Core Viewpoint - Shenzhen Baiwei Storage Technology Co., Ltd. has implemented a "Quality Improvement and Efficiency Enhancement" action plan for 2025, focusing on optimizing operations, improving governance, and strengthening investor relations to boost investor confidence and market activity [1]. Group 1: Business Focus and Development - The company has established a comprehensive business model centered around the semiconductor storage industry, emphasizing R&D, packaging, and testing capabilities [1]. - In the storage solutions sector, the company aims to enhance product competitiveness in performance, power consumption, reliability, and capacity, with a strong focus on expanding into the "AI+" market in 2025 [1]. - The first domestically developed eMMC controller (SP1800) has been successfully mass-produced and delivered to leading wearable technology clients, with ongoing development of UFS controllers to enhance self-developed capabilities [1][4]. Group 2: Advanced Packaging and Testing Capabilities - The company is constructing a wafer-level advanced packaging facility in Dongguan, with the main structure completed and cleanroom construction underway, expected to be operational in the second half of 2025 [1][5]. - The company has achieved mass production of high-end storage chip testing equipment, which has passed authoritative certification from leading domestic manufacturers, ensuring compliance with industry standards [5]. Group 3: Financial Management and Efficiency - The company has increased R&D investment, with R&D expenses reaching approximately 27.29 million yuan in the first half of 2025, a year-on-year increase of 29.77% [6]. - The number of R&D personnel has grown to 1,054, representing a 40.53% increase compared to the previous year, indicating a strong commitment to innovation [6]. Group 4: Corporate Governance and Compliance - The company has updated its internal control systems in line with regulatory requirements, enhancing risk management and ensuring compliance with corporate governance standards [8]. - The company has conducted multiple board meetings and training sessions to strengthen the awareness of compliance and responsibilities among key personnel [9]. Group 5: Investor Relations and Communication - The company has established a comprehensive investor communication mechanism, organizing performance briefings and institutional research activities to engage with investors effectively [10]. - The company received the "China Listed Company Investor Relations Management Tianma Award," reflecting its commitment to transparency and effective communication with investors [10]. Group 6: Shareholder Returns and Incentives - The company plans to repurchase shares using 20 to 40 million yuan of its own or raised funds, pending shareholder approval, to enhance shareholder value [11]. - The 2024 stock incentive plan includes performance targets linked to revenue and market capitalization, aligning management interests with those of shareholders [11].

Core Viewpoint - The company plans to reappoint Tianjian Accounting Firm as its auditing institution for the year 2025, emphasizing the firm's qualifications and the continuity of audit work [1][5][6] Group 1: Appointment of Auditing Firm - The board of directors approved the proposal to reappoint Tianjian Accounting Firm for the 2025 audit year during the third meeting of the fourth board on August 8, 2025 [1] - The selection process considered the firm's qualifications, service quality, and audit fees, and was conducted in accordance with the company's selection system [1][5] - The proposed audit fee for 2025 is capped at 800,000 RMB, including 600,000 RMB for financial report auditing and 200,000 RMB for internal control auditing [5][6] Group 2: Firm's Background and Performance - Tianjian Accounting Firm was established on July 18, 2011, and has a total of 2,356 registered accountants [1] - The firm reported a total business income of 2.969 billion RMB, with auditing income of 2.563 billion RMB and securities business income of 1.465 billion RMB [1] - The firm has been involved in 904 securities service business reports and has a client base of 756 [1] Group 3: Legal and Regulatory Compliance - Tianjian has faced civil lawsuits related to its auditing practices in the past three years but has fulfilled its legal obligations without adverse effects on its operational capabilities [2] - The firm has received four administrative penalties, 13 supervisory measures, and eight self-regulatory measures in the last three years, with no criminal penalties [3] - The project partners and signing accountants have not faced any criminal penalties or disciplinary actions in the last three years [3][4]

