Zhongci Electronics: Beijing Longxiang Fund, Morgan Stanley Fund, and several other institutions conducted a research visit to our company on May 8.

Securities Star News, on May 9, 2026, Zhongci Electronic (003031) issued an announcement stating that Beijing Longxiang Fund, He Yansong; Morgan Stanley Fund, Lei Zhiyong; Ningbo Baojun Asset, Wang Yida; Quanguo Fund, Wang Suxin; Shanghai Zhaoshun Fund, Qian Zhihao; Shenzhen Tsinghua University Research Institute, Shu Bin; Chen Xiaohua; Shennong Investment, Wang Yang; Wangzheng Asset Investment, Kuang Bin; New China Fund, Liu Haibin; Industrial Securities, Zhang Lin; Xingyin Wealth Management, Jiang Yaokun; Guotai Haitong, Huang Long; Yu Weimin; Dai Pengcheng; Xia Fan; Xia Guobin; Yuanfeng Fund, Chen Jun; Changsheng Fund, Teng Guangyao; China Merchants Securities, Li Zhehan; Zheshang Securities, Xu Fei; CITIC Construction Investment, Wang Dalin; Fan Wenhui; Zhang Yulong; Zhao Zipeng; Xin Xiaping; CITIC Securities, Guo Keyu; Guoxin Investment, Li Zengzi; Guoxin Military Industry, Li Cong; Huafu Securities, Huo Xiaofei; Zhang Xifang; Wei Zhengyu; BOC Schroder Fund, Li Zhenqi; Jinying Fund, Xu Zhongya; Jingyuan Investment, Zhang Yiqian; Minsheng Jia Yin Fund, Guo Fengrui; Fan Mingyue conducted research at our company on May 8, 2026.

The specific content is as follows:

Q: Please introduce the overall operation of the company’s electronic ceramic sector in 2025 and the performance in the first quarter of 2026?

A: The global new wave of I technology explosion has driven a surge in computing power demand, directly boosting data center construction and upgrades, resulting in explosive demand for optical modules. As a key material for optical module packaging, the market demand for ceramic shells and substrates is rapidly increasing, especially aluminum nitride thin-film substrates, which are a critical packaging material for low-cost non-hermetic packages, showing a supply-demand imbalance. In the first quarter of 2026, benefiting from the high prosperity of I computing power and high-end optical communication industries, orders for ceramic shells and ceramic substrates used in optical modules surged significantly, with capacity utilization remaining high. The electronic ceramic sector achieved substantial year-on-year growth in revenue and profit, becoming one of the core supporting sectors for the company’s performance growth during this period.

Q: How did the company’s operating cash flow improve significantly in 2025, and how did the cash flow perform in the first quarter of 2026?

A: In 2025, net cash flow from operating activities was 952 million yuan, a year-on-year increase of 75.77%, mainly due to strengthened management of receivables and optimized inventory turnover. In the first quarter of 2026, net cash flow from operating activities was 377 million yuan, a year-on-year increase of 101.38%. Details can be found in the First Quarter Report of 2026 on the China Securities Journal.

Q: What are the core considerations for the acquisition of 100% equity of Xiong’an Taixin?

A: First, this acquisition can further expand the company’s RF product line, with complementary effects; second, high-frequency packaging and high-frequency chip design are in upstream and downstream of the industry chain, providing synergy; third, it better matches industry changes and market demand, improving the efficiency of fund utilization, helping to prevent investment risks, and ensuring resource benefits and investment returns.

Q: What is the necessity and outlook of the newly added “High-precision Electronic Ceramic Production Line Expansion Project”?

A: The project involves products such as aluminum nitride thin and thick film substrates, electronic ceramic shells for communication devices, and precision ceramic components, which are among the key supported civilian industries. The project aligns with national, Hebei Province, Shijiazhuang City, and China Electronics Technology Group Corporation’s development plans and industrial policies, with complete construction organizations, secured funding, and meeting the requirements of the Luhua District government of Shijiazhuang City. All procedures are complete, and supporting conditions are in place. Meanwhile, the products involved in the high-precision electronic ceramic production line expansion are based on the company’s proprietary materials, designs, and core technologies, utilizing existing mature multilayer ceramic manufacturing processes for expansion. These products have been verified and supplied in bulk to major domestic clients. Zhongci Electronic is a domestic leader in electronic ceramic shell technology, with product performance comparable to international counterparts, widely used in optical communication, wireless communication, rail transit, low-carbon heating and cooling, automotive electronics, semiconductor equipment, and low-altitude economy.

Q: How will the adjustment of the fundraising project impact the company’s future performance?

