PCB Demand Increased, Xinxing Expected To Expand Production To 300,000 Feet By The End Of The Year

- Aug 18, 2018-

Could be held on August 10th method spokesman said shen regeneration, PCB into the traditional peak season demand gradually increased, the recent ABF or BT board base material, supply tight, gradually appear even part of the product price is high but low margin, therefore xin xing up in the second quarter has been part of the production line quotation, do not rule out in the third quarter will also raise other production line.Shen further pointed out that not only xin xing price rise, should be the entire industry will be raised.

In terms of revenue performance, revenue rose 4 percent to $17.305 billion in the second quarter, but gross margin was 6.4 percent lower than the 7 percent in the first quarter.Shen pointed out that the biggest reason for the decline in gross margin performance is the overproduction caused by the excessive optimism of previous customers. Currently, the inventory on the account is about 283 million yuan.Excluding that, gross margin was actually 7.8 percent in the second quarter.Xinxing also announced that in order to expand capacity and improve process capacity, the board of directors has decided to increase this year's capital expenditure from the original 2.545 billion yuan to 7 billion yuan, and planned to spend about 6 billion yuan next year.

In terms of capacity utilization, PCB has generally recovered to 80 ~ 85%, and HDI utilization rate is lower than 80% in the second quarter. It is expected to increase to 8 ~ 90% in the third quarter, and the utilization rate of substrate is expected to increase from 70 ~ 75% to 75 ~ 80%.In addition, as for the plant, huangshi plant, which was officially put into operation at the beginning of the year, has gradually brought benefits to the company and can assist in the production of medium and low-grade products with a production capacity of 200,000 feet, which is expected to expand to 300,000 feet by the end of the year.