Sheng Hong Technology "Overcharged by a few liters"

Reporter Zheng Chenye

On the evening of March 12, leading company Dalian Winsun Technology (300476.SZ) released its 2025 annual report:

Total revenue for the year was 19.292 billion yuan, a 79.77% increase year-over-year; net profit attributable to shareholders of the listed company was 4.312 billion yuan, up 273.52%; net profit after deducting non-recurring gains and losses was 4.304 billion yuan, up 277.07%; nearly all profit growth was driven by core business operations.

As of midday March 13, among major PCB (printed circuit board) listed companies that have announced annual reports or performance briefings, Winsun Technology’s profit growth rate ranked first.

Along with the disclosure of the annual report, Winsun Technology also announced its investment plan for 2026, with a planned total investment of no more than 20 billion yuan. Of this, fixed asset investment will not exceed 18 billion yuan, covering new factory buildings, engineering construction, equipment purchases, and automation line upgrades. By the end of 2025, Winsun Technology’s total assets reached 35.244 billion yuan.

The annual report shows that the company focuses on R&D, production, and sales of high-density printed circuit boards, with global leading market share in AI computing cards, AI Data Center UBB (Universal Base Boards for Data Centers), and switches. According to market research firm Prismark, Winsun Technology ranks 6th among global PCB suppliers and 3rd among domestic Chinese PCB manufacturers.

Production volume decreased, profit nearly tripled

According to the annual report, in terms of production and sales, Winsun Technology’s PCB product sales in 2025 totaled 8.6637 million square meters, down 2.72% year-over-year; production volume was 8.0896 million square meters, down 9.63%; inventory was 857,800 square meters, up 12.57%. However, revenue from PCB manufacturing reached 18.084 billion yuan, up 79.92%; net cash flow from operating activities was 4.603 billion yuan, up 238.85%, exceeding net profit for the same period, with a weighted average return on net assets of 35.56%.

Products sold less, but revenue increased significantly. The annual report explains this as “product structure upgrading towards high-value, high-technology complexity, with a significant increase in high-end product proportion.”

The report also shows that nearly all revenue growth came from overseas: direct export income was 14.821 billion yuan, accounting for 76.83% of total revenue, a 126.88% increase year-over-year; last year, Winsun Technology’s export share was 60.88%. Domestic sales in 2025 totaled 4.471 billion yuan, only a 6.48% increase from the previous year.

Additionally, the report states that the top five customers together contributed 8.098 billion yuan in sales, accounting for 41.98% of annual total sales. The largest customer contributed 2.887 billion yuan (14.97%), and the second largest 2.423 billion yuan (12.56%).

The report does not disclose specific customer names, but it is publicly known that Winsun Technology has supply chain relationships with NVIDIA. On the evening of January 31, 2026, NVIDIA CEO Jensen Huang hosted over 40 supply chain executives at a banquet in Taipei, including TSMC Chairman Wei Zhejia, Hon Hai Chairman Liu Yangwei, and Foxconn Industrial Internet Chairman Zheng Hongmeng, among others, including Winsun Technology Chairman Chen Tao.

A research report released by China Merchants Securities in January 2026 also states that Winsun Technology has entered the supply chains of companies such as NVIDIA, AMD, Intel, Tesla, Microsoft, Bosch, Amazon, Google, and Delta.

According to the annual report, on the cost side, raw materials accounted for 65.91% of operating costs, up from 62.67% last year; direct labor’s proportion decreased from 13.78% to 12.07%; manufacturing expenses decreased from 23.55% to 22.02%.

This indicates that in 2025, rising upstream raw material prices ate into Winsun Technology’s profit margins, resulting in an annual gross profit margin of 35.22%.

