AI Demand Ignites High-End PCB Market: SCC Q1 Revenue Jumps 38%, Net Profit Surges 73% to 850 Million Yuan | Earnings Report

On April 23, SCC released its 2026 first-quarter report. The company achieved revenue of 6.596 billion yuan, a year-on-year increase of 37.90%; net profit attributable to parent company shareholders reached 850 million yuan, up 73.01%, confirming that AI computing infrastructure has strongly driven demand for high-end PCBs. Regarding profitability, deducted non-recurring net profit stood at 849 million yuan, up 75.04% year-on-year, nearly matching net profit attributable to shareholders, indicating that almost all growth stemmed from core operations. Basic earnings per share rose from 0.96 yuan to 1.28 yuan, while weighted average return on equity increased from 3.31% to 4.83%, demonstrating significantly enhanced core profitability. Notably, net cash flow from operating activities amounted to 247 million yuan, down 59.62% year-on-year, contrasting sharply with high profit growth. The company explained this was primarily due to substantial increases in raw material procurement and employee compensation expenses during the capacity expansion cycle, representing a phased characteristic of actively expanding enterprises. Revenue and Profit Double Growth, Cash Flow Under Pressure First-quarter revenue reached 6.596 billion yuan, an increase of over 1.8 billion yuan year-on-year (37.90%), attributed by the company to increased business orders. Operating profit was 943 million yuan, up approximately 79% year-on-year; total profit was 941 million yuan, up approximately 80% year-on-year. Operating costs were 4.672 billion yuan, up approximately 30% year-on-year, lower than the revenue growth rate, leading to improved gross margins. R&D expenses totaled 399 million yuan, up 21.4% year-on-year; sales expenses reached 103 million yuan, up approximately 23%, reflecting the company's continued commitment to technological investment. Two notable changes occurred in expense categories: administrative expenses were 301 million yuan, up 44.21% year-on-year, primarily due to accrued equity incentive expenses; financial expenses were 68.8 million yuan, surging 556.70% year-on-year, impacted by exchange rate fluctuations. Net cash flow from operating activities was 247 million yuan, down 59.62% year-on-year. Although cash received from sales increased 50.82% year-on-year, cash paid for goods rose 69.74%, cash paid for employee compensation increased 35.77%, and cash paid for taxes surged 136.23%. Multiple expenditure expansions exceeded cash inflows from the revenue side, resulting in narrowed net cash flow. Credit impairment losses were 49.91 million yuan, up approximately 99% year-on-year, primarily due to increased accounts receivable. Capital Expenditure Accelerates, New Factory Construction Speeds Up First-quarter capital expenditure accelerated significantly. Cash paid for purchasing long-term assets such as fixed assets reached 1.989 billion yuan, up 199.73% year-on-year, attributed by the company to new factory investment and construction. Regarding the balance sheet, the ending balance of other non-current assets was 1.135 billion yuan, up 126.19% from the beginning of the year, primarily due to increased prepayments for engineering projects and equipment; the balance of construction in progress was 2.258 billion yuan, up approximately 400 million yuan from the beginning of the year. Net cash flow from investing activities was -1.986 billion yuan, a significant expansion from -659 million yuan in the same period last year, indicating the company is in a phase of intensive capacity investment. Regarding financing activities, the company received 1.655 billion yuan in cash through restricted stock incentive plans and obtained new bank loans totaling 488 million yuan. Net cash flow from financing activities reached 1.902 billion yuan, providing funding support for capital expenditure. The ending balance of long-term borrowings rose to 3.043 billion yuan, up approximately 364 million yuan from the beginning of the year. Equity Incentive Implemented, Total Assets Expand Steadily In January 2026, the company completed the grant of its second-phase restricted stock incentive plan, awarding 14.4258 million shares to 656 eligible participants at a grant price of 114.72 yuan per share, with the listing date set for February 2. Following the grant, total shares outstanding increased from 667 million to 681 million. As a result, the treasury stock ending balance reached 1.655 billion yuan, and other payables surged 90.44% year-on-year to 4.261 billion yuan, primarily due to obligations related to restricted stock repurchases. Total assets ended at 34.351 billion yuan, up 12.32% from the beginning of the year; net assets attributable to parent company shareholders reached 18.09 billion yuan, up 5.49% from the beginning of the year. Regarding shareholder structure, Shenzhen Tianke Technology Holding Co., Ltd. held 62.61%, making it the largest shareholder; Hong Kong Central Clearing Limited held 3.75%, ranking second. The total number of ordinary shareholders at the end of the reporting period was 67,900.