Summary of Black Sesame Intelligence Conference Call Company Overview - Black Sesame Intelligence focuses on AI hardware chips and has a strong understanding of chip technology from its founder, who is committed to a hardware-centric approach. The company collaborates with Bosch and has entered the automotive sector, successfully mass-producing multiple vehicle models, including Lynk & Co, Dongfeng series, and BYD export models [2][5]. Key Developments and Achievements - 2022 marked a pivotal year for Black Sesame Intelligence, with the launch of the Huashan A2000 chip, which significantly enhanced computing power, making it comparable to high-end automotive chips. The Wudang C1,200 chip family is applied in high-speed NOA and light procedure NOA, receiving validation from major clients, solidifying its leading position in the domestic AI hardware sector [2][5]. - The company has established deep collaborations with major automotive manufacturers such as Geely, Dongfeng, FAW, and BYD, and has successfully mass-produced various models [5]. Market Position and Competitive Landscape - Black Sesame is currently in a position similar to Horizon a year ago, with the potential to gain validation from leading new energy vehicle manufacturers through the C1,200 chip and achieve mass production [2][6]. - Horizon focuses on software system iterations, while Black Sesame emphasizes hardware expansion. The increasing policy requirements for domestic substitution present opportunities for both companies [2][6]. Investment Opportunities - The investment outlook for Black Sesame Intelligence is promising, particularly with the anticipated advancements in L4 level autonomous driving technology expected by 2026, which provides significant growth potential. The company’s AI chip products are rare, and there is a notable valuation gap compared to Horizon, suggesting substantial room for valuation recovery [3][4]. - Short-term market capitalization is projected to reach 30 billion RMB, corresponding to approximately 1.4 billion RMB in revenue by 2026. Long-term potential in L4 autonomous driving and robotics could lead to a market cap exceeding 50 billion RMB [3][4]. Algorithm Development and Partnerships - Black Sesame acknowledges its algorithmic shortcomings as a hardware-focused company. To address this, it collaborates with algorithm solution providers like Numa and International Intelligent Network, while also developing its own algorithm team. This multi-faceted strategy enhances its overall solution capabilities and market competitiveness [7]. Expansion into Non-Automotive Sectors - The company is actively diversifying into non-automotive AI applications, such as robotics and robotic dogs. Collaborations with Wuhan University and Yunshenchu are aimed at enhancing robotic cognition and applying chips in robotic products for various scenarios, including ship inspections. These initiatives are expected to contribute to revenue growth in the coming years [4][8].

Core Viewpoint - Black Sesame (000716.SZ) reported its Q3 2025 results, indicating a slight decline in institutional ownership compared to the previous quarter [1] Institutional Ownership - As of October 29, 2025, two institutional investors disclosed holdings in Black Sesame A-shares, totaling 229 million shares, which represents 30.35% of the company's total equity [1] - The institutional ownership percentage decreased by 0.17 percentage points compared to the previous quarter [1] Public Fund Participation - In this reporting period, eight public funds were disclosed, including Tianhong CSI Food and Beverage ETF, CSI 2000, Tianhong CSI Food and Beverage ETF Link A, Southern CSI 2000 ETF, and CITIC Construction Investment Vision Return A [1] Foreign Investment - One new foreign institutional investor was disclosed in this period, namely Hong Kong Central Clearing Limited [1]

Core Viewpoint - The company is undergoing a significant change in control, with the major shareholder planning to transfer approximately 20% of its shares to a state-owned enterprise, which may lead to a change in the actual controller of the company [4][5]. Financial Data - The third-quarter financial report has not been audited [3][6]. - There are no adjustments or restatements required for previous accounting data [3]. - The company does not have any non-recurring profit and loss items to report [3]. Shareholder Information - The major shareholder, Guangxi Heiwulv Food Group Co., Ltd., is planning to transfer 20% of its shares to Guangxi Tourism and Health Industry Group Co., Ltd. [4][5]. - Following the transfer, the controlling shareholder will change from Guangxi Heiwulv Group to Guangxi State-owned Assets Supervision and Administration Commission [5]. Other Important Matters - The company has applied for a trading suspension to ensure fair information disclosure and protect investor interests due to the potential change in control [4][5]. - The stock is set to resume trading on August 11, 2025, after the completion of the share transfer [5].

Core Insights - The company reported a revenue of 541 million yuan in Q3 2025, representing a year-on-year decline of 12.07% [1] - The net profit attributable to the parent company for Q3 was -946,200 yuan [1] - For the first three quarters of 2025, the company achieved a total revenue of 1.469 billion yuan, down 7.52% year-on-year [1] - The net profit attributable to the parent company for the first three quarters was 6.8193 million yuan, reflecting a significant decline of 83.67% [1]

Group 1 - The core point of the article is that Hezhima (SZ 000716) reported a decline in its third-quarter performance for 2023, with revenue and net profit significantly decreasing compared to the previous year [1] Group 2 - For the first three quarters of 2023, Hezhima's revenue was approximately 1.469 billion yuan, representing a year-on-year decrease of 7.52% [1] - The net profit attributable to shareholders was around 6.82 million yuan, which is a year-on-year decrease of 83.67% [1] - The basic earnings per share were 0.009 yuan, reflecting a year-on-year decrease of 83.93% [1] - As of the report date, Hezhima's market capitalization was 4.7 billion yuan [2]