In fact, rising raw material costs are a common challenge across the PCB industry. For example, Tianjin Pulin (002134.SZ) in its 2025 performance forecast attributed an 80.81%-86.71% decline in net profit directly to “rising commodity prices leading to increased raw material costs and decreased gross margin.” Bomin Electronics (603936.SH) also mentioned that “international precious metal prices remain high, with core raw materials like gold salts, copper balls, copper foil, and tin bars rising in price,” which is one of the main reasons for its negative net profit after non-recurring gains and losses.

Although Winsun Technology has absorbed some cost pressures through high-end product pricing, the continued increase in raw material proportion remains a variable for future performance.

In the PCB sector, Winsun Technology’s profitability is quite prominent. Compared to the same day’s annual report release, Shennan Circuit (002916.SZ) had a total revenue of 23.647 billion yuan, 4.3 billion yuan higher than Winsun Technology, but its net profit attributable to shareholders was 3.276 billion yuan, 1 billion yuan less.

Hua Hong Electronics (002463.SZ), which previously released performance briefings, reported a total revenue of 18.945 billion yuan in 2025, similar in scale to Winsun Technology, but its net profit was 3.822 billion yuan, with a growth rate of 47.74%, significantly lower than Winsun Technology.

Pengding Holdings (002938.SZ), currently the highest revenue PCB company, reported a total revenue of 39.147 billion yuan in 2025, with a net profit of about 3.738 billion yuan, but its net profit growth rate was only 3.25%.

High-profit-growth PCB companies have benefited significantly from the explosive demand for AI computing power. Winsun Technology states in its annual report that it has achieved large-scale production in “AI computing, data centers, high-performance computing, and other key areas”; Hua Hong Electronics also noted that “benefiting from the structural demand for printed circuit boards in high-speed computing servers, artificial intelligence, and other emerging computing scenarios.”

Looking at Q4 data, Winsun Technology’s quarterly revenue reached 5.175 billion yuan, a 70.58% increase year-over-year, setting a quarterly record; but net profit attributable to shareholders was 1.067 billion yuan, a slight decrease from 1.102 billion yuan in Q3, down about 3%; non-recurring net profit was 1.056 billion yuan, also down from 1.099 billion yuan in Q3.

A recent research report from China Merchants Securities analyzed the possible reasons for the sequential decline in Winsun Technology’s Q4 profit: the new production lines at the Huizhou plant and Thailand factory are in ramp-up stages, with increased labor costs due to more new employees; more new product introduction projects for major clients have increased R&D expenses.

The report also mentioned that “the customer’s computing power PCB supply system continues to introduce new players, leading to some loss of market share for the company in certain product lines.”

Additionally, the report shows that financial expenses increased from 21.14 million yuan last year to 120 million yuan, a 467.07% increase, mainly due to “increased exchange losses caused by currency fluctuations.” As exports rose from 60% to nearly 80%, the impact of exchange rate fluctuations on performance has expanded.

Other expenses include R&D costs of 778 million yuan in 2025, up 72.88%; sales and administrative expenses increased by 28.15% and 27.59%, respectively, mainly due to “increased employee compensation,” according to the annual report.

Regarding dividends, the company plans to distribute 20 yuan in cash dividends per 10 shares (tax included), totaling about 1.74 billion yuan, accounting for 40.36% of net profit.

Accelerating technological iteration

On the same day as the annual report, Winsun Technology also announced an investment plan: in 2026, the company and its subsidiaries plan to invest no more than 20 billion yuan in total. Of this, fixed asset investment will not exceed 18 billion yuan, including new factory buildings, engineering construction, equipment purchases, and automation line upgrades; equity investments will not exceed 2 billion yuan.

The announcement notes that this investment plan “still requires approval by the company’s shareholders” and “there is some uncertainty.”

In 2025, Winsun Technology’s total revenue was 19.292 billion yuan. This means the planned 20 billion yuan investment is roughly comparable to its annual revenue.

