Core Viewpoint - Chip stocks experienced a significant rally in the afternoon, with several companies seeing substantial gains, indicating a positive trend in the semiconductor sector [1] Company Performance - Aishi Technology reached a 20% limit up, showcasing strong market interest [1] - Companies such as Cambricon, Saiwei Microelectronics, Aojie Technology, Hengxuan Technology, Qipai Technology, and Chipway Technology all saw their stock prices increase by over 5% [1] - Other companies including Lianang Microelectronics, Taiji Co., and Huahong Semiconductor also followed suit with notable gains [1]

Core Insights - The Sci-Tech Innovation Board (STAR Market) has become a significant platform for technology innovation and capital market reform in China, celebrating its sixth anniversary with 589 listed companies as of July 22, 2025 [1] Group 1: STAR Market Development - The STAR Market has continuously promoted institutional innovation and industrial upgrading, attracting global attention as a hub for "hard technology" enterprises [1] - Since its launch on July 22, 2019, the STAR Market has supported the listing of 25 initial companies, marking the beginning of its journey [1] Group 2: Company Perspectives - Haiguang Information has made significant progress in governance, innovation, competition, and operations, focusing on high-end processor business and increasing R&D investment [2] - The company has independently developed multiple generations of general-purpose CPUs and AI accelerators, achieving a leading market share in domestic high-end computing and intelligent computing sectors [2] - Baili Tianheng has benefited from the STAR Market's support for high-quality development of unprofitable enterprises, focusing on innovative drug development in oncology [4] - The company has initiated a fundraising plan for innovative drug R&D, aiming to expand its product pipeline and commercialize more products [4] - Tuojing Technology has experienced accelerated growth post-listing, achieving profitability in its first year and expanding its production scale in semiconductor equipment [6] - Zhongkong Technology has leveraged capital market support for R&D in AI and robotics, enhancing its governance structure and operational efficiency [7] - Zexin Pharmaceutical has successfully launched three new drug products and established a competitive product pipeline, benefiting from STAR Market policies [9] - Hehui Optoelectronics has recognized the STAR Market's reforms as a significant boost to its innovation capabilities and market adaptability [10] Group 3: Policy Impact - The introduction of the "1+6" policy measures aims to enhance the STAR Market's support for technology innovation enterprises, addressing core pain points and growth patterns [10][12] - The establishment of the Sci-Tech Growth Layer provides a dedicated capital channel for high-potential, non-profitable enterprises, facilitating their transition through the "valley of death" [11] - The reforms emphasize long-term value assessment based on technological advancement and market potential, rather than short-term profitability [12] - The STAR Market is expected to cultivate globally competitive technology leaders, contributing to high-quality economic development in China [12][14]

Group 1: ETF Performance - The Sci-Tech Chip ETF has a turnover rate of 3.1% during trading, with a transaction volume of 9.55 billion yuan [3] - As of July 15, the Sci-Tech Chip ETF's latest scale reached 30.492 billion yuan, marking a six-month high and ranking first among comparable funds [3] - The ETF's latest share count reached 20.104 billion shares, also a six-month high, ranking first among comparable funds [3] - Over the past six days, the ETF has seen continuous net inflows, with a maximum single-day net inflow of 761 million yuan, totaling 2.273 billion yuan [3] - The leveraged funds continue to invest, with a net financing amount of 30.2579 million yuan this month and a latest financing balance of 1.844 billion yuan [3] - The ETF's net value has increased by 57.25% over the past year, ranking first among comparable funds, and it is in the top 5.33% of index stock funds [3] - Since its inception, the ETF's highest monthly return was 25.18%, with the longest consecutive monthly gains being four months and a maximum increase of 36.01% [3] Group 2: Semiconductor Industry Outlook - Tianfeng Securities predicts a continued optimistic growth trajectory for the global semiconductor industry in 2025, driven by AI and downstream growth [4] - Policy support is expected to enhance the domestic semiconductor industry chain through horizontal category expansion and vertical technological complementarity, accelerating industry concentration and competitiveness [4] - The top ten weighted stocks in the Sci-Tech Board Chip Index as of June 30, 2025, include SMIC, Haiguang Information, Cambricon, and others, collectively accounting for 57.76% of the index [4] Group 3: Stock Performance - The top ten stocks in the Sci-Tech Chip Index show varying performance, with SMIC at -0.11% and Cambricon at +6.24%, indicating a diverse range of stock movements [6] - Investors without stock accounts can access investment opportunities in domestic chips through the Sci-Tech Chip ETF linked fund (017470) [6]

