Group 1: Company Performance - Jiejie Microelectronics reported a revenue of 1.6 billion yuan in H1 2025, a year-on-year increase of 26.77%, with major revenue sources being MOSFETs, protective devices, and thyristors [1] - Hongsoft Technology's revenue in Q2 fluctuated due to project acceptance delays, but the company remains optimistic about growth in mobile smart terminal business [2] - Luwei Optoelectronics achieved a revenue of 544 million yuan in H1 2025, a 37.48% increase year-on-year, with a net profit of 106 million yuan, up 29.13% [3] - Desay SV reported a revenue of 14.644 billion yuan in H1 2025, a 25.25% increase, with a net profit of 1.223 billion yuan, up 45.82% [4] - East China Pharmaceutical made significant progress in innovative drug development, with several products entering clinical stages [5] - Guangwei Composite's carbon fiber business faces challenges due to price competition and overcapacity, but it is optimistic about future demand [6] Group 2: Market Position and Strategy - Jiejie Microelectronics has a production capacity of 6W pieces/month for 6-inch lines and 11W pieces/month for 8-inch lines, with a focus on cash flow management [1] - Hongsoft Technology is transitioning to pure software licensing in its smart automotive business, targeting a gross margin of 90% [2] - Luwei Optoelectronics aims to become a world-class mask manufacturer, with a market share of 25.52% in G11 mask sales [3] - Desay SV has established overseas branches and is expanding its smart cockpit and driving assistance business, with a focus on technology development [4] - East China Pharmaceutical is planning to release important data at academic conferences and has multiple aesthetic medicine products expected to launch in the next two years [5] - Guangwei Composite is expanding its R&D efforts to enhance carbon fiber applications across various sectors [6]

Summary of the Conference Call for虹软科技 Company Overview - **Company**: 虹软科技 (ArcSoft Technology) - **Industry**: Technology, focusing on AI, smart devices, and automotive solutions Key Financials - **Revenue**: 1.08 billion CNY in H1 2025, a year-on-year increase of 33.86% [2] - **R&D Investment**: 1.99 billion CNY, accounting for 48.39% of revenue, with a year-on-year increase of 2.36% [2] - **Net Profit**: 88.54 million CNY, a year-on-year increase of 44.06% [3] - **Cash Dividend**: 2.2 CNY per share, totaling approximately 88.16 million CNY, representing 99.58% of net profit attributable to shareholders [3] Business Segments Smart Mobile Devices - **Technology Development**: Continuous iteration of smart ultra-domain fusion technology, enhancing extreme lighting, long-duration recording, and tone processing efficiency [2][6] - **Commercialization**: Successful commercialization of starry sky shooting solutions and improvements in high-magnification zoom scenarios [2][6] - **Revenue Impact**: Despite a slight decline in revenue due to project completion timing, the company remains optimistic about overall growth for the year [5][11] Smart Automotive Solutions - **Growth Rate**: Nearly 50% growth in H1 2025, driven by in-cabin monitoring systems (DMS, OMS) and parking-related products [2][17] - **Certification Achievements**: DMS's first internal rearview mirror overseas project passed EU DAW certification, with multiple projects secured from various car manufacturers [2][7] - **Future Expectations**: Anticipated acceleration in automotive business growth in H2 2025, with new customer shipments expected to generate royalty income [17][18] AI Glasses - **Collaborations**: Partnerships with Qualcomm and other leading manufacturers to enhance visual interaction experiences [2][8] - **Market Potential**: AI glasses are expected to become a significant entry point for AI technology, with a focus on developing new applications [12][22] - **Revenue Recognition**: Several million CNY in minimum billing orders expected to gradually confirm revenue over the next few years, with significant royalty income anticipated in 2026 [13][14] R&D and Innovation - **Personnel**: 596 R&D staff, accounting for 62.15% of total employees [4] - **Focus Areas**: Investment in intelligent ultra-domain fusion technology, smart automotive visual solutions, and AI glasses [2][4] - **New Product Development**: Ongoing development of innovative imaging methods and applications to address pain points in photography and video recording [35] Market Position and Competition - **Competitors**: In the European market, the main competitors include Mobileye and Nvidia, with Mobileye dominating the mass market [29] - **Commercial Photography**: The commercial photography business is growing rapidly, with over 300 clients, but still requires human intervention for final product completion [25] Future Outlook - **Growth Projections**: Anticipated double-digit growth in revenue if revolutionary