New stock news: Guangdong Dtech Technology (301377.SZ) submits application to Hong Kong Stock Exchange. The company is the world's largest supplier of drill needles.

According to the disclosure by the Hong Kong Stock Exchange on December 1st, Guangdong Dtech Technology Co., Ltd. (301377.SZ) has submitted an application to list on the main board of the Hong Kong Stock Exchange, with CITIC SEC and HSBC as its joint sponsors. According to the prospectus, Guangdong Dtech Technology is a precision manufacturing comprehensive solution provider that integrates tools, materials, and equipment, and has grown to become a global leader in specialized cutting tools for PCB manufacturing. According to data from Frost & Sullivan, in past performance records, Guangdong Dtech Technology is the world's largest supplier of drill bits by sales volume. The company is committed to creating maximum value for customers through high-end precision manufacturing. Guangdong Dtech Technology's product portfolio covers four main categories, including (i) precision cutting tools; (ii) grinding and polishing materials; (iii) functional film materials; and (iv) intelligent CNC equipment. These products serve a wide range of strategically important end markets, including AI servers, Siasun Robot & Automation, semiconductor and integrated circuit applications, low-orbit satellite communications, high-end equipment manufacturing, and smart cars, as well as several other industries such as consumer electronics, communications, and industrial control. PCBs are widely regarded as the "mother of the electronics industry" and play a crucial role in the global industrial manufacturing sector. The level of specialized cutting tool technology for PCBs directly affects and determines the pace of PCB technology iteration and the performance of end products, and the quality and lifespan of tools can affect PCB production costs and delivery cycles, thereby impacting downstream technology competitiveness and market responsiveness in various application areas. The following diagram summarizes the key achievements of the core business divisions of Guangdong Dtech Technology: Guangdong Dtech Technology has established mature production bases in Dongguan, Guangdong and Nanyang, Henan, and has built a complete production system covering the entire chain of tools, materials, and equipment, thereby consolidating its position as a global leader in production capacity. In addition, Guangdong Dtech Technology's overseas production base in Thailand has achieved mass production, with an initial planned drill bit capacity of 15 million units per month gradually being realized. Furthermore, in 2025, Guangdong Dtech Technology acquired assets from MPK Kemmer to accelerate its expansion into the German and broader European markets, making the company one of the leading PCB tool suppliers in the European market. Guangdong Dtech Technology plans to further increase investment in regions such as Asia and Europe in the future, to further build a globalized operational network of "research and development - production - sales - service" and accelerate the company's globalization process. Financial Information Revenue Guangdong Dtech Technology's revenue increased by 8.7% from RMB 1.192 billion in 2022 to RMB 1.295 billion in 2023, further increasing by 19.9% to RMB 1.553 billion in 2024. For the six months ended June 30, 2024, Guangdong Dtech Technology's revenue increased by 27.0% from RMB 703 million to RMB 894 million for the six months ended June 30, 2025. Annual/Periodic Profit For the years ended 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded annual/periodic profits of RMB 223 million, RMB 219 million, RMB 227 million, and RMB 159 million, respectively. R&D Expenditures For the years 2022, 2023, 2024, and for the six months ended June 30, 2025, Guangdong Dtech Technology's research and development expenditures were RMB 79.817 million, RMB 97.722 million, RMB 110 million, and RMB 57.828 million, respectively, accounting for approximately 6.7%, 7.5%, 7.1%, and 6.5% of total revenues for each period. Industry Overview PCB is a circuit board that forms circuit patterns on a substrate according to a predetermined design, and is the basic component that carries and connects electronic components in electronic devices, often referred to as the "mother of the electronics industry." In terms of sales, the global PCB market size increased from $62 billion in 2020 to $75 billion in 2024, with a compound annual growth rate of 4.9% during this period. In 2023, the global PCB market experienced an overall decline mainly due to shrinking demand in consumer electronics, inventory buildup in the supply chain, and price declines, especially in traditional consumer electronic products such as PCs, smartphones, and televisions. It is expected that from 2024 to 2029, the global PCB market size will continue to grow steadily, with a projected compound annual growth rate of about 4.5%. PCB cutting tools are specialized cutting tools used in the