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 - 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]

Core Viewpoint - China Information Communication Technologies (CICT) is pioneering 6G holographic communication technology, transforming previously fictional scenarios into reality, such as immersive experiences in remote medical procedures and education [1][3]. Group 1: Technological Innovations - CICT's latest achievements include the "6G Holographic Immersive Communication Business Verification System" and a cloud-based base station prototype designed for multiple 6G scenarios [3]. - The system is supported by three major breakthroughs in 6G networks: "full coverage" through seamless integration of satellite and ground base stations, "network mobility" with intelligent antennas that accurately track users, and "AI empowerment" enabling cloud computing to process trillions of data per second for smooth interactions [3][4]. Group 2: Industry Leadership - As a core state-owned enterprise in mobile communications, CICT has been deeply engaged in 6G research and development since 2019, holding over a thousand related patents [4]. - CICT has achieved global leadership in key technologies such as satellite-internet integration and user-centered intelligent networks, exemplified by its pioneering work in the "5G-compatible, 6G-integrated" development path for satellite communication [4].

Core Insights - The report highlights the emerging opportunities in the low Earth orbit (LEO) satellite communication sector, particularly following the MWC 2025 event in Shanghai, which showcased advancements in ground infrastructure for satellite internet [5][6] - The report emphasizes the maturation of the NTN (Non-Terrestrial Network) industry chain and the expected acceleration in ground infrastructure development, driven by upcoming commercial trials of LEO satellite systems [5][6] Industry Commentary: Communication - The MWC 2025 event has spotlighted the LEO satellite internet, presenting at least three catalysts for investment opportunities in this sector [5] - The next-generation LEO constellation design is nearing maturity, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form, indicating a shift towards a mainstream NTN network architecture [5] - Major players in the 5G equipment sector, such as Huawei, ZTE, and FiberHome, are expected to benefit significantly from this transition, particularly in baseband, routing, and antenna technologies [5] - The report notes that the upcoming commercial trials of LEO satellite systems will likely lead to increased demand for ground infrastructure, including gateway station projects and related components [5][6] Investment Highlights - The AMD Helios cabinet design is set to compete with the Rubin NVL144 supernode cabinet, indicating a trend towards higher bandwidth and more efficient networking solutions [6] - The Mi400 Helios cabinet is expected to integrate 72 Mi400 GPUs, requiring extensive copper cabling and high-density connectors, which suggests a sustained demand for high-speed copper and optical modules in the coming years [6] Market Overview - The report provides a snapshot of the market performance, noting that the overall market saw mixed results, with the Shenwan Communication Index rising by 1.58% while major indices like the Shanghai Composite Index and Shenzhen Component Index experienced declines [8] - Specific sectors such as optical modules and optical cables saw significant weekly gains, indicating strong investor interest in these areas [8] Regulatory Developments: Non-Bank Financial Sector - The report discusses the introduction of the "1+6" policy measures for the Sci-Tech Innovation Board, aimed at optimizing the classification and evaluation of securities firms, which is expected to enhance the financial service ecosystem for technology innovation [9][10] - The new regulations are designed to support high-quality development and encourage differentiated operations among securities firms, fostering a competitive landscape [10]

