Mankun Technology: Thailand PCB plant expected to start production in 2027, targeting AI server power supplies and overseas demand

Date: September 24, 2026

Man Kun Technology (stock code: 301132) announced on September 24, 2026, that the company held a roadshow on the same day. Below is a summary of the key questions and responses from the event.

Project Progress: Thailand High-End PCB Production Base

Q: What is the current construction progress of the Thailand production base project funded by this convertible bond issuance?

A: The "Thailand High-End Printed Circuit Board Production Base Project" is being implemented by the company's Thai subsidiary, Thai Kun Technology Co., Ltd. In the early stages, the company has completed, within the authorization scope of the Board of Directors, the establishment registration of the Thai company, domestic filing and registration, land agreement signing, capital increase, and land title deed transfer. The company has also successfully received the Investment Promotion Certificate issued by the Thailand Board of Investment (BOI). Infrastructure construction at the Thailand factory is progressing, along with plans for upgrades and expansion. The factory is expected to commence production gradually in 2027. The actual timeline will depend on construction progress, and the company will fulfill its information disclosure obligations in accordance with legal and regulatory requirements.

Product Positioning of the Thailand Base

Q: What products will the Thailand production base primarily focus on?

A: The project aligns with the company's core business. Main products will include four-layer boards, six-layer and above boards, and HDI boards. Once operational, production capacity will be gradually released, adding an annual capacity of 1.1 million square meters of PCBs. This will optimize the company's capacity layout and meet demand from sectors such as AI server power supplies and high-multilayer boards, thereby strengthening the company's overseas production base and core competitiveness.

Rationale for Investing in Thailand

Q: What considerations led the company to choose Thailand for its production base?

A: In recent years, an increasing number of PCB companies have invested in Southeast Asia, driving the maturity and market share of the regional PCB industry chain. Thailand, with its advantages in land resources, infrastructure, tax incentives, and supply chain, has attracted significant PCB downstream industry transfers. Many electronics manufacturers and automotive producers have already established production bases in Thailand, increasing PCB procurement demand. Numerous domestic and international power battery, AI infrastructure, and energy storage companies have also built factories in Thailand, with some initiating localized production. Additionally, Thailand is a major global production base for computer hard disk drive components and drives, with a well-established mechanical hard disk industry chain. The thriving downstream industries will continue to drive PCB market demand in Southeast Asia and solidify the region's strategic position in the global PCB landscape.

The company's investment in Thailand aligns with industry trends and customer needs, leveraging local resource advantages, tariff reductions, and trade facilitation policies to optimize capacity layout, deepen cooperation with core domestic and international customers, and explore new strategic opportunities and market space.

Capacity Utilization Strategy

Q: How will the company absorb the new capacity after the Thailand base is completed?

A: The company's current overall capacity utilization rate is at a relatively high level. The Thailand project will add an annual capacity of 1.1 million square meters of PCBs.

Many of the company's long-term, globally renowned electronics manufacturing customers have established production bases in Thailand, Vietnam, and other Southeast Asian regions. They are gradually shifting their PCB orders originally placed in China to supporting suppliers in Southeast Asia. Combined with incremental orders from domestic leading customers expanding overseas, this will effectively support capacity ramp-up during the project's initial phase. Leveraging the localized advantages of the Thailand base—such as nearby delivery, tariff reductions, and shorter logistics cycles—the company can sustainably expand overseas orders. Additionally, the expansion of overseas supply chains for AI server power supplies and optical modules will generate incremental demand for high-speed PCBs. The company expects that incremental orders from potential customers will effectively absorb the remaining capacity, subject to actual ramp-up conditions.

Target Downstream Markets

Q: Which downstream markets will the Thailand base primarily serve?

A: The Thailand High-End PCB Production Base Project focuses on the company's core business, with main products including four-layer boards, six-layer and above boards, and HDI boards. It precisely targets localized demand from overseas AI computing hardware, intelligent driving, and industrial control supply chains. Key downstream sectors include automotive electronics, AI server power supply supporting equipment, and industrial control. Specific products cover AI server power supplies, new energy three-electric systems, and industrial robots. After reaching full production, the proportion of six-layer and above high-end products is expected to increase significantly. The project will also deeply explore overseas markets in Southeast Asia, Taiwan (China), Japan, South Korea, Europe, and the Americas.

Convertible Bond Downward Revision Mechanism

Q: During the bond's term, if conditions for downward revision of the conversion price are triggered, will the Board initiate such a revision?

