Core Viewpoint - The report highlights the financial performance and operational strategies of BOE HC SemiTek Corporation for the first half of 2025, showcasing a significant increase in revenue and a reduction in net losses, while emphasizing the company's focus on innovation and market expansion in the LED and semiconductor sectors. Financial Performance - The company achieved a revenue of 2,532,358,969.78 CNY, representing a 33.93% increase compared to the previous year [3] - The net loss attributable to shareholders was -115,408,202.53 CNY, a 53.17% improvement from -246,423,545.37 CNY in the same period last year [3] - The net cash flow from operating activities was -211,087,340.46 CNY, a decline of 47.09% year-on-year [3] - Total assets increased by 6.62% to 13,495,492,148.98 CNY compared to the end of the previous year [3] Business Overview - The company is a leading supplier of LED chips and advanced semiconductor solutions, focusing on the R&D, production, and sales of LED chips, LED epitaxial wafers, sapphire substrates, and GaN power electronic devices [3][12] - The main products include LED chips and epitaxial wafers, sapphire products, and GaN power electronic devices, with applications in various sectors such as consumer electronics, automotive, and high-end lighting [3][12] Market Position and Strategy - The company is positioned in the first tier of the LED chip industry, with a focus on expanding its market share and enhancing product quality through technological innovation and efficient management [12][17] - The company has established strategic partnerships with leading domestic and international clients, enhancing its competitive edge in the market [12][17] - The company is actively developing Micro LED and GaN power electronic devices, with plans for mass production by the end of 2025 [3][12] R&D and Innovation - R&D is a core competency, with a focus on autonomous innovation and a strong technical team comprising experienced professionals [6][16] - The company emphasizes the development of both short-term marketable products and long-term forward-looking technologies to ensure sustainable growth [6][16] - The company has a robust patent portfolio, with 1,782 patents, including 1,143 authorized patents as of the report date [19] Production and Quality Management - The production process is customer-oriented, with a focus on optimizing production planning and maintaining quality standards [8][19] - The company adheres to a comprehensive quality management system, ensuring high reliability and performance of its products, particularly in high-reliability applications [19] Sales and Marketing - The company employs a direct sales model to serve mainstream LED packaging manufacturers and end-user application companies [9] - Sales strategies are developed based on market demand and operational plans, with a focus on product lifecycle management [9]

Core Points - The company has approved the grant of 6.31 million restricted stocks to 57 incentive objects under the 2024 restricted stock incentive plan, with a grant price of 4.80 yuan per share [2][20][21] - The reserved grant date is set for August 22, 2025, and the total number of reserved stocks accounts for approximately 0.39% of the company's total share capital [1][20][21] - The incentive plan includes two categories of restricted stocks, with the first category consisting of 6.3 million shares and the second category adjusted to 5.576 million shares due to changes in the number of incentive objects [8][19] Summary by Sections Incentive Plan Overview - The first category of restricted stocks consists of 630,000 shares, representing 0.39% of the company's total share capital at the time of the plan announcement [2][3] - The second category of restricted stocks has been adjusted to 5.576 million shares, with the first grant reduced to 4.945 million shares due to the departure of 11 incentive objects [8][19] Grant Conditions - The grant conditions for the reserved stocks have been met, with no adverse events affecting the company or the incentive objects [20][27] - The company will issue the reserved stocks at a price of 4.80 yuan per share, which is based on the average trading price of the company's shares [22][27] Performance Assessment - The performance assessment for the first category of restricted stocks will occur over three years, with specific performance targets set for each year [6][16] - The second category of restricted stocks will also have performance targets, including maintaining a top-three market share in the LED chip sector [16][19] Financial Impact - The estimated total cost of the incentive plan is approximately 33.51 million yuan, which will be amortized over the years 2025 to 2029 [24][25] - The incentive plan is expected to positively impact the company's long-term performance by enhancing management and operational efficiency [25][26]

