On August 15, Cabeyi (300863.SZ), a multinational company specializing in the production of automotive wires, issued an announcement stating that it will invest 50 million yuan of its own capital to establish a wholly-owned subsidiary, Ningbo Kabeyi Zhilian Cable Technology Co., Ltd. Through the establishment of Kabeyi Smart Connect, we develop, produce and sell high-frequency high-speed copper cable products, which are used in fields such as data centers, cloud storage, and artificial intelligence servers.

According to data, Kabeyi is a leading domestic automobile cable manufacturer. Currently, its products supply famous brands such as BMW, Mercedes-Benz, Audi, Volkswagen, Tesla, Toyota, Honda, etc., and is a Tier 2 supplier of automotive cables for high-end European, American, Japanese and domestic brands. After more than 30 years of deep cultivation in the industry, the company actively lays out the NEV high-voltage cable and intelligent connected vehicle cable markets, and its special cable business such as NEV high-voltage cables, data cables, and aluminum cables is already at the forefront of the industry.

In this context, the investment to establish a wholly-owned subsidiary, KABEYI aims to lay out the trillion-dollar high-speed copper cable market and enter emerging fields such as data centers, cloud storage, and artificial intelligence. In fact, in recent years, with the rapid development of cloud computing, big data, and artificial intelligence technology, and the sharp increase in demand for AI computing power, the market's demand for high-speed, low-latency data transmission is increasing day by day.

Meanwhile, at the spring GTC conference held by Nvidia in March of this year, the GB200, the first Blackwell chip, will use copper cable connections, which became one of the highlights of this press conference. The GB200 chip's copper cable design allows higher data throughput, which means it will provide a smoother user experience with faster processing speed, opening up a new world for the application of copper cables in the field of AI servers.

As an indispensable key component in modern data center infrastructure and network equipment, high-speed copper cables play an increasingly important role in applications in the fields of high-performance computer connections, data centers, power systems, and network communications with their low cost and efficiency advantages. According to the latest research report released by Light Counting, the high-speed copper cable market will continue to expand at a compound annual growth rate of 25% from 2024 to 2027. By the end of 2027, global high-speed copper cable shipments are expected to reach an unprecedented scale of 20 million pieces.

In response, Ka Beiyi said that this investment is a prudent decision made by the company based on the overall strategic layout and future development needs, and based on long-term interests. The aim is to develop, produce and sell high-frequency high-speed copper cable products for use in data centers, cloud storage, and artificial intelligence servers. This measure will help further optimize the company's business structure, gradually improve the company's industrial layout, and continuously enhance the company's comprehensive strength.

In addition, KABEYI Electric continues to expand its market share and industry influence, and is actively going overseas for global expansion. According to reports, KABEYI's overseas subsidiaries and subsidiary companies set up in Hong Kong, the United States, and Mexico have completed registration procedures, enhancing their dominant position and overall competitiveness in international competition.

In recent years, KABEYI's revenue and net profit have continued to grow. According to financial data, the year-on-year growth rate of the company's net profit from 2021 to 2023 was 63.2%, 62.2% and 18.5%, respectively, showing good growth.