Core Viewpoint - The company reported strong financial performance in H1 2025, with revenue and net profit exceeding market expectations, driven by growth in AI computing power, storage market recovery, and automotive electrification [2][3]. Financial Performance - In H1 2025, the company achieved revenue of 10.453 billion, a year-on-year increase of 25.63%, and a net profit of 1.360 billion, up 37.75% year-on-year [2]. - Q2 2025 saw revenue reach 5.670 billion, representing a 30.1% year-on-year increase and an 18.6% quarter-on-quarter increase, with net profit of 870 million, up 42.9% year-on-year and 76.7% quarter-on-quarter [3]. - The gross margin for Q2 was 27.59%, an increase of 0.47 percentage points year-on-year, while the net margin was 15.33%, up 1.38 percentage points year-on-year [3]. Business Structure - PCB Business: Revenue of 6.270 billion, a year-on-year increase of 29.2%, accounting for 60% of total revenue, with a gross margin of 34.42% [4]. - Substrate Business: Revenue of 1.740 billion, a year-on-year increase of 9.0%, accounting for 16.6% of total revenue, with a gross margin of 15.2% [4]. - Electronic Assembly Business: Revenue of 1.480 billion, a year-on-year increase of 22.1%, accounting for 14.1% of total revenue, with a gross margin of 15.0% [4]. Future Outlook - In H2 2025 and the medium to long term, the company expects continued acceleration in AI computing power client acquisition and capacity expansion, with ongoing product structure optimization [5]. - The company is actively advancing new project construction, including the Thailand factory and the fourth phase project in Nantong, to support future capacity expansion [5].

Business Overview - The company focuses on PCB business expansion in communication equipment, data centers, automotive electronics, and industrial control sectors, with a slight recovery in wireless communication orders compared to Q4 2024 [1] - The packaging substrate business has seen a continuous increase in demand, particularly for storage products, contributing to improved order volume [2] Production Capacity and Utilization - The overall production capacity utilization remains high, with PCB business benefiting from sustained demand in computing and automotive electronics [3] - The packaging substrate business has improved capacity utilization due to enhanced demand in the storage sector compared to Q4 2024 [3] Sales and Market Impact - Direct sales to the U.S. account for a low percentage of total revenue, minimizing the impact of U.S. tariff policies on overall operations [4] - The company is actively monitoring changes in the international trade environment and maintaining communication with industry stakeholders [4] Technology and Product Development - The FC-BGA packaging substrate has achieved mass production capabilities for products with 20 layers or fewer, while R&D for products with more than 20 layers is progressing as scheduled [5] - The company is expanding its PCB business through technological upgrades and new projects in various locations, including Thailand, with a total investment of RMB 1.274 billion [7][8] Strategic Positioning - The electronic assembly business is positioned as a downstream segment of PCB manufacturing, focusing on communication, data centers, medical, and automotive electronics [9] - The company aims to leverage its technology platform to provide integrated solutions and enhance customer loyalty [9] Raw Material Costs - The prices of key raw materials, such as copper foil and gold salt, have increased due to fluctuations in commodity prices, impacting overall costs [10] - The company is committed to monitoring raw material price trends and maintaining proactive communication with suppliers [10] AI and High-Performance Computing - The demand for high-performance PCB products is rising due to the acceleration of AI technology and the need for high-speed networks [11] - The company is focusing on developing PCB products for high-performance applications, including AI accelerators and data center switches [11] Client Base - The packaging substrate business serves a diverse client base, including IDM, Fabless, and OSAT manufacturers, both domestically and internationally [12]