Core Viewpoint - The new regulation from the Trump administration on May 28 prohibits leading EDA software companies from selling products to Chinese enterprises, marking an escalation in the US-China technology decoupling trend [1][2]. Group 1: Impact of EDA Export Ban - The EDA export ban is expected to accelerate the domestic substitution process in China, although its immediate impact is difficult to quantify [2]. - EDA tools are crucial for the semiconductor supply chain, assisting engineers in modeling, verifying, and simulating chip architectures [2]. - Following the announcement of the new regulation, the stock prices of Synopsys and Cadence fell by 9.6% and 10.7%, respectively [2]. Group 2: Company-Specific Insights - Baker Micro's self-developed EDA platform will shield it from export restrictions, allowing it to benefit from the current export limitations [3]. - Baker Micro has integrated over 600 IP modules and established a complete tool-IP-design framework, significantly lowering the barriers to chip design [3]. - The company is viewed as a major beneficiary of the domestic substitution trend in semiconductors, with a target price of HKD 69.5, indicating a potential upside of 22.4% [3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, indicating a potential upside of 22.4% from the current price of HKD 56.80 [1][3]. Core Insights - The recent EDA export ban by the Trump administration is expected to accelerate the domestic replacement process for EDA tools in China, which could benefit companies like the report's subject, as they possess self-developed EDA capabilities [1][9]. - The company is positioned as a key beneficiary of the semiconductor domestic replacement trend, with its independent EDA capabilities allowing it to maintain robust revenue growth and high profit margins amid increasing geopolitical risks [9]. Financial Summary - Sales revenue is projected to grow from RMB 464 million in FY23A to RMB 1,284 million by FY27E, with a CAGR of approximately 27.6% [2][14]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 363.3 million in FY27E, reflecting a strong growth trajectory [2][14]. - The company’s P/E ratio is forecasted to decrease from 21.5 in FY23A to 8.6 in FY27E, suggesting an attractive valuation compared to the industry average of 64.0 [2][9]. Market Position - The company has developed a comprehensive EDA platform that integrates EDA tools, IP libraries, and design processes, significantly lowering the barriers to chip design [9]. - As of the end of 2024, the company has integrated over 600 IP modules, establishing a complete tool-IP-design framework [9]. Shareholder Structure - Major shareholders include CICCFT with 12.6% and Value Partners with 6.6% [5]. Stock Performance - The stock has shown strong performance with a 96.2% increase over the past three months [6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, indicating a potential upside of 22.4% from the current price of HKD 56.80 [1][3]. Core Insights - The recent EDA export ban by the Trump administration is expected to accelerate the domestic replacement process in China's EDA market, which currently relies heavily on foreign suppliers [1][9]. - The company, 贝克微, is well-positioned to benefit from this trend due to its self-developed EDA platform, which mitigates the impact of export restrictions [9]. - The report highlights that 贝克微's vertical integration in the semiconductor design process provides a strategic advantage in a localized supply chain environment [9]. Financial Summary - Sales revenue is projected to grow from RMB 464 million in FY23A to RMB 1,284 million by FY27E, with a CAGR of approximately 27.6% [2][14]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 363.3 million in FY27E, reflecting a strong growth trajectory [2][14]. - The company's gross margin is forecasted to remain stable around 53% over the next five years [2][14]. Market Position - 贝克微's market capitalization is approximately HKD 3.408 billion, with a current share price of HKD 56.80, which is significantly higher than its 52-week low of HKD 23.05 [4][3]. - The company has a strong shareholder structure, with CICCFT holding 12.6% and 惠理集团 holding 6.6% [5]. - The stock has shown impressive performance, with a 96.2% return over the past three months [6]. Valuation Metrics - The company is currently valued at a P/E ratio of 14.4 for FY25E, which is attractive compared to the industry average of 64.0 [9][13]. - The PEG ratio stands at 0.48, indicating potential undervaluation relative to its growth prospects [9].

