Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown improvement in gross margin in Q2, with a focus on its "1+2+X" strategy, positioning itself as a leader in smart hardware [2][5] - The company is expected to benefit from the AI wave at the edge, with growth opportunities in smart devices, AIoT, AI PCs, and automotive electronics [5][6] Financial Performance Summary - In H1 2025, the company achieved revenue of 19.908 billion, a year-on-year decrease of 10.65%, while net profit attributable to shareholders was 356 million, an increase of 5.01% [5] - In Q2 2025, revenue was 10.529 billion, down 11.85%, with a net profit of 201 million, down 4.31% [5] - The gross margin for H1 2025 was 8.14%, up 1.64 percentage points year-on-year, and for Q2 2025, it was 8.76%, up 2.70 percentage points year-on-year [5] Business Segment Performance - The smartphone business saw revenue of 14.022 billion in H1 2025, down 22.28%, but with an improved gross margin of 6.85%, up 1.79 percentage points [5] - The AIoT business grew rapidly, achieving revenue of 3.321 billion, up 45.26%, although its gross margin decreased to 12.81%, down 2.58 percentage points [5] - The tablet business generated revenue of 1.900 billion, up 14.57%, with a gross margin of 6.58%, down 2.15 percentage points [5] Future Projections - Revenue projections for 2025-2027 are 46.810 billion, 53.430 billion, and 66.691 billion, representing year-on-year growth rates of 1%, 14%, and 25% respectively [6][7] - Net profit projections for the same period are 651 million, 951 million, and 1.302 billion, with growth rates of 30%, 46%, and 37% respectively [6][7] - The expected P/E ratios for 2025, 2026, and 2027 are 30, 21, and 15 times respectively [6][7]

Core Insights - Longqi Technology's stock price increased by 2.01% on September 8, reaching 42.66 CNY per share, with a total market capitalization of 20.024 billion CNY [1] - The company has experienced a year-to-date stock price decline of 7.78%, with a 5-day drop of 7.10%, but a 20-day increase of 5.67% and a 60-day increase of 10.75% [1] - Longqi Technology's main business revenue composition includes 77.90% from smartphones, 12.02% from AIoT products, 7.97% from tablets, and 2.11% from other sources [1] Financial Performance - As of June 30, Longqi Technology had 23,400 shareholders, an increase of 22.55% from the previous period, with an average of 11,388 circulating shares per shareholder, a decrease of 18.40% [2] - For the first half of 2025, the company reported a revenue of 19.908 billion CNY, a year-on-year decrease of 10.65%, while the net profit attributable to shareholders was 356 million CNY, reflecting a year-on-year growth of 5.01% [2] Dividend Information - Longqi Technology has distributed a total of 461 million CNY in dividends since its A-share listing [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company reported a revenue of 19.908 billion yuan in H1 2025, a year-on-year decline of 10.65%. However, the net profit attributable to shareholders increased by 5.01% to 356 million yuan. The gross margin improved to 8.14%, up 1.64 percentage points year-on-year, while the net profit margin rose to 1.79%, an increase of 0.27 percentage points [2][7]. Summary by Sections Financial Performance - In H1 2025, the company's mobile phone business revenue was 14.022 billion yuan, down 22.28% year-on-year, but the gross margin for this segment improved to 6.85%, up 1.79 percentage points. The overall gross margin has been on a recovery path since Q3 2024, and further improvements are expected in the second half of 2025 as the product mix shifts towards higher-margin offerings [12]. Strategic Developments - The company is benefiting from the rising demand for AI glasses, with a 110% year-on-year increase in shipments in H1 2025. The company has established deep collaborations with major clients and is expanding its manufacturing capabilities in this area. The AI glasses segment is expected to contribute significantly to revenue growth in the coming quarters [12]. Market Trends - The company is positioned to capitalize on the trends in AIPC (Artificial Intelligence Personal Computer) and automotive electronics. The global PC shipments increased by 5.8% in H1 2025, driven by government subsidies and the rapid penetration of AIPC. The automotive electronics sector is also evolving with the integration of traditional components and innovative technologies [12]. Profit Forecast - The company is projected to achieve net profits attributable to shareholders of 654 million yuan, 932 million yuan, and 1.3 billion yuan for the years 2025, 2026, and 2027, respectively, maintaining the "Buy" rating [12].

