Core Viewpoint - Guanghe Technology (001389) is planning to list on the Hong Kong Stock Exchange to enhance its international presence and raise funds for its Thailand base expansion and R&D capabilities [1][4]. Group 1: Company Overview - Guanghe Technology specializes in PCB for computing servers and serves eight of the top ten global server manufacturers [1]. - The company has transformed from a near-bankrupt factory to a leading player in the PCB industry, achieving annual revenue of 3.7 billion yuan [1]. - According to Frost & Sullivan, Guanghe Technology ranks first among mainland Chinese PCB manufacturers for computing servers and third globally, holding a 4.9% market share [1]. Group 2: Financial Performance - Revenue figures for Guanghe Technology from 2022 to 2024 are projected to be 2.412 billion yuan, 2.678 billion yuan, and 3.734 billion yuan, with corresponding net profits of 280 million yuan, 415 million yuan, and 676 million yuan [11]. - The revenue contribution from the top five customers is significant, accounting for over 60% of total revenue, with figures of 1.5336 billion yuan (63.6%), 1.7567 billion yuan (65.6%), and 2.2919 billion yuan (61.4%) for the years 2022, 2023, and 2024 respectively [11][12]. Group 3: Customer Concentration and Risks - The company has a high customer concentration, with the top five clients contributing more than 60% of its revenue, which poses risks if any of these clients face operational issues [3][12]. - Accounts receivable have surged by 83% over three years, indicating potential cash flow risks, with amounts reaching 1.05 billion yuan in 2022, 1.087 billion yuan in 2023, and projected to hit 1.293 billion yuan in 2024 [3][12]. Group 4: Internationalization Strategy - The H-share listing aims to build an offshore financing platform and enhance the company's international brand presence, with over 70% of revenue currently coming from overseas [13][14]. - The company plans to use the funds raised from the H-share listing for the second phase of its Thailand base, upgrading its Guangzhou facilities, and enhancing R&D capabilities [15].

Core Viewpoint - Guanghe Technology has submitted its listing application to the Hong Kong Stock Exchange, highlighting its position as a leading manufacturer of PCB for computing servers and its strong financial performance [1][2]. Group 1: Company Overview - Guanghe Technology is a global leader in the manufacturing of key components for computing servers, specifically customized PCBs [1]. - The company ranks first among PCB manufacturers for computing servers in mainland China and third globally, holding a market share of 4.9% [1]. - In the CPU motherboard PCB segment for computing servers, Guanghe Technology also ranks first in mainland China and third globally, with a market share of 12.4% [1]. Group 2: Research and Development - The company has a strong R&D capability and has focused on the application of high-speed materials in cloud computing since early 2016 [2]. - Guanghe Technology employs a Joint Design Manufacturing (JDM) model, collaborating closely with leading global server manufacturers to provide customized product delivery [2]. - The company serves 8 out of the top 10 global server manufacturers, participating in the research and validation of new products [2]. Group 3: Financial Performance - Guanghe Technology has achieved seven consecutive years of revenue growth from 2022 to 2024 [2]. - In 2024, the company reported revenue of RMB 3.7 billion, a year-on-year increase of 39.4%, with a net profit of RMB 676.1 million and a net profit margin of 18.1% [2]. - Revenue from computing scene PCBs accounted for 67.8%, 69.4%, and 72.5% of total revenue in 2022, 2023, and 2024, respectively [2]. - The company's overseas revenue exceeded 70% in 2024, indicating strong international market competitiveness [2]. Group 4: Risks and Challenges - The company faces customer concentration risk, with revenue from its top five customers accounting for 63.6%, 65.6%, and 61.4% of total revenue in 2022, 2023, and 2024, respectively [3]. - The largest customer contributed 26.5%, 26.6%, and 24.6% of revenue during the same period, indicating sensitivity to demand changes from major clients [3]. - The profitability of the industrial and consumer PCB segments is weak, with gross margins of -1.0% and 1.6% in 2024, compared to 37.0% for computing scene PCBs [3]. - Fluctuations in raw material prices and supplier concentration are potential risks that could impact profitability and operational performance [3].