CEO Speech

Today, we gather for "laminates" and cheer for the "core" — on this land that carries the dreams of electronic materials, the birth of every copper-clad laminate (CCL) is connected to breakthroughs in AI computing power and the smooth operation of 5G communications. What's more, it underpins the leap from "Made in China" to "Intelligent Manufacturing in China". Standing here at this moment, my heart is filled with gratitude and awe, as well as unwavering resolve to move forward.

Looking back on our entrepreneurial aspiration and development journey, we have always rooted ourselves in the core track of copper-clad laminates (CCL). From a small workshop in the early days to an industry leader with standardized production bases today, and from a single type of conventional product to a diverse product matrix covering high-speed, high-frequency, and AI server-specific laminates, we have personally witnessed the industry's transformation from scale expansion to quality upgrading. We have also borne witness to China's leap from "following" to "keeping pace" in the global electronic materials field — currently, China accounts for 75% of the global CCL output value, and this industry glory also embodies the hard work and dedication of every colleague at HONG-CHEM.

At present, the industry is embracing a golden opportunity period of "AI-driven growth". Data shows that the market scale of AI-related CCL has doubled in 2025 and is expected to exceed 5.8 billion US dollars by 2028. This not only opens up broad prospects for us but also puts forward higher requirements for our technological innovation capabilities. Faced with such an era of opportunities, we have already identified our direction and clarified two core development priorities:

1. take "innovation as the foundation" to consolidate technological barriers. In the next three years, we will increase R&D investment to 15% of our revenue, concentrate superior resources to focus on tackling the technology of M9-level high-end CCL, and set up a dedicated team to deeply meet the personalized needs of emerging fields such as AI servers and automotive electronics. We will ensure that our product performance always keeps pace with the iteration of downstream industries, and break the technological monopoly in the high-end market with solid strength.

2. take "green development as the lifeblood" to practice sustainable development. As a manufacturing enterprise, we deeply understand the importance of ecological responsibility. In the future, we will comprehensively upgrade production processes, vigorously promote clean production technologies, and strive to improve the utilization rate of core raw materials such as copper foil and glass fiber cloth. While continuously reducing production energy consumption, we will spare no effort to build a "zero-pollution" factory, making "green intelligent manufacturing" a distinctive label of HONG-CHEM and leading the new trend of sustainable development in the industry.

Dear partners, copper-clad laminates are the "cornerstone" of the electronic industry. The quality of every laminate is directly related to the reliability of end products, and it also bears the trust and expectations of our customers. We have always firmly believed that "treating everything with dedication" is the best business philosophy — dedicated to the precise control of every formula test, dedicated to the efficient delivery of every order, and dedicated to the solemn commitment of every trust. Just like Huawei's philosophy of "customer-centricity", we integrate professionalism and responsibility into every detail of our products, interpreting our responsibility with quality and winning recognition with services.

Lawrence yang

December 1, 2025