Group 1 - The ChiNext Index rose over 1.5% on August 29, with the lithium battery sector continuing its strong performance, while sectors like GPU, servers, IDC computing leasing, and CPO optical modules faced significant declines [1] - The recent hot topic, the Sci-Tech Innovation 50 ETF (159783), saw a drop of over 0.5%, with mixed performance among its constituent stocks, including significant declines in companies like Cambricon, Shanghai Semei, Loongson Technology, and others, while companies like Siengda Intelligent, CATL, and others saw notable gains [1] - Huatai Securities indicated that A-shares remain relatively undervalued globally, suggesting potential for significant appreciation based on metrics like market capitalization to GDP ratio [1] Group 2 - Huabao Securities reported that current market sentiment remains high, with an influx of new capital continuing, supporting the "deposit migration" logic, and the profit-making effect is expanding [2] - It is expected that A-shares will continue a trend of oscillating upward unless there is policy intervention, with a recommendation to maintain a balanced allocation focusing on mid to large-cap and leading companies [2] - The report emphasizes a positive outlook on technology growth styles amidst increasing economic uncertainty, suggesting attention to sectors like technology, new energy, cyclical (including military and rare earth), pharmaceuticals, and high-dividend stocks for rotation and rebound opportunities [2]

Summary of Key Points Core Viewpoint - Longxin Zhongke's stock price increased by 5.61% on August 28, with a trading volume of 2.167 billion yuan, indicating strong market interest and activity in the company's shares [1]. Financing and Margin Trading - On August 28, Longxin Zhongke had a financing buy-in amount of 263 million yuan, with a financing repayment of 265 million yuan, resulting in a net financing outflow of 2.0413 million yuan [1]. - As of August 28, the total margin trading balance for Longxin Zhongke was 971 million yuan, with the financing balance accounting for 1.61% of the circulating market value, which is above the 90th percentile level over the past year, indicating a high level of financing activity [1]. - In terms of securities lending, on August 28, the company had 600 shares repaid and 900 shares sold, with a selling amount of 135,100 yuan, and a remaining short position of 17,300 shares, with a short balance of 2.5934 million yuan, also above the 50th percentile level over the past year [1]. Company Profile and Financial Performance - Longxin Zhongke Technology Co., Ltd. is located in Haidian District, Beijing, and was established on March 5, 2008, with its listing date on June 24, 2022. The company specializes in the research, sales, and services of processors and supporting chips [1]. - The main business revenue composition includes: 47.09% from information technology chips, 35.82% from industrial control chips, and 17.09% from solutions [1]. - As of June 30, 2025, the number of shareholders increased to 22,400, a rise of 22.32%, with an average of 17,892 circulating shares per person, an increase of 17.23% [2]. - For the first half of 2025, Longxin Zhongke reported operating revenue of 244 million yuan, a year-on-year increase of 10.90%, while the net profit attributable to shareholders was -294 million yuan, a decrease of 23.66% year-on-year [2].

Core Viewpoint - Longxin Zhongke (688047) reported a mixed financial performance for the first half of 2025, with revenue growth but increased net losses, indicating challenges in profitability and cash flow management [1][3]. Financial Performance - Total revenue for the first half of 2025 reached 244 million yuan, a year-on-year increase of 10.9% compared to 220 million yuan in 2024 [1]. - The net profit attributable to shareholders was -294 million yuan, a decline of 23.66% from -238 million yuan in the previous year [1]. - In Q2 2025, total revenue was 119 million yuan, up 19.05% year-on-year, while the net profit attributable to shareholders was -143 million yuan, an increase of 12.33% compared to the same quarter last year [1]. - The gross margin improved to 42.44%, a significant increase of 43.04% year-on-year, while the net margin was -120.93%, a decrease of 11.51% [1]. - The company’s accounts receivable accounted for 99.32% of total revenue, indicating a high level of receivables relative to sales [1]. Cost and Efficiency Metrics - Total expenses (selling, administrative, and financial) amounted to 99.5 million yuan, representing 40.86% of revenue, a decrease of 4.19% year-on-year [1]. - The company reported a significant drop in operating cash flow per share to -0.81 yuan, down 81.7% from -0.44 yuan [1]. - The net asset value per share decreased by 19.93% to 6.62 yuan, while earnings per share fell by 25.42% to -0.74 yuan [1]. Investment and Market Position - Longxin Zhongke has a median Return on Invested Capital (ROIC) of 4.98% since its listing, with the worst year being 2024 at -19.07%, indicating weak investment returns [3]. - The company has faced challenges with cash flow, as indicated by a three-year average of operating cash flow to current liabilities at -296.79% [3]. - The company aims to establish an independent information technology system and ecosystem, focusing on self-developed IP and avoiding reliance on foreign technologies [5]. Fund Holdings - The largest fund holding Longxin Zhongke shares is Changsheng Innovation Driven Mixed A, which has increased its holdings to 835,700 shares [4]. - Other funds, including Changsheng High-end Equipment Mixed A and Changsheng Advantage Enterprise Selected Mixed A, have also increased their positions in the company [4].

