Zhejiang Zhaolong Interconnect Technology (SZ:300913)2024-12-27 13:12Group 1: Product Differentiation - Passive copper cables are characterized by low cost and low power consumption, making them suitable for short-distance applications. Active copper cables, equipped with specific chip architectures, enable longer distance signal transmission [2]. - Both passive and active copper cables provide high reliability for data transmission, catering to diverse market needs [2]. - Active copper cables are thinner, meeting the requirements for high-density and compact wiring [2]. Group 2: Market Outlook and Revenue Expectations - The market demand for the company's main products is expected to show stable growth due to ongoing industry development and accelerated digital transformation [2]. - The company aims to maintain a steady annual growth in performance, with a particular focus on the high-speed business segment, which is experiencing rapid growth [6]. - The company is actively expanding production capacity and is in the process of delivering and commissioning new equipment [6]. Group 3: Production and Capacity Management - The current production capacity at the company's Deqing facility is operating well, with high-speed product capacity under tight conditions [4]. - The company is preparing for future capacity needs by advancing domestic smart manufacturing projects and establishing a production base in Thailand [6]. - The company is coordinating delivery cycles for new equipment to ensure that new capacity comes online as planned [6]. Group 4: Product Pricing and Profitability - The pricing of the company's data cable products primarily follows a cost-plus pricing model, with specialized cables and wiring systems priced based on technical added value through in-depth negotiations with customers [4]. - The gross margin for connection products and bare wire products is influenced by various factors, including raw material prices, economies of scale, bargaining power, and product advancement [6]. Group 5: Customer Engagement and Market Strategy - The company is strengthening collaboration with existing customers while actively exploring new customer groups to lay the foundation for revenue expectations in the coming year [8]. - The company has a favorable order visibility for high-speed business, with expectations of continued optimistic market demand for high-speed products [6].