To strengthen its main PCB tool business, Dingtai High-Tech announces a 5 billion yuan investment plan.

Every reporter｜Wu Zepeng Every editor｜Yang Yi

Driven by the strong momentum of artificial intelligence (AI), the PCB (printed circuit board) industry chain is ushering in a new wave of high prosperity. As a core supplier of consumables in the upstream of the industry chain, Dingtai High-Tech (SZ301377, stock price 181.11 yuan, market value 74.255 billion yuan) has attracted significant market attention, with its stock price soaring since the second half of last year.

On the evening of March 26, Dingtai High-Tech released an impressive report for 2025: the company achieved an operating income of 2.144 billion yuan for the year, a year-on-year increase of 35.70%; it achieved a net profit attributable to shareholders of 434 million yuan, a substantial increase of 91.14% year-on-year. At the same time, Dingtai High-Tech plans to distribute a cash dividend of 5.0 yuan (including tax) for every 10 shares to all shareholders.

On the evening of March 26, Dingtai High-Tech also announced an investment plan totaling up to 5 billion yuan, intending to build a smart manufacturing headquarters base in Houjie Town, Dongguan City. Dingtai High-Tech stated in the announcement that this investment aligns with the strategic layout of the high-end development trend in the PCB and cutting tool industries, and the implementation of the project will effectively resolve existing capacity bottlenecks, significantly enhance the supply capacity of high-end core products, and consolidate the company’s main position in PCB cutting tools.

On the evening of March 26, Dingtai High-Tech disclosed its annual report for 2025: during the reporting period, the company achieved an operating income of 2.144 billion yuan, an increase of 35.70% compared to 1.580 billion yuan in the same period last year; it achieved a net profit attributable to shareholders of 434 million yuan, an increase of 91.14% compared to 227 million yuan in the same period last year; it achieved a net profit attributable to shareholders of 409 million yuan after deducting non-recurring gains and losses, with a year-on-year increase of 102.53%.

According to the Daily Economic News reporter, Dingtai High-Tech previously launched an employee equity incentive plan, with the assessment period from 2024 to 2026. The performance assessment targets include a net profit of no less than 315 million yuan or operating income of no less than 1.7 billion yuan for 2024, and a net profit of no less than 405 million yuan or operating income of no less than 2.1 billion yuan for 2025, where “net profit” refers to the audited net profit attributable to shareholders after deducting non-recurring gains and losses.

From a product perspective, the precision tool business, as Dingtai High-Tech’s foundational segment, achieved an operating income of 1.740 billion yuan in 2025, a year-on-year increase of 46.08%, accounting for 81.17% of total revenue.

Dingtai High-Tech pointed out in its 2025 annual report that the core driving force behind the company’s performance growth comes from explosive demand in cutting-edge fields such as AI computing infrastructure and high-performance computing. The rapid development of AI servers significantly boosts high-layer and high-level HDI boards and other high-end PCBs, thereby accelerating the upgrade of PCB cutting tool technology and market demand as a core upstream consumable.

While releasing the 2025 annual report, Dingtai High-Tech also announced an investment plan.

The announcement from Dingtai High-Tech indicated that the company intends to sign an investment agreement with the People’s Government of Houjie Town, Dongguan City, to invest in the construction of the “Dingtai High-Tech Smart Manufacturing Headquarters Base Project” in the TOD (Transit-Oriented Development) area of Houjie Town. The total planned investment for the project is as high as 5 billion yuan, with fixed asset investment of approximately 4 billion yuan, and the project land covering about 400 acres, to be implemented in three phases. The project is mainly for the research and production of micro-drilling needles, high-end industrial cutting tools, and high-performance film materials.

Dingtai High-Tech stated in the announcement that the funding source for this investment will be self-raised funds.

It is worth noting that Dingtai High-Tech has committed that from the second full accounting year after the project’s production starts, the annual industrial output value will not be less than 16.25 million yuan per acre, and the average annual fiscal contribution will not be less than 1.3 million yuan per acre, with the latter being assessed every two years, for a ten-year assessment period starting from the second full accounting year after production starts.

In fact, the Daily Economic News reporter found that Dingtai High-Tech is currently investing in the construction of the second phase of the South China headquarters project in Dongguan, with a project budget of 442 million yuan, and the current construction progress is less than half.

In addition, regarding the large investment of 5 billion yuan, what is Dingtai High-Tech’s current “financial capability”?

Dingtai High-Tech’s 2025 annual report shows that as of the end of the reporting period, the company’s monetary funds amounted to 418 million yuan, trading financial assets were nearly 400 million yuan, and there were 510 million yuan of short-term loans and over 75 million yuan of long-term loans. Additionally, the company’s year-end accounts receivable rose to 883 million yuan, inventories also increased to 580 million yuan, and both accounts payable and notes payable showed significant increases.

Cover image source: Daily Economic News Media Library