Macro and Strategy - June financial data shows a significant rebound in credit, with new social financing reaching 4.20 trillion yuan, exceeding expectations of 3.71 trillion yuan, and new RMB loans at 2.24 trillion yuan, surpassing the forecast of 1.84 trillion yuan [8][9][10] - The M2 money supply grew by 8.3% year-on-year, indicating a recovery in domestic economic momentum as private sector balance sheet expansion improves [8][9] - The "seesaw effect" between government financing and corporate loans has weakened, suggesting a shift in credit dynamics as local governments approach their annual debt targets [9][10] Retail Industry - The jewelry market is projected to grow steadily, with the market size reaching 728 billion yuan in 2024, reflecting a compound annual growth rate of 3.6% since 2019 [11][12] - The top five companies in the jewelry sector hold a market share of 41.4%, indicating increasing industry concentration as consumer preferences shift towards quality and design [11][12] - The retail sector is benefiting from the recent Amazon Prime Day, which generated an estimated $24.1 billion in sales, a 30% increase year-on-year, highlighting the growth potential in cross-border e-commerce [13][14] Food and Beverage Industry - The food and beverage sector saw a 0.92% increase, underperforming the Shanghai Composite Index by 0.17 percentage points [14] - The liquor market is stabilizing, with major brands focusing on brand positioning and market health, while the overall demand remains under pressure [15][16] - Recommendations include leading brands like Kweichow Moutai and Wuliangye, which have shown resilience and potential for recovery [15][16] Construction and Building Materials - The construction materials sector is expected to improve due to a shift towards healthy competition and urban renewal initiatives, with a focus on technological innovation [17][18] - Cement prices have stabilized, with a slight decrease of 0.4% week-on-week, while demand remains steady despite seasonal fluctuations [17][18] - Recommendations include companies like Three Trees and China National Building Material, which are well-positioned to benefit from domestic demand [18] Computer Industry - The AI ASIC market is rapidly expanding, with a projected market size growth from $14.8 billion in 2024 to $83.8 billion by 2030, reflecting a compound annual growth rate of 33.5% [19][20] - The price advantage of AI ASIC chips over GPUs is significant, with average prices of $5,236 compared to $8,001 for GPUs, making them more attractive for specific applications [19][20] - Companies like Google and Amazon are accelerating their development of ASIC chips, indicating strong future demand in this sector [21] Home Appliances - The home appliance sector is experiencing stable growth in domestic sales, driven by government subsidies, while exports face challenges due to high bases and tariff impacts [22][23] - White goods are seeing a slight increase in domestic sales, with air conditioning units showing a 9.5% growth in domestic shipments [22][23] - Recommendations include leading brands such as Midea and Gree, which are expected to maintain strong performance [22][23] Pharmaceutical Industry - Merck's acquisition of Verona for $10 billion aims to enhance its portfolio with a new COPD treatment, indicating strong growth potential in respiratory therapies [27][28] - WuXi AppTec is projected to achieve a 102% increase in net profit for the first half of 2025, reflecting robust operational performance [29] - The pharmaceutical sector is showing resilience, with a focus on innovative treatments and strategic acquisitions [27][28] Coal Industry - The coal market is expected to stabilize as domestic production increases and imports decrease, with a projected production of 4.85 billion tons in 2025, a 2% increase year-on-year [31][32] - Demand for coal is anticipated to improve in the second half of the year, particularly for non-electric uses such as chemical production [33] - Recommendations include leading coal companies like China Shenhua and China Coal Energy, which are well-positioned to benefit from market dynamics [34] Electronics Industry - The electronics sector is experiencing positive momentum, with a 0.93% increase in stock performance, driven by strong demand in the optical and semiconductor segments [34] - The industry is expected to see significant catalysts in the coming months, particularly in the context of AI and cloud computing advancements [34] - Companies involved in ASIC development are likely to benefit from the ongoing trends in computing and data processing [34]