Summary of Conference Call Records Company and Industry Overview - **Company**: 信科移动 (Xinke Mobile) - **Industry**: 5G Telecommunications Key Points and Arguments Industry Trends - The construction of 5G networks in China is slowing down, with operators' wireless capital expenditures expected to decline by approximately 25% in 2024 and 15% in 2025, putting pressure on Xinke Mobile's domestic operator business revenue [2][5] - International 5G construction is lagging behind China, but there is significant future growth potential, particularly in regions along the "Belt and Road" initiative [2][6] Company Performance and Strategy - Xinke Mobile is focusing on expanding its international market presence, particularly in Southeast Asia, Latin America, the Middle East, and Africa, where RAN-related capital expenditures are expected to grow rapidly [2][6] - The company has made progress in 5G applications in sectors such as mining energy and transportation, with industry application revenue projected to grow over 80% in 2024 [2][7] - Xinke Mobile ranks among the top ten globally in 5G standards and patent contributions, holding over 16,000 invention patents, which provide significant and relatively stable profit through patent licensing [2][8] Operational Reforms - The company is implementing management reforms, including the establishment of an Integrated Product Development (IPD) and marketing service system, as well as refined operations to enhance value creation and operational efficiency [2][9] - Xinke Mobile's business structure has been adjusted to four main units to adapt to the integrated development of air, space, and ground communication [4] Financial Outlook - Revenue is expected to decline by 5% to 10% in 2025, primarily due to decreased income from domestic operators, but the company aims to implement quality improvement measures to strive for profitability [2][11] 5G-A Investment - Despite a slowdown in domestic operators' 5G investments, there is a notable increase in 5G-A investments, with China Mobile's target investment nearing 10 billion RMB in 2024. However, the actual share of 5G-A in operators' wireless spending remains low [12] International Market Strategy - Xinke Mobile's international strategy includes a "721" model, with 70% of products being key items like base station antennas, 20% main equipment, and 10% future products. The company is also establishing localized teams in various regions to directly engage with operators [13][14] National Rail Group 5G-R Network - The National Rail Group's 5G-R network construction is expected to start in the second half of 2026 or 2027, with a market size of approximately 30 billion RMB for the first phase, aiming to cover 100,000 kilometers of lines by 2029 [3][15] Satellite Internet Developments - Xinke Mobile is focusing on satellite communication, leading in the establishment of 5G NTN standards and developing core technologies for 6G. The company has a competitive edge in the experimental satellite market [18][19] Financial Management Improvements - The company has established a special task force for long-term accounts receivable and inventory management, achieving significant improvements in cash flow, which turned positive for the first time, exceeding 700 million RMB [20]

Core Viewpoint - The satellite internet sector is poised for significant investment opportunities driven by low Earth orbit (LEO) satellite payloads, ground infrastructure, and ultra-node communication, especially following the MWC Shanghai exhibition [1][2][3] Group 1: LEO Satellite Communication - The next-generation integrated LEO constellation design is nearly mature, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form, focusing on a network architecture based on NTN systems [1][2] - The launch of consumer-grade satellite networking is expected in the second half of the year, supported by devices like the MateX6, with initial applications centered around space-based private networks [3] Group 2: Ground Infrastructure - Ground infrastructure will significantly benefit from the initiation of LEO satellite trial operations, including the integration of gateway station projects and upstream components like antennas and core networks [3] - Companies like Shanghai Tower are exploring the transformation of traditional communication bases into distributed ground stations capable of satellite ground station functions, addressing challenges in site selection and construction approval [3] Group 3: Key Players and Investment Targets - Major players in the 5G main equipment sector include Huawei, ZTE, and FiberHome, which will be key suppliers of baseband, routing, and antennas for satellite applications [2] - Recommended investment targets for LEO satellite payloads include Xinke Mobile, FiberHome, ZTE, Tongyu Communication, and others, while ground infrastructure targets include Changjiang Communication and China Tower [5][6]

Core Viewpoint - The company announced an extension of the implementation deadlines for its fundraising projects related to 5G technology development until December 31, 2026, due to delays in the global 5G industrialization process and evolving customer needs [2]. Group 1: Fundraising Projects - The total amount planned for the initial public offering (IPO) is 400 million yuan, with a net amount of 11.33 million yuan raised beyond the initial target [2]. - The company is adjusting the research and development timelines for several projects in response to the slower pace of 5G network construction by major clients and the longer development cycle for 5G-A technology [2]. Group 2: Specific Projects - **5G Wireless System Product Upgrade and Technology Evolution R&D Project**: As of December 31, 2024, the investment progress is 66.16%. The project has completed the development of products such as 5G multi-band multi-mode base stations, supporting domestic and international client needs. The project will be extended to December 31, 2026, to better align with product technology evolution and client demands [3]. - **5G Industry Private Network and Intelligent Application R&D Project**: As of December 31, 2024, the investment progress is 61.64%. The project has developed 5G private network products that meet the initial construction needs of niche markets. The extension to December 31, 2026, aims to better match the evolving demands of clients in vertical industries [4]. - **5G Integrated Antenna and New Indoor Distribution Equipment R&D Project**: As of December 31, 2024, the investment progress is 72.20%. The project has developed integrated antennas and indoor distribution equipment to meet client needs for 5G network construction. The extension to December 31, 2026, is intended to support the transition to 5G-A and the development of high-quality indoor solutions [5].