Core Viewpoint - The legal opinion letter confirms that the 2024 restricted stock incentive plan of BOE Technology Group Co., Ltd. has obtained the necessary approvals and complies with relevant laws and regulations [3][10]. Group 1: Approval and Authorization - The implementation of the incentive plan has been approved by the board of directors and the supervisory board on August 16, 2024, with related proposals passed [3][4]. - The company received a reply from its actual controller, Beijing Electronics Holdings Co., Ltd., approving the implementation of the incentive plan [4][5]. Group 2: Granting Process - The list of initial grant recipients was publicly announced from September 11 to September 20, 2024, with no objections received [5]. - On September 26, 2024, the second extraordinary general meeting approved the relevant proposals for the incentive plan [5][6]. Group 3: Grant Details - On October 25, 2024, the board approved the first grant of 55.75 million shares of restricted stock at a price of 2.69 yuan per share to 340 recipients [6][7]. - The first class of restricted stock grant registration was completed on November 15, 2024, with a listing date of November 20, 2024, for 6.3 million shares [7]. Group 4: Compliance and Conditions - The granting conditions have been met, and the granting date, recipients, quantity, and price comply with the relevant regulations [8][10]. - The company has confirmed that there are no prohibitive circumstances under the applicable laws and regulations for implementing the stock incentive plan [9].

Core Viewpoint - The report outlines the independent financial advisory opinion regarding the 2024 restricted stock incentive plan of BOE Technology Group Co., Ltd. and Huacan Optoelectronics Co., Ltd., emphasizing the fairness and reasonableness of the plan for shareholders and its impact on the company's sustainable operation [1][3][13] Summary by Sections Definitions and Terms - The report defines key terms related to the incentive plan, including "restricted stock," "incentive objects," "grant date," and "grant price," which are essential for understanding the plan's structure [1][2] Approval Process - The 2024 restricted stock incentive plan has undergone necessary approval procedures, including meetings of the board of directors and supervisory board, where relevant proposals were passed [4][5][6] Grant Details - On October 25, 2024, the company approved the first grant of 55.75 million shares of restricted stock at a price of 2.69 RMB per share, with 630,000 shares allocated to the first category and 49.45 million shares to the second category [7][9] - The plan includes a reserve grant of 6.31 million shares for 57 individuals at a price of 4.80 RMB per share, with specific allocations to various levels of personnel [10][12] Conditions for Granting - The granting of shares is contingent upon the company and incentive objects meeting specific conditions, including no adverse audit opinions and no violations by the incentive objects [12][13] Financial Impact - The report indicates that the implementation of the incentive plan will be accounted for in accordance with relevant accounting standards, and shareholders should be aware of potential dilution effects [12][13] Independent Advisor's Opinion - The independent financial advisor concludes that the pre-grant conditions have been met and that the plan complies with relevant laws and regulations, ensuring no harm to shareholder interests [13]

Core Viewpoint - The company has confirmed the eligibility of the reserved grant recipients for the 2024 restricted stock incentive plan, ensuring compliance with relevant laws and regulations [1][2]. Group 1: Incentive Plan Overview - The 2024 restricted stock incentive plan has been reviewed by the company's supervisory board, which found that all reserved grant recipients meet the necessary qualifications as per the applicable laws and regulations [1]. - The reserved grant recipients do not include company management, independent directors, supervisors, or shareholders holding more than 5% of the company's shares [2]. - The supervisory board has approved the grant of 6.31 million shares of restricted stock to 57 eligible recipients at a price of 4.80 yuan per share, with the reserved grant date set for August 22, 2025 [2].

Group 1 - The supervisory board of the company held its 14th meeting of the 6th session on August 12, 2025, chaired by Mr. Yu Xinhua [1] - The supervisory board reviewed and approved the company's 2025 semi-annual report, confirming that the report accurately reflects the company's operational status without any false records or omissions [1] - The voting result for the approval of the semi-annual report was unanimous, with 3 votes in favor and no votes against or abstentions [2] Group 2 - The supervisory board also reviewed the company's fundraising activities, confirming that the actual investment projects align with the promised projects, and the use of funds complies with regulations [1] - The board found no actions that would harm the interests of the company or its shareholders regarding the use of raised funds [1] - The company is authorized to implement an equity incentive plan, with the supervisory board confirming that all conditions for granting restricted stock have been met, with a grant price set at 4.80 yuan per share [2][3]

