In-Depth Analysis of Shengyi Technology's Construction Progress and Production Capacity Release Rhythm

Now, based on all collected data, I will provide you with a systematic and comprehensive analysis report.

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Shengyi Technology (600183.SS), a leading player ranked second in global rigid copper-clad laminate (CCL) market share, has launched large-scale capacity expansion in high-growth sectors such as AI computing power, high-end communications, and new energy vehicles in recent years. According to the latest data, the total investment budget of the company’s current under-construction projects reaches

, with a cumulative investment of approximately RMB 3.63 billion, representing an overall progress of 32.1%[0]. These projects can be divided into two categories by product type: PCB and CCL (copper-clad laminate), with details as follows:

Project Name	Budget Investment	Investment Progress	Product Type	Expected Trial Production Time	Target Market
Dongcheng Plant Phase IV (High-end HDI/Optical Module PCB)	RMB 850 million	96.4%	PCB	Q4 2025	AI Optical Modules
Ji’an Phase I (Server/New Energy Vehicle PCB)	RMB 620 million	96.0%	PCB	Q4 2025	Servers/New Energy Vehicles
Dongcheng Plant Phase V (High-Multilayer PCB for Intelligent Computing Centers)	RMB 1.2 billion	65.0%	PCB	Within 2025	Intelligent Computing Centers
Ji’an Phase II (Intelligent Manufacturing High-Multilayer Computing Circuit Boards)	RMB 1.9 billion	25.0%	PCB	2026-2027	AI Computing Power Servers
Thailand Production Base	RMB 1.2 billion	35.0%	CCL	2026	New Energy Vehicles/AI Servers
Jiangxi Shengyi Phase II (CCL)	RMB 550 million	85.0%	CCL	Mid-2025	High-end CCL
Jiangsu Shengyi Phase II (Flexible Materials)	RMB 460 million	15.0%	CCL	Early 2025	Flexible Materials
Songshan Lake High-Performance CCL (Newly Added)	RMB 4.5 billion	0%	CCL	To Be Determined	AI/Cloud Computing

The investment progress of the two PCB projects, Dongcheng Plant Phase IV and Ji’an Phase I, has both exceeded 96%, indicating that production capacity release is imminent[1]. These two projects are positioned as high-end HDI/optical module PCB and server/new energy vehicle PCB respectively, and will bring

to the company. Meanwhile, the CCL project of Jiangxi Shengyi Phase II (with a production capacity of 30 million square meters) has already been put into production in mid-2025, and the flexible materials project of Jiangsu Shengyi Phase II is also progressing.

2026 will be a key year for Shengyi Technology’s overseas production capacity layout. The Thailand Production Base project (with an investment of USD 170 million) is expected to start trial production in 2026. The project plans an annual production capacity of 12 million square meters of high-performance CCL and 23.4 million meters of prepreg, with products positioned as high-speed substrates for new energy vehicles, AI servers/high-computing circuit boards, and packaging substrate materials for chip carriers[2]. In addition, the high-multilayer PCB project for intelligent computing centers at Dongcheng Plant Phase V is expected to be completed within 2025, after which the total PCB production capacity will increase to 950,000 square meters.

The Ji’an Phase II Intelligent Manufacturing High-Multilayer Computing Circuit Board project is the largest single project under construction by the company, with a total investment of RMB 1.9 billion, implemented in two phases: the first phase is expected to start trial production in 2026, and the second phase is expected to start trial production in 2027, with an annual output of 700,000 square meters of high-multilayer circuit boards[3]. This project will mainly meet the demand of mid-to-high-end markets such as servers, high-multilayer network communications, and AI computing power. After all projects reach full production, the company’s total PCB production capacity will reach

.

With the gradual release of production capacity, Shengyi Technology’s financial performance is expected to improve significantly. According to the forecast by Guohai Securities[2]:

Indicator	2024 Actual	2025E	2026E	2027E
Operating Revenue (RMB 100 million)	165.86	203.88	227.18	276.82
Growth Rate	-	+23%	+11%	+22%
Net Profit Attributable to Parent Shareholders (RMB 100 million)	11.64	17.44	23.50	30.83
Growth Rate	-	+50%	+35%	+31%
Gross Profit Margin	22.0%	25.0%	28.0%	30.0%
Net Profit Margin	7.0%	8.5%	10.3%	11.1%

The improvement of profitability driven by production capacity release is mainly reflected in the following three aspects:

1. Scale Effect
   : The fixed cost amortization effect of new production capacity will significantly reduce unit production costs. With the increase in the proportion of high-end products such as AI servers, product structure optimization will also drive the gross profit margin upward.

2. Product Structure Upgrade
   : The company’s under-construction projects mainly focus on high-end fields such as AI computing power and high-speed communications, and the gross profit margin of these products is significantly higher than that of traditional products. Data shows that Shengyi Electronics’ gross profit margin has rebounded from the low level in 2024 to
   over 30%
   in the first three quarters of 2025, an increase of nearly 10 percentage points compared with the same period last year[1].

3. Improvement in Capacity Utilization
   : With the continued strong demand for AI computing power from the downstream market, the new production capacity is expected to be quickly absorbed by the market, avoiding depreciation pressure caused by overcapacity.