Core Viewpoint - Domestic hydropower stations are replacing Western industrial control systems with domestically produced programmable logic controllers (PLCs) that utilize Loongson processors to enhance security and avoid vulnerabilities associated with networked systems [1][11]. Group 1: Industry Context - The switch to domestic PLCs signifies a broader trend in China's hydropower sector, where major facilities like the Xiluodu, Three Gorges, and Xiangjiaba hydropower stations have adopted new control systems [11]. - Historically, the PLC market has been dominated by foreign companies, with Siemens S7-300 and Schneider Premium series being commonly used in Chinese hydropower stations, which posed significant security risks [7][11]. Group 2: Technological Implications - The new PLCs developed by Aotuo Technology are based on the Loongson processor, featuring extensive communication interfaces and program space to ensure efficient operation [9][15]. - The ability to customize communication protocols and functionalities allows these PLCs to adapt to complex control scenarios, fulfilling the operational requirements of critical equipment like the tubular valve [9][11]. Group 3: Security Concerns - The reliance on foreign control systems has raised alarms about potential backdoors and vulnerabilities that could be exploited for remote control of critical infrastructure [11][13]. - Historical incidents, such as the Stuxnet virus attack on Iran's nuclear facilities, highlight the risks associated with using foreign PLCs, emphasizing the need for self-sufficiency in critical technology [13][15]. Group 4: Future Directions - The ongoing geopolitical tensions necessitate that China develops its own technology in communication and chip sectors to mitigate risks associated with foreign dependencies [17][48]. - Establishing a fully domestic ecosystem for both hardware and software is essential to eliminate potential backdoors and ensure the security of industrial control systems [46][48].

Core Viewpoint - Longxin Zhongke (688047) reported a revenue of 244 million yuan for the first half of 2025, marking a year-on-year increase of 10.90%, while the net profit attributable to shareholders was -294 million yuan, compared to -238 million yuan in the same period last year [1][2] Financial Performance - The company's revenue from industrial control chips increased by 61.09% year-on-year, driven by the recovery in the security application industrial control market and contributions from new products [1] - Revenue from information technology chips grew by 5.01% year-on-year, benefiting from the high cost-performance ratio of the 3A6000 chip and the recovery of the domestic e-government market [1] - Revenue from solution services decreased by 25.93% year-on-year as the company continued to adjust its product structure [1] - The gross profit margin for the first half of the year was 42.44%, an increase of 12.77 percentage points year-on-year, with industrial control chips achieving a gross profit margin of 65.45%, up 12.98 percentage points from the previous year [1] Operational Insights - The company is transitioning from a focus on product development to market sales, indicating a new growth cycle for revenue [3] - Longxin Zhongke is implementing a sales strategy that emphasizes market-oriented pricing and product structure optimization, while actively reducing the proportion of solution services [3] - Significant progress has been made in the development of new CPU products, including the "Three Swordsmen" and "Three Elite" series, with many chips entering the market [3][4] Product Development - The 3C6000 series server CPU is being commercialized, showcasing significant improvements in performance and cost-effectiveness compared to previous generations [4] - The new desktop CPU, 3B6600, is in the physical design phase after completing code development and basic freezing [4] - The embedded CPU, 2K3000, has successfully completed the tape-out process and is entering productization, offering strong general and AI computing performance [4] - The specialized CPU, 2P0300, has also completed tape-out and is undergoing productization, further enhancing its cost-performance ratio [4] Software Development - By June 2025, the company has achieved native support for its architecture in various open-source software communities, including Linux kernel and GCC toolchain [5] - The company holds a total of 820 authorized patents, including 643 invention patents, and has developed numerous software copyrights and integrated circuit layout design rights [5]

Meeting Overview - The second meeting of the Supervisory Board of Longxin Zhongke Technology Co., Ltd. was held on August 26, 2025, with all three supervisors present, confirming the legality and validity of the meeting procedures [1][2]. Financial Report Approval - The Supervisory Board approved the "2025 Half-Year Report" and its summary, ensuring that the report accurately reflects the company's financial status and operational results for the reporting period [2]. Fund Usage Report Approval - The Supervisory Board also approved the "Special Report on the Storage and Actual Use of Raised Funds for the First Half of 2025," confirming compliance with relevant regulations regarding the storage and use of raised funds, with no violations reported [2].