Financial Performance - The company's revenue for Q3 2025 was ¥540,941,445.31, a decrease of 12.07% compared to the same period last year[4]. - The net profit attributable to shareholders was -¥946,223.74, representing a decline of 103.07% year-on-year[4]. - The company's basic earnings per share for the current period was -¥0.001, a decline of 102.38% year-on-year[4]. - Total operating revenue for the period was CNY 1,468,652,129.40, a decrease of 7.53% compared to CNY 1,588,115,908.17 in the previous period[23]. - The net profit for the current period is 8,673,991.79, a decrease of 83.0% compared to 50,923,817.64 in the previous period[24]. - The total profit for the current period is 13,804,716.28, down 76.8% from 59,444,923.67 in the previous period[24]. - Operating profit for the current period is 16,423,459.35, a decline of 74.2% from 63,672,468.32 in the previous period[24]. - The total comprehensive income for the current period is 8,673,991.79, a decrease of 83.0% from 50,923,817.64 in the previous period[25]. Cash Flow - The net cash flow from operating activities for the year-to-date was ¥97,076,202.82, down 29.86% compared to the previous year[4]. - The cash received from operating activities increased by 204.68% to ¥154,692,632.02, mainly due to the recovery of receivables[9]. - Cash flow from operating activities for the current period is 97,076,202.82, down 29.8% from 138,398,191.08 in the previous period[26]. - Cash flow from investing activities shows a net inflow of 12,130,087.44, compared to a net outflow of -184,100,610.38 in the previous period[27]. - Cash flow from financing activities results in a net outflow of -187,376,675.78, compared to -8,194,259.63 in the previous period[27]. - The net increase in cash and cash equivalents was -78,192,109.44, a 45.07% decline from -53,901,405.70 in the previous period, primarily due to increased cash payments for goods and services[10]. - The cash and cash equivalents at the end of the period amount to 144,781,714.35, an increase from 71,063,006.24 in the previous period[27]. Assets and Liabilities - Total assets at the end of the reporting period were ¥4,567,241,868.91, a decrease of 0.89% from the end of the previous year[4]. - Total assets decreased to CNY 4,567,241,868.91 from CNY 4,608,467,567.08, a reduction of 0.90%[21]. - Total liabilities decreased to CNY 1,865,778,458.87 from CNY 1,895,813,832.84, a decline of 1.59%[21]. - Total equity decreased to CNY 2,701,463,410.04 from CNY 2,712,653,734.24, a decrease of 0.41%[21]. - Accounts receivable decreased to CNY 279,545,727.81 from CNY 386,305,449.84, a drop of 27.63%[19]. - Inventory stood at CNY 442,587,780.97, slightly down from CNY 452,488,880.69, a decrease of 2.00%[19]. - Cash and cash equivalents at the end of the period were CNY 146,895,325.04, a decline of 36.31% from CNY 230,736,071.85 at the beginning of the period[19]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 97,011, with no preferred shareholders having restored voting rights[12]. - The largest shareholder, Guangxi Black Five Food Group Co., Ltd., holds 30.02% of the shares, amounting to 226,175,420 shares, with 172,083,334 shares pledged[12]. - The company is planning a significant change in control, with the largest shareholder intending to transfer approximately 20% of its shares to a state-owned enterprise, which may lead to a change in control[14]. - Following the share transfer agreement, the voting rights for 133,071,767 shares (17.66% of total shares) will be unconditionally and irrevocably waived by the current controlling shareholders[15]. - The company’s stock was suspended from trading on August 4, 2025, due to the planned share transfer, and is set to resume trading on August 11, 2025[15]. Operational Costs - Total operating costs amounted to CNY 1,458,577,185.50, down 3.95% from CNY 1,518,580,194.91 in the prior period[23]. - Operating costs included CNY 1,136,109,351.83 for cost of goods sold, a reduction from CNY 1,222,134,975.12, reflecting a decrease of 7.05%[23]. - Research and development expenses were CNY 11,247,843.90, down 24.00% from CNY 14,883,372.08 in the previous period[23]. Asset Disposal - The company recorded an asset disposal gain of ¥9,255,587.84, a substantial increase of 238,109.64% compared to the previous period[9]. - The company reported a significant decrease in cash flow from investing activities, with a net cash flow of 12,130,087.44, compared to a negative cash flow of 184,100,610.38 in the previous period, representing a 106.59% improvement[10].

