Group 1: PCB Business Performance - In the first half of 2025, PCB business achieved a revenue of 6.274 billion CNY, a year-on-year increase of 29.21% [2] - The gross profit margin for PCB business was 34.42%, an increase of 3.05 percentage points year-on-year [2] - Key growth drivers included demand for AI accelerator cards, increased demand for 400G and above high-speed switches, and growth in automotive electronics [2][4] Group 2: Packaging Substrate Business Performance - In the first half of 2025, the packaging substrate business generated a revenue of 1.740 billion CNY, a year-on-year increase of 9.03% [3] - The gross profit margin for this segment was 15.15%, a decrease of 10.31 percentage points year-on-year [3] - The decline in gross profit margin was attributed to the ramp-up phase of the Guangzhou packaging substrate project and rising costs of raw materials [3] Group 3: Market Applications and Demand - The PCB business focuses on communication devices, data centers, and automotive electronics, with significant contributions to revenue growth from these sectors [4] - The demand for AI-related products and high-density interconnect (HDI) technology is driving the need for advanced PCB products [5][10] - The company is actively expanding its market presence in the domestic storage market through its packaging substrate business [3] Group 4: Production Capacity and Expansion Plans - The overall capacity utilization rate for PCB business is at a relatively high level due to sustained demand in computing and automotive electronics [7] - The company is expanding its PCB production capacity through technological upgrades and new projects in Nantong and Thailand, with the Nantong Phase IV project expected to be operational in Q4 2025 [8] - The Guangzhou packaging substrate project is in the ramp-up phase, with ongoing improvements in production capacity [9] Group 5: Electronic Assembly Business - The electronic assembly business generated revenues of 2.823 billion CNY in 2024 and 1.478 billion CNY in the first half of 2025, accounting for 15.76% and 14.14% of total company revenue, respectively [12] - This segment aims to leverage synergies with the PCB business to enhance customer value through integrated solutions [11]

Group 1: Company Overview and Market Position - The company maintains high factory utilization rates, benefiting from strong demand in computing power and automotive electronics markets [1] - The PCB business focuses on high-end products, particularly in the fields of new energy and ADAS, with applications in industrial control and medical sectors [1] - The company has established factories in Shenzhen, Wuxi, Nantong, and Thailand, with ongoing capacity expansion projects [3] Group 2: PCB Business Demand and Trends - There is an increasing demand for large-size, high-layer, high-frequency, and high-speed HDI PCB products, driven by advancements in technology [2] - The PCB business has seen growth in demand for products used in high-speed communication networks, data center switches, AI accelerator cards, and storage devices since 2024 [2] Group 3: Expansion Plans and Investments - The total investment for the Thailand factory is 1.274 billion RMB, aimed at enhancing capabilities in high-layer and HDI PCB technologies [4] - The company is upgrading existing PCB factories to increase capacity and is progressing with the Nantong Phase IV project to establish an HDI technology platform [3] Group 4: Packaging Substrate Business - The packaging substrate business includes a wide range of products, with demand improving in Q1 2025 compared to Q4 2024, particularly for storage-related products [5] - The FC-BGA packaging substrate can now produce products with up to 20 layers, with ongoing development for higher-layer products [6] Group 5: Electronic Assembly Business - The electronic assembly business focuses on communication, data centers, medical, and automotive electronics, aiming to provide integrated solutions and enhance customer loyalty [7] - The company adheres to information disclosure regulations, ensuring no significant undisclosed information was leaked during the investor relations activities [7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 17.907 billion yuan in 2024, representing a year-on-year increase of 32.39%. The net profit attributable to shareholders was 1.878 billion yuan, up 34.29% year-on-year. The gross margin and net margin were 24.83% and 10.49%, respectively, with increases of 1.40 percentage points and 0.16 percentage points year-on-year [2][5]. - In Q4 2024, the company achieved a revenue of 4.858 billion yuan, a year-on-year increase of 19.51% and a quarter-on-quarter increase of 2.74%. The net profit attributable to shareholders was 390 million yuan, down 20.50% year-on-year and 22.22% quarter-on-quarter [2][5]. - The company's PCB business showed robust growth, with revenue of 10.494 billion yuan, up 29.99% year-on-year, and a gross margin of 31.62%, an increase of 5.07 percentage points year-on-year. However, the packaging substrate business saw a decline in profitability [10]. Summary by Sections Financial Performance - In 2024, the company achieved total revenue of 17.907 billion yuan and a net profit of 1.878 billion yuan. The gross profit margin was 24.83%, and the net profit margin was 10.49% [2][5]. - For Q4 2024, the company reported revenue of 4.858 billion yuan and a net profit of 390 million yuan, with gross and net margins of 21.95% and 8.04%, respectively [2][5]. Business Segments - The PCB business generated revenue of 10.494 billion yuan, reflecting a year-on-year growth of 29.99% with a gross margin of 31.62%. The packaging substrate business had revenue of 3.171 billion yuan, up 37.49%, but with a gross margin of 18.15%, down 5.72 percentage points [10]. - The electronic assembly business achieved revenue of 2.823 billion yuan, a year-on-year increase of 33.20%, with a gross margin of 14.40% [10]. Future Outlook - The company is expected to achieve net profits of 2.531 billion yuan, 3.033 billion yuan, and 3.549 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 28.11, 23.46, and 20.05 [10].