Core Viewpoint - The article highlights the rapid growth of the high-speed cable market driven by the increasing demand for AI infrastructure, with a significant focus on the advancements made by Xinya Electronics in high-frequency and high-speed data cables [3][4]. Industry Overview - The global high-speed cable market is projected to grow from $1.2 billion in 2023 to $2.8 billion by 2028, achieving a compound annual growth rate (CAGR) of approximately 17.5% [3]. - High-speed copper cables, particularly Direct Attach Copper (DAC) and Active Electrical Cables (AEC), are expected to see substantial growth, with respective CAGRs of 25% and 45% [3]. Company Performance - Xinya Electronics reported a revenue of 1.945 billion yuan in the first half of 2025, marking a year-on-year increase of 19.57%, and a net profit of 99.176 million yuan, up 31.83% year-on-year [7]. - The company has developed a patented "lotus core structure" technology for high-speed copper cables, which enhances signal transmission efficiency and reduces dependency on imported materials and equipment [8][10]. Technological Advancements - The lotus core structure technology offers several advantages over traditional materials, including improved signal transmission, easier manufacturing processes, broader product specifications, and reduced reliance on imported materials [9][10]. - This technology has already been implemented in PCIe 6.0 and PCIe 7.0 products, with ongoing promotion in 224G/448G external high-speed copper cables [8]. Market Position and Strategy - Xinya Electronics has established a strong partnership with Amphenol, a global leader in server connectors, which has facilitated its entry into the high-end market [14][16]. - The company has diversified its business into four main areas: consumer electronics, communication, new energy, and automotive, with significant growth in high-frequency and high-speed cable segments [20][22]. Financial Challenges - Despite revenue growth, the net profit increase from 110 million yuan in 2019 to 150 million yuan in 2024 has been slower than revenue growth, indicating potential profitability concerns [23]. - The company's gross margin has declined from 21.9% in 2019 to 15.0% in 2024, attributed to rising copper prices and price wars in downstream industries [26]. - As of June 2025, Xinya Electronics had 260 million yuan in cash against 750 million yuan in short-term borrowings and 170 million yuan in long-term borrowings, indicating liquidity pressures [28].