Nanya New Material(688519.SH), a Copper-clad laminate manufacturer listed on the Shanghai Stock Exchange, has announced plans to invest RMB 700 million in building a new production base for copper-clad laminate and bonding sheet in Thailand.

According to the investment statement, Nanya New Material intends to acquire approximately 120 acres of land in an industrial park in Thailand to construct a new production base for copper-clad laminate and bonding sheet.The investment is part of the company's strategic efforts to improve its layout and expand its overseas market business. However, the specific investment plan is still being developed, and the establishment of the Thai subsidiary is pending.

Nanya New Material achieved a net profit of RMB 44.89 million in 2022, declined by nearly 60% year-on-year, and the company incurred a net loss of RMB 9.31 million in the first quarter of this year. Since May, the PCB industry has rebounded thanks to the release of new AI chip products by major players such as NVIDIA and AMD, resulting in a nearly 25% increase in Nanya New Materials' stock price.

However, the company's overall production capacity utilization rate has declined due to the sluggish terminal market caused by factors such as the international situation and macroeconomic environment. The sales volume of its high-frequency and high-speed products has increased significantly, even though the company's actual production capacity in the first quarter of this year was around 70-80%.

According to a senior executive of Nanya New Materials, the company's orders in the server materials and new energy vehicle materials sectors have grown significantly this year.The opportunities brought about by AI servers are mainly in the areas of substrate, GPU motherboards, CPU motherboards, and a large number of acceleration card boards, all of which are seeing significant increases in the number of boards, layers, and unit prices compared with traditional servers.Additionally, the company's NOUYA6G product, which has obtained certifications from many server OEM and ODM customers, is about to enter the mass production stage and is expected to be a key high-speed product for the company in the next 3-5 years. 

About Nanya New Material

Nanya New Material Technology Co., Ltd.was established in Nanxiang, Jiading, Shanghai in 2000，with a registered capital of 234.4 million yuan, it specializing in the design, R&D, manufacure and sales of composite materials such as copper clad laminate and prepreg.The products are widely used in consumer electronics, computers, communications, data centers, automotive electronics, security, aerospace, industrial control and other terminal fields.

In recent years, in order to meet the needs of international market development, the company has promoted the development of copper clad laminate to green and environmental protection,at the same time,the company has successively developed a series of products such as lead-free, halogen-free, high-speed and high-frequency and IC packaging base materials, especially for the high-speed product certification applicable to 5G communication field.

The company has a Shanghai headquarters as a center,it has R&D centers and East China production bases in Shanghai and it has R&D test centers in Dongguan, Guangdong,also it has a R&D sub center and a production base in South China of Jiangxi. 

The company has an area about 120mu of production in Shanghai, which has three plants (N1-N3). In 2000,it was only spent 7 months from building new plant line N1 with products out and it created "Nanya Speed" in the industry. In 2004, an N2 plant was built and the product began to develop in the direction of environmental protection.In 2009, the company built N3 plant in the time of world financial crisis and its first production line began trial operation at the end of 2010. Later, N3 plant added a new production line in October 2016 and September 2017 respectively and successfully entered trial production.So far,the company has been fully built the base of east China production in Shanghai.

The company's South China production base in Jiangxi Province covers an area of 410mu and plans to build four factories totally. N4 is first plant and its three lines put into trial operation in the fourth quarter of 2019, the third quarter of 2020 and the first quarter of 2021 respectively.

After the company successfully launched in stock market, it entered the expressway of rapid development. The second plant in Jiangxi named N5 factory started construction in the first quarter of 2021 and its third factory-N6 factory started construction in the third quarter of 2021.