Zhitong Finance App News, Shenghong Technology (02476) issued an announcement. Recently, the stock prices of the company and its industry sector have fluctuated greatly. In order to enable investors to better understand the company's production and operation situation, the company is now voluntarily disclosing the relevant information as follows:
I. Operating conditions
In recent years, global general artificial intelligence technology has evolved at an accelerated pace, demand for artificial intelligence training and inference continues to expand, and demand for AI computing power, AI servers, and data centers has grown rapidly. As an important component of the hardware layer of AI computing power infrastructure, the demand for PCBs for computing power applications is rising simultaneously with the technical threshold, providing strong support for the long-term growth of the industry. According to Prismark data, the AIPCB market is expected to grow at an average compound annual rate of 24.8% from 2025 to 2030.
At present, the company's production and operation are all normal, the supply chain is stable, the capacity utilization rate is at a good level, and customer order demand is strong. From 2016 to 2025, the company's revenue grew from 1,818 billion yuan to 19.292 billion yuan, with a compound annual growth rate of 30.01%; net profit attributable to shareholders of listed companies increased from 232 million yuan to 4.312 billion yuan, with a compound annual growth rate of 38.36%. In the first three quarters of 2026, the company achieved operating income of 18.461 billion yuan, an increase of 30.77%; net profit attributable to shareholders of listed companies of 3.384 billion yuan, an increase of 4.28% year on year; net profit after deducting non-recurring profit and loss of 3,694 billion yuan, an increase of 13.74% year on year.
In future business development, the company will use its existing superior resources to continue to deeply cultivate the main PCB industry, seize the opportunities of rapid development of the AI computing power industry, continue to strengthen core competitiveness such as technological innovation, rapid mass production, scale advantage, and quality assurance, further optimize and broaden the high-end product range, and maintain steady progress in business performance.
II. Repurchase situation
Based on confidence in the company's future development prospects and recognition of the company's value, in order to protect the interests of investors and enhance investor confidence, the company received a repurchase plan proposal on October 16, 2026, with a repurchase amount of 150 million yuan to 300 million yuan.
At the same time, the company is concerned that the People's Bank of China issued the “People's Bank of China to Strengthen Implementation of the Stock Repurchase and Increase Refinancing Policy” on November 4, 2026, which clearly reduces the interest rate for stock repurchase and increase holdings by 0.25 percentage points to 1% starting November 4, 2026. Support targets for stock repurchases and additional loans are provided to 21 national banks and 5 systemically important commercial banks. The support ratio is 100%, the period is 1 year, and it can be extended according to bank needs. The company will combine repurchase and refinancing policies, the company's financial situation, market trends, etc., and make full use of policy tools to protect the company's value and the interests of investors through repurchases, etc.
III. Future Prospects
1. Downstream demand remains high, and in-hand order visibility is at a historically high level. The company's orders for high-multi-layer, high-grade HDI high-end products have continued until 2028, and some core customers have released long-term demand from 2027-2028. Facing 2027, order demand from major North American customers and ASIC customers is strong. The combined demand for the two has slightly exceeded the company's current production capacity carrying capacity. The company has sufficient raw materials, supporting personnel and production capacity resources, and management is confident that the company's subsequent production efficiency improvement and equity incentive performance goals will be achieved.
2. High-end production capacity was released in an orderly manner, and the “China+N” global layout continued to improve. At present, part of the new production capacity of the company's Huizhou headquarters has been put into operation, bringing about a considerable increase in production capacity. Starting in 2027, the company's production capacity under construction in Huizhou, Thailand, and Vietnam will climb in stages, providing a solid guarantee for order delivery.
3. The product structure and technical capabilities are continuously upgraded, and the cutting-edge process layout is leading. Focusing on the two core areas of AI computing power and data centers, the company continues to improve manufacturing capabilities for products such as advanced HDI, multi-layer, and mSAP. The company closely follows the pace of iterative computation and pre-research of products from leading computing power customers. Many high-end products have been mass-produced on a large scale, and the yield is in the first tier of the industry. Simultaneously lay out more than 70 layers of cutting-edge technologies such as copper paste sintering, vertical power supply, high-level HDI, and COWOP, and collaborate with core customers to verify next-generation solutions and continue to consolidate technical barriers for high-end products.
IV. Strengthening Investor Relations Management and Shareholder Returns
The company will continue to strengthen investor relations management, continuously deepen communication with core investors and potential investors, convey the company's investment value and medium- to long-term development strategy, enhance market recognition of the company, build long-term stable and healthy and trusting investor relationships, stabilize investor confidence, and effectively safeguard the legitimate rights and interests of all investors, including small and medium-sized investors. At the same time, the company continues to enhance investors' sense of attainment through cash dividends and share repurchases.
Since its listing, the company has implemented cash dividends for 10 consecutive years, with a cumulative cash dividend amount of 3.223 billion yuan. The dividend amount continues to grow as business performance improves. The 2025 profit distribution plan is to distribute a cash dividend of 20 yuan (tax included) for every 10 shares. A total cash dividend of 1,740 billion yuan will be distributed, which is a significant increase of 3 yuan for every 10 shares in 2024. Subsequent companies will continue to improve the level of investor returns based on business conditions, capital arrangements and shareholder return plans.