New stock news | Suzhou Dongshan Precision Manufacturing (002384.SZ) submits application to Hong Kong Exchange, becoming the world's largest supplier of edge AI equipment PCBs.

According to the disclosure by the Hong Kong Stock Exchange on November 18th, Suzhou Dongshan Precision Manufacturing Co., Ltd. (referred to as Suzhou Dongshan Precision Manufacturing, 002384.SZ) has submitted its application to the Hong Kong Stock Exchange main board, with UBS Group, HAITONG INT'L, GF SEC, and CITIC SEC as its joint sponsors. According to industry information, Suzhou Dongshan Precision Manufacturing is the world's largest supplier of edge AI equipment PCBs, with products mainly used in smartphones, personal computers, cars, industrial and IoT devices, and is rapidly expanding its capabilities to the data center market. The prospectus shows that Suzhou Dongshan Precision Manufacturing is an innovative-driven company focused on the field of smart manufacturing with a global perspective and layout. Since its establishment, Suzhou Dongshan Precision Manufacturing has established a leading market position in its core product areas. According to industry information, based on revenue in 2024, the company is the world's largest supplier of edge AI equipment PCBs, the world's second-largest supplier of flex boards, and one of the top three global PCB suppliers. Suzhou Dongshan Precision Manufacturing has built a diversified product portfolio around its core value customers, with its PCBs, precision components, touch panels, LCD modules, and optical modules widely used in consumer electronics, automotive, data centers, communication devices, and industrial control equipment. The company actively leverages synergies in research and development, engineering, supply chain, and operations to provide customers with comprehensive one-stop solutions and is one of the few suppliers in the industry that can offer a rich and diverse product portfolio to top global technology companies. Additionally, according to industry information, Suzhou Dongshan Precision Manufacturing is the only supplier in the world with capabilities in PCBs, optical chips, and optical modules at the same time, accounting for approximately 9% to 14% of AI server material costs, second only to GPUs in most AI servers, enhancing the company's ability to enter the high-growth data center terminal market. The company's long-standing partners include four of the world's top five consumer electronics brands, four of the world's top five pure electric vehicle manufacturers, and four of the world's top five cloud service providers. The company deeply involves in the early stages of customer product design, thereby establishing long-term cooperative relationships based on mutual trust and keeping abreast of the latest industry developments and technological trends. Combining intelligent manufacturing capabilities and global presence, this approach is crucial to meeting customers' high standards for product quality, delivery efficiency, and supply chain stability. Suzhou Dongshan Precision Manufacturing is committed to expanding its global manufacturing layout while enhancing local operational and service capabilities to meet the evolving needs of customers. The recent acquisition of the European automotive parts supplier GMD is a further embodiment of this strategy, integrating manufacturing expertise into localized operational practices to provide first-class services to a wider range of customers. For the six months ended June 30, 2025, the company's revenue contribution from customers outside mainland China reached 77.7%. As of the latest practicable date, the company has production facilities in 15 countries and regions in Asia, North America, Europe, and Africa, and foreign employees account for approximately 20% of the total workforce. The following diagram shows the company's core business achievements: Financial Data: Revenue: The company recorded revenues of RMB 31.58 billion, RMB 33.651 billion, and RMB 36.7 billion in the fiscal years 2022, 2023, and 2024, respectively. During the previous performance periods, electronic circuits were the company's largest source of revenue. Gross Profit: The company recorded gross profits of RMB 5.091 billion, RMB 4.68 billion, and RMB 4.217 billion in the fiscal years 2022, 2023, and 2024, respectively. From 2022 to 2024, the company's gross profit decreased mainly due to a reduction in the gross profit of communication equipment components and an increase in losses in other areas (mainly LED display products). Net Profit: The company recorded net profits of RMB 2.368 billion, RMB 1.965 billion, and RMB 1.085 billion in the