Zhejiang Zhaolong Interconnect Technology (SZ:300913)2025-12-17 00:44Revenue Structure and Growth Drivers - The company's revenue structure for Q3 2025 indicates that products supporting 10G data transmission, including 6A and above data cables, account for approximately 50% of total revenue. Future growth will focus on high-value products for data centers, automotive data cables, and high-speed internal and external connection products [2][3]. Production Capacity and Expansion - The company is expanding its production capacity in response to the rapid growth of downstream applications such as data centers and artificial intelligence. Domestic production facilities are being upgraded, and new equipment is being procured to enhance capacity [3][4]. - The Thai production base commenced construction in August 2025 and is expected to be operational in the second half of 2026. Current production includes small batches of optical products for data centers and automotive data cables [3]. Customer Orders and Market Demand - There is strong market demand for high-speed products, with orders in a relatively saturated state. The company is actively expanding into European and Southeast Asian markets while maintaining close communication with downstream customers to adjust production and delivery schedules accordingly [3][4]. Industry Challenges and Equipment Readiness - The company has established comprehensive technical reserves and industrial capabilities, ensuring that it can meet the performance requirements of various high-speed cable products. There are currently no equipment bottlenecks affecting production [3][4]. Automotive Project Development - The automotive sector is progressing steadily, with a joint venture established with an Austrian automotive wiring company. Small-scale validation and introduction of automotive data cables are underway, with expectations for customer audits in 2026 [3][4]. Impact of Copper Price Fluctuations - The company monitors copper price fluctuations closely, employing daily pricing for copper-based data cables and adjusting procurement plans to mitigate risks. Overall, the impact of rising copper prices on profitability is considered minimal [4]. Future Business Strategies - The company plans to enhance overall business gross margins through product and technology innovation, targeting mid-to-high-end markets and optimizing product structure [4]. - The optical communication business is in an expansion phase, focusing on both domestic and international markets, particularly in Europe and North America [4]. - The company is actively exploring strategic investments and mergers in emerging fields such as optical products, connectors, and robotics to diversify its business and achieve long-term strategic goals [4].