Core Viewpoint - Zhaoyi Innovation has experienced a continuous stock price increase, with a 21.53% rise over the last four days, indicating strong market interest and potential investor confidence [1] Company Overview - Zhaoyi Innovation Technology Group Co., Ltd. is based in Beijing and was established on April 6, 2005, with its IPO on August 18, 2016 [1] - The company specializes in the research, sales, and technical support of integrated circuit storage chips, with revenue breakdown as follows: storage chips 68.55%, microcontrollers 23.11%, sensors 4.65%, analog products 3.67%, and technical services and other income 0.02% [1] Stock Performance - As of September 15, Zhaoyi Innovation's stock price is 190.99 CNY per share, with a trading volume of 9.47 billion CNY and a turnover rate of 7.44%, leading to a total market capitalization of 127.26 billion CNY [1] - The stock has seen a cumulative increase of 21.53% over the past four days [1] Major Shareholders - Huatai-PB Fund's Huatai-PB CSI 300 ETF (510300) is among the top ten circulating shareholders of Zhaoyi Innovation, having increased its holdings by 919,000 shares in Q2, totaling 11.81 million shares, which represents 1.78% of the circulating shares [2] - The ETF has generated an estimated floating profit of approximately 9.21 million CNY today and around 400 million CNY during the four-day increase [2] Fund Performance - The Huatai-PB CSI 300 ETF (510300) was established on May 4, 2012, with a current scale of 374.70 billion CNY and a year-to-date return of 17.4%, ranking 2890 out of 4223 in its category [2] - Over the past year, the fund has achieved a return of 45.76%, ranking 2283 out of 3803, and since inception, it has returned 110.07% [2] Fund Manager Information - The fund manager of Huatai-PB CSI 300 ETF is Liu Jun, who has a tenure of 16 years and 108 days, managing assets totaling 466.97 billion CNY [3] - Liu Jun's best fund return during his tenure is 136.72%, while the worst is -45.64% [3] Top Holdings - The Huatai-PB Fund has Zhaoyi Innovation as one of its top ten holdings, with the IoT fund (516330) reducing its position by 10,300 shares, holding 4,440 shares, which constitutes 4.22% of the fund's net value [4] - The IoT fund has generated an estimated floating profit of about 3,463.20 CNY today and approximately 150,200 CNY during the four-day increase [4] Additional Fund Manager Information - The fund manager of the IoT fund is Li Qian, who has a tenure of 5 years and 317 days, managing assets totaling 39.35 billion CNY [5] - Li Qian's best fund return during her tenure is 104.7%, while the worst is -18.35% [5]

Group 1 - The core viewpoint of the news is that兆易创新 has experienced a significant stock price increase, with a 21.53% rise over the past four days, reaching a price of 190.99 yuan per share and a total market capitalization of 127.26 billion yuan [1] - 兆易创新's main business involves the research, sales, and technical support of integrated circuit storage chips, with revenue composition being 68.55% from storage chips, 23.11% from microcontrollers, 4.65% from sensors, 3.67% from analog products, and 0.02% from technical services and other income [1] - The stock has a trading volume of 9.47 billion yuan and a turnover rate of 7.44% [1] Group 2 - HSBC Jintrust Fund holds a significant position in 兆易创新, with its科技先锋股票 fund maintaining 188,000 shares, representing 6.62% of the fund's net value, ranking as the fifth-largest holding [2] - The fund has generated a floating profit of approximately 146,600 yuan today and 6.36 million yuan during the four-day price increase [2] - The科技先锋股票 fund has achieved a year-to-date return of 66.05%, ranking 133 out of 4,223 in its category, and a one-year return of 118.93%, ranking 151 out of 3,803 [2] Group 3 - The fund manager of HSBC Jintrust's科技先锋股票 is Chen Ping, who has been in the position for 10 years and 56 days, with the fund's total asset size being 359 million yuan [3] - During Chen Ping's tenure, the best fund return was 77.43%, while the worst return was -29.93% [3]