Core Viewpoint - The company has completed a placement agreement totaling HKD 120 million, which will enhance its upstream manufacturing capabilities and provide additional liquidity for operations [1][2] Group 1: Fundraising Details - The placement raised a total of HKD 120 million by issuing up to 3 million shares at a price of HKD 40 per share, representing approximately 4.76% of the total share capital [2] - The placement price reflects a discount of about 10.41% compared to the closing price of HKD 44.65 on May 20, 2025, and an 11.39% discount compared to the average closing price of HKD 45.14 over the last five trading days [2] Group 2: Financial Projections - The company expects a revenue growth of 33% for the fiscal year 2025, reaching RMB 770 million, with a net profit growth of 30% to RMB 217 million [2] - The current valuation stands at 12.9 times the forecasted price-to-earnings ratio for fiscal year 2025, or 0.43 times the PEG ratio, indicating an attractive valuation compared to industry peers [2] Group 3: Market Outlook - The company is projected to achieve a year-on-year revenue growth of 27%-33% from 2025 to 2027, with a gross margin maintained between 53%-54% [1] - The stock price increased by 6.6% to HKD 47.6 as of May 21, reflecting positive market sentiment following the fundraising announcement [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 69.5, unchanged from previous assessments [2][10]. Core Insights - The company completed a placement of HKD 120 million on May 21, at a price of HKD 40 per share, to enhance upstream manufacturing capabilities and support general working capital [1][10]. - Revenue growth is projected to be between 27% and 33% from 2025 to 2027, with a gross margin expected to remain between 53% and 54% [2][10]. - The company’s stock price increased by 6.6% to HKD 47.6 as of May 21, following the placement announcement [1]. Financial Summary - **Sales Revenue (in million RMB)**: - FY23A: 464 - FY24A: 579 - FY25E: 770 (33% YoY growth) - FY26E: 1,006 (30.8% YoY growth) - FY27E: 1,284 (27.6% YoY growth) [3][14] - **Net Profit (in million RMB)**: - FY23A: 109.2 - FY24A: 166.6 - FY25E: 216.7 (30.1% YoY growth) - FY26E: 285.1 (31.5% YoY growth) - FY27E: 363.3 (27.4% YoY growth) [3][14] - **Gross Margin (%)**: - FY23A: 55.4 - FY24A: 53.0 - FY25E: 53.8 - FY26E: 53.5 - FY27E: 53.3 [3][14] - **Earnings Per Share (in RMB)**: - FY23A: 2.42 - FY24A: 2.78 - FY25E: 3.61 - FY26E: 4.75 - FY27E: 6.05 [3][14] - **Price-to-Earnings Ratio (P/E)**: - FY25E: 12.9 - FY26E: 9.8 - FY27E: 7.7 [3][14] Market Performance - The company's market capitalization is approximately HKD 3,042 million, with a 52-week high of HKD 51.75 and a low of HKD 23.05 [5][12]. - The stock has shown significant performance, with a 59.4% absolute return over the past three months [7].

Investment Rating - The investment rating for BaTeLab is reiterated as "Buy" with a target price maintained at HK$69.5, indicating a potential upside of 37.1% from the current price of HK$50.70 [2][4]. Core Insights - BaTeLab successfully raised HK$120 million through a private placement, which will be used to enhance upstream manufacturing capabilities and for general operational funding. This is crucial for the company's future expansion in the industrial-grade analog IC market [1][2]. - The company is expected to experience robust revenue growth, with projected growth rates of 27%-33% from 2025 to 2027, alongside high profitability with expected gross margins of 53%-54% during the same period [1][2]. Financial Summary - Revenue is projected to grow from RMB 464 million in FY23A to RMB 770 million in FY25E, reflecting a year-on-year growth of 33% [3][11]. - Net profit is expected to increase from RMB 109.2 million in FY23A to RMB 216.7 million in FY25E, representing a year-on-year growth of 30.1% [3][11]. - The company's P/E ratio is currently at 12.9x for FY25E, which is significantly lower than the average of 38x for domestic peers, indicating an attractive valuation [2][10]. Shareholder Structure - The major shareholders include Li Zhen with 53.5% and Zhang Guangping with 39.5% of the shares [5]. Market Performance - Over the past month, BaTeLab's stock has shown a slight increase of 0.2%, while over three months, it has risen by 59.4% [6]. Valuation Metrics - The company is trading at a P/B ratio of 0.43, which is appealing compared to the industry average [2]. - The projected EPS for FY25E is RMB 3.61, with a corresponding P/E ratio of 12.9x, indicating strong earnings potential [3][11].