Core Viewpoint - The automotive industry is experiencing a significant transformation driven by advancements in intelligent driving technology, with a notable increase in demand for mid-to-high-end SoC chips expected by 2025 [1][2]. Industry Summary - The intelligent driving technology is evolving through a dual approach of upward breakthroughs and downward popularization, with a clear iterative path emerging [1]. - The market for ADAS SoC chips is projected to reach 496 billion CNY in China and 925 billion CNY globally by 2028, with a compound annual growth rate (CAGR) of 28.6% and 27.5% from 2023 to 2028, indicating a high market demand [1]. - The push for "intelligent driving equality" among domestic OEMs is leading to a price war, with mainstream brands focusing on models priced below 200,000 CNY, which may open up the mid-to-high-end chip market [1]. Company Summary - Long-term prospects suggest that only leading automakers will develop their own chips, while third-party chip manufacturers may see greater market opportunities than expected [2]. - The pursuit of full-stack self-research in intelligent driving reflects a desire for efficient data processing, supply chain security, and cost reduction in intelligent driving solutions [2]. - The competitive landscape for different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices of companies in their self-research journeys [2]. - Black Sesame Intelligence's competitive position in the SoC ecosystem is relatively weak, but the company has strong hardware capabilities and is forming alliances to enhance its algorithmic capabilities [2]. - The management team has a forward-looking approach, with strategic plans in cross-domain computing chips and robotics, which may become a second growth driver for the company [2]. - As of the end of H1 2025, the company had a net cash position of 1.97 billion CNY, providing a solid foundation for ongoing product development and exploration of new business scenarios [2]. Financial Forecast - Revenue projections for the company from 2025 to 2027 are 850 million CNY, 1.616 billion CNY, and 2.344 billion CNY, with year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [3]. - The company is currently in a phase of high R&D investment and customer expansion, making it difficult to achieve profitability in the short term [3]. - A price-to-sales (PS) valuation method is used for the company, with comparable companies showing an average PS of approximately 17.8x for 2025 [3]. - The company is rated as a "buy" due to its complete product ecosystem and the potential for key customer breakthroughs to drive long-term growth [3].

Core Viewpoint - Huayuan Securities initiates coverage on Hezhima (000716) Intelligent, giving it a "Buy" rating, with projected revenues of 850 million, 1.616 billion, and 2.344 billion yuan for 2025-2027, representing year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [1] Group 1: Market Dynamics and Technology Trends - The year 2025 is anticipated to be a pivotal year for the mid-to-high-end intelligent driving SoC market, driven by the resonance of technology cycles and market demand [1] - The intelligent driving SoC chips are expected to significantly benefit from the growth in autonomous vehicle sales, with the ADAS SoC market in China and globally projected to reach 49.6 billion and 92.5 billion yuan by 2028, with compound annual growth rates of 28.6% and 27.5% from 2023 to 2028 [1] Group 2: Competitive Landscape and Strategic Insights - Long-term, only leading car manufacturers are expected to develop their own chips, while third-party chip manufacturers may see market opportunities exceed expectations [2] - The competition in different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices made by companies in their self-research paths [2] Group 3: Company Strengths and Growth Potential - Hezhima Intelligent has a robust hardware capability and is forming alliances with algorithm companies to enhance its competitive edge in the intelligent driving SoC ecosystem [3] - The management team is strategically positioning the company in cross-domain computing chips and robotics, which may become a second growth driver in the long term [3] - The company has a strong cash reserve of 1.97 billion yuan as of the end of H1 2025, providing a solid foundation for ongoing product development and exploration of new business scenarios [3]

Core Viewpoint - Huayuan Securities initiates coverage on Hezhima Intelligent (02533) with a "Buy" rating, projecting revenue growth from 850 million to 2.344 billion yuan from 2025 to 2027, with year-on-year growth rates of 79.23%, 90.12%, and 45.05% respectively [1] Group 1: Market Dynamics and Technology Trends - The year 2025 is anticipated to be a pivotal year for the mid-to-high-end intelligent driving SoC market, driven by the resonance of technology cycles and market demand [1] - The intelligent driving SoC chips are expected to significantly benefit from the growth in autonomous vehicle sales, with the ADAS SoC market projected to reach 49.6 billion yuan in China and 92.5 billion yuan globally by 2028, with compound annual growth rates of 28.6% and 27.5% from 2023 to 2028 respectively [1] Group 2: Competitive Landscape and Strategic Insights - Long-term, only leading automakers are expected to develop their own chips, while third-party chip manufacturers may see market opportunities exceed expectations [2] - The competition in different levels of intelligent driving solutions will be determined by factors such as cost efficiency, supplier support, and the strategic choices made by companies in their self-research paths [2] Group 3: Company Strengths and Growth Potential - Hezhima Intelligent has a robust hardware capability and is forming alliances with algorithm companies to enhance its competitive edge, despite being positioned lower in the SoC competitive ecosystem [3] - The management team is strategically focusing on cross-domain computing chips and robotics, which may become a second growth driver for the company [3] - As of the end of H1 2025, the company had a net cash position of 1.97 billion yuan, providing a solid foundation for ongoing product development and exploration of new business scenarios [3]

Core Points - Black Sesame Technologies (02533) announced the grant of a total of 659,000 share awards to 18 grantees under its post-IPO share scheme on October 21, 2025 [1] Summary by Category Company Actions - The company has issued a total of 659,000 share awards to 18 individuals as part of its incentive plan following its initial public offering [1]