Core Viewpoint - Jiangbolong (301308.SZ) has successfully developed SOCAMM, a high-performance memory product designed specifically for AI data centers, which offers significantly higher bandwidth compared to traditional RDIMM [1] Group 1: Product Development - SOCAMM technology provides several times the bandwidth of traditional RDIMM while achieving a smaller physical size and excellent power efficiency [1] - The successful lighting of SOCAMM indicates a significant technological breakthrough for the company [1] Group 2: Market Potential and Challenges - Despite the promising market prospects for SOCAMM technology, large-scale application will be influenced by factors such as ecosystem compatibility and customer adoption [1]

Group 1 - Jiangbolong's stock price increased by 0.87% on August 28, with a trading volume of 1.291 billion yuan. The margin trading data showed a financing purchase of 151 million yuan and a repayment of 162 million yuan, resulting in a net financing outflow of 11.05 million yuan. The total margin balance reached 975 million yuan as of August 28 [1] - The financing balance of Jiangbolong was 969 million yuan, accounting for 2.34% of its circulating market value, which is above the 90th percentile level over the past year, indicating a high level of financing [1] - On the same day, Jiangbolong repaid 3,100 shares in securities lending and sold 300 shares, with a selling amount of 29,600 yuan. The remaining securities lending volume was 56,400 shares, with a balance of 5.5633 million yuan, also exceeding the 90th percentile level over the past year [1] Group 2 - As of August 20, Jiangbolong had 35,000 shareholders, an increase of 3.72% from the previous period. The average circulating shares per person rose by 122.21% to 7,830 shares [2] - For the first half of 2025, Jiangbolong reported a revenue of 10.196 billion yuan, a year-on-year increase of 12.80%. However, the net profit attributable to shareholders was 14.7663 million yuan, a significant decrease of 97.51% year-on-year [2] - Since its A-share listing, Jiangbolong has distributed a total of 302 million yuan in dividends [2] Group 3 - As of June 30, 2025, among Jiangbolong's top ten circulating shareholders, E Fund's ChiNext ETF ranked third with 2.4489 million shares, an increase of 15,200 shares from the previous period. XINGQUAN He Run Mixed A ranked fourth with 2.1548 million shares, being a new shareholder [3] - Southern CSI 500 ETF ranked fifth with 1.9116 million shares, an increase of 293,000 shares. Several new shareholders entered the top ten, including XINGQUAN Business Model Mixed (LOF) A and Debon Semiconductor Industry Mixed Initiated A [3] - Hong Kong Central Clearing Limited ranked ninth with 1.2598 million shares, a decrease of 2.312 million shares from the previous period. Other funds like XINGQUAN New Vision and XINGQUAN Trend Investment Mixed (LOF) exited the top ten circulating shareholders [3]

Group 1 - The company disclosed a reduction in inventory impairment provision for the first half of 2025, amounting to 273,354,622.27 yuan [2]

Core Viewpoint - Jiangbolong (301308.SZ) is actively monitoring the development trends in AI and data center technologies, particularly focusing on the UCM technology which aims to address high costs and inefficiencies in AI inference through optimized cache management and data processing [1] Group 1 - The UCM technology is designed to solve issues related to high costs, low efficiency, and over-reliance on specific hardware in the AI inference field [1] - The requirements for the UCM technology may be gradually disclosed as the open-source process progresses [1] - The company's eSSD and RDIMM products have passed compatibility verification with multiple domestic CPU platforms, including Kunpeng and Haiguang [1]

Group 1 - The stock price of Jiangbolong increased by 2.09% on August 27, reaching 100.77 CNY per share, with a total market capitalization of 42.237 billion CNY [1] - Year-to-date, Jiangbolong's stock price has risen by 17.17%, with a 41.93% increase over the past 60 days [1] - The company specializes in the research, design, and sales of semiconductor storage application products and was established on April 27, 1999 [1] Group 2 - As of August 20, the number of shareholders for Jiangbolong increased by 3.72% to 35,000, with an average of 7,830 circulating shares per person, up 122.21% [2] - For the first half of 2025, Jiangbolong reported a revenue of 10.196 billion CNY, a year-on-year increase of 12.80%, while net profit decreased by 97.51% to 14.7663 million CNY [2] Group 3 - Since its A-share listing, Jiangbolong has distributed a total of 302 million CNY in dividends [3] - As of June 30, 2025, major shareholders include E Fund's ChiNext ETF and new entrants like Xingquan's mixed fund, indicating a shift in institutional holdings [3]