fiscal years 2022, 2023, and 2024, respectively. Industry Overview PCB Industry: PCB is a basic component in electronic devices, providing key functions such as precise electrical interconnection, low-loss signal transmission, and mechanical support. The continuous improvement of electronic device performance is driving more stringent requirements for PCBs, especially in terms of higher circuit density, enhanced signal integrity, and improved thermal management, which in turn directly promotes the technological upgrade of the PCB industry. Additionally, the emergence of new application scenarios is creating a significant demand for high-end PCBs, creating important growth opportunities for the industry. According to different application areas, in 2024, the global PCB industry market size, the data center PCB market size reached $12.5 billion, and the communication PCB market size reached $9.3 billion; the data center is benefiting from the development of AI, growing rapidly, and the market size is expected to grow to $21 billion by 2029, with a compound annual growth rate of 10.9% from 2024 to 2029. The communication PCB market size will reach $11.7 billion by 2029, with a compound annual growth rate of 4.7% from 2024 to 2029. In 2024, the market size of consumer electronics PCBs and automotive PCBs were $35.9 billion and $9.2 billion, respectively. With the rapid development of edge AI devices, the consumer electronics industry and the automotive electronics industry are constantly innovating under the trend of smartification. By 2029, the market sizes of consumer electronics and automotive electronics will reach $44 billion and $11.5 billion, respectively, with compound annual growth rates of 4.1% and 4.5%. PCBs can be divided into single-layer and multi-layer PCBs, HDI, flex boards, and packaging substrates according to product structure. According to sales revenue, in 2024, the global market sizes of single-layer and multi-layer PCBs, HDI PCBs, flex boards, and packaging substrates were $36.5 billion, $12.8 billion, $12.8 billion, and $12.9 billion, respectively. It is expected that by 2029, the global market sizes of single-layer and multi-layer PCBs, HDI PCBs, flex boards, and packaging substrates will reach $42.8 billion, $18.4 billion, $15.5 billion, and $20.1 billion, with compound annual growth rates of 3.3%, 7.5%, 4.0%, and 9.3% from 2024 to 2029. The main raw material costs of PCBs include copper-clad laminates, copper foils, and copper balls. The cost of copper materials accounts for 70% of the total raw material costs of PCBs, so the cost of PCBs is highly correlated with the price of copper. The global average settlement price of copper increased from $5,999.7 per ton in 2019 to $9,146.8 per ton in 2024. In the future, as industrial upgrades and the increasing drive for renewable energy and infrastructure development continue globally, the price of copper is expected to remain relatively stable in a relatively high range. Flex Board Industry: Flex boards are PCBs made from flexible copper-clad laminates that can be bent and folded. They have advantages such as lightweight, flexibility, and high wiring density, making them a crucial basic component for achieving miniaturization, lightweighting, and high reliable interconnection of electronic devices. In the consumer electronics field, flex boards are the mainstream solution for high-speed signal transmission between internal display modules, cameras, biometric modules, and more in smartphones, tablet computers, and wearable devices. In the automotive electronics industry, flex boards are widely used in battery management systems (BMS) and in-vehicle displays. In the industrial control field, flex boards enable stable and efficient connections in complex environments for industrial equipment. As edge AI devices integrate more functions into smaller designs, FPCs that can achieve three-dimensional wiring and high-density interconnection will continue to see growing demand under the trends of high-end and customization, driving the value enhancement of the edge-side PCB industry. The global flex board market is steadily growing, with the market size reaching $12.8 billion in 2024 and expected to grow to $15.5 billion by 2029, with a compound annual growth rate of 4.0%. From 2019 to 2024, looking at the market size contributed by various application scenarios, consumer electronics is the largest application area for flex boards. In 2024, its market size was $9.7 billion, accounting for approximately 75.8% of the global total, although slightly lower than 80.3% in 2019. In the future, the consumer electronics market will benefit from the growth of