东芯股份(688110) - 2025 Q2 - 季度财报

Definitions This section provides definitions of key terms and company-related entities used in the report, covering semiconductor industry jargon, names of company subsidiaries and affiliates, ensuring accuracy in report interpretation Definitions of Common Terms This chapter provides definitions of key terms and company-related entities used in the report, covering semiconductor industry jargon, names of company subsidiaries and affiliates, ensuring accuracy in report interpretation - Company, the Company, Issuer, Dosilicon: refers to Dosilicon Semiconductor Co., Ltd[10] - Dosilicon Nanjing: refers to Dosilicon Semiconductor (Nanjing) Co., Ltd., a wholly-owned subsidiary of Dosilicon[10] - NAND Flash: A non-volatile semiconductor memory chip with read, erase, and write capabilities, widely used in handheld mobile terminals, consumer electronics, and other fields[11] - Fabless: An operating model focused solely on design without manufacturing operations, responsible for chip circuit design and sales, outsourcing production, testing, and packaging[10] Company Profile and Key Financial Indicators This section provides an overview of Dosilicon Semiconductor Co., Ltd., including basic information, contact details, information disclosure, stock summary, and key financial data and indicators I. Basic Company Information This section introduces the basic information of Dosilicon Semiconductor Co., Ltd., including its Chinese name, English name, legal representative, registered address, office address, website, and email, along with historical changes to the registered address - Company Chinese Name: Dosilicon Semiconductor Co., Ltd[14] - Legal Representative: Jiang Xueming[14] - Company Registered Address: Room 1336, Block B, 13th Floor, Building 3, No. 2875 Huqingping Highway, Zhaoxiang Town, Qingpu District, Shanghai[14] II. Contact Persons and Information This section discloses the names, contact addresses, telephone numbers, fax numbers, and email addresses of the Company's Board Secretary and Securities Affairs Representative, facilitating communication for investors and relevant parties - Board Secretary: Jiang Yuzhou[15] - Securities Affairs Representative: Huang Shenmeng[15] - Contact Number: 021-61369022[15] III. Information Disclosure and Location Change Summary This section lists the Company's designated newspapers for information disclosure, the website address for publishing semi-annual reports, and the location where the Company's semi-annual reports are kept - Company's Selected Information Disclosure Newspapers: Shanghai Securities News, China Securities Journal[16] - Website Address for Semi-Annual Report Publication: Shanghai Stock Exchange website (www.sse.com.cn)[16](index=16&type=chunk) IV. Company Stock/Depositary Receipt Summary This section introduces the Company's A-share stock listing exchange, board, ticker symbol, and code, confirming no depositary receipt summary - Stock Type: A-shares[18] - Stock Listing Exchange and Board: Shanghai Stock Exchange STAR Market[18] - Stock Code: 688110[18] VI. Key Accounting Data and Financial Indicators This section discloses the Company's key accounting data and financial indicators for the current reporting period and the same period last year, explaining changes in operating revenue, total profit, net profit, and net cash flow from operating activities. The Company's operating revenue increased by 28.81% year-on-year, but it still faces profitability pressure due to high R&D investment, increased administrative and sales expenses, higher financial expenses, and investment losses Key Accounting Data (January-June) | Indicator | Current Period (RMB) | Prior Period (Adjusted) (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 342,991,662.20 | 266,283,618.11 | 28.81 | | Total Profit | -129,051,283.47 | -93,274,194.12 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company | -110,968,499.83 | -91,121,081.89 | Not applicable | | Net Cash Flow from Operating Activities | -56,392,480.18 | -173,050,008.84 | Not applicable | Key Financial Indicators (January-June) | Indicator | Current Period | Prior Period (Adjusted) | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | -0.26 | -0.21 | Not applicable | | Weighted Average Return on Net Assets (%) | -3.52 | -2.66 | Decrease 0.86 percentage points | | R&D Investment as % of Operating Revenue (%) | 30.74 | 39.72 | Decrease 8.98 percentage points | - Operating revenue increased by 28.81% year-on-year, primarily benefiting from the recovery in the semiconductor design industry, increased demand in downstream markets such as network communication and consumer electronics, and the Company's proactive market expansion efforts, effectively boosting product sales[22] - Total profit and net profit losses increased, mainly due to sustained high R&D investment (especially in the Wi-Fi sector), rising administrative and sales expenses, a significant increase in financial expenses (due to lower interest income and increased exchange losses), and an investment loss of 52.3111 million RMB in Shanghai Lisuo[23] - Net cash flow from operating activities was -56.3925 million RMB, an increase of 116.6575 million RMB compared to -173.0500 million RMB in the same period last year, primarily due to increased sales collections[23] VIII. Non-Recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the current reporting period, totaling 15,755,492.91 RMB, primarily including government grants and fair value changes in financial assets - Government grants recognized in current profit or loss: 6,182,603.62 RMB[25] - Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal business operations: 12,193,053.58 RMB[25] - Total non-recurring gains and losses: 15,755,492.91 RMB[26] IX. