Chaoyingtech's Orders Surge, Accelerating Capacity Expansion Plans to Invest 200 Million More to Boost Delivery Capacity

Changjiang Business Daily News ● Changjiang Business Reporter Xu Liangli

Chao Ying Electronics (603175.SH) is planning a new project.

Recently, Chao Ying Electronics announced that the “High Multi-layer and HDI Project Phase II” (hereinafter referred to as “Phase II Project”) has been completed, with a remaining fundraising amount of 62.45 million yuan. The company plans to invest the remaining funds and an oversubscription amount of 143 million yuan, totaling about 200 million yuan, into a new project called “High Multi-layer and HDI Project Phase III.”

Chao Ying Electronics stated that the surge in orders for high multi-layer and HDI boards has driven the implementation of the new project, which will help the company break through capacity bottlenecks, improve customer order delivery capabilities, and meet the continuously growing market demand.

Chao Ying Electronics went public at the end of October 2025. Previously, the company released a quick report on its 2025 performance, showing revenue growth but a decline in net profit attributable to shareholders. The company explained that its Thailand factory is in the ramp-up stage, and capacity utilization has not yet reached expected levels.

Planning to invest 200 million yuan to accelerate expansion

Founded in 2015, Chao Ying Electronics mainly engages in the research, development, production, and sales of printed circuit boards (PCBs). The company successfully listed on the Shanghai Stock Exchange Main Board on October 24, 2025.

On the evening of March 11, Chao Ying Electronics announced that the Phase II project has been fully constructed and is operational. As of February 28, 2026, the remaining funds from the project amounted to 62.45 million yuan—including cash management earnings and interest income. The company plans to use the remaining funds and an oversubscription of 143 million yuan, totaling about 200 million yuan, for new project investments. The announcement indicated that this matter was approved at the sixth meeting of the company’s second board of directors. According to regulations, it still requires approval from the company’s shareholders’ meeting.

The new project is titled “Chao Ying Electronics Circuit Co., Ltd. High Multi-layer and HDI Project Phase III” (hereinafter “Phase III Project”), located in the Huangshi Economic and Technological Development Zone, with a construction period of 24 months. The Phase III project will introduce high-precision, highly automated production equipment, focusing on high-end products such as HDI boards and high multi-layer boards. It aims to break through capacity bottlenecks, enhance customer order delivery, and meet the demands of fast-growing downstream markets like network communications, servers, and automotive electronics. Once operational, the new project will have an annual production capacity of 127,600 square meters of PCBs, serving fields such as network communications, servers, and automotive electronics.

Regarding the new project, Chao Ying Electronics said that in recent years, driven by the increased penetration of new energy vehicles, the commercialization of AI technology, and the domestic production of storage chips, demand in the high-end PCB application field has exploded. The company has accurately seized these opportunities, successfully integrated into the supply chains of several leading enterprises, and experienced a surge in orders for high multi-layer and HDI boards. Capacity bottlenecks have become a core constraint limiting the company’s ability to undertake large orders and steadily grow revenue. The new project will help the company overcome these bottlenecks, improve delivery capabilities, and meet the growing market demand.

Thailand project in the ramp-up stage

Earlier, Chao Ying Electronics released a quick report on its 2025 performance, showing total revenue of 4.757 billion yuan, a year-on-year increase of 15.36%. Despite the overall weak demand in consumer electronics, the company maintained steady revenue growth by actively expanding into high-growth segments such as communications, data centers, and automotive electronics.

In contrast to revenue growth, profitability faced significant pressure: net profit attributable to shareholders was 230 million yuan, down 16.72% year-on-year; net profit after deducting non-recurring gains and losses was 203 million yuan, down 21.99%.

The decline in profit indicators mainly stems from strategic investments in overseas high-end manufacturing. According to the performance report, the new factory in Thailand is still in the early stages of capacity ramp-up and has not yet achieved breakeven, which has become a key factor dragging down overall profitability.

Chao Ying Electronics previously announced on January 7, 2026, that its investment in Thailand had been significantly increased from the initial plan of 1.468 billion yuan to 3.315 billion yuan. The construction period was extended to 24 months. After reaching full capacity, the plant will add an annual capacity of 166,500 square meters of high-end PCBs, used in network communications, servers, and automotive electronics. The company stated that the Thailand investment will further expand production scale, strengthen overseas manufacturing capabilities, enhance its market position abroad, and support performance growth and profitability improvement.