Core Viewpoint - The report provides a detailed account of the fundraising activities and the management of raised funds by Shenzhen Bawei Storage Technology Co., Ltd, highlighting the amounts raised, their usage, and the regulatory compliance in managing these funds [1][2][3]. Fundraising Overview - The company raised a total of RMB 60,203.05 million from its initial public offering (IPO) by issuing 43,032,914 shares at RMB 13.99 per share, with a net amount of RMB 52,266.02 million after deducting various fees [1]. - As of June 30, 2025, the cumulative expenditure from the raised funds was RMB 50,624.94 million, with a remaining balance of RMB 0.00 in the special account [1][9]. Fund Management - The company has established a fund management system that includes a special account storage system and a tripartite supervision agreement with banks and sponsors to ensure proper management and usage of the raised funds [2][3]. - The company has also signed a four-party supervision agreement with its subsidiaries and banks to further clarify the responsibilities and obligations of all parties involved [3][4]. Fund Usage - The company has utilized RMB 25,956.49 million of the raised funds to replace pre-invested funds in projects and RMB 310.19 million for issuing expenses, totaling RMB 26,266.68 million [5][6]. - The company has not used any idle funds from the IPO for temporary liquidity supplementation during the reporting period [7][8]. Cash Management - The company approved the use of up to RMB 400 million of temporarily idle funds for cash management, which can be rolled over within a 12-month period [6][7]. - For the 2023 specific issuance, the company plans to use up to RMB 500 million of idle funds for cash management, also with a rolling usage period [7]. Project Implementation - All fundraising projects from the IPO have been completed, and the company has permanently supplemented its working capital with surplus funds amounting to RMB 1,701.60 million [9][10]. - The company has not changed the implementation locations or methods for any fundraising projects during the reporting period [8][10]. Regulatory Compliance - The company has adhered to all relevant laws and regulations regarding the use and disclosure of raised funds, ensuring timely and accurate reporting without any violations [11][12].

Core Viewpoint - The company plans to repurchase shares with an amount ranging from 20 million to 40 million RMB, utilizing its own or raised funds, primarily to reduce registered capital [1][4][5]. Summary by Sections Repurchase Plan Details - The repurchase amount is set between 20 million RMB and 40 million RMB [1][4]. - The maximum repurchase price is capped at 97.90 RMB per share [1][4][6]. - The repurchase will be conducted through centralized bidding on the Shanghai Stock Exchange [1][5]. - The implementation period for the repurchase is 12 months from the approval date by the shareholders' meeting [1][4][5]. Purpose and Impact - The repurchased shares will be used to reduce the company's registered capital [1][3][5]. - The company aims to enhance shareholder value and investor confidence through this repurchase [5][9]. - The repurchase is not expected to significantly impact the company's operations, finances, or future development [9][12]. Financial Considerations - The repurchase funds will account for approximately 0.3461% of total assets, 0.9515% of net assets, and 1.8485% of cash reserves based on the upper limit of the repurchase amount [9]. - The company maintains a debt ratio of 63.55%, indicating that the repurchase will not adversely affect its debt repayment capacity [9]. Shareholder Actions - Certain directors and senior management have ongoing share reduction plans, with a specified period from June 18, 2025, to September 17, 2025 [1][11]. - The company will adhere to regulatory requirements for any future share reduction plans [2][11]. Authorization and Compliance - The board of directors will seek authorization from the shareholders' meeting to proceed with the repurchase [12][13]. - The company will ensure compliance with relevant laws and regulations throughout the repurchase process [2][12].

