Victory Giant Technology (02476): Net profit for the first three quarters was RMB3.384 billion, up 4.28% year on year; order scheduling for high-end products has extended to 2028.

Victory Giant Technology (02476) announced that, given recent significant fluctuations in the Company's share price and that of its industry sector, the Company is voluntarily disclosing the following information to enable investors to better understand its production and operating conditions: I. Operating Conditions In recent years, global general-purpose artificial intelligence technology has advanced at an accelerating pace, demand for AI training and inference has continued to expand, and demand for AI computing power, AI servers and data centers has grown rapidly. As an important component of the hardware layer of AI computing power infrastructure, demand for computing-power application PCBs has risen alongside technical thresholds, providing strong support for the industry's long-term growth. According to Prismark data, the AI PCB market is expected to achieve a compound annual growth rate of 24.8% from 2025 to 2030. The Company's production and operations are currently entirely normal, its supply chain is stable, capacity utilization is at a healthy level, and customer order demand is strong. From 2016 to 2025, the Company's operating revenue grew from RMB1.818 billion to RMB19.292 billion, a compound annual growth rate of 30.01%; net profit attributable to shareholders of the listed company grew from RMB232 million to RMB4.312 billion, a compound annual growth rate of 38.36%. In the first three quarters of 2026, the Company achieved operating revenue of RMB18.461 billion, up 30.77% year on year; net profit attributable to shareholders of the listed company was RMB3.384 billion, up 4.28% year on year; net profit excluding non-recurring gains and losses was RMB3.694 billion, up 13.74% year on year. In its future business development, the Company will leverage its existing advantageous resources to continue deepening its core PCB business, seize the opportunity of the rapid development of the AI computing power industry, continue to strengthen core competitiveness in areas such as technological innovation, rapid mass production, scale advantages and quality assurance, further optimize and expand its high-end product series, and maintain steady progress in operating performance. II. Share Repurchase Based on confidence in the Company's future development prospects and recognition of the Company's value, and in order to safeguard the interests of the broad investor base and enhance investor confidence, the Company received a share repurchase proposal on October 16, 2026, with a repurchase amount of RMB150 million to RMB300 million. At the same time, the Company noted that the People's Bank of China issued the "People's Bank of China Policy on Intensifying the Implementation of Relending for Stock Repurchases and Increased Holdings" on November 4, 2026, explicitly stating that effective November 4, 2026, the interest rate on relending for stock repurchases and increased holdings would be lowered by 0.25 percentage points to 1%. The relending for stock repurchases and increased holdings supports 21 national banks and 5 systemically important city commercial banks, with a support ratio of 100% and a term of 1 year, extendable as needed by the banks. The Company will, in light of the repurchase relending policy, its own funding situation and market trends, make full use of policy tools and, through repurchases and other means, safeguard the Company's value and the interests of the broad investor base. III. Future Outlook 1. Downstream demand remains robust, and order visibility is at a historical high. Scheduling for the Company's high-end products, including high-layer-count and high-order HDI products, has extended to 2028, and some core customers have released long-term demand for 2027-2028. Looking ahead to 2027, order demand from major North American customers and ASIC customers is strong, with combined demand slightly exceeding the Company's current capacity. The Company has secured sufficient raw materials, supporting personnel and capacity resources, and management is fully confident in the subsequent improvement of the Company's production efficiency and the achievement of equity incentive performance targets. 2. High-end capacity is being released in an orderly manner, and the "China + N" global layout continues to improve. Currently, part of the Company's new capacity at its Huizhou headquarters has been put into production, bringing considerable capacity increments. Starting in 2027, the Company's capacity under construction in Huizhou, Thailand and Vietnam will be commissioned and ramped up in stages, providing solid support for order delivery. 3. Product structure and technical capabilities continue to upgrade, with leading positioning in cutting-edge processes. Focusing on the two core areas of AI computing power and data centers, the Company continues to advance its manufacturing capabilities for high-order HDI, high-layer-count and mSAP products. The Company closely follows the product iteration and pre-research pace of leading computing power customers; multiple high-end products have achieved large-scale mass production, with yields in the industry's top tier. The Company is also laying out cutting-edge technologies such as copper paste sintering for 70+ layers, vertically powered embedded-capacitance high-order HDI and COWOP, and is working with core customers to validate next-generation solutions, continuously consolidating technical barriers in high-end products. IV. Strengthening Investor Relations Management and Shareholder Returns The Company will continue to strengthen investor relations management, continuously deepen communication and exchange with core and potential investors, convey the Company's investment value and medium- to long-term development strategy, enhance market recognition of the Company, build long-term, stable and mutually trusting investor relations, stabilize investor confidence, and effectively safeguard the legitimate rights and interests of all investors, including minority investors. At the same time, the Company will continue to enhance investors' sense of gain through cash dividends, share repurchases and other means. Since its listing, the Company has implemented cash dividends for 10 consecutive years, with cumulative cash dividends of RMB3.223 billion, and dividend amounts have continued to grow along with operating performance. The 2025 profit distribution plan is to pay a cash dividend of RMB20 per 10 shares (tax inclusive), totaling RMB1.740 billion in cash dividends, a substantial increase from RMB3 per 10 shares in 2024. Going forward, the Company will continue to raise the level of investor returns in light of its operating conditions, funding arrangements and shareholder return plans.