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Huizhou Daya Bay,Kexiang Co., Ltd. headquarters production base is bustling. Batches of precision printed circuit boards (PCB) are coming off the production line, sold globally, and applied in smartphones, new energy vehicles, and even cutting-edge AI server fields.
In an exclusive interview with a reporter from Shanghai Securities, Kexiang Co., Ltd. Chairman Zheng Xiaorong stated firmly: “The explosion of AI computing power is driving the reshaping of the high-end server industry landscape, and we must seize this opportunity. The company has formulated a clear strategic plan, aiming not only for technological innovation but also to leverage the capital market to grow stronger and reward investors’ trust.”
Zheng Xiaorong Chairman
Guangdong Kexiang Electronic Technology Co., Ltd.
Turning Point Approaches: Revenue Growth and Positive Operations
Kexiang Co., Ltd. is approaching its performance turning point.
In the first half of this year, Kexiang Co., Ltd. achieved revenue of 1.806 billion yuan, a year-on-year increase of 16.04%; net profit loss was 62.0342 million yuan, a reduction of 36.96% compared to the same period last year.
This data conveys a positive signal of the company’s performance improvement. It is evident that the company is currently in a critical transformation period.
From 2022 to 2024, Kexiang Co., Ltd.’s operating revenue continued to grow from 2.637 billion yuan to 3.396 billion yuan, but net profit has been under pressure; starting from the first quarter of 2025, signs of improvement have already appeared, with revenue reaching 872 million yuan, a year-on-year increase of 36.84%, and net profit loss reduced to 33.2643 million yuan, a year-on-year reduction of 51.79%.
Zheng Xiaorong admitted: “In recent years, the company has been in a period of expansion investment, which has brought some pressure to operations.” Currently, the production capacities of the Jiangxi Jiujiang, Ganzhou, and Shangrao production bases are gradually being released, and the effects of product structure optimization are beginning to show.
At the same time, the company’s operating cash flow is also significantly improving. In the first half of this year, Kexiang Co., Ltd.’s operating cash flow per share reached 0.28 yuan, a year-on-year increase of 315.7%, mainly due to an increase in cash received from sales of goods and services provided.
Currently, the company is one of the top PCB enterprises in China. According to the 2024 revenue report of major enterprises in the Chinese electronic circuit industry released by the China Electronic Circuit Industry Association, Kexiang Co., Ltd. ranks 28th in comprehensive PCB for 2024 and 15th among domestic PCB companies.
Strategic Transformation: Targeting the High-End Market
The wave of AI is surging, and Kexiang Co., Ltd. has chosen to transform towards high-end products with higher technical barriers and added value.
On August 14, Kexiang Co., Ltd. announced plans to issue stocks to specific targets through a simplified procedure, raising no more than 300 million yuan, mainly for the upgrade project of high-end server PCBs for Zhien Electronics.
Zheng Xiaorong stated that the company will focus on this fundraising project as a core pivot, mass-producing high multi-layer and high-level HDI (High-Density Interconnect) products compatible with transmission rates of 400G and 800G and above, enhancing the company’s product coverage capabilities in high-growth areas such as servers and optical modules, thereby optimizing the company’s revenue structure and increasing the proportion of high-end product revenue.
“As artificial intelligence evolves towards high-end applications, the rapidly rising demand for computing power is compelling a comprehensive upgrade of hardware infrastructure.” She said, when the signal transmission rate breaks through the 200G threshold, the interconnection loss of traditional PCBs will exceed budget limits, necessitating reliance on precision manufacturing processes such as high multi-layer stacking and high-level HDI buried blind holes.
The demand growth for high-end PCBs brought about by the AI wave is quite considerable. According to Prismark’s forecast, the global PCB industry scale will reach 78.562 billion USD by 2025, an increase of about 5.2% compared to 2024, and will maintain an average annual compound growth rate of 5.2% from 2024 to 2029, with total output value expected to exceed 94.6 billion USD by 2029.
Kexiang Co., Ltd.’s strategic transformation is precisely seizing this opportunity. It is understood that the value of a single AI server PCB is 5 to 7 times that of traditional servers, making it a “hard currency” in AI hardware, with a clear market gap.
