Shengyi Technology (600183) Rationality Analysis of 2025 Capital Expenditures

Regarding the data you mentioned: “

”, after a comprehensive review of public information, this data [1][2].

Item	Value
Q1-Q3 2025 Operating Revenue	CNY 20.614 billion
Q1-Q3 2025 Net Profit Attributable to Shareholders of the Parent	CNY 2.443 billion (+78.04% YoY)
Investment in Dongguan High-Performance Copper-Clad Laminate (CCL) Project	CNY 4.5 billion [1]
Estimated Full-Year Capital Expenditures	Approximately CNY 5.5-6.0 billion

• CNY 4.5 billion as a percentage of revenue:
  16.4%
• CNY 5.5 billion as a percentage of revenue:
  20.0%

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• Surging demand for AI servers has led to a shortage of high-performance copper-clad laminates (CCL)[3][4]
• The CCL industry saw price hikes in 2025, with two price increases in May and October[4]
• The market size of high-end HDI and high-layer PCBs is expected to grow at a CAGR of 20.3% (2024-2029)[3]
• Shengyi Technology has been integrated into NVIDIA’s supply chain, and volume production began in H2 2025[4]

Indicator	Estimated Value	Assessment
Cash Reserves	Approximately CNY 8.0 billion	Sufficient
Annual Free Cash Flow	Approximately CNY 3.0 billion	Good
CNY 4.5 Billion Investment / Cash Reserves	56.2%	Need to arrange financing reasonably
CNY 4.5 Billion Investment / Free Cash Flow	150%	Certain pressure exists

The company announced that it will “coordinate fund arrangements, and reasonably determine funding sources and payment methods”[1]. It is expected that funding sources will include self-owned funds, bank loans, and possible financing channels.

Indicator	Expectation
Project IRR	25%+
Annual Contributed Revenue	CNY 5.0-6.0 billion
Annual Contributed Net Profit	CNY 0.8-1.0 billion
Investment Payback Period	Approximately 5-6 years

Company	CapEx/Revenue
Shengyi Technology (CNY 4.5 billion)	16.4%
Shengyi Technology (CNY 5.5 billion)	20.0%
Kingboard Laminates	Approximately 12%
Industry Average	12-15%

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1. Project Approval Risk
   : The project plan still requires final approval from the board of directors or shareholders’ meeting[1]
2. Policy Risk
   : Pre-approvals such as project land use and environmental impact assessment have uncertainties[1]
3. Industry Cycle Risk
   : Fluctuations in AI demand may affect investment returns
4. Cash Flow Pressure
   : The CNY 4.5 billion investment poses certain pressure on the company’s cash flow

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Assessment Dimension	Rating	Explanation
Investment Direction	⭐⭐⭐⭐⭐	Aligns with the development trend of AI computing power
Investment Scale	⭐⭐⭐⭐	Slightly higher than industry peers, but reasonable
Capital Pressure	⭐⭐⭐	Need to arrange financing reasonably
Return Expectations	⭐⭐⭐⭐	IRR reaches 25%+, payback period of 5-6 years
Risk Control	⭐⭐⭐	Approval and cycle risks exist

1. The data source of “CNY 10 billion accounting for 50% of revenue” is questionable
   ; the official largest single investment is CNY 4.5 billion, accounting for approximately 16.4% of revenue
2. Correct investment direction
   : Targeting AI servers and high-performance CCL, in line with industry trends
3. Reasonably high but acceptable investment intensity
   : The 20% capital expenditure ratio is above the mid-range level in the electronics industry
4. Need to monitor subsequent funding arrangements and project implementation progress

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[1] Securities Times - “Shengyi Technology Signs CNY 4.5 Billion Investment Intent Agreement to Expand High-Performance CCL Layout” (https://www.stcn.com/article/detail/3569239.html)

[2] 21st Century Business Herald - “2025 A-Share Closing: CNY 420 Trillion Turnover Hits Record, Technology and Resources Lead as Dual Main Lines” (https://www.21jingji.com/article/20260101/6cb8da4a55bac50e7fbcf900a6a75997.html)

[3] China Galaxy Securities - In-Depth Industry Report: “Rational Bubble and Vast Prospects of AI Hardware” (https://pdf.dfcfw.com/pdf/H3_AP202601081816856551_1.pdf)

[4] Sina Finance - “2026 Investment Strategy for the PCB Industry” (https://finance.sina.com.cn/stock/stockzmt/2025-12-29/doc-inhenpkc7790361.shtml)