Summary of Zhaoyi Innovation Conference Call Company Overview - Zhaoyi Innovation is positioned in the semiconductor industry, focusing on customized storage products and MCU (Microcontroller Unit) solutions. The company is leveraging its first-mover advantage in the market, particularly benefiting from the implementation of edge AI technology [2][4]. Key Points and Arguments Customized Storage Products - The customized storage product line is expected to achieve revenue growth due to its first-mover advantage and the ongoing deployment of edge AI [2][4]. - The company holds a 78% stake in Qingyun Technology and is implementing employee stock incentives to demonstrate confidence in the long-term growth of this product line [2][4]. Management Team Stability - The management team has a stable background, which is crucial for ensuring the company's long-term growth. Continuous employee stock incentives are in place to motivate core technical personnel [5]. R&D Investment and Outcomes - The company has been expanding its R&D personnel and increasing its patent portfolio, which provides a competitive edge for future business development. Revenue and profit are expected to recover starting in 2024, reflecting a rebound in demand and an increase in market share across various product lines [6]. Norflash Market Outlook - The global Norflash market is currently valued at approximately $3 billion, with Zhaoyi Innovation holding the second-largest market share. The market is projected to grow to $5 billion, driven by increased demand from wearable devices, AI PCs, and industrial applications [7]. DRAM Business Development - The global DRAM market is valued at around $100 billion, with niche DRAM accounting for about 10% of this market. Zhaoyi Innovation is expected to maintain high growth rates over the next two to three years due to the exit of major competitors [8]. Competitive Advantages in DRAM - Zhaoyi Innovation's DRAM product line benefits from advanced process nodes, resulting in lower costs compared to competitors. The exit of major players has led to price increases for DDR4 and DDR3, improving gross and operating margins. The company anticipates generating over $1 billion in revenue from this segment [9]. Collaboration with Changxin Storage - The partnership with Changxin Storage is structured through equity investment and contractual agreements, ensuring ongoing collaboration in the niche DRAM market. This relationship is expected to support Zhaoyi Innovation's growth despite concerns over market share competition [10]. SLC NAND Flash Development - Zhaoyi Innovation is advancing in the SLC NAND Flash sector, with process nodes reaching 24nm and plans to move to 19nm. The focus is on the automotive sector to meet the growing demand for high-reliability storage solutions [11][12]. Importance of Customized Storage - Customized storage is identified as a critical future direction, with products designed to enhance data transfer capabilities and efficiency, particularly in cloud applications. Zhaoyi Innovation is leading in this area, ahead of competitors by at least one generation [13]. MCU Product Line Outlook - The MCU market is currently at a price bottom, but growth in industrial and automotive sectors is expected to provide stable revenue. The company covers 61 categories of MCU, including automotive-grade products, and is expanding its product line through acquisitions [14]. Future Development Focus - Key areas to watch include niche DRAM and customized storage, both projected to exceed $1 billion in revenue, significantly contributing to the company's revenue certainty [15]. - As a leading domestic player in storage and MCU, Zhaoyi Innovation aims to maintain growth through strategic goals, client development, and international market expansion [16].