shipments of smart devices such as smartphones, AR/VR devices, wearable devices, driving the growth of the flex board market. The automotive electronics sector is the fastest-growing application area in the global flex board industry, with a market size of $1.4 billion in 2024, accounting for 10.9%, projected to increase to 14.2% by 2029. The main reasons for this are the increase in EV penetration, the upgrade of intelligent driving technology capabilities, and the new application scenarios brought by the development of the intelligent driving industry. Edge AI Device PCB Industry: The commercialization of edge AI technology is becoming a core factor driving the upgrade and value reshaping of the edge AI device industry. Edge AI devices mainly include AI consumer electronics terminals, automotive terminals, industrial terminals, medical devices, etc. On one hand, in the field of AI consumer electronics, the hardware shift cycle and the increase in the value of single products further drive market growth; on the other hand, edge AI is a key technology for achieving ADAS and intelligent cockpit human-machine co-driving, promoting cars' evolution from transportation tools to smart mobility spaces. In terms of shipment volume, the global shipment volume of edge AI devices reached approximately 360 million units in 2024, and by 2029, the global shipment volume of edge AI devices is expected to reach 2 billion units, with a compound annual growth rate of 40.7% from 2024 to 2029. As new innovative functions and application scenarios emerge with the advancement of edge AI devices, electronic components on terminals are evolving in form and performance, driving their unit price increases. In terms of shipment volume, AI smartphones, personal computers, and tablet computers are the three largest categories of edge AI devices. It is projected that the penetration rates of models with AI functions in various product segments are as follows: for smartphones, the penetration rate will increase from 13.2% in 2024 to 59.4% in 2029; for tablet computers, the penetration rate will increase from 20% in 2024 to 67.0% in 2029; for personal computers, the penetration rate will increase from 18.6% in 2024 to 72.0% in 2029. The global edge AI device PCB industry, as the core carrier supporting edge node AI computing, will achieve rapid expansion with the explosive growth of edge computing demands. The global edge AI device PCB market is a part of the entire global PCB market and represents the market size of PCBs deployed in edge AI devices. Its market share is steadily increasing, being an important driver of future growth for the global PCB market. In 2024, the global edge AI device PCB industry has surpassed $9.8 billion, with a compound annual growth rate of 62.5% from 2019 to 2024. In terms of growth expectations, driven by the permeation of generative AI in edge scenarios and the accelerated deployment of edge AI, the market is entering a period of high-speed growth, with the edge AI device PCB market expected to reach $31.7 billion by 2029, a compound annual growth rate of 26.4% from 2024 to 2029, significantly higher than the overall growth rate of the global PCB industry. Board of Directors and Management Information: The board of directors consists of eleven directors, including five executive directors, two non-executive directors, and four independent non-executive directors. The directors' term is three years and can be re-elected upon the expiration of their term. According to relevant Chinese laws and regulations, the independent non-executive directors cannot be re-elected for more than six years. Ownership Structure: Mr. Yuan Yonggang, Mr. Yuan Yongfeng, and Mr. Yuan Fugen are the largest shareholder group, holding 16.53%, 13.51%, and 3.21% of the shares, respectively. Other A-share shareholders hold a total of 66.74% of the shares. As of the last practicable date, the company holds 8,839,701 A-shares as treasury stock, which do not entail any shareholder rights, including but not limited to voting rights and dividend rights. Intermediary Team: Joint Sponsors: UBS Securities Hong Kong Limited, HAITONG INT'L Capital Limited, GF Securities (Hong Kong) Limited, CITIC SEC (Hong Kong) Limited Company Legal Advisors: For Hong Kong and U.S. law: Freshfields Bruckhaus Deringer; For Chinese law: Haiwen & Partners Legal Advisors for Joint Sponsors: For Hong Kong and U.S. law: Allen & Overy; For Chinese law: King & Wood Mallesons Auditors and Reporting Accountants: Tien & Co. International Certified Public Accountants Limited Industry Consultant: Zhoushi Industry Consulting Co., Ltd. Compliance Advisor: SOMERLEY CAP Limited.