Summary of the Conference Call for Chipbond Technology Co., Ltd. Company Overview - Chipbond Technology focuses on PCB (Printed Circuit Board) application scenarios, specifically direct exposure equipment. The revenue is primarily derived from three segments: PCB business, equipment maintenance income, and other industrial applications. In 2024, PCB business is expected to account for approximately 80% of total revenue. In the first half of 2025, PCB downstream demand surged, with deliveries reaching 300-400 units, surpassing the total of 380 units delivered in the previous year [4][5][10]. Industry Insights - The demand for PCB equipment has significantly increased, driven by high multi-layer board requirements. This trend is expected to continue into 2026, particularly after clients complete their construction and renovation projects [5][10]. - The semiconductor equipment sector is entering a verification phase in the second half of the year, with expectations for larger volume production in the following year [5]. Key Financial Metrics - The maintenance service contract amount is projected to reach 150 million yuan, significantly higher than the previous year. Maintenance service fees typically account for 8-10% of the original machine price, becoming a stable and important revenue source for the company [7]. - In the first half of 2025, the average price for multi-layer boards is around 1-2 million yuan, while high multi-layer boards can reach 3-4 million yuan. Gross margin is expected to rebound to over 40%, with net profit margin exceeding 21% [10]. Production Capacity and Expansion Plans - To address capacity constraints, Chipbond plans to launch a second-phase factory by the end of August 2025, which will double the cleanroom area and enhance overall delivery capacity [6][33]. - The monthly production capacity for the 73,789 series products is close to 100 units, with expectations for significant delivery volume in the fourth quarter, far exceeding last year's figures [9][10]. Market Position and Competitive Advantage - Chipbond holds a market share of 80-90% among leading manufacturers such as Jingwang and Shenghong, with lower shares for other competitors like Shennan Circuit and Huitian [12]. - The company’s pricing is approximately 70-80% of overseas competitors, with comparable or superior technical specifications. The delivery cycle has been shortened to two months, enhancing market competitiveness [3][14]. Challenges and Strategic Adjustments - During periods of tight capacity, Chipbond prioritized large client orders, occasionally foregoing orders from smaller clients. Future strategies will aim to balance the needs of various clients as capacity expands [17]. - The company is actively working to penetrate the supply chains of Taiwanese firms like Pengding Holdings and Huitian, with significant orders expected in 2025 [15][16]. International Market Developments - In 2024, overseas revenue was only 60 million yuan, but in 2025, Southeast Asia is expected to account for over 30% of PCB orders, with over 100 units delivered to Thailand [18][19]. - Chipbond has established a headquarters in Thailand and plans to further promote its global layout through financing [19]. Technological Advancements - Chipbond is narrowing the technology gap with Japanese companies in packaging technology, improving from 8 microns to 6 microns, with plans to further enhance capabilities below 10 microns [21]. - The company has also made progress in laser drilling equipment, with expectations to receive around 20 orders in 2025, contingent on material supply [28][31]. Future Outlook - The PCB market is expected to remain robust in 2026, with many downstream PCB companies increasing capital expenditures, leading to new capacity entering the equipment delivery phase [32]. - The overall industry is projected to achieve large-scale production in the coming years, with 2025 focused on final process verification and the development of production routes [25].