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved revenue of RMB 578.8 million, representing a year-on-year increase of 24.8%[9] - The gross profit for the same period was RMB 306.9 million, with a gross margin of 53.0%[9] - Operating profit increased to RMB 174.0 million, up from RMB 113.4 million in 2023, indicating a strong operational performance[13] - The net profit for the year was RMB 166.6 million, compared to RMB 109.2 million in the previous year, reflecting a significant growth in profitability[13] - Revenue from power management products was RMB 507.7 million, accounting for 87.7% of total revenue, up 24.3% from RMB 408.3 million in the previous year[22][24] - Revenue from signal chain products increased by 16.5% to RMB 64.7 million, driven by new product launches and growing downstream demand[24] - The company's gross profit increased by 19.4% from RMB 257.1 million for the year ended December 31, 2023, to RMB 306.9 million for the year ended December 31, 2024, while the gross margin decreased from 55.4% to 53.0%[27] - Gross profit from power management products rose by 20.6% from RMB 222.9 million in 2023 to RMB 268.7 million in 2024, with a gross margin decrease from 54.6% to 52.9%[28] - Gross profit from signal chain products increased by 11.2% from RMB 34.3 million in 2023 to RMB 38.1 million in 2024, with a gross margin decrease from 61.6% to 58.8%[29] - Other income and net gains surged by 330.5% from RMB 8.1 million in 2023 to RMB 34.8 million in 2024, primarily due to interest income from bank deposits and net foreign exchange gains[30] - Profit before tax increased by 52.0% from RMB 109.2 million in 2023 to RMB 166.0 million in 2024, driven by a significant rise in sales revenue[35] - Annual profit rose by 52.6% from RMB 109.2 million in 2023 to RMB 166.6 million in 2024, mainly due to substantial revenue growth during the reporting period[37] Asset and Liability Management - Total assets reached RMB 1,608.8 million, an increase from RMB 1,270.9 million in 2023, showcasing strong asset growth[15] - Total liabilities increased to RMB 603.8 million, up from RMB 432.7 million in the previous year, indicating a rise in financial obligations[15] - Current assets increased by 24.4% to RMB 1,451.0 million as of December 31, 2024, primarily due to increases in inventory, prepayments, and cash equivalents[43] - The company's bank loans rose to RMB 320.2 million as of December 31, 2024, from RMB 171.6 million in 2023, primarily to support operational funding needs[48] - Inventory increased to RMB 315.4 million as of December 31, 2024, from RMB 218.1 million in 2023, reflecting the company's growth and market demand[56] - Trade receivables decreased to RMB 50.5 million as of December 31, 2024, from RMB 61.3 million in 2023, due to improved collection management[57] - Prepayments rose significantly to RMB 396.3 million as of December 31, 2024, from RMB 261.3 million in 2023, driven by increased procurement needs[58] - Trade and other payables increased to RMB 277.7 million as of December 31, 2024, from RMB 248.5 million in 2023, mainly due to an increase in contract liabilities[59] Research and Development - The company plans to continue focusing on the development of high-end industrial-grade analog chips and expand into new areas such as electric vehicle thermal management and current sensors[10] - The company aims to enhance its R&D efficiency and reduce costs through self-developed EDA tools, while also improving its backend process capabilities[10] - The company introduced 275 new product types during the reporting period, enhancing its product portfolio[20] - R&D expenses grew by 8.5% from RMB 119.1 million in 2023 to RMB 129.2 million in 2024, with material costs for R&D increasing by RMB 22.5 million, a 28.6% year-on-year growth[33] - The company is committed to developing competitive products in emerging fields such as new energy storage and electric vehicles, with ongoing R&D efforts and several patents filed in the emerging analog AI computing sector[64] Corporate Governance - The board consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors as of December 31, 2024[85] - The company emphasizes a healthy corporate culture as the core of good governance, enhancing communication mechanisms between management and employees[78] - The board is committed to maintaining high levels of corporate governance, believing it is crucial for sustainable development and steady performance growth[80] - The company has adopted the corporate governance code as its own governance guidelines and has complied with all applicable provisions during the reporting period[81] - The board has established four specialized committees to oversee specific aspects of the company's affairs, enhancing governance structure[83] - The company regularly reviews and monitors its corporate governance practices to ensure compliance with the governance code[82] - The board's responsibilities include determining business and investment plans, preparing annual financial budgets, and profit distribution schemes[83] - The company has established a review process for the independence of its non-executive directors, which is conducted annually[95] - The audit committee, remuneration and assessment committee, and nomination committee are all chaired by independent non-executive directors[93] Employee Management - As of December 31, 2024, the company has 116 full-time employees, with 71 in R&D, 31 in operations and administration, 11 in sales and marketing, and 3 in senior management[60] - The company emphasizes competitive compensation and performance bonuses