Core Viewpoint - Jiangbolong has relocated its Shanghai headquarters to the core area of the Lingang New Area, focusing on key storage businesses such as enterprise-grade and automotive-grade storage products [1] Company Summary - The new Shanghai headquarters will concentrate on the research and development of main control chips, enterprise-grade, industrial-grade, and automotive-grade storage products [1] - Jiangbolong has launched six self-developed main control chips that cover mainstream and high-end products including eMMC, SD cards, UFS, and USB mobile storage [1] Industry Summary - The service areas for Jiangbolong's products include rapidly growing markets such as artificial intelligence, data centers, smart vehicles, smart grids, and industrial IoT [1]

Core Insights - Jiangbolong's Shanghai headquarters has been established to enhance chip-level R&D capabilities, focusing on enterprise-grade and automotive-grade storage businesses [1][2] - The headquarters spans 14 acres with a total construction area of 43,000 square meters, accommodating over 1,000 R&D engineers [1] - The facility is designed as a high-end chip and storage product R&D center, featuring advanced research areas and specialized laboratories [1] Company Strategy - Jiangbolong aims to create a dual-engine model of "storage chips + high-end storage devices," integrating R&D operations from its Shenzhen headquarters and manufacturing capabilities from its Zhongshan storage industrial park [2] - The company plans to establish a dual-circulation supply chain model that includes domestic R&D, domestic and overseas manufacturing, and global sales [2] - The chairman and general manager, Cai Huabo, emphasized that the Shanghai headquarters marks a key milestone in Jiangbolong's global layout, leveraging the advantages of the Lingang New Area [2]

Group 1: Company Insights - Ruipu Biotech reported a comprehensive gross margin increase of 2.36 percentage points, driven by revenue scale expansion and product structure optimization, with a 17.94% year-on-year growth in the pet health sector [1] - Huijia Times has enhanced its fresh food category in Urumqi's Beijing Road shopping center, with a 1.87% increase in fresh food share and a 5% increase in cooked food [2] - Marubi Biotech expanded its audience on Douyin through targeted content, with a focus on brand building and new product launches in the second half of the year [3] - Jiangbolong's domestic market share in eSSD is second only to Solidigm and Samsung, with significant advancements in PCIe SSD and RDIMM products [4] - AVIC High-Tech is focusing on low-altitude economy strategies and has invested 9.17 billion in civil aviation composite materials projects [5] - Tianfu Communication achieved a revenue of 2.456 billion, a year-on-year increase of 57.84%, with a notable growth in active products [6] Group 2: Financial Performance - Ruipu Biotech's raw material drug segment showed significant improvement, with a gross margin increase of 14 percentage points and a reduction in losses by over 10 million compared to the previous year [1] - Huijia Times is prioritizing investor returns and enhancing dividend yields through strategic adjustments in its department stores [2] - Marubi Biotech's core product series accounts for over 70% of sales, indicating potential for further growth [3] - Jiangbolong's self-developed main control chip has shipped over 80 million units, showcasing its strong market position [4] - AVIC High-Tech expects significant improvement in cash collection in the second half of the year due to the maturity of previously received bills [5] - Tianfu Communication's gross margin decreased due to changes in product structure, with an increased focus on active products [6] Group 3: Strategic Developments - Ruipu Biotech plans to accelerate the launch of new products in the second half of the year, supported by significant R&D achievements [1] - Huijia Times is optimizing its product structure and enhancing service training to improve customer experience [2] - Marubi Biotech is set to launch a series of new products under its successful Xiaojin needle series [3] - Jiangbolong is collaborating with SanDisk to launch customized UFS products, enhancing its market presence [4] - AVIC High-Tech is deepening collaboration with core customers in the engine blade business through joint ventures [5] - Tianfu Communication is expanding its product offerings in response to customer demands, ensuring effective resource allocation [6]

