Summary of Aoshikan's Conference Call Company Overview - Aoshikan is expected to achieve a revenue of 1.467 billion yuan in 2025, representing a year-on-year growth of 26.65% and a net profit growth exceeding 50% due to the increase in AI products, automotive clients, and new consumer electronics [2][3][29] - The company is currently in a capacity ramp-up phase, with production focusing on HDI products and high-layer boards [4][11] Financial Performance - In the first three quarters of 2025, Aoshikan reported a revenue of 1.032 billion yuan, a year-on-year increase of 21.89%, marking the highest quarterly and annual growth in four years [3] - The net profit for the same period grew by over 50% year-on-year, driven by the growth in AI products and automotive clients [3] Production Capacity and Expansion Plans - Aoshikan operates three factories: Yiyang (monthly capacity of 350,000 square meters), Zhaoqing (500,000 square meters), and Thailand (120,000 square meters, currently utilizing 70,000 square meters) with an overall utilization rate exceeding 80% [6][12] - The Zhaoqing factory is undergoing an expansion with an investment of 1.8 billion yuan, expected to release capacity in the first half of 2026, primarily targeting domestic computing clients [8] - The Thailand factory has been operational since Q4 2024, but is expected to incur losses of approximately 100 million yuan in 2025 due to the customer and product expansion phase [5][7] Product Development and Market Trends - The automotive and communication sectors each account for about 30% of revenue, while consumer electronics contribute in the low teens [4][13] - Aoshikan is focusing on high-end products in the automotive sector, including radar boards and intelligent driving domain controllers, which utilize HDI technology [18] - The company anticipates that the penetration rate of HDI and high-layer boards in high-end PCs will reach 60% or higher in the next two years, up from over 30% currently [11] Challenges and Cost Management - The rise in CCL prices is expected to impact gross margins by 2-3 percentage points, but the company plans to manage costs through refined management practices [22] - The company is experiencing challenges with yield rates affecting high-end board orders, which is a significant factor in production capacity enhancement [26][27] Future Outlook - Aoshikan is optimistic about its growth trajectory, particularly with the anticipated benefits from the AI wave and the expansion of its product offerings [29] - The company is actively engaging with North American clients to secure bulk supply agreements for AI server power boards in 2026 [9][12] Strategic Partnerships - Collaboration with Mingxin Company has been beneficial, enhancing Aoshikan's capabilities in the automotive sector and improving production processes at the Thailand factory [20] Conclusion - Aoshikan is positioned for significant growth driven by advancements in AI technology and a strategic focus on high-end products across various sectors, despite facing challenges in production capacity and cost management [29]