Core Viewpoint - Shenghong Technology's market capitalization has surged to 160 billion yuan amid a significant increase in stock price, prompting the company to plan a listing in Hong Kong to raise funds and alleviate financial pressure [1][2]. Financial Performance - The company's financial situation is concerning, with cash reserves decreasing from 2.141 billion yuan at the end of 2023 to 1.33 billion yuan by the end of Q1 2025, while current liabilities reached 7.713 billion yuan [1][6]. - Shenghong Technology reported a revenue of 4.312 billion yuan in Q1 2025, marking an 80.31% year-on-year increase, and a net profit of 921 million yuan, up 339.22% year-on-year [3]. IPO Plans - The planned Hong Kong IPO aims to support global expansion, enhance brand recognition, and improve competitiveness, with a fundraising target not exceeding 10% of the post-issue total share capital [2][6]. - The funds raised will be allocated for capacity expansion, product matrix improvement, R&D investment, and general corporate purposes [2]. Market Dynamics - The PCB industry is experiencing a growth wave driven by demand from AI servers, data centers, and smart vehicles, with global PCB market value projected to reach 94.661 billion USD by 2029 [4]. - Shenghong Technology is a leading supplier of PCB products, including AI computing cards, and has become a Tier 1 supplier for NVIDIA, with over 70% of related orders in Q1 2025 [3]. Stock Market Performance - Despite financial pressures, Shenghong Technology's stock price has increased by over 350% year-to-date, with a market cap exceeding 160 billion yuan [7]. - Institutional investors, including several public funds, have significantly increased their holdings in the company, indicating strong market confidence [7]. Shareholder Actions - The controlling shareholder, Shenghua Xinye, reduced its stake by transferring shares worth approximately 1.694 billion yuan, citing personal funding needs [8].

Group 1: Investor Relations Activities - The company held a performance briefing for the 2024 annual report on May 14, 2025, via an online platform [3] - Key attendees included the Chairman, General Manager, CFO, and other executives [4] Group 2: Business Advantages and Strategies - The company has extended its business into the FPCA field, differentiating itself with in-house design capabilities and integrated advantages [5] - With nearly 20 years in the nickel strip and battery precision components industry, the company has established strong relationships with numerous domestic and international battery manufacturers [5] - The company aims to provide a one-stop supply system, reducing supply chain complexity for clients and enhancing market share [5] Group 3: Market Performance and Shareholder Value - Despite a strong Q1 performance, the company's stock price has been declining due to macroeconomic factors and market volatility [5] - The controlling shareholder increased their stake in the company from January to April 2025, reflecting confidence in the company's long-term value [6] - The company is committed to enhancing operational capabilities and sustainable development to create more value for shareholders [5][7] Group 4: Financial Performance and Cash Flow - The company reported an operating cash flow of 0.22 CNY per share for 2024, but a negative cash flow of -0.79 CNY per share in Q1 2025, attributed to increased bank bill financing [7] - As of December 31, 2024, the company had an undistributed profit of 4.06 CNY per share, with a dividend plan to distribute 1.00 CNY per 10 shares [7] - The company emphasizes risk management for accounts receivable and aims to optimize cash flow while expanding production capacity [7] Group 5: Equity Incentive Plan - The shares for the 2025 equity incentive plan will be sourced from the secondary market or through targeted issuance of A-shares [8]