to attract and retain qualified personnel, recognizing the importance of talent for sustainable growth[61] - The company provides onboarding training and regular workshops for employees to ensure self-development, particularly for R&D staff who receive specialized training[193] - The company approved a restricted stock unit incentive plan on December 2, 2024, aimed at attracting and retaining talent, with a total share limit of 6,000,000 shares, which is 10% of the total shares issued as of the adoption date[195][197] Market and Strategic Outlook - The market demand for analog ICs in industrial and automotive electronics remains stable, driven by the growth of new energy vehicles and green energy management systems[17] - In 2025, the company anticipates increased domestic demand in sectors such as new energy vehicles and data centers, driving further R&D and innovation efforts[64] - The company plans to enhance its manufacturing capabilities through the launch of a new backend process R&D center within the year, aimed at improving efficiency and optimizing costs[64] - The strategic committee reviewed the company's overall development and strategic planning for 2024, focusing on market, marketing, R&D, and talent[131] Risk Management - The company faces various risks, including market risk, operational risk, investment risk, human resource risk, and financial risk, which are managed through established procedures[163][164][166][168] - The company has established a comprehensive risk management and internal control system integrated into its business processes, with clear responsibilities assigned to each position[137] - The board conducts annual reviews of the risk management and internal control systems, ensuring resources and training for accounting and financial reporting functions are sufficient[135] Shareholder Relations - The company has established a shareholder communication policy to enhance investor relations and ensure timely disclosure of information[146] - The company ensures all shareholders have equal rights and protections during shareholder meetings[103] - The company did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year where no dividend was declared[160]

Financial Performance - The company's revenue increased by 24.8% from RMB 463.9 million in 2023 to RMB 578.8 million in 2024, driven by optimized semi-automated chip design methods and continuous introduction of new industrial products [3]. - Gross profit increased by 19.4% from RMB 257.1 million in 2023 to RMB 306.9 million in 2024, with a slight decrease in gross margin from 55.4% to 53.0% [5]. - Profit before tax surged by 52.0% from RMB 109.2 million in 2023 to RMB 166.0 million in 2024, mainly due to the substantial increase in sales revenue [6]. - Net profit rose by 52.6% from RMB 109.2 million in 2023 to RMB 166.6 million in 2024, attributed to the significant increase in revenue during the reporting period [6]. - Basic earnings per share increased to RMB 2.777 from RMB 2.424 in 2023, representing a growth of 14.6% [40]. - The company reported a pre-tax profit of RMB 165,960,000 for 2024, up 52% from RMB 109,158,000 in 2023 [37]. - Annual profit rose by 52.6% from RMB 109.2 million for the year ending December 31, 2023, to RMB 166.6 million for the year ending December 31, 2024, attributed to substantial revenue growth during the reporting period [86]. Revenue Breakdown - Revenue from customer contracts for simulation IC pattern wafers was RMB 572,428,000 in 2024, an increase of 23.4% from RMB 463,881,000 in 2023 [24]. - Revenue from power management products rose by 24.3% from RMB 408.3 million in 2023 to RMB 507.7 million in 2024, driven by new product launches and increased customer demand [70]. - Revenue from signal chain products increased by 16.5% from RMB 55.6 million in 2023 to RMB 64.7 million in 2024, benefiting from new product introductions and downstream demand recovery [70]. - Direct sales revenue surged by 90.4% from RMB 58.2 million in 2023 to RMB 110.9 million in 2024, attributed to the expansion of new direct customers [71]. - Total revenue from major customers A, B, and C for 2024 was RMB 522,799,000, representing a 24% increase from RMB 405,495,000 in 2023 [28]. Expenses and Costs - The cost of sales rose by 31.5% from RMB 206.8 million in 2023 to RMB 271.9 million in 2024, primarily due to a significant increase in sales revenue [4]. - Research and development expenses grew by 8.5% from RMB 119.1 million in 2023 to RMB 129.2 million in 2024, reflecting the company's expanding business scale and continuous improvement in profitability [6]. - Administrative expenses increased by 21.3% from RMB 26.1 million for the year ending December 31, 2023, to RMB 31.7 million for the year ending December 31, 2024 [80]. - The company's total interest expenses rose to RMB 7,990,000 in 2024 from RMB 4,269,000 in 2023, reflecting an increase of 87% [30]. - Financing costs surged by 87.2% from RMB 4.3 million for the year ending December 31, 2023, to RMB 8.0 million for the year ending December 31, 2024, primarily due to increased interest on short-term bank loans [82]. Cash Flow and Assets - The net cash generated from operating activities for 2024 was RMB 13,561,000, a decrease of 55.3% compared to RMB 30,277,000 in 2023 [15]. - The total cash and cash equivalents at the end of 2024 were RMB 636,020,000, up from RMB 550,838,000 at the end of 2023, representing an increase of 15.4% [15]. - Current assets increased from RMB 1,166.319 million in 2023 to RMB 1,450.973 million in 2024, indicating a strong liquidity position [11]. - The company's equity