Summary of the Conference Call on China's Semiconductor Supply Chain Industry Overview - In 2Q25, China semiconductor chipmakers (fabless, IDM, foundry, OSAT) reported a revenue growth of 16-21% YoY, indicating a mild recovery in net profit margins (NPM) with fabless/IDM companies' average NPM increasing from 12% in 1Q25 to 13% in 2Q25. Foundry and OSAT suppliers' average NPM improved slightly from 4% to 5% [1][8] - Semiconductor equipment companies experienced a slowdown in sales growth from 42% YoY in 1Q25 to 28% in 2Q25, although their average NPM improved from 16% to 19% [1] - Silicon wafer suppliers, such as NSIG and Lion Electronics, continued to report losses in 2Q25 with NPM at -18% and -5%, respectively [1] Inventory Management - Notable inventory reduction was observed among Chinese semiconductor fabless companies in 2Q25, with inventory turnover periods for MCU, analog, and power discrete segments decreasing by 16-48 days QoQ [2] - Overall inventory levels in the China market remain higher than pre-2022 levels but are healthier compared to 2023-24, where days of inventory (DoI) were between 200-300 days [2] Demand and Supply Dynamics - The integrated circuit (IC) billing volume in China was reported at 12.6 billion units in July, reflecting a 10% YoY increase. This demand growth rebounded from a -1% contraction in June [3] - China's IC import volume grew by 12% YoY, while domestic manufacturing volume increased by 25% YoY. The netting off of a 17% export growth suggests a supply volume increase of 15% YoY on a 3-month moving average basis [3] - The trend of inventory digestion among Chinese chipmakers observed in 2Q25 may be moderating as supply growth has outpaced demand for two consecutive months since June [3] Pricing Trends - The global average unit price for NOR flash was reported at US$0.39 in July, down 6% MoM and 28% YoY, indicating continued price softness [4] - However, major Taiwan and China NOR flash suppliers reported normalized inventory levels, which may support price stabilization [4] - Specialty DRAM contract prices have seen significant increases in 3Q25, with DDR4 prices rising approximately 70% in July and 10% in August, while 4Gb DDR3 prices increased by 20% in July and 50% in August [4] Financial Performance Overview - In 2Q25, the fabless and IDM sectors saw over 20% YoY sales growth, while foundry, OSAT, and silicon wafer sectors grew in the mid to high teens [8] - Despite improvements in net profit margins across sectors, silicon wafer companies like NSIG and Lion Electronics continued to post net losses [8] Future Outlook - Consensus forecasts predict 15%-26% YoY sales growth for the semiconductor industry in 2026, with expectations for further improvement in net profit margins [9] - Specific companies such as SMIC and JCET are projected to see significant sales growth, with SMIC's sales expected to reach US$78.3 billion by 2026, reflecting a 16% YoY increase [9] Additional Insights - The semiconductor supply chain is experiencing a dynamic shift in supply and demand, with potential implications for inventory management and pricing strategies moving forward [3][4] - The recovery in profitability and sales growth across various segments indicates a positive trend for the semiconductor industry in China, despite ongoing challenges in specific areas such as silicon wafer production [1][8]

Group 1 - The market showed a positive trend last week, with the China Securities Xinhua National Brand Index rising by 1.00% to 1969.84 points [1][2] - Several constituent stocks performed strongly, including Zhaoyi Innovation, which increased by 19.21%, and Lanke Technology, which rose by 9.03% [2] - Since the beginning of the second half of the year, Zhongji Xuchuang has surged by 189.38%, leading the gains among stocks [3] Group 2 - Looking ahead, the overall market sentiment remains high, with strong capital inflow and a clear upward trend in the stock market from a mid-term perspective [4] - The current macroeconomic policies are actively supporting the market, and the risk of uncertainty in the economic fundamentals is relatively low [4] - The static valuation of major broad-based indices has reached the 60%-70% percentile level since 2010, indicating that while not significantly undervalued, there is still potential for attractive investment opportunities [5]

Market Performance - The market saw an increase last week, with the China Securities Xinhua National Brand Index rising by 1.00% to 1969.84 points [1] - The Shanghai Composite Index rose by 1.52%, the Shenzhen Component Index by 2.65%, the ChiNext Index by 2.10%, and the CSI 300 Index by 1.38% [1] Strong Stock Performance - Notable strong performers included兆易创新 (Zhaoyi Innovation) up 19.21%, 澜起科技 (Lanke Technology) up 9.03%, and 老凤祥 (Lao Feng Xiang) up 8.30% [2] - Since the second half of the year, 中际旭创 (Zhongji Xuchuang) has surged by 189.38%, while 阳光电源 (Sungrow Power) has increased by 97.61% [2] Market Outlook - Overall, the market is expected to maintain a positive trend, with strong capital inflow and investor confidence remaining high [2] - The current macroeconomic policies are supportive, and the risk of economic uncertainty is low, which is favorable for stock investments [2] -涌津投资 (Yongjin Investment) anticipates a rebalancing of market styles in the upcoming quarters, particularly influenced by AI-related sectors [3]