imaging technologies are successfully developed and launched [32][33] - **Market Trends**: AI glasses are expected to become widely adopted consumer electronics, with significant market potential as a complementary device to smartphones [22] Additional Insights - **Profit Margins**: Slight decline in gross margin from 90% to approximately 88% due to hardware and chip delivery impacts, but long-term goals aim to maintain margins around 90% through a shift to software licensing [20][21] - **Talent Acquisition**: Plans to increase workforce by approximately 40 employees in 2025, maintaining a steady growth in talent [31]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a half-year performance that met expectations, with a revenue of 410 million yuan, representing a year-on-year growth of 7.73%, and a net profit attributable to shareholders of 89 million yuan, up 44.06% year-on-year [7] - The company is focusing on advancements in AI edge technology, with significant growth in its smart driving and IoT device segments, which saw a revenue increase of 49.10% [7] - The company is expected to achieve revenues of 1.013 billion yuan, 1.272 billion yuan, and 1.630 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 231 million yuan, 302 million yuan, and 392 million yuan [7] Financial Performance Summary - For the year 2023, the company is projected to have a revenue of 670 million yuan, with a growth rate of 26.1% [6] - The net profit for 2023 is expected to be 88 million yuan, with a growth rate of 53.0% [6] - The company's gross margin for the first half of 2025 was reported at 88.37%, while the net margin was 21.58% [7] - The company’s earnings per share (EPS) is projected to be 0.22 yuan for 2023, increasing to 0.98 yuan by 2027 [6] - The price-to-earnings (PE) ratio is expected to decrease from 186.5 in 2023 to 53.1 in 2027, indicating improving valuation over time [6] Business Segment Performance - The smartphone business generated 339 million yuan in revenue, growing 2.23% year-on-year, with a gross margin of 91.30% [7] - The smart driving and other IoT device business achieved 65 million yuan in revenue, marking a 49.10% increase year-on-year, although its gross margin decreased to 71.95% [7]

Core Viewpoint - Hongsoft Technology (688088) reported a strong performance in the first half of 2025, with revenue and profit growth, indicating robust development resilience and sustained growth momentum [1][2][3] Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 410 million yuan, a year-on-year increase of 7.73% [1] - The net profit attributable to shareholders was 89 million yuan, up 44.06% year-on-year [1] - The net profit after deducting non-recurring gains and losses was 72 million yuan, reflecting a year-on-year growth of 33.86% [1] Group 2: Business Segments - In the mobile smart terminal sector, the revenue from visual solutions reached 339 million yuan, growing by 2.23% year-on-year [1] - The AI glasses business is expanding through a dual strategy of "technology deepening + ecosystem co-construction," with partnerships established with leading chip manufacturers like Qualcomm [2] - The smart automotive and AIoT visual solutions generated revenue of 64.65 million yuan, marking a significant year-on-year increase of 49.09% [2] Group 3: Technological Advancements - The company upgraded its visual model ArcMuse 2025 V1.1, integrating cloud and edge engineering capabilities [3] - Hongsoft is actively developing core intelligent visual perception technologies for the robotics sector and has established technical collaborations with well-known global robotics companies [3] Group 4: Shareholder Returns - The company plans to distribute a cash dividend of 2.20 yuan per share (including tax), with a total cash distribution amounting to approximately 88.16 million yuan, reflecting a cash dividend ratio of 99.58% [3]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company has shown continuous profit growth, with a significant increase in revenue and net profit driven by its smart automotive business [1][2] - The company is positioned as a leading player in edge AI visual algorithms, benefiting from the growth in smart automotive and new business ventures [1][6] Revenue and Profitability - For the first half of 2025, the company reported revenue of 410 million RMB, a year-on-year increase of 7.73%, and a net profit of 88.54 million RMB, up 44.06% year-on-year [1] - The smart automotive segment saw a revenue increase of 49.09% year-on-year, indicating strong growth potential [2][3] Business Segments - The smart terminal business experienced seasonal fluctuations, with a revenue of 339 million RMB in the first half of 2025, reflecting a year-on-year increase of 2.23% [2] - The smart automotive business is expected to continue its high growth trajectory, with multiple models entering mass production [3] Future Growth Drivers - The AI glasses market is identified as a significant growth opportunity, with global shipments expected to reach 14.5 million units in 2025, a year-on-year increase of 42.5% [4] - The company is actively expanding into AIGC commercial photography and robotics vision sectors, with established partnerships and product offerings [5] Financial Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is 0.71 RMB, with a target price of 61.71 RMB based on a price-to-earnings (PE) ratio of 63 times for 2026 [6][9] - The company is expected to maintain strong revenue growth, with projected revenues of 1.02 billion RMB in 2025, reflecting a year-on-year growth of 25.22% [12]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][11]. Core Views - The company achieved a revenue of 410 million RMB in the first half of 2025, representing a year-on-year growth of 7.7%, with a net profit of 70 million RMB, up 33.9% year-on-year [2]. - The mobile intelligent terminal visual solutions segment generated 340 million RMB in revenue, growing 2.2% year-on-year, while the smart automotive and other AIoT segment saw a significant increase of 49.1% to 60 million RMB, driven by targeted projects in the smart automotive sector [3]. - The company is expected to see revenue growth of 9.0%, 14.2%, and 14.7% for the years 2025, 2026, and 2027, respectively, with net profit growth rates of 6.6%, 32.9%, and 29.2% for the same years [4]. Summary by Sections Performance Review - In the first half of 2025, the company reported a cash inflow of 390 million RMB from sales, a 45.9% increase compared to the same period last year [2]. Operational Analysis - The smart automotive sector is expected to become a new growth curve for the company, with strategies focusing on domestic markets and software development before hardware integration [3]. - The increase in net profit is attributed to better personnel utilization across product lines and a reduction in management fees [3]. Profit Forecast and Valuation - The projected revenues for 2025, 2026, and 2027 are 890 million RMB, 1,015 million RMB, and 1,164 million RMB, respectively, with corresponding net profits of 190 million RMB, 250 million RMB, and 320 million RMB [4].

Group 1 - The core point of the announcement is the report on the management and actual use of raised funds by Hongsoft Technology Co., Ltd. for the first half of 2025, ensuring compliance with relevant regulations [1][25][17] - The total amount of funds raised was RMB 1,328,480,000, with a net amount of RMB 1,254,859,239.89 after deducting underwriting fees and other expenses [1][2][17] - As of December 31, 2024, the cumulative usage and balance of the raised funds were reported, with a balance of RMB 92,485,867.82 as of June 30, 2025 [2][6][11] Group 2 - The company has established a fundraising management system to ensure the proper storage, use, and supervision of raised funds, adhering to regulatory requirements [3][25] - A tripartite supervision agreement was signed with banks to clarify the rights and obligations of all parties involved in the management of raised funds [4][25] - The company has decided to permanently supplement its working capital with surplus funds from completed projects, specifically the IoT AI vision solution project [5][14] Group 3 - The company has utilized part of the temporarily idle raised funds for cash management, with a maximum balance of RMB 80,000,000 as of June 30, 2025 [8][11][10] - The board approved the use of remaining surplus funds for new project investments, specifically the Arc Muse computing technology engine enhancement project, with a total investment of RMB 99,263,300 [13][25] - The company has confirmed that there were no violations in the use of raised funds, and all funds were directed towards promised investment projects [17][25] Group 4 - The company plans to distribute a cash dividend of RMB 2.20 per 10 shares, totaling RMB 88,160,908, which accounts for 99.58% of the net profit for the first half of 2025 [40][41][38] - The profit distribution plan has been approved by both the board and the supervisory board, ensuring compliance with relevant regulations and protecting shareholder interests [27][43][25] - The company has maintained a good overall operating condition, and the profit distribution will not significantly impact earnings per share or cash flow [44][45]

证券代码：688088 证券简称：虹软科技 公告编号：临 2025-032 虹软科技股份有限公司 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： ? 每 10 股分配比例：A 股每 10 股派发现金红利 2.20 元（含税），不进行 资本公积金转增股本，不送红股。 ? 本次利润分配以实施权益分派股权登记日登记的总股本扣减公司回购专 用证券账户中的股份为基数，具体日期将在权益分派实施公告中明确。 ? 在实施权益分派的股权登记日前公司总股本扣减公司回购专用证券账户 中的股份发生变动的，拟维持每股分配比例不变，相应调整分配总额，并将另行 公告具体调整情况。 一、利润分配方案内容 虹软科技股份有限公司（以下简称公司）2025 年半年度合并报表中归属于 上市公司股东的净利润为人民币 88,536,072.16 元。截至 2025 年 6 月 30 日，公 司母公司报表中期末未分配利润为人民币 217,836,010.65 元。上述财务数据未 经审计。经董事会决议，公司 2025 年半年度拟以实施权益分派股权登记日登记 ...

