Our electronic materials business focuses on resins, primarily producing phenolic resins, specialty epoxy resins, and electronic resins for high-frequency and high-speed copper-clad laminates (CCL). In recent years, with overseas CCL and downstream PCB production capacity shifting to China, domestic manufacturers have been rapidly expanding capacity, and the scale of the domestic base CCL industry has grown quickly. Domestic CCL companies are accelerating investment in mid- to high-end product capacity.We have made early arrangements in projects for communications networks, rail transit, wind turbine blades, and carbon fiber composite materials, actively developing high-frequency and high-speed electronic materials for CCLs. These include hydrocarbon resins, modified polyphenylene ether (PPE), PTFE films, specialty maleimide resins, active ester curing agents, and flame retardants for 5G applications. We have established stable supply relationships with several globally renowned CCL and wind turbine manufacturers. At the same time, we are paying close attention to the development of the AI industry. Our high-speed resin materials have been used on a large scale in AI servers from OpenAI and Nvidia, serving as the core raw materials for key components such as OAM accelerator cards and UBB motherboards.
High-End Applications Take a Large Share, PCB Capacity Expansion Momentum Remains Strong
PCBs, known as the “mother of electronic products,” may experience restorative growth. A PCB is a printed circuit board made using electronic printing techniques to form interconnections and printed components on a general substrate according to a predetermined design. It is widely used in communications electronics, consumer electronics, computers, new energy vehicle electronics, industrial control, medical devices, aerospace, and other fields.
High-Frequency and High-Speed CCLs Are the Core Materials for High-Performance PCBs for Servers
CCLs are the upstream core materials that determine PCB performance, composed of copper foil, electronic glass fabric, resins, and fillers. As the main carrier of PCBs, a CCL provides conductivity, insulation, and mechanical support, and its performance, quality, and cost are largely determined by its upstream raw materials (copper foil, glass fabric, resins, silicon micropowder, etc.). Different performance requirements are mainly met through the properties of these upstream materials.
The demand for high-frequency and high-speed CCLs is driven by the need for high-performance PCBs. High-speed CCLs emphasize low dielectric loss (Df), while high-frequency CCLs, operating above 5 GHz in ultra-high-frequency domains, focus more on ultra-low dielectric constants (Dk) and the stability of Dk. The trend toward higher speed, higher performance, and larger capacity in servers has increased demand for high-frequency and high-speed PCBs, with the key to achieving these properties lying in the CCL.
Figure：Resin mainly serves as a filler for the copper-clad laminate substrate.
Proactive High-End Resin Development to Accelerate Import Substitution
We have already built 3,700 tons of bismaleimide (BMI) resin capacity and 1,200 tons of active ester capacity. We have achieved technical breakthroughs in key raw materials for high-frequency and high-speed PCBs, such as electronic-grade BMI resin, low-dielectric active ester curing resin, and low-dielectric thermosetting polyphenylene ether (PPO) resin, all of which have passed evaluations by well-known domestic and foreign customers.
Construction of 20,000-Ton High-Speed Electronic Materials Project
To further expand capacity and strengthen our market position, enrich our product portfolio, and actively explore applications of electronic materials in AI, low-orbit satellite communications, and other fields, our subsidiary Meishan EMT plans to invest in the “Annual Production of 20,000 Tons of High-Speed Communication Substrate Electronic Materials Project” in Meishan City, Sichuan Province. The total investment is expected to be RMB 700 million, with a construction period of approximately 24 months. Once fully operational, the project is estimated to achieve annual sales revenue of around RMB 2 billion, with an annual profit of about RMB 600 million. The post-tax internal rate of return is projected at 40%, and the post-tax investment payback period is estimated at 4.8 years (including the construction period).
Post time: Aug-11-2025