Market Overview - The Shanghai Composite Index fell by 0.12% on September 12, with 9 out of the 28 sectors rising, led by the non-ferrous metals and real estate sectors, which increased by 1.96% and 1.51% respectively [1] - The electronic sector also saw a rise of 1.16%, while the communication and comprehensive sectors experienced declines of 2.13% and 1.95% respectively [1] Capital Flow Analysis - The main capital outflow from the two markets totaled 53.64 billion yuan, with 6 sectors experiencing net inflows [1] - The non-ferrous metals sector had the highest net inflow of 2.168 billion yuan, followed by the construction and decoration sector with a net inflow of 721 million yuan [1] - The non-bank financial sector had the largest net outflow, totaling 8.138 billion yuan, followed by the electronic sector with a net outflow of 7.517 billion yuan [1] Electronic Sector Performance - In the electronic sector, 239 out of 467 stocks rose, with 4 hitting the daily limit, while 224 stocks fell [2] - The top net inflow stocks included Zhaoyi Innovation with 1.266 billion yuan, followed by Chipone and Demingli with 340 million yuan and 337 million yuan respectively [2] - The stocks with the highest net outflows included Luxshare Precision with 2.592 billion yuan, followed by Industrial Fulian and Haiguang Information with 1.405 billion yuan and 983 million yuan respectively [2][4] Electronic Sector Capital Inflow - The top stocks in terms of capital inflow included: - Zhaoyi Innovation: +7.21%, turnover rate 10.67%, net inflow 1.266 billion yuan - Chipone: +20.00%, turnover rate 7.89%, net inflow 340 million yuan - Demingli: +10.00%, turnover rate 10.35%, net inflow 337 million yuan [2] Electronic Sector Capital Outflow - The top stocks in terms of capital outflow included: - Luxshare Precision: -0.36%, turnover rate 5.88%, net outflow 2.592 billion yuan - Industrial Fulian: +4.84%, turnover rate 1.59%, net outflow 1.405 billion yuan - Haiguang Information: -0.37%, turnover rate 3.51%, net outflow 983 million yuan [4]

Group 1 - The storage chip sector saw a rise of 2.76%, ranking third among concept sectors, with 85 stocks increasing, including Jingzhida which hit the daily limit up by 20% [1] - Leading stocks in the storage chip sector included Zhaoyi Innovation, Demingli, and Xiangnan Chip Creation, with increases of 14.45%, 14.13%, and 14.10% respectively [1][2] - The sector experienced a net inflow of 1.89 billion yuan, with 54 stocks receiving net inflows, and 8 stocks exceeding 100 million yuan in net inflow [2] Group 2 - The top net inflow stock was Zhaoyi Innovation, with a net inflow of 1.266 billion yuan, followed by Demingli, Beijing Junzheng, and Xiangnan Chip Creation with net inflows of 337 million yuan, 245 million yuan, and 239 million yuan respectively [2] - In terms of net inflow ratio, Demingli, Blue Arrow Electronics, and Dwei Co. led with ratios of 18.67%, 12.52%, and 12.46% respectively [3] - The trading volume and turnover rates for leading stocks in the storage chip sector were significant, with Zhaoyi Innovation showing a turnover rate of 10.67% and a price increase of 7.21% [3]

