Core Viewpoint - High-speed resin, a core material for printed circuit boards (PCBs), is experiencing significant growth and opportunities for import substitution in the market [1][3]. Company Performance - In the first half of this year, the revenue from high-speed resin business of Dongcai Technology increased by approximately 123% year-on-year to nearly 250 million yuan, contributing to an overall gross margin increase of about 8 percentage points to 19.96% in the electronic materials segment [1]. - The company has seen substantial growth in its electronic materials business, with revenues projected to reach 1.07 billion yuan in 2024, up from 780 million yuan in 2022 and 820 million yuan in 2023 [7]. Product Development - Dongcai Technology has developed high-end M9-level hydrocarbon resin with a dielectric loss (Df) reduced to approximately 0.0005, which has passed rigorous testing and is now in mass production [1]. - The company is also advancing its M10-level hydrocarbon resin, achieving a Df of about 0.00035, with samples sent to end customers for testing [5]. Market Outlook - The global market for high-speed resin used in servers is estimated to reach approximately 2 billion yuan in 2025 and is expected to grow rapidly to between 5 billion and 8 billion yuan by 2026, indicating a significant acceleration in industry demand [3]. - The M9-level hydrocarbon resin is anticipated to reach an annual demand of around 1,000 tons once the market matures, while the M10-level product is expected to have considerable growth potential [6]. Diversification and Strategic Positioning - Dongcai Technology has diversified its product offerings beyond electrical insulation materials to include new energy materials, optical film materials, and electronic materials, with each segment contributing approximately 9.1%, 27.3%, 26.2%, and 28.3% to total revenue, respectively [8]. - The company has positioned itself as a leading domestic manufacturer of optical base films, with revenue from optical film materials increasing by 25.1% year-on-year to 640 million yuan in the first half of this year [9]. R&D and Strategic Initiatives - The company emphasizes forward-looking strategic planning and strong R&D investment as key factors for its success in navigating market challenges and filling domestic market gaps in critical materials [12].