Core Viewpoint - The Supervisory Board of Hongsoft Technology Co., Ltd. has approved the 2025 semi-annual report, fundraising management report, and profit distribution plan, confirming compliance with relevant regulations and ensuring transparency in financial reporting [1][2][3] Group 1: Supervisory Board Meeting - The third meeting of the third Supervisory Board was held with all three supervisors present, and the meeting complied with legal and regulatory requirements [1] - The meeting was chaired by Ms. Liu Xiaoqian, with the company’s board secretary in attendance [1] Group 2: Approval of Semi-Annual Report - The Supervisory Board approved the 2025 semi-annual report, affirming that it accurately reflects the company's operational and financial status for the first half of 2025 [1] - The voting result was unanimous, with 3 votes in favor and no opposition or abstentions [2] Group 3: Fundraising Management Report - The Supervisory Board approved the special report on the management and actual use of fundraising for the first half of 2025, confirming compliance with relevant regulations and proper use of funds [2] - The report indicated that the fundraising was stored in dedicated accounts and used for specified purposes, with no violations noted [2] - The voting result was unanimous, with 3 votes in favor and no opposition or abstentions [2] Group 4: Profit Distribution Plan - The Supervisory Board approved the profit distribution plan for the first half of 2025, considering the company's profitability, cash flow, and funding needs [3] - The plan was deemed compliant with regulations regarding cash dividends and ensured reasonable returns for shareholders, particularly minority shareholders [3] - The voting result was unanimous, with 3 votes in favor and no opposition or abstentions [3]

Core Viewpoint - The company emphasizes its commitment to enhancing operational quality and investor returns through its 2025 "Quality Improvement and Return" action plan, focusing on innovation, core business development, and sustainable growth [2][11]. Group 1: Business Performance - In the first half of 2025, the company achieved operating revenue of 410.35 million yuan, a year-on-year increase of 7.73%, and a net profit attributable to shareholders of 88.54 million yuan, up 44.06% [3]. - The mobile intelligent terminal visual solutions generated revenue of 339.32 million yuan, growing by 2.23%, while the smart automotive and other AIoT visual solutions brought in 64.65 million yuan, reflecting a significant increase [3]. Group 2: R&D and Innovation - The company maintains a high level of R&D investment, with R&D expenses totaling 62.15% of its workforce being dedicated to innovation in computer vision technology [2]. - The Turbo Fusion technology for mobile devices has undergone continuous iterations, enhancing image processing efficiency and reducing system load, particularly in challenging lighting conditions [4][5]. Group 3: Strategic Initiatives - The company is expanding its AI glasses business through a dual strategy of deepening technology and building ecosystems, focusing on enhancing visual perception and image capture capabilities [6]. - In the automotive sector, the company has made significant progress in driver and passenger safety systems, achieving compliance with EU regulations and securing contracts with major automotive brands [7][8]. Group 4: Investor Returns - The company has implemented a stable profit distribution policy, with cumulative cash dividends amounting to 524.47 million yuan since its listing, representing 41.79% of the net funds raised [11]. - For the first half of 2025, the company plans to distribute cash dividends of 2.20 yuan per share, totaling 88.16 million yuan, which constitutes 99.58% of the net profit attributable to shareholders [11]. Group 5: Governance and Management - The company is enhancing its governance structure and has initiated adjustments to its governance framework to align with regulatory requirements [14]. - A focus on risk management and resource optimization is being emphasized to support business development and shareholder returns [13][14]. Group 6: Communication with Investors - The company has organized multiple investor communication activities, including performance briefings and workshops, to enhance transparency and trust with investors [15][16]. - A feedback mechanism has been established to address investor inquiries effectively, ensuring that their concerns are communicated to management [16].