Summary of Shenzhen Longsys Electronics Co Ltd Conference Call Company Overview - **Company**: Shenzhen Longsys Electronics Co Ltd - **Ticker**: 301308.SZ - **Industry**: Technology Semiconductors - **Region**: Greater China Key Financial Highlights - **2Q25 Revenue**: Rmb5.94 billion, up 30% YoY and up 40% QoQ, driven by favorable pricing trends and new business expansion [6] - **Net Profit**: Rmb166 million in 2Q25, a turnaround from a net loss of Rmb152 million in 1Q25, attributed to favorable memory pricing [6] - **Market Capitalization**: Rmb39,882.7 million [4] - **Current Share Price**: Rmb96.60 as of August 22, 2025 [4] - **12-month Forward P/B Ratio**: 4.9x, close to historical average of 5.1x since listing [3] Market and Pricing Trends - **NAND Pricing**: Expected to settle at a 0-5% increase QoQ for 3Q, with a potential 0-5% reduction in 4Q due to lukewarm consumer demand [2] - **Enterprise Business Demand**: Robust demand anticipated for eSSD+RDIMM products, driven by domestic AI capital expenditure and localization trends in China [6] Strategic Initiatives - **Product Development**: New enterprise products such as SOCAMM and Gen5 PCIe eSSD are on track for launch and mass production [6] - **Business Expansion**: Effective execution of enterprise business expansion and new product developments amid the growth of AI infrastructure [2] Valuation and Ratings - **Price Target**: Rmb100.00, indicating a 4% upside from the current price [4] - **Stock Rating**: Overweight, reflecting a positive outlook on the company's performance relative to its industry [4] Risks and Considerations - **Upside Risks**: Better-than-expected consumer demand recovery in 2H25 and eSSD market expansion could support revenue and margin improvement [10] - **Downside Risks**: Prolonged commodity down-cycle affecting memory prices and potential share loss to new entrants in the Chinese memory market [10] Conclusion Shenzhen Longsys Electronics Co Ltd is positioned favorably within the semiconductor industry, with strong financial performance and strategic initiatives in place to capitalize on market trends. The company's focus on enterprise business and product innovation, coupled with a positive market outlook, supports its Overweight rating. However, investors should remain cautious of potential market fluctuations and competitive pressures.

Core Viewpoint - Jiangbolong held a conference call on August 22, 2025, to discuss its enterprise-level business strategy, TCM model progress, and main control chip R&D with 90 institutional investors [1] Group 1: Enterprise-Level Business Development - Jiangbolong's enterprise-level storage products have gained recognition from well-known clients due to its proprietary core intellectual property and technical capabilities [1] - According to IDC data, Jiangbolong's SATA eSSD has a domestic market share second only to Solidigm and Samsung, while its PCIe SSD and RDIMM products have been mass-produced for leading domestic enterprises [1] Group 2: SOCAMM Product Development - The SOCAMM product has been activated, showing over 2.5 times the bandwidth compared to traditional RDIMM at the same capacity, with a 20% reduction in latency and a size one-third that of standard RDIMM [2] - However, the SOCAMM product has not yet generated revenue, indicating certain risks [2] Group 3: TCM Model Progress and Market Space - Jiangbolong is focusing on high-end, brand, and overseas development, investing in key areas such as main control, firmware, and packaging testing to build a comprehensive service capability [3] - The TCM model connects wafer manufacturers with core downstream clients, simplifying the business model and reducing the impact of industry cycle fluctuations [3] - Jiangbolong has partnered with SanDisk to launch customized UFS products and solutions for the mobile and IoT markets, accelerating the introduction of UFS products into multiple Tier 1 client supply chains [3] Group 4: Main Control Chip Technology and R&D Plans - Jiangbolong has established a self-developed main control chip R&D team and continues to invest in it, utilizing leading processes and proprietary core IP [4] - The UFS4.1 product, equipped with self-developed main control chips, achieves sequential read/write speeds of 4350MB/s and 4200MB/s, and random read/write speeds of 630K IOPS and 750K IOPS, significantly outperforming mainstream market products [4] - As of the end of July, over 80 million main control chips have been deployed, with UFS4.1 products undergoing validation with multiple Tier 1 manufacturers [4] Group 5: Embedded Business Opportunities - Jiangbolong has launched new embedded products such as UFS4.1 and eMMC Ultra, leveraging its advantages in self-developed main control, firmware, algorithms, and packaging testing [5] - The UFS product's performance advantages have led to a strategic partnership with SanDisk, while QLC eMMC products are being applied in numerous mobile terminal products due to their large capacity and price advantages [5] Group 6: Impact of U.S. Tariff Policies on Zilia - After acquiring Zilia, a leading storage manufacturer in Brazil, Jiangbolong has empowered it with its technology and product design solutions, leveraging Zilia's local manufacturing and service advantages [6] - Zilia has established long-term cooperative relationships with global top clients and manufacturers in Brazil [6]