兴森科技20241025

Company and Industry Conference Call Summary Company Overview - The company reported Q3 revenue of 1.47 billion, a year-on-year increase of 3.36% [1] - Year-to-date revenue reached 4.35 billion, up 9% year-on-year [1] - The company faced operational losses primarily due to high costs associated with ADF substrates and ongoing losses from Yixing Silicon Valley and BT substrates projects [1][2] Financial Performance - Q3 operating loss was 51.1 million, with a total loss of 316 million for the first three quarters [1] - Significant expenses included 205 million for ADF substrates in Q3 and 530 million for the entire year [2] - The company reported a total impairment of 20.08 million for semiconductor project investments in Q3 [2] Project Losses - ADF substrates project incurred a loss of 393.5 million in Q3, totaling 890 million for the first three quarters [2] - BT substrates project reported a loss of 2.1 million in Q3 and 5.518 million for the year [2] - The company acknowledged that the overall demand in the industry was weak, affecting capacity utilization rates [2][3] Industry Insights - The PCB industry is experiencing weak growth, with a projected single-digit increase according to Prismark's report [3] - AI-related sectors, particularly server and data center computing, are showing strong growth, with a 24% increase in the first half of the year [3] - The communication sector is facing declines, with wired and wireless infrastructure down by 3% and 7% respectively [4] Future Outlook - The company plans to focus on the AI trend, particularly in server and storage solutions [7] - There is an expectation of a gradual recovery in the semiconductor industry by 2025, with potential supply-demand imbalances [11] - The company aims to improve operational efficiency and reduce costs through digital system integration and quality enhancements [6] Product Development - The company is working on expanding its product offerings in high-layer HDI and high-speed boards, which are currently the fastest-growing segments [5] - The company has begun small-scale production of ADF substrates, with expectations for further growth in 2025 [10][22] Challenges and Strategies - The company faces challenges from increased competition and price pressures in the domestic market [5][12] - Strategies include focusing on high-value products and improving production yields to maintain profitability [26] - The company is also exploring partnerships with major clients in both domestic and international markets to enhance its market position [21][23] Key Metrics - The company reported a significant increase in order volumes, with over 30,000 orders in September, marking a new high since Q3 2022 [8] - The average selling price for products remains stable, with no significant declines compared to the previous year [8][25] Conclusion - The company is navigating a challenging market environment but is optimistic about future growth driven by AI and high-tech applications. The focus on improving operational efficiency and product quality is expected to support recovery and profitability in the coming years.