Premium-priced private placement and six consecutive quarters of rising net profit: Zhongcai Technology’s turning-point ambitions

LAOCAI Investment is an art of expectations. The strong investor interest in this private placement reflects confidence in the company’s future value potential. According to the private placement prospectus, the funded projects will produce specialty fiber fabrics, whose end applications primarily include AI servers and data center switches. Looking across the market, the AI application boom is gathering momentum. To meet the demands of large AI model training and high-density data processing, downstream equipment manufacturers—such as those producing AI servers and data center switches—are continuously raising performance requirements for core components. So, what exactly are specialty fiber fabrics? Per Zhongcai Technology’s relevant announcements, these fabrics are woven from specialty fibers and possess advantages including low dielectric constant (DK), low dielectric loss, and low coefficient of thermal expansion (CTE). These properties help boost data transmission speed and reduce signal loss, making them indispensable core materials for high-end printed circuit boards (PCBs) and chip packaging substrates—playing an irreplaceable role in the AI industry. Precisely because of this, demand for specialty fiber fabrics is expanding rapidly amid the AI industry’s explosive growth—and the market stands on the cusp of a breakout. According to Prismark, the total PCB output value for AI servers and storage is projected to rise from USD 1.09 billion in 2024 to USD 1.89 billion in 2029, representing a compound annual growth rate (CAGR) of 11.6%—far exceeding the overall PCB market’s growth rate. More critically, only a handful of companies currently produce specialty fiber fabrics, with even fewer having achieved technological breakthroughs. CITIC Securities’ research report estimates that specialty fabric demand will reach approximately 215 million meters in 2026, with supply-demand gaps for both Low-DK Generation II and Low-CTE fabrics expected to exceed 20%. Industry leader Nittobo has announced capacity expansions, but new production lines are not expected to come online until 2027—leaving short-term supply shortages unresolved. The same CITIC Securities report further notes that the overall specialty fabric market already faces a supply-demand gap exceeding 10%, supporting upward price pressure. Moreover, 2026 is expected to be a major year for proactive downstream inventory replenishment, meaning price elasticity could significantly surpass market expectations. The report also points out that specialty fabrics account for only about 0.1% of the total cost of an AI server—rendering downstream customers relatively insensitive to price changes. This implies stronger pricing resilience and earnings stability for premium-grade specialty fiber fabrics. Zhongcai Technology is not entering this field from scratch. In fact, as early as 2019, its wholly owned subsidiary Taishan Fiberglass entered the specialty fiber fabric market. According to financial reports, the company commands over 1.7 million tons of annual glass fiber production capacity; its products sell well domestically and are exported to more than 80 countries and regions—including the U.S., the EU, Japan, South Korea, the Middle East, and ASEAN. It holds world-leading core intellectual property rights and has fully mastered key preparation and industrialization technologies for multiple specialty fiber types—including low-dielectric ultra-fine yarns and fabrics, and low-expansion fiber fabrics—making it one of China’s leading enterprises in the specialty fiber fabric sector. Financial statements show that in the first half of 2026, the company sold 13.45 million meters of specialty fiber fabrics, generating RMB 530 million in revenue—a year-on-year increase of 50% in volume and 114% in revenue. In full-year 2025, the company sold 19.17 million meters of specialty fiber fabrics, covering the full spectrum of product categories: Low-DK Generation I and II, Low-CTE, and ultra-low-loss low-DK fiber fabrics—all of which have completed certification and commenced mass delivery to leading domestic and international customers. In 2025, three projects were approved and advanced smoothly: the Phase I project (35 million meters/year capacity), the Phase II project (35 million meters/year capacity), and the ultra-low-loss low-DK fiber fabric project (24 million meters/year capacity).

Q3 revenue doubles; adjusted EBITDA surges 281%: Bitcoin miner BitFuFu delivers standout financial results

Yesterday, Nasdaq-listed Bitcoin mining company BitFuFu (FUFU) officially released its third-quarter 2025 financial results—with all three core financial metrics significantly exceeding analyst consensus expectations. This quarter’s revenue surged to USD 180 million, up 100% year-on-year—the highest quarterly revenue in BitFuFu’s history since its inception. Net profit swung from a USD 5 million loss in the same period last year to USD 11.56 million in profit. Adjusted EBITDA reached USD 22.08 million, soaring 281% year-on-year. As of the end of Q3 2025, BitFuFu’s total Bitcoin holdings increased to 1,962 BTC, securing its position as the sixth-largest Bitcoin holder in Asia. Its quarterly Bitcoin production totaled 1,207 BTC, reflecting robust mining efficiency and consistent output capability. In terms of asset reserves, BitFuFu’s combined cash, cash equivalents, and digital assets stood at USD 255 million—up 51.5% from year-end 2024—demonstrating continued expansion of its asset base. Regarding computing power deployment, FUFU’s managed hash rate reached 36.0 EH/s, up 37.4% year-on-year—accounting for roughly 4% of global total hash rate. Its hosted capacity rose to 624 MW and now spans three continents: North America, South America, and Africa. During the earnings call, management disclosed several strategic developments: signing agreements for Real World Asset (RWA) collaborations to connect cloud-based computing power services with broader capital markets; exploring asset tokenization anchored by computing power infrastructure—aiming to expand target markets, serve more diverse customer segments, lock in long-term demand, and deepen institutional partnerships; launching two natural-gas-powered pilot mining projects in Canada to further reduce operational costs; and deepening cooperation with a leading Middle Eastern data center operator to launch hosted services initially, followed by joint development of additional data centers—laying groundwork for future high-performance computing and AI data center businesses. Yet despite these impressive financial results, FUFU’s stock price has failed to reflect its fundamentals. Among peers reporting Q3 revenue of USD 180 million, U.S.-based miner Riot boasts a market capitalization of USD 6.4 billion—more than 11 times FUFU’s current market cap. This stark valuation gap highlights a fundamental market misperception: FUFU is not a conventional Bitcoin miner, but rather an integrated infrastructure platform combining self-mining, computing power services, vertical integration, and multi-asset synergy. I. Core Business Model: Cash Flow Advantages of Cloud-Based Computing Power FUFU’s primary revenue streams fall into three categories: cloud-based computing power mining, in-house mining, and mining rig sales. Cloud-based computing power contributed USD 123 million—or 68%—of this quarter’s revenue, up 78.4% year-on-year, solidifying its status as the dominant income pillar. This business model differs fundamentally from traditional miners (e.g., Mara, Cleanspark), who typically bear full hardware procurement, electricity, and operations & maintenance costs—and remain fully exposed to Bitcoin price volatility and cyclical market risks.

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