SCC(SZ:002916)2024-09-18 11:47Group 1: Company Overview and Business Focus - The company operates in the PCB sector, focusing on high-end design, research, and manufacturing, with applications primarily in communication devices, data centers, automotive electronics, and medical fields [2][4]. - In the first half of 2024, the company's business in data centers and automotive electronics saw a significant increase compared to the same period last year [2][4]. Group 2: Market Demand and Product Development - The global capital expenditure of major cloud service providers has significantly increased, particularly for AI-related services, leading to a notable rise in demand for servers and related products [4]. - The company has been actively involved in the research and development of next-generation platform products in collaboration with downstream customers [4]. Group 3: Production Capacity and Operations - The company's PCB factory utilization rate remained stable at a high level compared to Q2 2024, while the packaging substrate factory saw a slight decline due to fluctuations in downstream demand [5]. - The second phase of the Wuxi substrate factory achieved breakeven in monthly operations, and the Guangzhou packaging substrate project is in the early stages of ramping up production capacity [4][5]. Group 4: Material Costs and Impact - Key raw materials such as copper foil and prepreg experienced price fluctuations in the first half of 2024, but overall, these changes did not significantly impact the company's operations [5]. - The company continues to monitor international commodity prices and maintains active communication with suppliers and customers regarding material costs [5]. Group 5: Expansion Plans - The company is investing 1.274 billion RMB in a factory in Thailand to expand its overseas market presence, with construction progressing as planned [5]. - There is potential for further expansion in PCB production capacity through technological upgrades and new facility construction in existing locations [5].