Deep South Circuit: in the first quarter, the proportion of high-speed switches and optical modules above 400G increased compared to the same period last year. The rising prices of key raw materials such as copper clad laminate and copper foil have had a certain impact on profitability levels.

Shennan Circuit released an announcement on the Investor Relations Activity Record Form. In the first quarter of 2026, the company's net profit attributable to shareholders was 8.50 billion yuan, an increase of 73.01% year-on-year. This was mainly due to the upgrade of AI computing power and the growth in demand for storage in the market. The company optimized its product structure, with the proportion of high-speed switches and optical modules above 400G increasing year-on-year. Data center revenue also increased year-on-year, and capacity utilization improved. In addition, the smooth ramp-up of the Guangzhou factory helped drive double growth in revenue and profit. As of the end of the first quarter of 2026, the company's inventory amounted to 65.01 billion yuan, an increase of 13.62 billion yuan from the end of the previous fourth quarter. The increase in inventory this period was mainly due to the company's early reserve of key raw materials and the impact of expanding production scale leading to an increase in finished products. The company's main raw materials include copper-clad laminates, semi-cured sheets, copper foils, gold salts, and inks, involving a wide range of categories. In 2026, the company will continue to be affected by changes in prices of bulk commodities, with key raw material prices such as copper-clad laminates, copper foils, and gold salts trending upwards, which will have a certain impact on the company's profit levels.