SCC(SZ:002916)2025-05-11 08:18Group 1: Business Overview - The company focuses on PCB business applications primarily in communication equipment, with a significant emphasis on data centers and automotive electronics [1] - In Q1 2025, the wireless communication orders slightly rebounded compared to Q4 2024, while the demand for wired communication remains strong [1] - The data center orders continued to grow, driven by the demand for AI accelerator cards and servers [1] Group 2: Packaging Substrate Business - The company offers a wide range of packaging substrate products, including module packaging substrates and storage packaging substrates, mainly used in mobile smart terminals and servers [2] - In Q1 2025, the demand for packaging substrates improved compared to Q4 2024, primarily due to increased demand for storage products [2] Group 3: Production Capacity and Utilization - The overall production capacity utilization remains high, with PCB business benefiting from sustained demand in computing and automotive electronics [3] - The packaging substrate business has seen an increase in capacity utilization due to improved demand in the storage sector compared to Q4 2024 [3] Group 4: U.S. Sales and Tariff Impact - Direct sales to the U.S. accounted for a low percentage of total revenue, indicating minimal impact from U.S. tariff policies [4] - The company is closely monitoring the evolving international trade environment and maintaining communication with industry stakeholders [4] Group 5: FC-BGA Packaging Substrate Development - The company has achieved mass production capability for FC-BGA packaging substrates with up to 20 layers, while R&D for products with more than 20 layers is progressing on schedule [5] - The Guangzhou packaging substrate project is in the early stages of ramping up production, with a reduction in losses observed in Q1 2025 compared to previous quarters [5] Group 6: Expansion Plans - The company has factories in Shenzhen, Wuxi, Nantong, and a project under construction in Thailand, focusing on upgrading existing facilities to enhance capacity [6] - The total investment in the Thailand factory is approximately 1.274 billion RMB, aimed at expanding overseas market reach and improving global supply capabilities [7][8] Group 7: Raw Material Price Trends - In Q1 2025, prices for certain raw materials, such as gold salt, increased compared to both Q1 2024 and Q4 2024, influenced by commodity price fluctuations [8] - The company is actively monitoring raw material price changes and maintaining communication with suppliers and customers [8] Group 8: AI and PCB Business - The demand for high-performance PCBs is increasing due to the rapid evolution of AI technology and the need for high-speed networks [8] - The company's PCB business has benefited from trends in high-speed communication networks and data center applications since 2024 [8]