Core Viewpoint - ChaoYing Electronics has successfully listed on the Shanghai Stock Exchange, focusing on the research, production, and sales of printed circuit boards (PCBs) with applications in various sectors including automotive electronics and consumer electronics [1] Group 1: Company Overview - ChaoYing Electronics specializes in the R&D, production, and sales of printed circuit boards, offering a wide range of products from double-sided boards to 26-layer boards, HDI boards, thick copper boards, metal substrates, and high-frequency boards [1] - The company is recognized as a national high-tech enterprise with core independent intellectual property rights and has accumulated extensive experience in PCB R&D and production [1] - According to CPCA's report, ChaoYing ranks 23rd among comprehensive PCB companies in China and is among the top ten global automotive electronics PCB suppliers and the top five in China [1] Group 2: Innovation and R&D - ChaoYing places a strong emphasis on talent acquisition and product innovation, holding 14 invention patents and 85 utility model patents as of the end of 2024 [2] - The company has received numerous accolades, including being recognized as a "hidden champion" in Hubei Province's pillar industries and a "demonstration unit of intelligent manufacturing" [2] Group 3: Client Relationships - ChaoYing has established stable partnerships with renowned clients in various sectors, including major automotive suppliers like Continental, Valeo, Bosch, and Tesla in the automotive electronics field [2] - In the display sector, the company collaborates with leading manufacturers such as BOE and LG Group, while in the storage sector, it partners with Seagate, Western Digital, and SK Hynix [3] Group 4: Future Development Strategy - The company aims to enhance its production capabilities and efficiency over the next three years by focusing on technological innovation and lean manufacturing practices [4] - Plans include improving existing factories, implementing automation and digitalization, and increasing production capacity for high-end products such as HDI boards and thick copper boards to better serve customer needs [4]

Core Insights - ChaoYing Electronics successfully listed on the Shanghai Stock Exchange on October 24, 2023, focusing on the R&D, production, and sales of printed circuit boards (PCBs) [1] - The company ranks 23rd among comprehensive PCB enterprises in China and is recognized as one of the top ten automotive electronics PCB suppliers globally [1] - ChaoYing Electronics emphasizes talent development and innovation in product applications, holding 14 invention patents and 85 utility model patents as of the end of 2024 [1] Company Achievements - The company has received numerous accolades, including "Invisible Champion Cultivation Enterprise" in Hubei Province and "Green Supply Chain Management Enterprise" from the Ministry of Industry and Information Technology [2] - ChaoYing Electronics has established stable partnerships with renowned clients in various sectors, including automotive, display, storage, consumer electronics, and communications [3] Market Position and Strategy - The company maintains long-term relationships with major automotive electronics clients such as Continental, Valeo, Bosch, and Tesla, ensuring high reliability and stability in its products [3] - ChaoYing Electronics aims to become a benchmark enterprise in the global electronic circuit industry by focusing on product orientation, customer-centricity, and innovation-driven development [3] - Future plans include enhancing production capabilities in high-end products and implementing automation, digitalization, and intelligent processes to meet customer demands effectively [3]

Core Viewpoint - The company XunJieXing (688655.SH) reported a revenue of 292 million yuan for the first half of the year, a year-on-year increase of 27.66%, but faced a net loss of 2.76 million yuan, contrasting sharply with a profit of 3.98 million yuan in the same period last year, marking it as a notable "laggard" in the booming PCB industry [2][3]. Group 1: Company Performance - XunJieXing's main business is the research, production, and sales of printed circuit boards (PCBs), focusing on small-batch, customized demands rather than large-volume orders [3][4]. - Despite the overall PCB market experiencing significant growth, XunJieXing's unique business model has limited its ability to capture market share, as small-batch and sample boards account for only 15%-20% of the industry [4][5]. - The company’s net loss was primarily attributed to the initial phase of new capacity release from its subsidiary, resulting in a loss of 11.54 million yuan [4]. Group 2: Industry Context - The PCB industry is projected to grow by 6.8% year-on-year in 2023, with the AI/HPC server PCB segment expected to see a compound annual growth rate (CAGR) of 32.5% from 2023 to 2028 [3]. - Competitors such as Shenghong Technology and Pengding Holdings reported significant revenue and profit increases, highlighting XunJieXing's underperformance in comparison [3]. Group 3: Strategic Initiatives - XunJieXing has initiated a three-pronged strategy of expansion, acquisition, and incentive programs to address its challenges [6][8]. - The company is expanding its production capacity with a new smart factory project set to produce 600,000 square meters of PCBs, which is expected to be operational by the end of 2023 [6][7]. - An acquisition of Shenzhen Jiazhihong Electronics Co., which specializes in flexible circuit boards, is planned, potentially doubling XunJieXing's revenue if successful [7][8]. - A stock incentive plan has been introduced to bind the core team to revenue and profit growth targets, aiming for a revenue increase of at least 30% by 2025 [8].

Core Viewpoint - The report outlines the continuous supervision and guidance provided by Minsheng Securities for Shenzhen Xunjiexing Technology Co., Ltd. after its listing, emphasizing the company's compliance with regulations and the challenges it faces in the PCB industry [1][2][3]. Continuous Supervision Work - Minsheng Securities has established a comprehensive supervision system and executed a work plan to monitor Xunjiexing's operations, ensuring compliance with laws and regulations [2][3]. - The supervision includes regular communication, site inspections, and due diligence to understand the business situation of Xunjiexing [2][3]. - No violations or breaches of commitments were reported during the supervision period [3]. Financial Performance - In 2024, the company's revenue was 47,458.50 million RMB, a 2.26% increase from 2023 [12]. - The net profit attributable to shareholders was -197.40 million RMB, a significant decline compared to 1,346.97 million RMB in 2023, marking a 114.65% decrease [12][13]. - The net profit after deducting non-recurring gains and losses was -710.19 million RMB, down 213.27% year-on-year [12][13]. Industry Challenges - The PCB industry is experiencing intense price competition, leading to high fixed costs and underutilization of production capacity for Xunjiexing [5]. - The company faces risks related to core competitiveness, as continuous R&D and process improvements are essential for maintaining market position [5][6]. - There is a significant reliance on raw material prices, which can impact operational costs and profitability [7]. Core Competitiveness - Xunjiexing specializes in PCB prototypes and small-batch production, with a focus on high-difficulty, customized products [14][15]. - The company has developed a comprehensive technical system to meet diverse customer needs, including various specialized PCB technologies [16][17]. - The company has established a robust quality control system to ensure product quality and timely delivery [18]. R&D Investment - The company invested 3,213.67 million RMB in R&D in 2024, reflecting its commitment to innovation [19]. - The R&D expenditure as a percentage of revenue was 6.77%, slightly down from 7.00% in the previous year [13]. Use of Raised Funds - As of December 31, 2024, the company had a net amount of 20,005.52 million RMB from fundraising, with no violations in the use of these funds [19].