Meeting Overview - The second supervisory board meeting of the company was held on June 12, 2025, with all five supervisors present, confirming the legality and validity of the meeting [2][4]. Proposal for Project Delay - The supervisory board approved the proposal to delay the fundraising investment projects, stating that the delay aligns with the company's actual situation and does not harm the interests of the company or its shareholders [3][17]. - The projects affected include "5G Wireless System Product Upgrade and Technology Evolution R&D Project," "5G Industry Private Network and Intelligent Application R&D Project," and "5G Integrated Antenna and New Indoor Distribution Equipment R&D Project," with the new deadline set to December 31, 2026 [7][12]. Fundraising Details - The company raised a total of RMB 413,668.75 million from its initial public offering, with a net amount of RMB 401,132.53 million after deducting issuance costs [9]. - The funds are stored in a dedicated account, and the company has established a regulatory agreement with the underwriter and banks to ensure proper management of the funds [10]. Project Progress and Reasons for Delay - As of December 31, 2024, the progress of the projects was as follows: - 5G Wireless System Product Upgrade: 66.16% - 5G Industry Private Network: 61.64% - 5G Integrated Antenna: 72.20% - The delay is attributed to the slower pace of 5G network construction by major clients and the longer development cycle for 5G-A technology [12][13][14]. Measures for Project Completion - The company will monitor the progress of the projects and allocate resources effectively to ensure timely completion after the extension [15]. Impact of the Delay - The delay will not change the investment purposes, total investment, or implementation entities of the projects, and it is in compliance with relevant regulations [16][17].

Core Viewpoint - The company has decided to extend the implementation deadlines for its fundraising projects related to 5G technology until December 31, 2026, due to delays in project progress and changes in market conditions [1][7][10]. Group 1: Fundraising Overview - The company raised a total of RMB 413,668.75 million from its initial public offering, with a net amount of RMB 401,132.53 million after deducting issuance costs [2]. - The funds have been fully received and are being managed in dedicated accounts as per regulatory requirements [2][3]. Group 2: Project Details - The fundraising projects include "5G Wireless System Product Upgrade and Technology Evolution R&D Project," "5G Industry Private Network and Intelligent Application R&D Project," and "5G Fusion Antenna and New Indoor Distribution Equipment R&D Project" [1][3]. - The total planned investment for these projects is RMB 400,000 million, with an actual excess of RMB 1,132.53 million [3][4]. Group 3: Project Delay Reasons - The delay in project implementation is attributed to the slowdown in 5G network construction by major clients and the longer development cycle for 5G-A technology [7][9]. - As of December 31, 2024, the investment progress for the projects was reported at 66.16%, 61.64%, and 72.20% respectively [8][9]. Group 4: Impact and Compliance - The extension of the project deadlines does not alter the intended use of funds, total investment, or project implementation entities, ensuring no adverse impact on the company's operations or shareholder interests [9][10]. - The company will continue to adhere to relevant regulations and guidelines to ensure effective management of the raised funds [9][10].

Group 1 - The second meeting of the Supervisory Board of Zhongxin Ke Mobile Communication Technology Co., Ltd. was held on June 12, 2025, with all five supervisors present [1][2] - The Supervisory Board approved the proposal for the postponement of fundraising projects, stating that the adjustment was made based on the company's actual situation and did not harm the interests of the company or its shareholders [1][2] - The decision to postpone the fundraising projects complies with relevant laws and regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange [1]