A: According to the Prospectus for this convertible bond issuance, during the bond's term, if the company's stock closing price is below 85% of the current conversion price for at least 15 trading days in any 30 consecutive trading days, the Board or its authorized persons have the right to propose a downward revision plan, which must be submitted to the shareholders' meeting for approval. The Board will make prudent decisions based on the company's fundamentals, market conditions, bondholder interests, and overall shareholder interests. If a revision plan is proposed, it must be approved by at least two-thirds of the voting rights held by shareholders present at the meeting, and shareholders holding the convertible bonds must abstain from voting. The company will strictly follow legal and regulatory requirements and the Prospectus to make decisions and disclose information, balancing the smooth conversion of bonds with the protection of shareholder rights.

Detailed Terms of the Downward Revision Clause

Q: Please explain the trigger conditions, revision authority, and minimum revision limit for the downward revision clause of this convertible bond.

A: According to the Prospectus:

• Trigger Condition: During the bond's term, if the company's stock closing price is below 85% of the current conversion price for at least 15 trading days in any 30 consecutive trading days, the downward revision condition is triggered. If the conversion price is adjusted during those 30 trading days, calculations before the adjustment date use the pre-adjustment price and closing price, while calculations on and after the adjustment date use the adjusted price and closing price.
• Revision Authority: Once triggered, the Board or its authorized persons have the right to propose a downward revision plan, which must be submitted to the shareholders' meeting for approval. The Board will make prudent decisions based on the company's fundamentals, market conditions, bondholder interests, and overall shareholder interests. If proposed, the plan must be approved by at least two-thirds of the voting rights held by shareholders present at the meeting, and shareholders holding the convertible bonds must abstain from voting.
• Minimum Revision Limit: The revised conversion price must not be lower than the higher of the average trading price of the company's stock over the 20 trading days before the shareholders' meeting and the average trading price on the trading day before the meeting.

Lock-Up Period for Converted Shares

Q: Is there a lock-up period for new shares obtained through conversion of the convertible bonds?

A: According to Article 11 of the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 15 – Convertible Bonds, shares converted from convertible bonds issued to unspecified investors are listed and tradable on the next trading day after conversion. There is no statutory lock-up period for the conversion itself. The company's convertible bonds are publicly issued to unspecified investors. After conversion, the new shares are tradable on the next trading day and carry the same shareholder rights as ordinary shares. However, if the investor holds 5% or more of the company's shares, or is a director or senior executive, they must comply with short-swing trading rules and any applicable lock-up provisions for converted shares.

Hedging Against Foreign Exchange Risk

Q: How does the company hedge against exchange rate risks from fluctuations in the Thai Baht and US Dollar?

A: The company continuously monitors the impact of USD and THB exchange rate fluctuations on its overseas investments and operations. It has actively adopted multiple measures to mitigate exchange rate risks, including choosing optimal timing for foreign exchange settlements, using foreign currency for payments, negotiating forward exchange rate locking and option products with banks, and considering exchange rate impacts when negotiating product prices with overseas customers.

Allocation of Proceeds if Actual Fundraising is Less Than 760 Million RMB

Q: If the actual fundraising amount is less than 760 million RMB, how will the company adjust the investment projects? Which project will be prioritized?

A: If the actual net proceeds (after deducting issuance costs) are less than the planned total, the Board will prioritize the use of funds based on the importance and urgency of each project. Any shortfall will be covered by the company's own funds or other financing sources. Without changing the overall investment projects, the Board may adjust the order and amount of fund allocation based on actual project needs. Before the proceeds are received, the company may use its own funds or other sources to advance project investments, and will replace these funds with the raised proceeds in accordance with relevant laws and regulations after the proceeds are received.

No Material Non-Disclosed Information

No material non-disclosed information was involved in this roadshow.

Company Overview and Financial Highlights

Core Business: Man Kun Technology is primarily engaged in the research, development, production, and sales of Printed Circuit Boards (PCBs).

2026 Interim Report Highlights:

• Revenue: 942 million RMB (up 24.03% year-on-year)
• Net Profit Attributable to Parent: 43.98 million RMB (down 30.46% year-on-year)
• Non-GAAP Net Profit: 37.63 million RMB (down 33.75% year-on-year)
• Q2 2026 Revenue: 536 million RMB (up 27.81% year-on-year)
• Q2 Net Profit Attributable to Parent: 25.86 million RMB (down 26.24% year-on-year)
• Q2 Non-GAAP Net Profit: 22.66 million RMB (down 28.16% year-on-year)
• Debt Ratio: 41.73%
• Investment Income: 1.67 million RMB
• Financial Expenses: 8.59 million RMB
• Gross Margin: 16.66%

Margin Trading Data (Last 3 Months):

• Net margin buying inflow: 26.69 million RMB (margin balance increased)
• Net short selling outflow: 361,500 RMB (short selling balance decreased)

Disclaimer: The above content is compiled from publicly available information by Securities Star and is for reference only. It does not constitute investment advice.