Shengyi Technology Q1 Net Profit Reaches 1.158 Billion Yuan, Surging 105% Year-over-Year

AI Computing Demand Catalyzes Shengyi Technology's Q1 Earnings to Double

At the end of April, leading Chinese copper-clad laminate (CCL) manufacturer Shengyi Technology disclosed its Q1 2026 earnings report. The data shows that the company achieved operating revenue of 8.141 billion yuan in the first quarter, a year-over-year increase of 45.09%. Net profit attributable to shareholders of the listed company reached 1.158 billion yuan, surging 105.47% year-over-year. The doubling of net profit demonstrates the company's robust profitability.

Core Business: CCL Volume and Price Gains Drive Growth

The outstanding performance this quarter was primarily driven by three factors:

• Product mix optimization: The company actively adjusted its product sales structure, with the proportion of high-value-added products continuing to rise. Demand for CCL products targeting high-frequency and high-speed application scenarios has been particularly strong.
• Accelerated capacity ramp-up: Earlier expansion projects have progressively entered the capacity release phase, with overall CCL sales volume rising significantly year-over-year and economies of scale becoming increasingly evident.
• Improved gross margins: Both revenue and gross profit from CCL products increased simultaneously, markedly enhancing profitability.

The fact that net profit growth far outpaced revenue growth indicates that the company achieved notable results in cost control and product mix upgrades while expanding its revenue base, fully demonstrating the effect of operating leverage.

Industry Context: AI Wave Drives Upstream Material Demand

Copper-clad laminates (CCL) are the core substrate material for printed circuit boards (PCBs), widely used in servers, switches, data centers, and other applications. As global demand for AI large model training and inference continues to surge, the accelerated buildout of high-performance computing infrastructure has driven rapid growth in demand for high-frequency and high-speed PCB materials.

As a leading player in China's CCL industry, Shengyi Technology has deep technological expertise in high-frequency and high-speed materials. The company's products have been integrated into the supply chains of multiple top-tier server and networking equipment manufacturers, directly benefiting from the massive AI computing infrastructure construction cycle.

From an industry-wide perspective, global data center capital expenditure has remained elevated since the beginning of 2026, with major cloud providers continuing to ramp up AI server procurement, sustaining strong demand across the upstream PCB and CCL markets. Chinese manufacturers have been steadily expanding their share in the global supply chain, leveraging technological breakthroughs and cost advantages.

Outlook: Continued Benefits from the Long AI Infrastructure Cycle

Looking ahead, Shengyi Technology is poised to continue benefiting from the following trends:

First, AI computing infrastructure construction remains in an upward cycle, with 800G/1.6T high-speed interconnect technologies driving sustained demand growth for high-frequency and high-speed CCL. Second, the company's expanded production capacity will continue to ramp up, with economies of scale expected to further boost profit growth. Third, the acceleration of domestic substitution is likely to expand the company's market share in the high-end CCL segment.

However, potential risks including raw material price fluctuations, intensifying industry competition, and changes in downstream demand cycles warrant attention. Overall, as a key upstream material supplier in the AI industry chain, Shengyi Technology's high-growth earnings reflect the strong momentum of AI infrastructure construction, and its future performance merits continued market attention.