1. From the perspective of industrial rise, the initial industrial transfer occurred from the United States, Europe, Japan, South Korea, and Taiwan. Over the past 10 years, it has primarily moved to China, with industries concentrated in the Pearl River Delta and the Yangtze River Delta.
2. Examining the PCB industry structure, it can be divided into four parts: board factories, materials (both raw and auxiliary), equipment manufacturing, and services (including environmental protection, software, information systems, etc.).
3. In the past decade, materials, particularly copper clad laminates, have experienced rapid growth. The output of copper clad laminates steadily increased, reaching 234 million square meters in 2017, with the global share of rigid copper clad laminates rising from 60% to 70%.
4. However, when analyzing material supply, imports still exceed exports, indicating a need for improved local supporting capabilities. Additionally, high-end materials remain heavily reliant on imports, presenting a significant future business opportunity for material manufacturers in the industry.
1. In terms of investment in PCB equipment, it increased from 7.7 billion yuan in 2008 to 24 billion yuan in 2017, with equipment investment accounting for a ratio of 1:8 in revenue that year. Both the scale and technical capabilities of local equipment manufacturers have seen significant improvements.
2. The global share of China’s PCB industry has changed dramatically, rising from less than 10% in 2000 to 30% in 2008, and over 50% in 2018. China has become the world’s largest PCB exporter and has maintained a surplus in imports and exports since 2014.
3. The capital market has increasingly fueled the industry’s development. In 1997, Ultrasonic Electronics became the first listed company in the sector; in 1998, Shengyi Technology followed suit. Over the next six or seven years, these two companies championed capital in the industry. The past decade has marked a period of significant capital market influence. More companies have achieved IPOs, with 2017 standing out as a landmark year for capital in our industry. That year saw 11 successful IPOs, including Huazheng New Materials and Jingwang Electronics, with Shennan Circuit’s listing at year-end highlighting the entry of the largest local PCB manufacturer into the capital market. In 2018, Pengding went public, becoming the first industry player with a market value exceeding 60 billion yuan, a notable achievement for our sector. It is particularly important to highlight that PCB has become a distinct sector in the capital market, with increasing attention from analysts on the industry’s development. Special thanks are due to Dr. Jiang Xugao, the pioneering analyst in industry research, and Dr. Zhongyuan Jiexiong and others for their contributions to industry research and development.
4. Entrepreneurs entering the capital market should focus more on long-term growth and sustainable development rather than short-term gains, as this focus impacts the company post-IPO and needs careful consideration.
5. The PCB industry has accumulated nearly 60 billion yuan in financing, with 90% occurring in the past decade and 17 financings exceeding 1 billion yuan. Financing methods have diversified, including initial IPOs, additional issuances, convertible bonds, and other approaches, greatly supporting the industry’s growth through multiple direct financing channels.
2. Examining the PCB industry structure, it can be divided into four parts: board factories, materials (both raw and auxiliary), equipment manufacturing, and services (including environmental protection, software, information systems, etc.).
3. In the past decade, materials, particularly copper clad laminates, have experienced rapid growth. The output of copper clad laminates steadily increased, reaching 234 million square meters in 2017, with the global share of rigid copper clad laminates rising from 60% to 70%.
4. However, when analyzing material supply, imports still exceed exports, indicating a need for improved local supporting capabilities. Additionally, high-end materials remain heavily reliant on imports, presenting a significant future business opportunity for material manufacturers in the industry.
1. In terms of investment in PCB equipment, it increased from 7.7 billion yuan in 2008 to 24 billion yuan in 2017, with equipment investment accounting for a ratio of 1:8 in revenue that year. Both the scale and technical capabilities of local equipment manufacturers have seen significant improvements.
2. The global share of China’s PCB industry has changed dramatically, rising from less than 10% in 2000 to 30% in 2008, and over 50% in 2018. China has become the world’s largest PCB exporter and has maintained a surplus in imports and exports since 2014.
3. The capital market has increasingly fueled the industry’s development. In 1997, Ultrasonic Electronics became the first listed company in the sector; in 1998, Shengyi Technology followed suit. Over the next six or seven years, these two companies championed capital in the industry. The past decade has marked a period of significant capital market influence. More companies have achieved IPOs, with 2017 standing out as a landmark year for capital in our industry. That year saw 11 successful IPOs, including Huazheng New Materials and Jingwang Electronics, with Shennan Circuit’s listing at year-end highlighting the entry of the largest local PCB manufacturer into the capital market. In 2018, Pengding went public, becoming the first industry player with a market value exceeding 60 billion yuan, a notable achievement for our sector. It is particularly important to highlight that PCB has become a distinct sector in the capital market, with increasing attention from analysts on the industry’s development. Special thanks are due to Dr. Jiang Xugao, the pioneering analyst in industry research, and Dr. Zhongyuan Jiexiong and others for their contributions to industry research and development.
4. Entrepreneurs entering the capital market should focus more on long-term growth and sustainable development rather than short-term gains, as this focus impacts the company post-IPO and needs careful consideration.
5. The PCB industry has accumulated nearly 60 billion yuan in financing, with 90% occurring in the past decade and 17 financings exceeding 1 billion yuan. Financing methods have diversified, including initial IPOs, additional issuances, convertible bonds, and other approaches, greatly supporting the industry’s growth through multiple direct financing channels.
