Five to six years ago, on a certain day in a high-rise office building in Nanshan, Shenzhen, I listened to the sales vice president of a thriving private enterprise in the industry talk confidently about the industry’s landscape and their advantages. He particularly mentioned Shiyun Circuit, saying: “Look how fast private enterprises are developing now; these old Hong Kong-funded companies are clearly lagging behind, just look at how long their stock prices have not increased.”
Through the glass curtain wall of their office, I saw the huge logo of Tencent across the street. The afternoon sun made Tencent’s logo shine brightly, and this rapidly developing private enterprise also shone alongside it. Meanwhile, the halo of the Hong Kong-funded Shiyun Circuit seemed a bit dim at that moment.
Fast forward to 2025.
According to statistics from Prismark, this private enterprise has become the world’s largest automotive PCB supplier in 2024, with Shiyun Circuit closely following behind. As Tesla’s largest PCB supplier, Shiyun Circuit has not only doubled its performance and profits in the past five to six years, but its stock price has also increased more than threefold.
The partnership between Shiyun and Tesla began in 2015. That year, after rigorous reviews, Shiyun officially became a PCB supplier for Tesla and started supplying in small batches. In 2017, Shiyun Circuit began supplying in bulk, with sales steadily increasing. In 2019, Shiyun Circuit successfully won the bid for Tesla’s SuperCharger (charging station) and Magapack (large-scale energy storage) projects, achieving mass production, marking the extension of Shiyun Circuit’s products into Tesla’s core areas. In 2021, Shiyun Circuit signed a procurement contract with Tesla to meet the supply needs for the production capacity released by Tesla’s new factories in Berlin, Germany, and Austin, USA.
As a core supplier for Tesla, currently, Tesla’s procurement accounts for over 30% of the company’s revenue. As the fourth largest automotive board supplier globally, the automotive board business accounts for half of its revenue. Other automotive clients include mainstream automakers such as BMW, Xiaopeng, Geely, and GAC, as well as global top ten automotive parts suppliers like Hyundai Mobis and Denso. A significant feature of the automotive board business is its stability, which also ensures a relatively steady revenue stream for Shiyun Circuit.
In addition to the automotive business, energy storage, robotics, AI, and server fields have become new growth poles for the company. Collaborations with Tesla on Robotaxi and Optimus have already entered mass production, and in the AI server field, the company has successfully entered the supply chains of Nvidia and AMD. With the entry of state-owned capital, the proportion of the company’s domestic business will significantly increase through industrial synergy.
The controlling shareholder of Shiyun Circuit is New Hao International, and the public has likely grown tired of the melodramatic plots of wealthy families. Beginning in April 2024, the state-owned Shunkong Group acquired shares in Shiyun through private placements and share transfers, holding a total of 29.19% of the shares, changing the controlling shareholder from New Hao International to Shunkong Group, with the actual controller being the State-owned Assets Supervision and Administration Commission of Shunde District. Meanwhile, the original management team remains, and Shunkong Group achieves strategic control through a board restructuring, forming a governance model of “market-oriented operation + state-owned strategic support”.
Shiyun Circuit’s Jiangmen factory has over 6,300 employees, with a design capacity of 550,000 m2/month. The factory’s capacity is saturated. This year, it will expand by 120,000 m2/month in products such as HDI, multilayer boards, and semi-flex. Another production base of Shiyun is located in Zhuhai, acquired through capital increase and share expansion in 2021, mainly producing FPC and Rigid-flex. Additionally, the first phase of the Thai factory, with a design capacity of 50,000 m2/month, has been topped out and is expected to start production in November, with main products including DS~8L, 1 step HDI, and semi-flex.
Returning to the financial aspects that investors are most concerned about, as of March 31, 2025, Shiyun Circuit’s interest-bearing debt (debt that requires interest payments) was 489 million yuan, a significant decrease of 58.61% compared to 1.182 billion yuan in the same period of 2024. This is at the lowest level in the industry, and the financial health is at its best since going public. The low debt and high liquidity financial situation will provide solid support for the company in industry competition and strategic expansion.
The PCB industry is a capital-intensive industry, and many PCB companies, even listed ones, have high debt ratios. A significant reason is the rapid depreciation of equipment, which typically occurs within 5 to 8 years. As someone who has worked in the PCB industry for nearly 20 years, I have previously explained why I do not buy stocks in the PCB industry. Compared to the advanced equipment of other large manufacturers, if you visit Shiyun’s Jiangmen factory, you will find that many of their machines are not very advanced and even somewhat outdated, which indicates that their equipment depreciation period should be longer than many of their peers. This may be one reason for their low debt ratio.
In contrast, the overall staff at the factory is very professional, which may be one reason why many automotive manufacturers, including Tesla, choose them.
The once-dim old Hong Kong-funded company has completed capacity expansion, overseas layout, and a stunning turnaround with doubled performance. The plot that the public once discussed has now turned into a reality of state-owned capital investment, soaring stock prices, and reduced debt.
What will be the next chapter for Shiyun Circuit?
PS: The company’s financial reports and development status can be referenced in the corporate listing announcements. This article only presents my perspective as an industry practitioner on Shiyun Circuit. I will continue to write about other PCB listed companies, and if you have any suggestions, please feel free to share.
Related Reading:A PCB Industry Veteran’s Perspective on PCB Listed Companies (6): Bomatech ElectronicsA PCB Industry Veteran’s Perspective on PCB Listed Companies (5): Xingsen TechnologyDisclaimer: This article represents the author’s personal views and does not constitute any investment advice, nor does it imply any form of guidance or commitment. It is for research and discussion purposes only. Please read carefully. The market has risks, and investment decisions should be based on rational independent thinking. #PCB #ShiyunCircuit #TeslaBrokerage account opening, super low fee of 0.86, no threshold for quick trading channel, free investment advisory service, private message in the background to receive benefits!