Core Viewpoint - The report highlights the financial performance and operational developments of Loongson Technology Corporation Limited for the first half of 2025, indicating a mixed performance with revenue growth but increased losses due to rising costs and strategic shifts in product focus [4][5][6]. Financial Performance - The company's revenue for the first half of 2025 was approximately 243.51 million yuan, representing a 10.90% increase compared to the same period last year [4]. - The total profit for the period was a loss of approximately 297.57 million yuan, compared to a loss of 277.07 million yuan in the previous year [4]. - The net profit attributable to shareholders was a loss of approximately 294.47 million yuan, compared to a loss of 238.13 million yuan in the same period last year [4]. - The company's net assets decreased by 9.61% to approximately 2.65 billion yuan compared to the end of the previous year [4]. Business Operations - The company operates primarily in the integrated circuit design industry, utilizing a Fabless model where it designs chips and outsources manufacturing and testing [8]. - The company has seen a 61.09% increase in revenue from industrial control chips, driven by a recovery in the safety application market [5]. - The revenue from information technology chips grew by 5.01%, benefiting from the high cost-performance ratio of the 3A6000 chip and the recovery of the domestic electronic government market [5]. - Revenue from solution services decreased by 25.93% as the company continues to adjust its product structure [5]. Product Development - The company has launched new products, including the 2K3000/3B6000M SoC chips aimed at industrial control and terminal applications, and the 2P0300 SoC chip for printers [9][10]. - The company is focusing on building an ecosystem around its LoongArch architecture, with efforts to enhance its software ecosystem and support partners in developing SoC products based on its CPU core IP [9][18]. - The company is actively expanding its market presence in industrial control and open markets, leveraging the cost advantages of its low-cost chips [18]. Industry Context - The integrated circuit design industry is characterized by high technical barriers and significant R&D investment, with China being a major player in the global market [8]. - The industry is experiencing rapid growth due to advancements in consumer electronics, automotive electronics, and artificial intelligence applications, despite facing challenges from international trade restrictions [8]. - The establishment of an independent ecosystem outside the X86 and ARM architectures is gaining traction, with the development of alternatives like LoongArch and RISC-V [8].

Core Viewpoint - The report highlights a decline in total assets and net assets for Longxin Zhongke Technology Co., Ltd. as of the end of the reporting period, alongside an increase in operating revenue, indicating mixed financial performance [1][3]. Financial Summary - Total assets decreased to ¥3,167,764,447.66 from ¥3,497,483,392.20, a decline of 9.43% [3]. - Net assets attributable to shareholders decreased to ¥2,654,305,382.05 from ¥2,936,397,075.21, a decline of 9.61% [3]. - Operating revenue increased to ¥243,512,941.83 from ¥219,586,897.86, an increase of 10.90% [3]. - Total profit was reported at -¥297,569,415.19, compared to -¥277,072,472.79 in the previous year [3]. - Net profit attributable to shareholders was -¥294,468,226.53, compared to -¥238,129,943.62 in the previous year [3]. - The net profit after deducting non-recurring gains and losses was -¥319,681,386.87, compared to -¥260,397,313.01 in the previous year [3]. - The net cash flow from operating activities was -¥322,797,205.60, compared to -¥177,652,840.45 in the previous year [3]. - The weighted average return on net assets decreased by 3.59 percentage points to -10.53% [3]. - Basic and diluted earnings per share were both -¥0.74, compared to -¥0.59 in the previous year [3]. - Research and development expenses accounted for 109.32% of operating revenue, down from 126.07% [3]. Shareholder Information - As of the end of the reporting period, the total number of shareholders was 22,411 [4]. - The top shareholder, Beijing Tiantong Xinyuan Technology Co., Ltd., holds 19.32% of shares, amounting to 77,477,539 shares [5]. - Other significant shareholders include Beijing Zhongke Suanyuan Asset Management Co., Ltd. and Linzhi Dingfu Venture Capital Management Co., Ltd. [5].

Core Viewpoint - Longxin Zhongke (688047) reported a revenue of 244 million yuan for the first half of 2025, reflecting a year-on-year growth of 10.9%, but recorded a net loss attributable to shareholders of 294 million yuan, with a basic earnings per share of -0.74 yuan [1] Financial Performance - The company achieved an operating revenue of 244 million yuan in the first half of 2025, which is a 10.9% increase compared to the previous year [1] - The net profit attributable to shareholders was -294 million yuan, indicating a loss [1] - The basic earnings per share stood at -0.74 yuan [1]

龙芯中科技术股份有限公司 2025 年度"提质增效重回报"行动方案的半年度评估报告 为落实以投资者为本的理念，龙芯中科技术股份有限公司（以下简称"龙芯中科"、"龙 芯"或"公司"）基于对未来发展前景的信心及价值的认可，对 2025 年上半年"提质增效 重回报"行动方案的落实情况进行评估，具体情况如下。 一、聚焦经营主业，巩固转型成果，提升经营质量效率 1、保持研发投入力度，巩固研发转型成果 2025 年上半年公司进一步统筹"保供应"、"降成本"和"稳库存"之间的平衡关系， 继续优化供应链安全保障策略、完善生产渠道和强化供应商管理，确保产品供应。 持续加强生产调度，加强与研发的联动，通过批量晶圆采购、减少基板层数、优化芯片 设计减小面积等多种措施，有效降低了产品成本，贯彻"成品率就是竞争力，成品率就是利 润率"理念有效提高成品率。加强芯片生产的计划性和前瞻性，在业务销售和加工生产之间 保持稳定的库存水平，确保高效率供应和降低资金积压。 作为技术密集型企业，龙芯坚持核心技术自主创新的发展战略，高度重视产品研发，并 持续地进行研发投入。近两年，公司研发投入总额均在 5 亿元以上，研发投入总额占当年营 业收入比例均在 ...