Meeting Announcement - The company will hold its first extraordinary general meeting of 2025 on September 18, 2025, at 15:00 [1][6] - The meeting will be conducted both in-person and via online voting [2][4] Voting Procedures - Shareholders can participate in the meeting either by attending in person or by authorizing a proxy [2][4] - Online voting will be available through the Shenzhen Stock Exchange trading system and internet voting system on the same day [2][8] - Each voting right can only be exercised through one method: in-person, trading system, or internet voting [2][3] Registration Details - Shareholders must register for the meeting, with specific requirements for both corporate and individual shareholders [4][5] - Registration can also be done via mail or fax for shareholders unable to attend in person [4][5] Agenda Items - The meeting will review proposals that have been approved by the board, including a proposal to amend the company's articles of association and related rules [3][11] - Special voting arrangements will be made for minority investors on significant matters involving major shareholders [3] Contact Information - For inquiries, shareholders can contact the company through provided phone and email details [5]

Group 1 - The company has established an incentive plan for 57 individuals, distributing a total of 631,000 shares, which represents 11.32% of the company's total share capital [2][3] - The allocation of shares is divided among different categories of employees, including senior technical experts, middle management, core professional technical personnel, and grassroots management [2] - The total number of shares granted under this incentive plan does not exceed 10% of the company's total share capital at the time of submission to the shareholders' meeting [2][3] Group 2 - The incentive plan excludes certain individuals such as company executives, independent directors, supervisors, and shareholders holding more than 5% of the company's shares [3] - The plan allows for adjustments in the number of shares granted if any incentive recipient voluntarily forfeits their rights [2]

Core Viewpoint - The report highlights the financial performance of BOE Technology Group Co., Ltd. and its subsidiary, Huacan Optoelectronics Co., Ltd., for the first half of 2025, indicating a significant increase in revenue but continued net losses [2][5]. Financial Performance - The company's operating revenue for the reporting period reached approximately 2.53 billion yuan, representing a year-on-year increase of 33.93% compared to 1.89 billion yuan in the same period last year [2]. - The net profit attributable to shareholders of the listed company was a loss of approximately 115.41 million yuan, an improvement of 53.17% from a loss of 246.42 million yuan in the previous year [2]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of approximately 214.28 million yuan, which is a 28.83% improvement from a loss of 301.10 million yuan in the same period last year [2]. - The net cash flow from operating activities was negative at approximately 211.09 million yuan, worsening by 47.09% compared to a negative cash flow of 143.51 million yuan last year [2]. Shareholder Information - The total assets of the company at the end of the reporting period were approximately 13.50 billion yuan, reflecting a 6.62% increase from 12.66 billion yuan at the end of the previous year [3]. - The net assets attributable to shareholders of the listed company were approximately 6.85 billion yuan, showing a slight decrease of 1.18% from 6.93 billion yuan at the end of the previous year [3]. - The top shareholder, BOE Technology Group, holds 22.92% of the shares, while Zhuhai Huafa Technology holds 19.00% [4].

Core Insights - The company reported a revenue of 2.532 billion yuan for the first half of 2025, an increase of 33.93% year-on-year, but incurred a net loss of 115 million yuan [1] - In Q2 2025, the revenue reached 1.47 billion yuan, up 38.7% year-on-year, with a reduced net loss of 17.77 million yuan compared to a loss of 139 million yuan in the same period last year [1] - The company is focusing on operational improvements, resulting in increased revenue and a significant reduction in net losses, although it has not yet achieved overall profitability due to ongoing expansion and market challenges [1] Operational Improvements - The company is actively optimizing its product structure and implementing expansion plans, particularly in advanced technology products like Micro, with a capacity increase of over 20% year-on-year [2] - The company is enhancing its LED industry chain layout from substrate to chip, increasing the number of high-profit products by nearly 100 [2] - The company is adopting advanced manufacturing management practices to improve production efficiency, reduce costs, and enhance product quality [2]