increased from RMB 838.229 million in 2023 to RMB 1,005.004 million in 2024, reflecting improved financial health [12]. - The total outstanding bank loans increased from RMB 171.6 million as of December 31, 2023, to RMB 320.2 million as of December 31, 2024 [107]. Investments and R&D - The company introduced 275 new product types during the reporting period, enhancing its product offerings in response to stable customer demand for industrial-grade analog chips [59]. - The company has invested in R&D in the emerging field of analog AI computing and has applied for several patents, expecting to launch related products soon [129]. - The company has established a comprehensive training system to develop its R&D team, ensuring continuous talent development and addressing the talent bottleneck in the IC design field [123]. - Material costs for R&D increased by RMB 22.5 million, representing a 28.6% year-on-year growth [81]. - Employee compensation for R&D decreased by RMB 9.7 million compared to the previous year, due to the absence of share-based payment expenses from the prior year [81]. Market and Product Development - The core product series continued to expand its influence and market share in the new energy vehicle sector, contributing to the company's growth strategy [63]. - The H770 platform, focused on high voltage and high current products, accounted for nearly 40% of total revenue, reflecting strong market expansion in the new energy sector [66]. - The U660 platform, known for its efficiency and reliability, saw revenue growth of over 35% due to its applications in automotive and industrial control systems [66]. - The market demand for analog ICs in industrial, automotive, and data center sectors remains stable, driven by the increasing penetration of new energy vehicles and green energy management systems [58]. - The company’s product matrix includes over 700 models, enabling applications across various sectors such as automotive electronics, medical, and industrial automation [62]. Corporate Governance and Compliance - The company has allocated sufficient resources to ensure compliance with applicable laws and regulations, with no significant violations reported as of December 31, 2024 [124]. - The audit committee has reviewed the audited financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations [133]. - The company did not buy, sell, or redeem any of its listed securities during the reporting period, and as of December 31, 2024, it holds no treasury shares [125]. - The company has maintained sufficient public float as required by the listing rules during the reporting period and up to the announcement date [134]. Future Outlook - For 2025, the company anticipates further deepening of domestic demand in new energy vehicles, data centers, and green energy management, focusing on R&D and innovation [128]. - The company plans to enhance its engineering capabilities through a self-developed EDA technology platform, with a backend engineering R&D center expected to be operational within the year [128]. - The company will continue to develop products closely aligned with market demand in new energy storage, electric vehicles, and high-end industrial sectors [129]. - The company is actively managing market, operational, and investment risks to ensure effective measures are in place to achieve business objectives [92][93][94].

Investment Rating - The report reiterates a BUY rating for BaTeLab with an unchanged target price of HK$49.80, corresponding to a 20.4x 2024E P/E [2]. Core Insights - BaTeLab's management emphasizes the industrial market's lower R&D costs and long-tail characteristics, allowing for cost efficiency through proprietary EDA software and a reusable IP library [2]. - The company is focusing on patterned wafers, which are believed to provide higher marketing efficiency while keeping operational costs low [2]. - Management acknowledges concerns regarding high revenue reliance on distributor channels, stating that customer concentration is channel-specific and the actual customer base is diverse [2]. - Future revenue growth is expected to be driven by semiconductor localization, with plans to expand the product portfolio by approximately 100 SKUs annually [2]. - Management anticipates a gradual recovery in market demand and expects accelerated growth in the analog IC market over the next 5-10 years [2]. - The company's gross profit margin is projected to remain stable within the range of 53-55%, despite a lower-than-expected GPM of 51.3% in 1H24 due to increased inventory provisions [2]. Financial Summary - Revenue is forecasted to grow from RMB 464 million in 2023 to RMB 650 million in 2024, representing a year-on-year growth of 40.2% [3]. - The gross profit margin is expected to be 53.8% in 2024, down from 55.4% in 2023 [3]. - Operating profit is projected to increase from RMB 113 million in 2023 to RMB 154 million in 2024, with a year-on-year growth of 36.1% [3]. - Net profit is anticipated to rise from RMB 146.3 million in 2023 to RMB 210.5 million in 2024, reflecting a year-on-year growth of 43.9% [3]. - The company reported a P/E ratio of 10.8x for 2024E, which is considered attractive compared to the industry [2][3]. Market Position - BaTeLab's market capitalization is approximately HK$396.8 million, with a current share price of HK$26.45, indicating an upside potential of 88.3% to the target price [4]. - The company has a diverse shareholding structure, with the largest shareholders holding 53.5% and 39.5% of the shares [4]. - The stock has shown a 1-month performance of -3.5% and a 3-month performance of 7.7% [4].