“We have already developed customers such as ZTE, Ruijie Networks, Luxshare Precision, and Haoyang Tianyu, laying a market foundation for project implementation.” Zheng Xiaorong said that the company has established good cooperative relationships with many domestic and foreign internet companies and communication equipment manufacturers, and some overseas AI giants are currently in contact.
She believes that the supply-demand gap for high-end PCBs will continue for a long time, and this large cake is worth Kexiang Co., Ltd. investing fully.
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Technological Innovation: Multiple Breakthroughs Leading the Industry
In Kexiang Co., Ltd.’s workshop, reporters saw several PCB products in production. These seemingly ordinary green circuit boards contain a high level of technical content.
Zheng Xiaorong introduced several industry-leading technological innovations. For example, the company has broken through the core technology of Birch Stream server PCBs, mastering core processes such as 2.6mm ultra-thick board back drilling tolerance of ±0.15mm, plating aspect ratio of 18:1, and impedance control accuracy of ±7%.
The company’s breakthrough of 35/35μm ultra-precision line technology (line width/spacing tolerance of ±15%) is mainly applied to AI servers, meeting the stringent demands of data centers for high-speed computing and low-loss transmission, all of which are very advanced technological breakthroughs in the industry.
“In optical modules and high-speed connectors, we have completed the R&D trial production of 200G/400G optical module products, and the mass production capacity of multi-layer boards can reach 32 layers, while the mass production capacity of interconnecting HDI boards can reach 14 layers; in the through-hole board field, the company has the production capacity for 42-layer high-precision through-hole boards.” Zheng Xiaorong confidently and proudly stated.
The breakthroughs in technological innovation are backed by Kexiang Co., Ltd.’s continuous R&D investment.
In the first half of this year, the company’s R&D investment exceeded 100 million yuan, a year-on-year increase of 8.75%, with R&D investment accounting for 5.56% of revenue. The company’s R&D team combines market demand and factory product positioning, with the core concept of “technology penetrating the market,” continuously improving the technology matrix and strengthening the company’s moat in high-end manufacturing.
Zheng Xiaorong stated that Kexiang Co., Ltd. will increase R&D investment, strive to break through key technological bottlenecks, and promote product iteration and upgrading. The company plans to leverage high-end research and innovation platforms such as the Guangdong Provincial Enterprise Technology Center, Engineering Technology Research Center, and doctoral workstations to continuously enhance its technological innovation capabilities.
100 Billion Target: Dual-Engine Drive to Enhance Value
Kexiang Co., Ltd.’s goals extend far beyond short-term performance improvement.
Zheng Xiaorong elaborated on the company’s future goals: “Our goal is to seize the opportunities brought by the global AI wave, fully shift our focus towards AI business, and achieve an output value of 10 billion yuan in the next 2 to 3 years.”
To achieve this goal, Kexiang Co., Ltd. has already formulated specific strategies. In international market expansion, the company will proactively attack with a global perspective, striving to gain cooperation opportunities with international AI giants; in corporate management, it will promote digital transformation and build an intelligent and transparent management system.
Zheng Xiaorong believes that the key lies in talent strategy and team building. Kexiang Co., Ltd. will adhere to the strategy of “talent leads, technology innovates,” establishing a sound talent incentive mechanism and career development channels.
“Seizing the global AI wave, we aim to serve more international giant clients. In addition to collaborating with top domestic universities, we do not rule out directly recruiting AI experts from Silicon Valley.” Zheng Xiaorong said.
Zheng Xiaorong stated: “We will solidify our main business and strengthen communication with investors to let the market fully recognize the company’s value. Kexiang Co., Ltd. aims not only to be a leader in technology but also to be a leader in market value growth.”
Zheng Xiaorong and her team demonstrate a determination to go all out. In the rapidly evolving PCB industry, Kexiang Co., Ltd. is steadily solidifying its performance by increasing high-end capacity and optimizing product structure.
“We will seize the core opportunity of explosive growth in the AI computing power market, driving continuous enhancement of the company’s intrinsic value and market value through dual engines of technological innovation and capital operation, creating sustainable returns for investors.” she said.
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