Summary of the Conference Call for 欧陆通 Company Overview - **Company Name**: 欧陆通 - **Industry**: Data Center Power Supply Key Financial Metrics - **Revenue**: - H1 2025 revenue reached 21.20 billion, a year-on-year increase of 32.59% [4] - Q2 2025 revenue was 12.3 billion, exceeding 30% growth year-on-year [2][4] - **Net Profit**: - H1 2025 net profit was 1.34 billion, up 55% year-on-year [2][4] - Operating net profit was 1.57 billion, a significant increase of 82.36% [2][4] - **Gross Margin**: - Overall gross margin was 20.31%, a slight decrease of 0.64 percentage points year-on-year [4] - Q2 gross margin improved to 21.17%, an increase of 2.07 percentage points quarter-on-quarter [2][4] - **Expenses**: - Total expenses decreased by 25.39% year-on-year to 2.55 billion [4] - R&D expenses were 1.32 billion, up 28.26% year-on-year, with an R&D expense ratio of 6.21% [2][4] Business Segments - **Data Center Power Supply**: - Became the largest business segment with revenue of 9.62 billion, a 94% increase year-on-year [2][4] - High-power server power supply (2 kW and above) revenue reached 6.6 billion, a substantial growth of 216% [2][4] - High-power segment gross margin maintained at 27%-28%, while mid-low power margins decreased due to market competition [2][4][6] - **Customer Base**: - Major clients include leading domestic server manufacturers such as Inspur, Foxconn, Lenovo, and internet giants like Alibaba, Tencent, and ByteDance [6] Market Dynamics - **Order Visibility**: - Server power supply order visibility is low, with expectations of a 15-20% revenue decline in Q3 due to domestic GPU supply constraints [2][13] - **Future Growth**: - The company is actively developing higher power supplies (8 kW, 10 kW) but expects mainstream demand to remain around 5.5 kW in the short term [5][14] - Plans to expand into overseas markets, with potential orders expected by H2 2026 [5][10] Product Development and Challenges - **New Product Introduction**: - New products like the 5 kW PSU and 33 kW PowerShift are anticipated to boost margins, but short-term supply chain issues may hinder their rollout [8][11] - **High Voltage Direct Current (HVDC) Products**: - Development of high voltage direct current products is ongoing, but no specific customer demand has been established yet [15] - **Liquid Cooling Power Supply**: - Currently low penetration in the market, with potential for growth as GPU power consumption increases, but large-scale adoption is unlikely in the next 2-3 years [18] Strategic Outlook - **Revenue Goals**: - The company aims for total revenue of 45 billion for the year, with a target growth of 5-10% in consumer products [22] - **Market Adaptation**: - Future growth will depend on customer demand and order patterns, particularly in the AI server market [9][10] Conclusion - 欧陆通 is experiencing strong growth in its data center power supply segment, driven by high-power products. However, challenges such as order visibility and market competition may impact future performance. The company is focused on innovation and expanding its market presence, particularly overseas, while navigating supply chain constraints.

Financial Performance - In 2024, the company achieved a revenue of CNY 3.798 billion, a year-on-year increase of 32.32%, marking a historical high in revenue [3] - The gross margin for 2024 was 21.36%, an increase of 1.64 percentage points year-on-year [3] - The net profit attributable to shareholders for 2024 was CNY 268 million, a year-on-year growth of 36.92% [3] - In Q1 2025, the company reported a revenue of CNY 888 million, a year-on-year increase of 27.65% [4] Business Segments - The power adapter business generated CNY 1.673 billion in revenue for 2024, a growth of 4.96% year-on-year [5] - The data center power business saw a revenue of CNY 1.459 billion, a significant increase of 79.95% year-on-year, contributing to the overall revenue growth [6] - The other power business segment achieved a revenue of CNY 649 million, a year-on-year increase of 48.71% [6] Product and Market Development - The data center power products include various power ranges, with high-power server power products showing a revenue increase of 536.88% year-on-year [7][6] - The company has established itself as a key domestic manufacturer of data center power products, gaining recognition from major clients such as Inspur and Foxconn [8] - The company is actively expanding its overseas business, with teams set up in Taiwan and the USA to target global markets [9] Future Plans - The company aims to continue expanding its data center power business, focusing on AI industry opportunities and deepening cooperation with existing clients [11][12] - Plans for the power adapter business include expanding product categories and exploring new application scenarios [13] - Revenue growth targets for 2025 and 2026 are set at 28% and 35% respectively, with net profit growth targets of 48% and 60% [15][16]

