On August 22, from 10:00-11:00, Suntak Technology Co.,Ltd. held an online earnings conference call, receiving research coverage from 39 institutional investors including Shanxi Securities Company Limited, Shanghai Ruijun Asset Management, and Huatai Securities. The company's Investor Relations Representative Zhu Qionghua attended the meeting to discuss business operations and development strategies with investors. Key highlights from the investor relations activity are as follows:
**Business Performance: Revenue Growth with Declining Net Profit in H1**
In the first half of 2025, Suntak Technology Co.,Ltd. achieved revenue of 3.533 billion yuan, representing a year-over-year increase of 20.73%. Net profit attributable to shareholders reached 222 million yuan, down 6.19% compared to the same period last year. Gross profit margin was 21.51%, declining 3.57 percentage points year-over-year, primarily due to rising precious metal raw material costs, with gold salt prices increasing 36.57% on average in the first half. However, since May, the company has accelerated product pricing strategy adjustments, and the impact of raw material price increases is expected to gradually diminish.
**Profitability Enhancement Measures**
Sales Structure Optimization: Eliminate loss-making orders, reduce the proportion of low-margin orders, strengthen joint R&D of new products with key customers, cultivate high value-added orders, and develop target customers in key sectors such as industrial control.
Sales Capability Enhancement: Expand and optimize overseas sales teams, establish scientific performance evaluation and incentive mechanisms.
Cost Control Strengthening: Build cost analysis models, implement precise cost management, optimize procurement strategies, and formulate reasonable pricing adjustment plans.
Order Delivery Assurance: Strengthen departmental collaboration, optimize production planning, and ensure timely, high-quality delivery of high-value orders.
Innovation-Driven Products: Accelerate new technology R&D applications based on high-value customer demands, increase the proportion of high-end PCB products.
Capacity Expansion: Advance capacity enhancement at Dalian and Zhuhai facilities, accelerate Thailand factory construction, and plan to establish a new HDI factory in Jiangmen.
**Convertible Bond Plans**
The company will improve operating performance to drive stock price appreciation, creating conditions for "Chongda Convertible Bond 2" conversion and exit. With a solid financial position and ample cash flow, the company has formulated capital utilization plans to ensure principal and interest payments at maturity. The company will monitor market dynamics and bondholder needs, flexibly adjust exit strategies, and promptly disclose information when redemption clauses are triggered.
**Cost Pressure Response Measures**
The company's main raw material prices are closely linked to bulk commodities. Price increases accelerated from June 2024 and are currently fluctuating at high levels. The company addresses cost pressures through enhanced cost monitoring and management, optimized procurement strategies, reasonable product price adjustments, improved per-capita output value and efficiency, and reduced unit costs.
**Capacity-Related Situation**
Current overall capacity utilization stands at approximately 85%. The company is accelerating high-multilayer PCB capacity release at Zhuhai Plants 1 and 2, with Plant 3 having completed infrastructure construction and ready for timely operation. The company is also accelerating construction of the Thailand production base and planning a new HDI factory in Jiangmen to meet market demand and enhance operating performance.
**Subsidiary Sande Crown Performance**
According to Prismark reports, the FPC sector faces challenges from price declines and low profit margins. Sande Crown's operating performance remains under pressure with losses not yet reversed, though losses decreased by 14.03 million yuan in 2024. Due to partial capacity closures and recovering order demand, FPC product prices have stabilized and rebounded. Sande Crown is expected to achieve profitability in the second half of 2025.
**US Market Situation**
The company's revenue from the US market accounts for approximately 10% of total revenue. Currently, US sales orders and shipments remain normal without significant impact. The company will address tariff policy changes through market diversification, optimized customer cooperation strategies, and accelerated overseas production base deployment.
*Disclaimer: Markets involve risks, and investment requires caution. This content is for reference only and does not constitute personal investment advice. Please refer to company announcements for specific information.*
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