A: The company plans to use part of the remaining raised funds to acquire 100% equity of Xiong’an Taixin, which ensures the effectiveness of the fundraising projects to some extent, improves the utilization efficiency of funds, and helps prevent investment risks, ensuring resource benefits and investment returns. Xiong’an Taixin mainly focuses on emerging industry applications, based on domestically produced compound semiconductor processes, specializing in terahertz chip design and applications. After the transaction, Xiong’an Taixin’s high-frequency chip business can significantly expand the company’s current RF chip working frequency and application fields, enlarging the RF product line, consolidating the company’s advantages in compound RF chips, and further enhancing the company’s technological innovation and industrial synergy in the semiconductor field, while reducing related-party transactions. After the transaction, Xiong’an Taixin will be consolidated into the company’s financial statements, enhancing profitability and asset scale, further refining the company’s industry spectrum, expanding market fields, and creating new growth points. This will promote the preservation and appreciation of state-owned assets and support high-quality development of the company. The newly added “High-precision Electronic Ceramic Production Line Expansion Project” involves products such as aluminum nitride thin and thick film substrates, electronic ceramic shells for communication devices, and precision ceramic components, all utilizing the company’s proprietary core technologies. The existing mature multilayer ceramic process will be used for expansion. These products have been verified and supplied in bulk to major domestic clients. The increased capacity will support the company’s share in high-growth areas, optimize asset structure, and enhance profitability and core competitiveness, providing momentum for sustained growth.

Q: What breakthroughs has the company achieved in the field of precision ceramics for semiconductor equipment in 2025 and the first quarter of 2026?

A: The company continues to increase R&D and investment in precision ceramic components, developing products such as alumina and aluminum nitride precision ceramic parts, establishing a manufacturing process platform for precision ceramics. The core technical indicators of ceramic heating plates developed have reached the level of similar international products and have been validated by users, with mass application in domestic semiconductor equipment. The static electricity chuck products have passed on-machine verification by leading domestic semiconductor equipment companies, and sales revenue of precision ceramic components has increased significantly year-on-year.

Q: What are the R&D investments and core technological breakthroughs of the subsidiary Bowei in 2025?

A: Bowei has made breakthroughs in GaN communication base station RF chips and devices, as well as microwave point-to-point communication RF chips and devices, overcoming key core technologies in IC design, packaging and testing, reliability, and quality control. It possesses independent intellectual property rights, enabling product series development and industrialization. The product performance and quality are at the domestic leading and international advanced levels. The company is actively promoting the R&D and industrialization of key technologies for 5G-, 6G-, and satellite communication systems, with a focus on key technology reserves and steady progress toward large-scale application based on customer needs.

Q: What are the focus areas and capacity plans for Bowei in 2026?

A: The company actively advances the breakthrough and industrialization of new generation mobile communication RF chips and devices, continuing the development and industrialization of new series of products in GaN communication base station RF chips and devices, as well as microwave point-to-point communication RF chips and devices; simultaneously, it reserves key technologies in 5G-/6G-, satellite communication RF chips and devices, low-altitude economy, and solid-state RF sources, steadily promoting product development and industrial layout.

Q: What is the core product layout of Guolian Wanzhong’s SiC chips and modules, and what are the progress and plans for 2025–2026?

A: Guolian Wanzhong’s core products, with voltages from 650V to 2300V, have mature series and have been shipped in bulk; samples of 3300V products are provided for customer testing; products above 6500V are under development. In 2025, the company completed the upgrade of the process line from 6-inch to 8-inch wafers, developed the H4M process platform, further improved product performance and reliability, with multiple products passing EC-Q101 reliability tests; in 2026, the 8-inch H5M process will be completed, with further performance improvements. The yield rate of the production line will continue to increase.

Q: How is Guolian Wanzhong expanding its customer base and applications in the new energy vehicle field?

A: Guolian Wanzhong has actively cooperated with four new energy vehicle companies on 800V high-voltage systems, conducting multiple rounds of product iteration testing, with some models completing winter testing on vehicles.

Q: What are the core goals and strategic priorities for the company’s business development in 2026?

A: The core goal for 2026 is to consolidate its leading position in electronic ceramics, accelerate the volume of third-generation semiconductor business, expand into emerging fields, and achieve sustained performance growth. Strategic priorities include: 1. Continue focusing on I computing power and high-end optical communication in the optical module ceramic sector, increasing the proportion of high-end products; 2. Continue expanding market share in GaN RF and SiC power in the third-generation semiconductor field; 3. Accelerate mass and stable supply of semiconductor precision ceramic components; 4. Maintain R&D investment, strengthen technological leadership, and enhance overall competitiveness.

Zhongci Electronic (003031) main business: electronic ceramic materials and components, third-generation semiconductor devices and modules, related technical development services, product processing services, etc.

Zhongci Electronic’s 2026 first quarter report shows that the company’s main business revenue was 1.1B yuan, up 79.05% year-on-year; net profit attributable to the parent was 193 million yuan, up 57.32%; non-recurring net profit was 190 million yuan, up 66.97%; debt ratio was 21.86%; investment income was 1.5025 million yuan; financial expenses were -2.0492 million yuan; gross profit margin was 30.55%.

The above content is compiled from public information by Securities Star, generated by AI algorithms (Network Credit Record 310104345710301240019), and does not constitute investment advice.