while the first-generation fabric prices are anticipated to remain stable unless market conditions change significantly [17]. - **Supply Chain Tightness**: There are no significant supply-demand imbalances in resin and copper foil, but the second-generation fabric's supply shortage may lead to price increases [19]. Future Developments - **M9 Electronic Fabric Material Decision Timeline**: The decision on M9 electronic fabric materials is expected to be made in the second half of 2026 or the first half of 2027, with ongoing testing of supplier samples focusing on material stability [26]. - **Testing Results**: Initial testing results from Hubei have shown promise, while Shandong has yet to complete its testing report [14][20]. Conclusion The quartz fabric industry is navigating through supply constraints and testing new materials while maintaining a focus on stability and consistency in production. The demand for electronic materials is expected to grow significantly, particularly in the AI and high-speed data transmission sectors, indicating potential investment opportunities in this space.

Summary of Conference Call on Electronic Fabric Industry Industry Overview - The conference call focused on the electronic fabric industry, specifically discussing advancements in PCB (Printed Circuit Board) technologies and materials used in various architectures such as GP300, GB200, and Rubin series [2][4][6]. Key Points and Arguments 1. **Material Upgrades and Usage**: - GP300 architecture has reverted to PCB solutions, increasing PCB usage and material grades. The Rubin series is testing PTFE1 and Ma9 grade materials, with NV actively evaluating Ma9 materials [2][4]. - GP300 employs HDI design with approximately 20+ layers, while GB200's actual layer count increased from 30 to nearly 40 layers, significantly enhancing CCL (Copper Clad Laminate) and BS (Binding System) material usage and value [2][6]. 2. **Price Changes**: - In GB200, the computer section is priced around $500-$600, while the switch section exceeds $1,000. In GP300, the switch section's value increased by 30%, from $1,000 to $1,500 [7][8]. - The Rubin series is expected to see a price coefficient increase of 2-2.5 times, with each board potentially exceeding $4,000 [7][8]. 3. **Supply Chain Dynamics**: - There is a significant disparity in yield rates among glass fabric manufacturers, with major suppliers including Asahi Glass (Japan), Taiwan Glass, and Taishan Fiberglass (China) [10][11]. - Ordinary fiberglass is priced around 10 RMB, while first-generation Low DK is priced at 30-40 RMB, and quartz (Q) prices are at least double that of the second generation [14]. 4. **Testing and Evaluation**: - The M9 and QQ material testing is being conducted in three tiers, with NV having completed initial evaluations and AWS, Google, and Meta expected to finish testing by Q3 2025 [3][16]. - The performance of quartz fabric varies significantly between manufacturers and even between batches from the same manufacturer, indicating instability in quality [17]. 5. **Market Demand and Supply Challenges**: - The demand for electronic fabrics is expected to increase, with potential supply bottlenecks anticipated in the mid-range output due to tight supply of first-generation Low DK glass fabric [29][30]. - The expansion cycle for electronic fabric production typically takes 1 to 1.5 years, with quartz fabric potentially requiring an additional 20-30% more time [28]. 6. **Future Trends**: - The initial pricing of new electronic fabrics is typically around 2.5 times that of the previous generation, decreasing to below 2 times during mass production, with a target stabilization at 1.5 times [31]. - The market for second-generation fabrics is expected to remain tight, with prices likely to hold steady due to high demand and limited supply [35]. Additional Important Insights - The current focus on testing indicators emphasizes DK and DF values, with stability in performance being a primary concern [27]. - The entry of new suppliers into the electronic fabric market is cautious, with established relationships and technical capabilities being prioritized [20]. - The market share for first-generation electronic paper suppliers shows that the top three suppliers account for approximately 60% of the total procurement volume [32][33]. This summary encapsulates the critical discussions and insights from the conference call, highlighting the evolving landscape of the electronic fabric industry and its implications for future investments and market dynamics.

Group 1: Financial Performance - The medical health sector reported a revenue of 220 million yuan in 2024, a decrease of 35.03% compared to the previous year due to the transfer of equity in Chengde Tianyuan, which is no longer included in the consolidated financial statements [3] - The printed circuit board (PCB) sector achieved a revenue of 168 million yuan, an increase of 32.81% year-on-year [3] Group 2: Market Strategy - The company plans to enhance product value by focusing on new product research and development, and increasing market promotion efforts to expand market space [2] - The company aims to balance high-end products and traditional products by upgrading product structure and implementing flexible marketing strategies to improve profitability [4] Group 3: Supply Chain Management - The company is strengthening supply chain management by establishing long-term strategic partnerships with quality suppliers to ensure stable raw material prices [4] - The company has a glass cloth production base that supports integrated production and sales, helping to lower production costs and secure raw material supply [4] Group 4: Management and Talent Development - The company plans to enhance its management team by combining internal training and external recruitment to improve human resource competitiveness [4] - The company is focused on improving operational management and expanding market share in the medical health sector to enhance profitability [4]