Group 1 - On September 2, Longqi Technology experienced a decline of 8.28% with a trading volume of 578 million yuan [1] - The financing data on that day showed a financing purchase amount of 58.72 million yuan and a financing repayment of 79.69 million yuan, resulting in a net financing outflow of 20.97 million yuan [1] - As of September 2, the total balance of margin trading for Longqi Technology was 309 million yuan, with the financing balance accounting for 2.73% of the circulating market value, indicating a high level compared to the past year [1] Group 2 - As of June 30, the number of shareholders for Longqi Technology reached 23,400, an increase of 22.55% from the previous period [2] - The average circulating shares per person decreased by 18.40% to 11,388 shares [2] - For the first half of 2025, Longqi Technology reported operating revenue of 19.908 billion yuan, a year-on-year decrease of 10.65%, while the net profit attributable to shareholders increased by 5.01% to 356 million yuan [2] Group 3 - Longqi Technology has distributed a total of 461 million yuan in dividends since its A-share listing [3]

Group 1 - The core viewpoint is that Longqi Technology's smartphone business revenue is expected to grow with the increase in ODM penetration rate, and gross margins are gradually improving [1] - AI glasses are driving a 45% year-on-year growth in the IoT business, with mass production projects secured from leading domestic and international clients [1] - R&D expenses are increasing due to investments in new businesses such as AI PCs and automotive electronics, but long-term expense ratios are expected to decline [1] Group 2 - The target for AI PCs is to account for 30% of total revenue by 2030, while automotive electronics have already begun mass production and delivery [1] - By 2030, non-mobile business revenue is projected to account for 60% of total revenue [1] - The manufacturing base in Vietnam is performing well, and local partnerships in India are being evaluated for potential factories in North America and Europe [1] Group 3 - The company is focusing on key markets in North America, Europe, Japan, and South Korea [1] - An investment has been made in Zhiyuan Robotics to advance the application of "robotics + AI" production lines [1] - Shareholder reductions are due to fund expirations and do not affect ongoing collaborations [1]

Core Viewpoint - Longqi Technology (603341) demonstrated strong resilience and vitality in its 2025 semi-annual report, with a revenue decline of 10.65% year-on-year to 19.908 billion yuan, while net profit attributable to shareholders increased by 5.01% to 356 million yuan, driven by a significant improvement in gross margin [1] Group 1: Financial Performance - Despite a decline in revenue, the company achieved a gross margin increase of 1.64 percentage points to 8.14% year-on-year [1] - In Q2, the gross margin rose by 1.31 percentage points to 8.76%, marking three consecutive quarters of sequential growth in profitability [1] - The smartphone business saw an increase in both gross margin and gross profit, with gross margin up 1.79 percentage points and gross profit growing by 5% year-on-year [3] Group 2: Environmental Initiatives - Longqi Technology actively implements green initiatives, targeting a 3%-5% annual reduction in energy consumption as part of the national "14th Five-Year" energy-saving plan [2] - The company set a "30/50" carbon target, aiming for carbon emission compliance by 2030 and carbon neutrality by 2050 [2] - The recycling rate of waste materials reached 96%, showcasing the company's commitment to a circular economy [2] Group 3: Social Responsibility - The company prioritizes employee welfare, providing a safe and healthy work environment and promoting diversity and inclusion [3] - Longqi Technology has invested in community development through education support and environmental donations [3] - The company completed audits of 209 suppliers in 2024, achieving a zero CSR violation rate [3] Group 4: Corporate Governance - Longqi Technology maintains high standards of governance, with a business ethics training coverage rate of 74.24% in 2024 [4] - The company achieved zero major information security breaches, with 100% of operational sites certified under ISO27001 [4] - The "1+2+X" product strategy has led to successful new business developments in AI PCs, automotive electronics, and smart glasses, with significant orders from leading global brands [4] Group 5: ESG Recognition - Longqi Technology received an AA rating in the latest ESG assessment for the first half of 2025, maintaining its position among the leading companies in sustainable development in China [5] - The company aims to continue creating new value for society through technology, focusing on high-quality growth and innovation driven by ESG principles [5]

