In the early stages of new capacity ramp-up, profits are diluted; only with subsequent volume expansion does profit recovery become the key turning point.

CoinWorld News, Shenzhen Southern Circuit stated during a targeted survey that the company's overall capacity utilization rate has been high recently, with the PCB business benefiting from the growing demand for AI computing infrastructure hardware-related products.
Factory capacity utilization remains high.
The packaging substrate business is driven by demand for storage and processor chip substrates, with factory capacity utilization continuing at a high level since Q4 2025.
The Thailand factory and the Nantong Phase IV project were successfully connected and put into production in the second half of 2025, with current capacity steadily ramping up.
Since the project is still in the early stages of ramp-up, assets or expenses incurred in the early stages have begun to be depreciated and amortized, but due to limited output, the fixed costs allocated per unit product are relatively high, which will have a certain impact on the company's profits.