Core Viewpoint - The company plans to invest in Beijing Xingyun Integrated Circuit Co., Ltd. through its wholly-owned subsidiary, Hainan Nanbaisuan Technology Co., Ltd., in collaboration with related parties, which constitutes a related party transaction [1][2][3] Summary by Sections Transaction Overview - Hainan Nanbaisuan will invest 10 million yuan, while related parties Xu Linxian and He Han will invest 2 million yuan and 4.7 million yuan respectively, resulting in a total capital increase of 1,000 million yuan [1][2] - After the capital increase, the registered capital of Xingyun will rise from 5.436432 million yuan to 7.025657 million yuan, with Hainan Nanbaisuan, Xu Linxian, and He Han holding 1.0600%, 0.2120%, and 0.4982% of the equity respectively [1][2] Related Party Information - Xu Linxian is the actual controller of the company and the mother of the chairman, while He Han is a director and general manager of the company, establishing the transaction as a related party investment [2][3] - The transaction does not constitute a major asset restructuring and has no significant legal obstacles [3] Financial Data of Target Company - As of June 30, 2025, the total assets of Xingyun were approximately 210.45 million yuan, with total liabilities of about 2.89 million yuan, resulting in net assets of approximately 207.56 million yuan [7] - The company reported a net loss of approximately 19.31 million yuan for the first half of 2025 [7] Investment Rationale - The investment in Xingyun is based on its potential in general computing software and hardware optimization, particularly in edge AI solutions, which aligns with the company's strategic goals [11] - The funding for this investment will come from the company's own or self-raised funds, ensuring that the main business operations remain unaffected [11] Approval Process - The board of directors held meetings on August 7 and August 8, 2025, to review and approve the investment and related party transaction, with related directors abstaining from voting [11][12]

Core Viewpoint - The company, Shenzhen Baiwei Storage Technology Co., Ltd., plans to invest in Beijing Xingyun Integrated Circuit Co., Ltd. alongside related parties, which constitutes a related party transaction [2][9]. Summary by Sections 1. Overview of Related Transactions - The company's wholly-owned subsidiary, Hainan Nanbaisuan, intends to invest a total of 1,000,000 RMB in Xingyun, with other related parties contributing 200,000 RMB and 470,000 RMB respectively. The registered capital of Xingyun will increase from 5,436,432 RMB to 10,000,000 RMB after this investment [2][3]. 2. Basic Information of Related Parties - Xu Linxian, a related natural person and mother of the company's actual controller, does not hold shares in the company. He Han, the company's director and general manager, holds a 0.0292% equity stake [3][4]. 3. Basic Information of the Target Company - The target company, Xingyun, specializes in general computing software and hardware optimization, focusing on edge AI solutions. The transaction is classified as a related joint investment under relevant regulations [4][5]. 4. Financial Data of the Target Company - Recent financial data for Xingyun shows total assets of approximately 170.46 million RMB and total liabilities of about 3.59 million RMB. The net assets are around 166.87 million RMB, with a reported revenue of 579,646.03 RMB and a net loss of approximately 12.70 million RMB for the last year [6]. 5. Pricing of the Related Transaction - The pre-investment valuation of Xingyun is set at 730 million RMB, translating to 134.2793 RMB per 1 RMB of registered capital. This valuation is based on due diligence and market comparisons [6][7]. 6. Necessity and Impact of the Related Transaction - The investment in Xingyun is seen as a strategic move to enhance the company's understanding of edge AI solutions, potentially creating more value for the company's business development. The funding will come from the company's own or raised funds, ensuring that the main business operations remain unaffected [9][10]. 7. Review Procedures for Related Transactions - The company's board of directors has approved the investment proposal, and independent directors have also reviewed the matter, confirming compliance with legal and regulatory requirements [10][11].

Core Viewpoint - The independent financial advisor report indicates that Shenzhen Baiwei Storage Technology Co., Ltd. has met the necessary conditions for the first vesting period of the 2023 and 2024 restricted stock incentive plans, and the relevant approvals have been obtained [1][18]. Summary by Sections 1. Definitions - The report discusses the 2023 and 2024 restricted stock incentive plans, detailing the conditions under which stock will be granted to directors, senior management, and key technical/business personnel [1]. 2. Independent Financial Advisor's Declaration - The advisor confirms that the information provided by Baiwei Storage is accurate and complete, and the advisor does not bear any risk related to the information's validity [2][3]. 3. Basic Assumptions - The report is based on the assumption that there will be no significant changes in relevant laws and regulations, and that the provided materials are truthful and timely [3][4]. 4. Approval Procedures for Incentive Plans - The 2023 incentive plan has undergone necessary approval processes, including resolutions from the board and supervisory committee, and has received authorization from the shareholders' meeting [4][5]. 5. Conditions for Vesting - The report outlines that the conditions for the second vesting period of the 2023 plan and the first vesting period of the 2024 plan have been met, including performance assessments and compliance with legal requirements [10][18]. 6. Financial Advisor's Opinion - The advisor concludes that both the 2023 and 2024 incentive plans have met the required conditions for vesting, and the necessary approvals have been obtained, aligning with relevant laws and regulations [18].