Financial Performance - Revenue for the first half of 2024 reached RMB 290.6 million, a 42.1% increase year-over-year[14] - Gross profit margin stood at 51.3% for the first half of 2024[14] - Net profit for the first half of 2024 was RMB 67.1 million, compared to RMB 45.9 million in the same period last year[12] - Revenue increased by 42.1% from RMB 204.4 million in the first half of 2023 to RMB 290.6 million in the first half of 2024, driven by new industrial products and deeper customer engagement[18] - Gross profit rose by 31.9% from RMB 112.9 million in the first half of 2023 to RMB 149.0 million in the first half of 2024, while gross margin decreased from 55.2% to 51.3% due to inventory provisions[22] - Profit before tax increased by 46.3% from RMB 45.9 million in the first half of 2023 to RMB 67.1 million in the first half of 2024, driven by a significant rise in sales revenue[32] - Net profit for the period increased by 46.3% from RMB 45.9 million in the first half of 2023 to RMB 67.1 million in the first half of 2024, reflecting strong revenue growth[34] - Adjusted net profit (non-HKFRS measure) for the first half of 2024 was RMB 67.1 million, compared to RMB 56.6 million in the first half of 2023, after adjusting for listing expenses and share-based payments[35] - Revenue for the six months ended June 30, 2024, increased to RMB 290.554 million, up 42.1% from RMB 204.422 million in the same period last year[91] - Gross profit rose to RMB 148.959 million, a 31.9% increase compared to RMB 112.895 million in the previous year[91] - Operating profit grew to RMB 70.496 million, up 47.9% from RMB 47.660 million in the same period last year[91] - Net profit for the period reached RMB 67.116 million, a 46.4% increase from RMB 45.864 million in the previous year[91] - Net profit for the first half of 2024 was RMB 67,116 thousand, a 6.0% increase compared to RMB 63,294 thousand in the second half of 2023[95] Product and Sales Performance - Power management product sales grew by 42.8% from RMB 179.6 million in the first half of 2023 to RMB 256.5 million in the first half of 2024, supported by new product launches and customer demand[19] - Signal chain product sales increased by 37.2% from RMB 24.8 million in the first half of 2023 to RMB 34.1 million in the first half of 2024, due to new product introductions and downstream demand recovery[20] - Distributor sales surged by 55.4% from RMB 168.2 million in the first half of 2023 to RMB 261.4 million in the first half of 2024, driven by increased purchases from major distributors and new distributor partnerships[20] - The H770 platform, focused on high-voltage and high-current products, contributed over 30% of total revenue, with strong performance in the new energy sector[16] - The C280 platform, featuring boost-type micro-modules, saw a 70% year-over-year revenue increase due to its widespread use in power-sensitive systems[16] - Revenue from sales of analog IC patterned wafers grew to RMB 290,554 thousand in the first half of 2024, a 42.1% increase compared to RMB 204,422 thousand in the same period of 2023[99] Gross Margin and Cost Analysis - Power management product gross margin declined from 54.5% in the first half of 2023 to 50.6% in the first half of 2024, primarily due to inventory provision impacts[24] - Signal chain product gross margin decreased from 60.7% in the first half of 2023 to 56.3% in the first half of 2024, also influenced by inventory provisions[25] - Distribution costs increased by 3.1% from RMB 2.9 million in the first half of 2023 to RMB 3.0 million in the first half of 2024, primarily due to the company's business model of selling to distributors[27] - Administrative expenses rose by 56.8% from RMB 11.6 million in the first half of 2023 to RMB 18.3 million in the first half of 2024, driven by increased employee compensation and higher depreciation on leased properties[29] - R&D expenses grew by 23.3% from RMB 57.4 million in the first half of 2023 to RMB 70.8 million in the first half of 2024, with material costs for R&D increasing by RMB 23.3 million, a 71.3% year-over-year growth[30] - Financing costs surged by 88.2% from RMB 1.8 million in the first half of 2023 to RMB 3.4 million in the first half of 2024, mainly due to an increase in short-term bank loans[31] - Research and development expenses for the six months ended June 30, 2024, were RMB 70,812 thousand, compared to RMB 57,411 thousand for the same period in 2023[106] Balance Sheet and Financial Position - Total assets as of June 30, 2024, were RMB 1,396.1 million, up from RMB 1,270.9 million at the end of 2023[12] - The company's total liabilities as of June 30, 2024, were RMB 490.8 million, compared to RMB 432.7 million at the end of 2023[12] - The company's equity as of June 30, 2024, was RMB 905.3 million, up from RMB 838.2 million at the end of 2023[12] - The company's current assets increased by 8.4% to RMB 1,264.4 million as of June 30, 2024, driven by increases in inventory, pledged bank deposits, and cash and cash equivalents[44] - Cash and cash equivalents