manufacturing process of printed circuit boards, mainly for drilling, contour machining, surface treatment, and other critical processes. Outlook for Application Scenarios and Demand for PCB Cutting Tools In the field of AI and data centers, the global shipments of high-performance servers increased from 13.6 million units in 2020 to 16 million units in 2024, with a compound annual growth rate of 4.2% during this period. It is expected that by 2029, global shipments of high-performance servers will reach 18.8 million units, with a compound annual growth rate of 3.2% from 2024 to 2029. High-performance servers are rapidly evolving to meet the demands of artificial intelligence. AI servers typically integrate multiple high-performance GPUs, high-speed memory, and liquid cooling systems. It is expected that global shipments of AI servers will increase from 2 million units in 2024 to 5.4 million units in 2029, with a compound annual growth rate of 21.7% during this period. In the automotive field, as vehicles accelerate towards electrification, intelligence, and connectivity, there is a continuous growth in demand for PCBs in automotive electronics. The evolution of intelligent driving, the popularity of ADAS and autonomous driving technologies will drive the growth of high-performance PCBs. Breakthroughs in battery technology are driving the development of electronic systems towards high integration and reliability, with an increasing reliance on multi-layer boards. The upgrade of automotive electronics to smart and electrified systems is creating broader applications for PCB cutting tools. Consumer electronics PCBs are mainly used in end devices such as laptops, smart wearables, and smart homes. With the ubiquitous influence of AI, 5G, and smart equipment, the market is expected to maintain strong growth. In the future, PCB applications in end devices will expand, leading to increased demand for HDI, FPCs, and multi-layer composite materials. The downstream demand will drive PCB towards high reliability, small size, high precision, and high density. The iteration and expansion of consumer electronics products will drive the growth of PCBs. In the semiconductor industry, PCBs are widely used in chip design verification, packaging testing equipment, wafer manufacturing equipment, and high-end measurement instruments, among other critical areas. As trends such as increasing AI computing power continue, the demand for high-speed, high-reliability PCBs in semiconductor equipment and testing platforms will continue to rise. The downstream demand will drive PCB towards higher signal integrity and other developments. Additionally, the rapid development of semiconductor packaging testing is becoming a long-term growth engine for the PCB industry chain and terminal cutting tool market. The downstream application scenarios for PCB cutting tools also cover various fields such as communication, medical, energy, and power. These scenarios demand higher performance, reliability, and integrated functionality for PCBs, driving PCB technology towards high density, high precision, low power consumption, and interference resistance, while PCB cutting tools are evolving towards high wear resistance, high precision, long lifespan, and micro-hole processing capabilities to meet the processing needs of multi-layer boards, high-density interconnect boards, and flexible circuit boards. Board Information The board is composed of nine directors, including five executive directors and four independent non-executive directors. The board is responsible and has general authority to manage and operate the company. Ownership Structure As of the latest practicable date (November 24, 2025), Guangdong Dtech Technology is controlled by a group of shareholders led by the company's executive director and chairman, Ms. Wang Xin. Specifically, approximately 76.23% of the company is directly held by Taiping Holdings, 5.73% is held by Nanyang Qualcomm, and 0.71% is held by Taizhou Ruihe. Taiping Holdings and Nanyang Qualcomm are respectively held by Ms. Wang Xin, Mr. Wang Junfeng, Mr. Wang Xuefeng, and Mr. Lin Xia, with 57.68%, 22.02%, 10.84%, and 9.46% ownership, respectively. Mr. Lin Xia is the sole managing partner of Taizhou Ruihe and holds approximately 95.08% of the partnership interests. Therefore, as of the latest practicable date, through a joint action agreement, Ms. Wang Xin, Mr. Wang Junfeng, Mr. Wang Xuefeng, Mr. Lin Xia, Taiping Holdings, Nanyang Qualcomm, and Taizhou Ruihe are considered the controlling shareholders of the company and collectively control approximately 82.68% of the company's issued share capital. Intermediary Team Joint Sponsors: CITIC SEC (HK) Limited and HSBC Corporate Finance (Hong Kong) Limited Chinese Legal Adviser: Jia Yuan Law Firm Legal Advisers for Joint Sponsors: King & Wood Mallesons, Guangdong Xinda Law Firm Auditor and Reporting Accountant: RSM Hong Kong Limited Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd., Shanghai Branch Compliance Consultant: Howden Financing Limited