Core Viewpoint - The technology and pharmaceutical sectors have shown significant performance in the first half of the year, with several thematic funds reporting substantial growth in both performance and scale [1][2]. Fund Performance and Scale Growth - The China Europe Digital Economy Mixed Fund saw its scale increase from less than 8 million shares at the end of Q1 to over 900 million shares by the end of Q2, representing a growth of over 10 times [2][4]. - The total subscription for the A and C classes of the China Europe Digital Economy Mixed Fund exceeded 800 million shares in Q2 [2][3]. - The China Europe Information Technology Mixed Fund also experienced significant growth, with total subscriptions exceeding 900 million shares and total scale surpassing 1 billion shares by the end of Q2, marking an increase of over 8 times from approximately 110 million shares at the end of Q1 [3][4]. - The China Europe Sci-Tech Theme Mixed Fund had total subscriptions exceeding 1.1 billion shares in Q2, with total scale exceeding 1.8 billion shares, more than doubling from the previous quarter [5][6]. Changes in Holdings - The substantial growth in fund scale is attributed to strong performance throughout the year, with notable changes in the top ten holdings of several funds [7]. - The China Europe Digital Economy Mixed Fund made significant changes to its top ten holdings, notably increasing its position in Xinyi Technology, which saw a surge in stock price following its half-year earnings forecast [7][9]. - The China Europe Information Technology Mixed Fund also saw Xinyi Technology become its second-largest holding [9][10]. Investment Focus - The fund manager of the China Europe Digital Economy Mixed Fund emphasized a focus on five core investment areas: AI infrastructure, AI applications, domestic AI supply chain, intelligent robotics, and intelligent driving [8]. - The manager indicated a systematic reduction in exposure to the robotics sector, awaiting a decisive breakthrough in technology before increasing positions again [8]. - The manager of the China Europe Sci-Tech Theme Mixed Fund highlighted the importance of understanding industry trends and company value amidst the volatility of technology investments [12].

Group 1 - The Shanghai Stock Exchange has released the "Self-Regulatory Supervision Guidelines for Companies Listed on the Sci-Tech Innovation Board No. 5 - Sci-Tech Growth Tier" [1] - The reform does not impose additional listing thresholds for unprofitable companies entering the Sci-Tech Growth Tier, allowing 32 existing unprofitable companies to enter immediately upon the guideline's implementation [1] - Newly registered unprofitable companies will enter the Sci-Tech Growth Tier from the date of their listing [1] Group 2 - Investors participating in the subscription and trading of newly registered stocks in the Sci-Tech Growth Tier must sign a "Risk Disclosure Statement for the Sci-Tech Growth Tier" [2] - The 32 existing companies that have not yet removed the "U" designation include: Zejing Pharmaceutical, Junshi Biosciences, Frontier Biotech, Qingyun Technology, Hehui Optoelectronics, Jingjin Electric, BeiGene, Dize Pharmaceutical, Maiwei Biotech, Aojie Technology, Yuhong Pharmaceutical, Shouyao Holdings, Haichuang Pharmaceutical, CloudWalk Technology, Yifang Biotech, Obsidian Optics, Mengke Pharmaceutical, Nuo Cheng Jianhua, Xinke Mobile, Xinghuan Technology, Yutai Micro, Yuntian Lifa, Tianzhihang, Qi Anxin, Hanwujin, Yihua Tong, Aifute, Huizhiwei, Xinlian Integrated, Zhixiang Jintai, Shengke Communication, and Zhongjuxin [2]

Group 1 - The stock of Aojie Technology (688220.SH) closed at 74.00 yuan, with a decline of 1.79%, currently in a state of breaking issue [1] - Aojie Technology was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on January 14, 2022, with an initial stock price of 164.54 yuan per share and a total issuance of 41.83 million shares [1] - The company raised a total of 6.883 billion yuan from its initial public offering (IPO), with a net amount of 6.546 billion yuan after deducting issuance costs, which was 4.166 billion yuan more than the original plan [1] Group 2 - The funds raised from the IPO are intended for various projects, including new communication chip design, smart IPC chip design, high-precision navigation solutions, research center construction, and working capital [1] - The total issuance costs for Aojie Technology's IPO amounted to 337 million yuan, with underwriting fees accounting for 310 million yuan [1] Group 3 - On April 11, 2025, Guotai Haitong Securities Co., Ltd. held a restructuring and renaming ceremony at the Shanghai Stock Exchange, officially changing its A-share name from "Guotai Junan" to "Guotai Haitong" while retaining the A-share code "601211" [2] - The name change signifies the completion of the merger and restructuring process between Guotai Junan and Haitong Securities [2]

Investment Rating - The report maintains an "Outperform" rating for the electronic industry, indicating expected performance above the market index by more than 10% [1][35]. Core Viewpoints - The electronic industry is expected to continue its strong performance driven by the resonance of computing power and edge-side innovations, with a notable rebound in the consumer electronics supply chain linked to AI innovations [1]. - The demand for servers is projected to grow, particularly in enterprise-level storage, with a forecasted increase in eSSD contract prices by 5% to 10% in the third quarter [2]. - AI infrastructure development remains a high-growth investment theme, with significant advancements in AI server systems, such as the GB300 NVL72 from CoreWeave, which shows up to 10 times faster user response and 5 times higher throughput per watt compared to previous generations [3]. - The lifting of export restrictions on EDA software by the US BIS for major companies like Siemens, Synopsys, and Cadence does not alter the long-term trend towards domestic semiconductor industry self-sufficiency [4]. - The IPO applications of two domestic GPU companies signal a positive outlook for the development of the entire AI industry chain in China [5]. Summary by Sections Market Performance - The Shanghai Composite Index rose by 1.40%, while the electronic sector increased by 0.74%, with components rising by 6.82% and semiconductors declining by 1.18% over the past week [10]. Key Companies and Recommendations - The report recommends several companies for investment, including Industrial Fulian, Huadian Technology, Jianghai Technology, and Xiaomi Group, among others, based on their potential in the current market environment [1][9]. Company Earnings Forecasts and Investment Ratings - Semiconductor companies like SMIC and Aojie Technology are rated as "Outperform," with projected earnings per share (EPS) for 2025 estimated at 0.52 and -0.98 respectively, indicating a strong outlook despite current challenges [9].