decreased by 12.3% to RMB 483.3 million as of June 30, 2024, due to increased prepayments for goods as the company expanded[44] - The company's capital expenditures for the six months ended June 30, 2024, were RMB 32.0 million, compared to RMB 5.9 million in the same period last year, primarily for property, plant, and equipment[45] - The company's inventory increased to RMB 239.1 million as of June 30, 2024, up from RMB 218.1 million at the end of 2023, reflecting business growth and market demand[55] - Trade receivables rose to RMB 130.2 million as of June 30, 2024, from RMB 61.3 million at the end of 2023, due to increased revenue and extended credit terms for key customers[56] - Prepayments increased to RMB 354.2 million as of June 30, 2024, from RMB 261.3 million at the end of 2023, driven by higher demand for raw materials as the company expanded[57] - The company's bank loans increased to RMB 241.8 million as of June 30, 2024, from RMB 171.6 million at the end of 2023, to support daily operations and business expansion[49] - The company has unused bank financing facilities of RMB 454.6 million as of June 30, 2024[49] - Property, plant, and equipment increased to RMB 65.8 million as of June 30, 2024, from RMB 62.3 million at the end of 2023, due to the purchase of new R&D equipment[53] - Total assets as of June 30, 2024, stood at RMB 1.264 billion, compared to RMB 1.166 billion as of December 31, 2023[92] - Inventory increased to RMB 239.050 million as of June 30, 2024, from RMB 218.131 million as of December 31, 2023[92] - Cash and cash equivalents decreased to RMB 483.293 million as of June 30, 2024, from RMB 550.838 million as of December 31, 2023[92] - Total equity increased to RMB 905,345 thousand as of June 30, 2024, up from RMB 838,229 thousand at the beginning of the year, driven by a net profit of RMB 67,116 thousand for the six-month period[95] - Operating cash flow was negative at RMB (91,897) thousand for the first half of 2024, compared to a positive RMB 50,774 thousand in the same period of 2023[96] - Cash and cash equivalents decreased by RMB 65,233 thousand to RMB 483,293 thousand as of June 30, 2024, impacted by negative operating cash flow and foreign exchange rate effects[96] - The company raised RMB 104,321 thousand from loans and borrowings during the first half of 2024, significantly higher than the RMB 11,858 thousand raised in the same period of 2023[96] - Investment activities used RMB 32,037 thousand in the first half of 2024, primarily for the purchase of property, plant, and equipment, compared to RMB 5,829 thousand in the same period of 2023[96] - The company completed its IPO on the Hong Kong Stock Exchange on December 28, 2023, raising RMB 323,241 thousand, which contributed to the increase in share capital and share premium[95] - The company's basic earnings per share for the six months ended June 30, 2024, were RMB 1.12, based on a profit attributable to ordinary equity shareholders of RMB 67,116 thousand and a weighted average number of ordinary shares of 60,000 thousand[109] - The company acquired property, plant, and equipment worth RMB 5,722 thousand during the six months ended June 30, 2024, compared to RMB 3,862 thousand in the same period in 2023[110] - Inventory as of June 30, 2024, was RMB 239,050 thousand, up from RMB 218,131 thousand as of December 31, 2023[113] - The cost of inventory recognized as an expense and included in profit or loss for the six months ended June 30, 2024, was RMB 197,327 thousand, compared to RMB 123,587 thousand for the same period in 2023[114] - Trade receivables (net of impairment) increased to RMB 130,230 thousand as of June 30, 2024, up from RMB 61,257 thousand as of December 31, 2023[115] - Prepayments to suppliers rose to RMB 354,163 thousand as of June 30, 2024, compared to RMB 261,135 thousand as of December 31, 2023[116] - Cash and cash equivalents decreased to RMB 483,293 thousand as of June 30, 2024, down from RMB 550,838 thousand as of December 31, 2023[119] - Bank loans (due within one year or on demand) increased to RMB 241,771 thousand as of June 30, 2024, up from RMB 171,601 thousand as of December 31, 2023[120] - Trade payables and notes payable (within 3 months) amounted to RMB 104,529 thousand as of June 30, 2024, down from RMB 115,967 thousand as of December 31, 2023[121] - Capital commitments not provided for in the financial statements stood at RMB 66,364 thousand as of June 30, 2024, up from RMB 720 thousand as of June 30, 2023[124] R&D and Innovation - The company's self-developed EDA tools and reusable IP library enhance its competitive edge[15] - The company is expanding its R&D capabilities by establishing a backend process R&D center to improve efficiency and reduce costs[64] - The company is investing in R&D for analog AI computing and upgrading EDA tools to enhance product development[64] - R&D expenses grew by 23.3% from RMB 57.4 million in the first half of 2023 to RMB 70.8 million in the first half of 2024, with material costs for R&D increasing by RMB 23.3 million, a 71.3% year-over-year