Financial Performance - In 2024, the company achieved a revenue of 3.798 billion CNY, a year-on-year increase of 32.32%, marking a historical high in revenue [3] - The gross profit margin for 2024 was 21.36%, an increase of 1.64 percentage points year-on-year [3] - The net profit attributable to shareholders for 2024 was 268 million CNY, a year-on-year growth of 36.92%, with a net profit margin of 7.06% [3] - In Q1 2025, the company reported a revenue of 888 million CNY, a year-on-year increase of 27.65%, and a net profit of 49.57 million CNY, up 59.06% [4] Business Segments - The power adapter business generated 1.673 billion CNY in 2024, a growth of 4.96% year-on-year, despite a decline in gross profit margin to 18.26% [5][6] - The data center power business saw a revenue of 1.459 billion CNY, a significant increase of 79.95%, with high-power data center power revenue reaching 780 million CNY, up 536.88% [6] - Other power businesses achieved a revenue of 649 million CNY, a year-on-year increase of 48.71%, with a gross profit margin of 20.30% [6] Market Expansion - The company is actively expanding its overseas business, establishing teams in Taiwan and the USA to target various international clients [7] - The data center power business is a strategic focus, with products recognized by major domestic server manufacturers [10] Product Development - The data center power products include a range of server power supplies, with advanced offerings such as 3,200W titanium M-CRPS power supplies [9] - The company aims to achieve 100% localization of components in its data center power projects [13] Future Goals - The revenue growth targets for 2025 and 2026 are set at 35% and 65% respectively, with net profit growth targets of 60% and 130% [17] - The company plans to continue expanding its product categories in the power adapter segment, targeting new applications in smart homes and drones [14] Impact of Tariff Policies - The direct revenue from sales to the USA is relatively small, thus the impact of tariff policies is limited [15]

Group 1 - The company reported Q1 2025 revenue of 889 million yuan, a year-on-year increase of 27.65% [1] - The net profit attributable to shareholders reached 50 million yuan, up 59.06% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 46 million yuan, reflecting a 53.96% year-on-year growth [1] - The net cash flow from operating activities was 220 million yuan, showing a significant increase of 2,629.51% year-on-year [1] Group 2 - Total expenses for Q1 2025 amounted to 122 million yuan, an increase of 35 million yuan year-on-year, with an expense ratio of 13.69%, up 1.24 percentage points [2] - Research and development expenses were 60.47 million yuan, a year-on-year increase of 32.97%, with a research and development expense ratio of 6.81%, up 0.27 percentage points [2] - The company maintained strong cash flow, with cash received from sales of goods and services reaching 961 million yuan, a 62.76% increase year-on-year, and a cash collection ratio of 108.20% of revenue, up 23.34 percentage points [2] Group 3 - The company is positioned as a leader in the domestic power supply market, benefiting from the growth in high-power server power supply and the recovery of the consumer electronics market [3] - Projected revenues for 2025-2027 are 4.644 billion yuan, 5.454 billion yuan, and 6.313 billion yuan, with net profits of 324 million yuan, 450 million yuan, and 520 million yuan respectively [3] - Corresponding price-to-earnings ratios are expected to be 33.72, 24.25, and 20.98 times for the years 2025, 2026, and 2027 [3]