Core Viewpoint - The report outlines the approval and implementation of the 2025 Restricted Stock Incentive Plan for Shenzhen Baiwei Storage Technology Co., Ltd, detailing the necessary procedures and conditions for stock grants to eligible employees [2][4][8]. Group 1: Approval Process - The 2025 Restricted Stock Incentive Plan has undergone necessary approval procedures, including the review of relevant proposals by the Board of Directors and the Compensation and Assessment Committee [4][8]. - The plan was publicly disclosed, and no objections were raised during the public notice period [3][4]. Group 2: Grant Conditions - The grant of the second category of restricted stocks is contingent upon meeting specific conditions, including the absence of negative audit opinions and compliance with legal regulations [4][5]. - The report confirms that as of the report date, the company and its incentive targets have not encountered any disqualifying circumstances [5][8]. Group 3: Stock Grant Details - The effective period for the second category of restricted stocks is from the grant date until all stocks are vested or become void, with a maximum duration of four years [6][7]. - The vesting schedule is structured in three phases, with specific timeframes and conditions for each phase [7]. Group 4: Financial Impact - The financial advisor recommends that the company accurately reflect the impact of the stock incentive plan on its financial status and operating results, adhering to relevant accounting standards [8]. - The report emphasizes the importance of considering potential dilution effects on shareholders [8]. Group 5: Compliance and Conclusion - The independent financial advisor concludes that the determination of grant price, targets, and quantities aligns with applicable laws and regulations, confirming compliance with the 2025 Restricted Stock Incentive Plan [8].

Group 1 - The company has implemented a restricted stock incentive plan, distributing a total of 341.59 million shares, which represents 0.74% of the company's total equity [1] - The allocation of the incentive plan includes 37.38 million shares (10.94%) to foreign personnel and 304.21 million shares (89.06%) to middle and grassroots technical and business personnel [1] - The total shares involved in the incentive plan do not exceed 20% of the company's total equity, and no individual recipient has received more than 1% of the total equity through this plan [1]

Core Points - The company announced that the second vesting period of its 2023 restricted stock incentive plan has met the vesting conditions, allowing for the vesting of 4.175370 million shares [1][9][14] - A total of 207 individuals will receive the vested shares, which were granted at a price of 12.33 yuan per share [10][14] - The incentive plan aims to align the interests of employees with the company's performance, with specific performance targets set for each vesting period [2][3][11] Summary by Sections Incentive Plan Overview - The 2023 restricted stock incentive plan includes a total grant of 11.19 million shares, representing approximately 25.9% of the company's total share capital at the time of the announcement [1][2] - The vesting schedule is divided into three periods: 15% after 12 months, 45% after 24 months, and 40% after 36 months [2][3] Performance Assessment - The performance assessment for the incentive plan is based on the company's revenue growth compared to 2022, with specific targets set for each year from 2023 to 2025 [2][3][11] - For the second vesting period in 2024, the target revenue growth rate is set at 38%, with a trigger value of 26.5% [3][11] Vesting Conditions - The vesting conditions include a minimum employment period of 12 months and the achievement of company-level performance targets [2][3][12] - The company has confirmed that no adverse conditions have occurred that would prevent the vesting of the shares for the eligible participants [10][14] Shareholder Approval and Compliance - The incentive plan received approval from the board of directors and the shareholders, ensuring compliance with relevant laws and regulations [6][7][14] - The company has also engaged independent financial advisors to validate the compliance and conditions of the incentive plan [16][18]