growth[30] - Research and development expenses for the six months ended June 30, 2024, were RMB 70,812 thousand, compared to RMB 57,411 thousand for the same period in 2023[106] Market Expansion and Customer Base - The company has expanded its customer base, particularly in the new energy vehicle sector[13] - The company is entering new markets such as new energy vehicle thermal management, current sensors, and onboard chargers, aiming to increase market share[64] - 10% of the net proceeds (HKD 35.4 million) are allocated to expanding the customer base and strengthening customer relationships, with expected utilization by December 31, 2028[81] Risk Management - The company faces market risks, operational risks, investment risks, talent retention risks, financial risks, and foreign exchange risks, which are managed through various risk management procedures[37][38][39][40][41][42] Capital Management and Financing - The company's capital management aims to maintain a healthy capital structure, with a capital gearing ratio of 27.6% as of June 30, 2024, up from 25.1% in the same period last year[43] - The company's bank loans increased to RMB 241.8 million as of June 30, 2024, from RMB 171.6 million at the end of 2023, to support daily operations and business expansion[49] - The company has unused bank financing facilities of RMB 454.6 million as of June 30, 2024[49] - The global offering of H shares raised a net amount of approximately HKD 354.1 million, with an issue price of HKD 27.47 per share[79] - 30% of the net proceeds (HKD 106.2 million) are allocated to enhancing R&D and innovation capabilities, with expected utilization by December 31, 2028[81] - 20% of the net proceeds (HKD 70.8 million) are allocated to strategic investments and/or acquisitions, with HKD 27.1 million already utilized and HKD 43.7 million remaining[81] - 20% of the net proceeds (HKD 70.8 million) are allocated to investing in R&D infrastructure and upgrading R&D centers, with expected utilization by December 31, 2028[81] - 10% of the net proceeds (HKD 35.4 million) are allocated to developing mixed-signal IC product lines, with expected utilization by December 31, 2028[81] - 10% of the net proceeds (HKD 35.4 million) are allocated to expanding the customer base and strengthening customer relationships, with expected utilization by December 31, 2028[81] - 5% of the net proceeds (HKD 17.7 million) are allocated to upgrading R&D technology, with expected utilization by December 31, 2028[81] - 5% of the net proceeds (HKD 17.7 million) are allocated to establishing sales centers, with expected utilization by December 31, 2028[81] - The company raised RMB 104,321 thousand from loans and borrowings during the first half of 2024, significantly higher than the RMB 11,858 thousand raised in the same period of 2023[96] Employee and Management - The company has 115 full-time employees as of June 30, 2024, with 69 in R&D, 10 in sales and marketing, and 34 in business operations and administration[60] - Employee costs for the six months ended June 30, 2024, were approximately RMB 21.2 million, compared to RMB 16.3 million for the same period in 2023[61] - The company provides competitive salaries, performance bonuses, and incentives to attract and retain qualified employees[61] - The company offers a comprehensive training program, including a 2-3 week special training project for R&D employees to familiarize them with project management[62] - The company maintains a stable core management team and has not experienced any significant non-compliance with applicable laws and regulations as of June 30, 2024[63] - Total remuneration for key management personnel was RMB 2,517 thousand for the six months ended June 30, 2024, compared to RMB 2,147 thousand for the same period in 2023[125] Shareholder and Equity Information - As of June 30, 2024, the company's directors and senior executives hold significant equity interests, with the largest being 31.41% of domestic unlisted shares[70] - Zhang Guangping holds 15,436,645 domestic unlisted shares, representing 34.30% of the relevant category and 25.73% of the total share capital[71] - Li Yi holds 252,800 domestic unlisted shares, representing 0.56% of the relevant category and 0.42% of the total share capital[71] - Kong Jianhua holds 2,846,352 domestic unlisted shares through a controlled entity, representing 6.33% of the relevant category and 4.74% of the total share capital[71] - Zhang Jingwen holds 15,436,645 domestic unlisted shares through spousal rights, representing 34.30% of the relevant category and 25.73% of the total share capital[74] - Beckwatt Electronics holds 8,753,678 domestic unlisted shares, representing 19.45% of the relevant category and 14.59% of the total share capital[74] - Beckwatt Partnership holds 5,380,535 domestic unlisted shares, representing 11.96% of the relevant category and 8.97% of the total share capital[74] - Suzhou Rongxiang Beiying Venture Capital Partnership holds 2,846,352 domestic unlisted shares, representing 6.33% of the relevant category and 4.