Core Viewpoint - The internal audit system of Aojie Technology Co., Ltd. is established to enhance internal supervision and risk control, ensuring compliance with national laws and regulations, and protecting the legitimate rights and interests of all shareholders, including minority investors [1][2]. Group 1: Internal Audit Structure - The company has an Audit Committee under the Board of Directors to guide and supervise the establishment and implementation of the internal audit system [2][3]. - The Audit Department operates independently under the Audit Committee, responsible for supervising business activities, risk management, internal controls, and financial information [2][3]. - The Audit Department must maintain independence and not be under the leadership of the finance department [2][3]. Group 2: Responsibilities of the Audit Committee - The Audit Committee is responsible for guiding and supervising the internal audit system, reviewing annual internal audit plans, and ensuring the implementation of these plans [3][4]. - The Committee must report on the progress and quality of internal audit work, including any significant issues discovered [3][4]. Group 3: Responsibilities of the Audit Department - The Audit Department evaluates the completeness and effectiveness of internal control systems across the company and its subsidiaries [4][5]. - It is required to report at least quarterly to the Audit Committee on the execution of the internal audit plan and any issues found [4][5]. - The Department must submit annual and semi-annual internal audit reports to the Audit Committee [4][5]. Group 4: Audit Procedures - The Audit Department must prepare an annual audit work plan, which requires approval from the Audit Committee before implementation [10][11]. - Auditors are required to notify the audited units about the scope, content, and requirements of the audit prior to commencement [10][11]. - After completing the audit, the audit team must compile a report detailing the audit findings, evaluations, and recommendations [10][11]. Group 5: Information Disclosure - The company is responsible for organizing the implementation of internal control evaluations, which must be reported to the Board of Directors [12][13]. - The internal control evaluation report must include a declaration of authenticity from the Board, an overview of the evaluation process, and any identified deficiencies [12][13]. Group 6: Rewards and Penalties - Auditors who act fairly and contribute significantly should be recognized or rewarded [14]. - Individuals obstructing auditors or retaliating against whistleblowers will face necessary disciplinary actions [14].

General Principles - The information disclosure management system of the company aims to ensure the truthful, accurate, and complete disclosure of information, protecting the rights of shareholders, creditors, and other stakeholders [1][2] - Information disclosure is defined as the public announcement of matters that may significantly impact the company's stock trading price or investment decisions, in accordance with legal and regulatory requirements [1][2] Basic Principles of Information Disclosure - The company must disclose information truthfully, accurately, completely, and timely, avoiding false records, misleading statements, or significant omissions [2][3] - The disclosure should reflect the principles of openness, fairness, and equal treatment of all shareholders, ensuring that all investors have equal access to information [2][3] Content of Information Disclosure - The company is required to disclose both periodic reports (annual, semi-annual, and quarterly) and temporary reports for significant events that may impact stock trading [4][5] - Significant events include changes in company name, stock abbreviation, registered capital, and other major operational changes [5][6] Responsibilities for Information Disclosure - The board of directors is responsible for leading and managing the company's information disclosure activities [7][8] - The company secretary is tasked with organizing and coordinating information disclosure, ensuring compliance with regulations and timely reporting [8][9] Procedures for Information Disclosure - The company must follow specific procedures for disclosing periodic and temporary reports, including timely preparation and board approval [13][14] - Any errors or misleading information in previously disclosed information must be corrected promptly through supplementary announcements [15][16] Confidentiality and Insider Information Management - Individuals with access to undisclosed information must maintain confidentiality and are prohibited from trading the company's stock based on insider information [25][26] - The company must maintain a record of all individuals who have access to insider information and ensure compliance with confidentiality obligations [22][23] Penalties for Non-compliance - The company may impose penalties on directors and senior management for negligence leading to disclosure violations, including warnings or termination [17][18] - Violations of disclosure regulations may result in public reprimands or penalties from regulatory authorities, prompting a review of the disclosure management system [17][18]