The annual report also shows that in terms of capacity layout, Winsun Technology’s domestic capacity centers on its Huizhou headquarters, with production units divided into multiple layers of MLB (multi-layer printed circuit boards), high multi-layer HLC (high-layered circuit boards), and HDI (high-density interconnect) units, all located within the same park. Overseas, the company has invested in multiple production lines in Thailand, Vietnam, and Malaysia.

The report describes this as a “China + N” global layout, aiming to “meet the overseas delivery needs for high multi-layer PCB, advanced HDI, and FPC demanded by global customers, and enhance global delivery service capabilities.”

According to the report, Winsun Technology currently has the capability to produce over 100-layer high multi-layer boards, is among the first globally to achieve large-scale production of 6-layer 24-layer HDI (high-density interconnect) products, and has the technical ability for 10-layer 30-layer HDI and 16-layer arbitrary interconnect HDI, with ongoing development of 14-layer 36-layer HDI certification.

These technical parameters have been updated compared to previous disclosures. Notably, many brokerages, based on their mid-year reports in 2025, still referenced “8-layer 28-layer HDI” and “pushing forward 10-layer 30-layer HDI,” indicating ongoing acceleration in technological iteration.

From the information in the annual report, it’s clear that Winsun Technology’s PCB technology development continues to accelerate. This is also reflected in other aspects: in 2025, the company’s R&D investment totaled 777.8 million yuan, up 72.88%; R&D personnel numbered 1,751, up 28.56%; and ongoing projects numbered 87, covering AI computing power, autonomous driving, robotics, optical transmission, and other fields.

From the downstream demand side, the good days for PCB manufacturers seem far from over.

According to Prismark, in 2025, the global PCB output value reached $84.891 billion, a 15.4% increase year-over-year. HDI output was $15.717 billion, up 25.6%; multilayer boards reached $33.091 billion, up 18.2%.

Prismark forecasts that the AI server-related PCB market will have an average annual compound growth rate of 18.7% from 2024 to 2029, with AI-related HDI growing at 29.6% annually, and AI-related 18-layer and above multilayer boards at 33.8%, far exceeding the industry average.

Recently, NVIDIA CEO Jensen Huang emphasized during the Q4 FY2026 earnings call that “computing power demand is growing exponentially.” Market research firm TrendForce also estimates that in 2026, global AI server shipments will increase by over 28% year-over-year, with models equipped with NVIDIA’s GB300 becoming mainstream.

NVIDIA has announced that GB300 AI servers will begin large-scale delivery in Q2 2026. Additionally, at the upcoming GTC conference starting March 16, the new Vera Rubin architecture may be unveiled, with each generation’s upgrade increasing requirements for PCB layer count, frequency, and material grade.

The annual report also mentions that Winsun Technology is proactively exploring “GPU, CPU” key technology routes, aiming to overcome related frontier technologies.

However, market expectations for Winsun Technology’s 2026 performance vary significantly.

For example, China Merchants Securities recently forecasted a net profit attributable to shareholders of 8.07 billion yuan; Guosheng Securities predicted 10.5 billion yuan; and BOC International earlier estimated 12.036 billion yuan.

The forecast range spans from 8 billion to 12 billion yuan, a nearly 50% difference. Even at the most conservative estimate, this implies that Winsun Technology’s net profit in 2026 could nearly double compared to 2025.

Additionally, it’s worth noting that the 2025 annual report disclosed 87 ongoing projects, covering a broad range from AI computing to aerospace. These include high-end intelligent server circuit boards, MRDIMM memory modules, and other AI-related projects, as well as vertical aircraft control system circuit boards, high-end lidar circuit boards for autonomous driving, high-dynamic robot main control driver circuit boards, and marine information electronics.

Furthermore, Winsun Technology states in the annual report that it will “accelerate Southeast Asian capacity deployment, optimize global capacity distribution,” and has also “submitted an H-share listing application to the Hong Kong Stock Exchange.”

As of the close on March 13, Winsun Technology’s stock price was 278.23 yuan per share, down 0.81%, with a total market capitalization of 242.8 billion yuan.