Karrie Int'l (01050.HK) Chairman Assistant and Finance Director Ho Wai Han said that although the company faced challenges such as high raw material prices, unfinished historical raw materials, and maintaining an upward cycle of interest rates last year. However, given that enterprise customers need to replace servers every 2 to 3 years and the global AI boom driving server demand, the company's order volume has rebounded since last October. He revealed that Karrie Int'l's order performance was strong in the first half of this year, and its factories have become very busy in recent months, so the company is actively deploying "grabbing talents" to cope.

He mentioned that the company's old purchased raw materials have been completely consumed, and the cost of raw materials currently used in the production line is relatively low. Therefore, the gross margin performance of the company has significantly improved in the fourth quarter of last year and the first quarter of this year. He is confident about the company's future gross margin performance and overall market conditions.

Karrie Int'l currently has factories in China and Thailand. Ho Wai Han expects that the Thailand plant will be able to improve its production technology in the future, upgrading from producing some components to independently producing the entire server product. Therefore, the company is actively considering expanding the scale of the local factory, and there will be clearer plans by the end of this year. He expects that if the production scale of the Thailand plant can be expanded in the future and more new customers can be attracted, it will promote the overall production capacity of the company by about 10%. Ho Wai Han also pointed out that the fact that the industry's supply chain is starting to shift from China to other regions is an indisputable fact and cannot be changed. In the face of current global situations, the US election, future tariffs, trade sanctions and other unstable factors, Karrie Int'l will continue to closely monitor the market situation and use the Thailand factory as one of the backup production sites. However, he reiterated that Karrie Int'l's production focus will still be centered in China, and Thailand will remain the company's second production base.

Ho Wai Han also pointed out that it is an indisputable fact that the industry's supply chain is beginning to shift from China to other regions, and this cannot be changed. In the face of current global situations, the US election, future tariffs, trade sanctions and other unstable factors, Karrie Int'l will continue to closely monitor the market situation and use the Thailand factory as one of the backup production sites. However, he reiterated that Karrie Int'l's production focus will still be centered in China, and Thailand will remain the company's second production base. (js/u)

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