Core Viewpoint - The planned divestment by Suzhou Shunwei, controlled by Lei Jun, raises concerns about the future development of Longqi Technology, given its high dependency on Xiaomi and low profit margins in its core business [2][5]. Group 1: Shareholder Actions - Suzhou Shunwei plans to divest up to 19.19 million shares of Longqi Technology, representing 4.09% of the total share capital, with a market value of approximately 881 million yuan based on the closing price of 45.92 yuan per share [2]. - Suzhou Shunwei and Tianjin Jinmi, both controlled by Lei Jun, collectively hold 9.04% of Longqi Technology's shares, indicating their significant influence as major shareholders [2]. Group 2: Business Dependency and Financial Performance - Longqi Technology's revenue heavily relies on its ODM/OEM smartphone business, with sales to Xiaomi accounting for 37.83% of total revenue as of the first half of 2023, down from a peak of 57.66% [3]. - The smartphone business is projected to contribute 77.90% of total revenue in 2024, but it has a low gross margin of only 4.92%, limiting overall profitability [4]. - In the first half of 2025, Longqi Technology reported total revenue of 19.908 billion yuan, a year-on-year decline of 10.65%, while net profit slightly increased by 5.01% to 356 million yuan, indicating a concerning revenue trend [4]. Group 3: Market Concerns and Competitive Landscape - The planned divestment reflects market worries about Longqi Technology's growth prospects, particularly its reliance on low-margin smartphone manufacturing [4][5]. - Compared to competitors like Huaqin Technology, which has diversified into higher-margin sectors such as laptops and automotive electronics, Longqi Technology appears to be lagging in its transformation efforts [4].

Core Viewpoint - Longqi Technology (603341.SH) has successfully developed and delivered multiple AI PC products, achieving mass production and completion of R&D with two leading domestic clients [1] Group 1: AI PC Development - The company has completed the development and delivery of several AI PC products [1] - Products have achieved mass production and successful R&D completion with two major domestic clients [1] - The company is actively engaging with leading clients in the laptop industry to complete multiple pre-research projects [1] Group 2: Automotive Electronics - Longqi Technology has successfully mass-produced and delivered various automotive electronic products, including smart control tablets, wireless charging, and suspension ECUs [1] - The company has collaborated with several leading clients in the automotive sector, such as Xiaomi, JAC, Seres, NIO, and South Korea's Mando [1] - The company is also actively expanding into the overseas automotive electronics market, with multiple projects in active discussions with clients [1] Group 3: Current Business Focus - The company currently does not have AI server and robot OEM business [1]

Core Viewpoint - The company has established a strong position in the AI glasses sector, benefiting from early investments and long-term strategic partnerships with leading global clients [1] Group 1: Business Growth - The company's AIoT business experienced a year-on-year growth of 45%, primarily driven by the rapid expansion of AI glasses [1] - The company is expanding its collaboration with global top-tier clients in various categories, including AI glasses charging cases, indicating a broadening of its partnership scope [1] Group 2: Market Expansion - The company is also actively pursuing domestic clients, having recently secured a mass production project for AI glasses with a leading domestic internet client [1] - In addition to top-tier domestic and international clients, the company is continuously advancing its outreach to other potential customers [1] Group 3: Future Outlook - The company plans to strengthen its product research and development capabilities as well as manufacturing processes in the AI glasses field, positioning this segment as a crucial support for future growth [1]

Core Viewpoint - Longqi Technology (603341.SH) is actively participating in the B-round financing of Zhiyuan Robotics, focusing on integrating robotics with AI technology for smart upgrades in factory production lines [1] Group 1: Company Initiatives - The company has established a dedicated team to explore the integration of robotics and AI technology [1] - There is significant potential for multiple positions on the production line to achieve further intelligence through "robotics + AI" technology [1] - The company plans to leverage Zhiyuan Robotics' expertise in machine learning algorithms and intelligent control systems for customized development and application in its production scenarios [1] Group 2: Future Outlook - The company aims to continuously enhance the intelligence level of its production lines through tailored solutions [1]