Large-scale capacity expansion requires sufficient financial support. In the first three quarters of 2025, Shengyi Electronics’ operating cash flow surged 144% year-on-year to RMB 808 million[1], providing good financial support for project construction. At the same time, the company’s monetary funds increased 86.07% year-on-year to RMB 681 million, but to support capacity expansion, the scale of borrowings also increased significantly - short-term borrowings reached RMB 2 billion, long-term borrowings were RMB 325 million, and interest-bearing liabilities totaled RMB 2.437 billion.

It is worth noting that in January 2026, the company just announced the signing of an

with Dongguan Songshan Lake High-Tech Zone[4], focusing on cutting-edge fields such as AI, cloud computing, 6G communications, and intelligent vehicle electronics. Although this project does not constitute a major asset restructuring, it will put forward higher requirements for the company’s cash flow management.

Shengyi Technology’s capacity expansion is not simple scale replication, but is closely integrated with technological innovation. The company’s current 18 ongoing R&D projects mainly focus on high-end fields such as communications and AI servers, including the development project of next-generation network technology 1.6T Ethernet motherboards, and the development project of high-end AI servers applied to cloud service supercomputing[1]. The company has achieved mass production of 400G and 800G high-speed optical module PCBs, and the more cutting-edge 224G ultra-high-speed products have also entered the prototyping stage.

This model of “technology reserve first, capacity construction follow-up” ensures that the new production capacity can effectively connect with market demand, avoiding the risk of disconnect between production capacity and technology.

The construction of the Thailand Production Base is an important step in the company’s global strategy. Under the current international trade environment, domestic PCB enterprises generally choose to expand production overseas to meet customer needs[5]. The construction of the Thailand base will help the company better serve overseas customers, increase its international market share, and at the same time diversify geopolitical risks.

Global AI infrastructure construction is in a period of rapid growth. It is expected that in 2025, the total capital expenditure of the four tech giants Amazon, Google, Microsoft, and Meta will exceed

, a year-on-year increase of nearly 50%[1]. As a key component of AI servers and computing power infrastructure, high-end PCB demand remains strong. Through intensive capacity layout, Shengyi Technology is expected to fully benefit from the industry’s boom cycle.

• Short-term
  : Dongcheng Phase IV and Ji’an Phase I are about to reach full production, and a peak in production capacity release is expected in Q4 2025
• Mid-term
  : Thailand base will start trial production in 2026, and overseas production capacity layout will be implemented
• Long-term
  : The RMB 4.5 billion new project in Songshan Lake further consolidates the company’s position in the high-end CCL market
• Valuation
  : The current PE is about 59 times, but considering the high growth certainty driven by AI computing power demand, there is still room for valuation improvement

1. Financial Pressure
   : The RMB 4.5 billion new project plus ongoing construction projects result in a large total capital expenditure scale, which may put pressure on the company’s cash flow
2. Capacity Absorption Risk
   : If the release of AI computing power demand falls short of expectations, the new production capacity may face insufficient utilization
3. Project Progress Risk
   : Some projects still require approval from the board of directors or shareholders, and overseas projects also involve uncertainties such as land use approval and policy changes
4. Fluctuations in Raw Material Costs
   : Fluctuations in raw material prices for CCL may affect gross profit margin performance

The construction progress and production capacity release rhythm of Shengyi Technology’s under-construction projects show obvious characteristics of

. In the short term (end of 2025), Dongcheng Phase IV and Ji’an Phase I will bring 550,000 square meters of PCB production capacity release; in the mid term (2026), the Thailand base will contribute 12 million square meters of CCL production capacity; in the long term (2027), Ji’an Phase II will add 700,000 square meters of high-end computing power PCB production capacity. This capacity expansion path is highly aligned with the peak period of global AI computing power infrastructure construction, and is expected to drive continuous high-speed growth of the company’s performance.

The company’s continuous investment in R&D (R&D expenses in the first three quarters of 2025 were RMB 327 million, a year-on-year increase of 65.15%)[1] provides technical support for capacity absorption. The dual-drive model of “technology + production capacity” will help the company continuously consolidate its competitive advantages in the high-end market. With the improvement of profitability and the enhancement of cash flow generation capacity, the company is expected to successfully pass the current investment period and achieve a leap from “scale expansion” to “quality improvement”.

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[0] Jinling API - Shengyi Technology Financial and Market Data Analysis
[1] Xueqiu - In-Depth Analysis of Shengyi Electronics: From Loss Mire to Profit Surge (2025)
[2] Guohai Securities - Global CCL Leader, Growth Driven by Upward Cycle & AI Demand Research Report (March 2025)
[3] China Finance - Net Profit Excluding Non-Recurring Gains Soars 500%, Shengyi Electronics “Creates Wealth” for Shengyi Technology (October 2025)
[4] Securities Times/Sina Finance - Shengyi Technology Signs RMB 4.5 Billion Investment Intention Agreement to Increase High-Performance CCL Layout (January 4, 2026)
[5] China Galaxy Securities - Rational Bubble and Vast Future of AI Hardware Industry In-Depth Report (January 2026)