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact This section discloses that net profit after deducting the impact of share-based payments was -119.8276 million RMB, representing an increased loss year-on-year - Net profit after deducting the impact of share-based payments: -119,827,645.70 RMB[28] Management Discussion and Analysis This section discusses the company's industry, main business, operating performance, core competitiveness, and risk factors, highlighting revenue growth, R&D investment, and strategic initiatives I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period This section details the Company's main business, primary products and services (NAND Flash, NOR Flash, DRAM, MCP, and technical services), operating model (Fabless), and the development, market opportunities, and challenges of the semiconductor memory chip industry, including emerging demands from AI, automotive electronics, IoT, and the trend of domestic substitution - The Company's main business focuses on niche memory chip design, being one of the few companies in mainland China capable of simultaneously providing complete solutions for NAND Flash, NOR Flash, and DRAM memory chips[31] - The Company adopts a Fabless operating model, focusing on integrated circuit design, sales, and customer service, while outsourcing wafer manufacturing, packaging, and testing[43] - The memory market entered a clear upward cycle starting in 2024, with further recovery in 2025, and prices for mainstream memory chips like DRAM and NAND Flash stabilizing and steadily rising[45] - The widespread application of AI technology is reshaping the industry landscape, with surging computing power demand driving high-performance storage solutions, promoting the iteration of advanced storage technologies like HBM and 3D NAND, and gradually increasing demand for niche memory chips[47] - Driven by national information security and supply chain self-sufficiency strategies, the wave of domestic substitution for memory chips is surging, presenting significant opportunities for localization[47] - Overseas memory giants are focusing on large-capacity 3D NAND Flash, HBM, and DDR5, successively announcing new rounds of production cuts or control plans, gradually reducing investment and continuously cutting production in SLC NAND Flash, niche DRAM, and DDR4, which presents favorable development opportunities for the Company[48] (1) Main Business, Products, or Services The Company primarily designs niche memory chips, offering products such as NAND Flash, NOR Flash, DRAM, and MCP, widely used in network communication, security monitoring, consumer electronics, industrial and medical, and automotive electronics, while also providing customized design services. The Company has achieved technological breakthroughs in 1xnm NAND Flash and 48nm NOR Flash process technologies - The Company's main products are non-volatile memory chips NAND Flash and NOR Flash, volatile memory chip DRAM, and derivative product MCP[32] - NAND Flash products are diverse, low-power, and highly reliable, widely applied in communication equipment, security monitoring, wearable devices, and mobile terminals, with product reliability gradually advancing from industrial-grade to automotive-grade standards[32][33][35] - NOR Flash focuses on designing large-capacity, low-power, ETOX process SPI NOR Flash, with storage capacities ranging from 64Mb to 2Gb, widely used in network communication, wearable devices, and mobile terminals[36] - DRAM's developed DDR3(L) series and LPDDR1/2/4X series products feature high bandwidth, low latency, low power consumption, and high transmission speeds, suitable for communication equipment, mobile terminals, smart terminals, and wearable devices[37] - MCP products integrate self-developed low-power 1.8V SLC NAND Flash memory chips with low-power DRAM designs, certified on platforms such as Unisoc, Qualcomm, and MediaTek, and widely used in feature phones, MIFI, and communication modules[38] - The Company possesses independent and complete intellectual property rights, capable of customizing memory chip design services and overall solutions according to customer needs, helping clients reduce product development time and costs[42] (2) Main Operating Model The Company adopts a Fabless operating model, focusing on integrated circuit design, sales, and customer service, outsourcing wafer manufacturing, packaging, and testing. Product sales utilize a combination of distribution and direct sales models - As an IC design company, the Company adopts a Fabless operating model, focusing on integrated circuit design, sales, and customer service, outsourcing wafer manufacturing, packaging, and testing[43] - The Company's product sales adopt a "distribution and direct sales combined" model, with outright sales under the distribution model[43] (3) Industry Overview The Company operates in the integrated circuit design industry, specifically the chip design sub-sector. The global memory chip market is projected to exceed $234 billion in sales by 2025, with a 16% CAGR. Emerging applications like AI, automotive electronics, and IoT drive demand growth, while national policies promote domestic substitution, creating development opportunities for the Company - The Company operates in the "Integrated Circuit Design" (Code: 6520) sub-sector of the "Software and Information Technology Services Industry," specifically the chip design industry[45] - Yole Group projects global memory chip market sales to grow from $96 billion in 2023 to over $234 billion by 2025, with a compound annual growth rate (CAGR) of 16% between 2023 and 2029[45] - The global automotive memory chip market size was $4.76 billion in 2023, projected to reach $10.25 billion by 2028, indicating continuous market demand expansion[47] - According to Zhongyan Puhua data, China's edge AI market size is expected to exceed 250 billion RMB by 2025 and reach 1.2 trillion RMB by 2030, with