Market Overview - On September 12, the Shanghai Composite Index fell by 0.12%, the Shenzhen Component Index decreased by 0.43%, the ChiNext Index dropped by 1.09%, and the CSI 300 Index declined by 0.57% [1] - Among the tradable A-shares, 1,926 stocks rose, accounting for 35.51%, while 3,373 stocks fell [1] Capital Flow - The main capital experienced a net outflow of 53.64 billion yuan throughout the day [1] - The ChiNext saw a net outflow of 17.11 billion yuan, while the STAR Market had a net outflow of 2.39 billion yuan, and the CSI 300 constituents faced a net outflow of 33.89 billion yuan [1] Industry Performance - Out of the 28 primary industries classified by Shenwan, 9 industries saw gains, with the non-ferrous metals and real estate sectors leading with increases of 1.96% and 1.51%, respectively [1] - The industries with the largest declines were telecommunications and comprehensive sectors, which fell by 2.13% and 1.95%, respectively [1] Industry Capital Inflow - Six industries experienced net capital inflows, with the non-ferrous metals sector leading with a net inflow of 2.168 billion yuan and a daily increase of 1.96% [1] - The construction decoration industry followed with a daily increase of 0.96% and a net inflow of 721 million yuan [1] Industry Capital Outflow - Twenty-five industries faced net capital outflows, with the non-bank financial sector leading with a net outflow of 8.138 billion yuan and a daily decline of 1.46% [1] - The electronics sector had a net outflow of 7.517 billion yuan despite a daily increase of 1.16% [1] Individual Stock Performance - A total of 1,982 stocks saw net capital inflows, with 763 stocks having inflows exceeding 10 million yuan, and 102 stocks with inflows over 100 million yuan [2] - The stock with the highest net inflow was Wolong Electric Drive, which rose by 10.01% with a net inflow of 2.174 billion yuan [2] - The stocks with the largest net outflows included Luxshare Precision, Industrial Fulian, and Xian Dao Intelligent, with net outflows of 2.592 billion yuan, 1.405 billion yuan, and 1.308 billion yuan, respectively [2]

Market Overview - On September 12, A-shares experienced a pullback after an initial rise, with the Shanghai Composite Index closing down 0.12% at 3870.6 points, after reaching a peak of 3892.74 points during the day [1][2] - The Shenzhen Component Index fell by 0.43%, while the ChiNext Index dropped by 1.09%, with a total market turnover of approximately 2.54 trillion yuan [1][2] Sector Performance - Precious metals and non-ferrous metals sectors saw collective gains, while storage chips, film and television, real estate, and steel sectors performed well [2] - Conversely, insurance, banking, and securities sectors experienced declines, with white wine and PEEK materials showing significant losses [2] Storage Chip Sector - The storage chip sector surged in the afternoon, with the storage index rising over 7% at one point and closing with a gain of 5.04% [3] - Notably, Zhaoyi Innovation's stock price spiked to a high of 190.21 yuan per share, with a market capitalization of 126.74 billion yuan and a trading volume exceeding 13.4 billion yuan [3][5] Company News - SanDisk's stock price increased by over 14% on September 11, with a cumulative rise of over 65% since September 3, following a price hike announcement of more than 10% for its products [5] - Micron Technology also saw its stock rise by over 7%, with market speculation about price increases for its storage products [5] - A new company, Changcun Phase III, was established with a registered capital of 20.72 billion yuan, indicating ongoing investment in the semiconductor sector [5] Investment Opportunities - According to CITIC Securities, the domestic advanced storage and logic sectors are expected to expand, driving significant demand for semiconductor equipment [5] - The report anticipates stable demand for advanced storage wafer fabs in 2025, with rapid growth expected in 2026 as new production lines come online [5] Robotics Sector - The robotics sector remains active, with stocks like Jingzhida and Wolong Electric achieving daily limits [9][10] - Shoukai Co., Ltd. has seen a remarkable increase of 89.77% in stock price since September 3, despite no significant changes in its business operations [12][13]