a compound annual growth rate (CAGR) of 30.8%[47] - Driven by national information security and supply chain self-sufficiency strategies, the wave of domestic substitution for memory chips is surging, presenting significant opportunities for localization[47] II. Discussion and Analysis of Operations In the first half of 2025, the Company's operating revenue was 343 million RMB, a year-on-year increase of 28.81%, with a gross profit margin of 18.76%, up 5.45 percentage points year-on-year. The Company continues to deepen its expertise in storage technology, advance its "storage, computing, and connectivity" integrated strategy, build a "local depth, global breadth" supply chain, and prioritize talent development and compliant operations. Despite revenue growth, net profit remains negative due to high R&D investment and investment losses Key Operating Performance in H1 2025 | Indicator | Amount/Ratio | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 343 million RMB | Up 28.81% | | Gross Profit Margin | 18.76% | Up 5.45 percentage points | | Net Profit Attributable to Parent Company Shareholders | -110.9685 million RMB | Loss | | Net Profit After Non-Recurring Gains and Losses | -126.7240 million RMB | Loss | - The Company's R&D expenses were 105 million RMB, accounting for 30.74% of current operating revenue, flat year-on-year, continuously strengthening its technological leadership in the SLC NAND Flash industry and actively promoting the upgrade and iteration of storage products[50] - The "1xnm Flash Product R&D and Industrialization Project" has achieved mass production, with continuous optimization of design and process, significantly improved product reliability indicators, and successful product sales[50] - The Company continues to advance its "storage, computing, and connectivity" integrated strategic layout, promoting Wi-Fi 7 wireless communication chip R&D in the connectivity chip sector, and strategically investing in Shanghai Lisuo to enter the high-performance GPU market. Shanghai Lisuo's first self-developed GPU chip "7G100" has completed tape-out, wafer manufacturing, and chip packaging, with test results meeting expectations, and is proceeding with customer sampling and mass production as planned[52][53][54] - The Company highly values establishing a stable and reliable supply chain system, having built mutually beneficial and trusting cooperative relationships with multiple renowned domestic and international wafer foundries and packaging and testing factories, forming a "local depth, global breadth" supply chain network[54] - The Company continuously improves its incentive and restraint mechanisms, optimizes its compensation system, refines performance appraisal systems, and has implemented equity incentive plans for three consecutive years to attract and retain outstanding talent[55] III. Analysis of Core Competitiveness During the Reporting Period The Company's core competitiveness lies in technological innovation, supply chain assurance, quality service, talent team, and high-level R&D investment. The Company continuously iterates technology in memory chip design, builds a stable supply chain, enhances customer trust, attracts and retains talent through equity incentives, and maintains independent control over core technologies - The Company takes technological innovation as its core driving force, continuously improving its R&D system, iterating and upgrading products in NAND Flash, NOR Flash, DRAM, and MCP fields, with SLC NAND Flash, NOR Flash, and MCP products passing AEC-Q100 verification and achieving mass production for automotive-grade applications[59] - The Company adheres to the principle of "local depth, global breadth" in its supply chain layout, establishing mutually beneficial and trusting cooperative relationships with domestic and international suppliers to ensure efficient supply chain operation and product quality, and actively expanding dual foundry models both domestically and internationally[60] - The Company adheres to the quality policy of "Quality," "Competitiveness," "Customer Satisfaction," and "Continuous Improvement," continuously optimizing service processes and operating systems, establishing a strict automotive-grade quality management system, and continuously enhancing global customer trust[61] - As of the end of the reporting period, the Company had 206 R&D and technical personnel, accounting for 63.19% of the total workforce, with approximately 98.54% of R&D personnel holding bachelor's degrees or higher, effectively motivating the core team through equity incentive plans[62] - The Company maintains a high level of R&D investment, with R&D expenses of 105 million RMB during the reporting period, accounting for 30.74% of current operating revenue, and possesses 121 valid patents (domestic and international), 15 software copyrights, 86 integrated circuit layout designs, and 14 registered trademarks, adhering to independent control over core technologies[63] (3) Core Technologies and R&D Progress The Company's core technologies are all independently developed, covering key aspects of NAND Flash, NOR Flash, and DRAM memory chip design, with no significant changes in core technologies during the reporting period. The Company continues to obtain invention patent authorizations, maintains high R&D investment, has multiple ongoing projects progressing smoothly, and a stable R&D team size and educational structure - The Company's core technologies are all independently developed, possessing independent R&D capabilities and core technologies in key aspects of NAND Flash, NOR Flash, and DRAM memory chip design, with no significant changes in core technologies during the reporting period[65] - During the reporting period, the Company obtained 8 authorized invention patents (including 2 Chinese invention patents, 3 US invention patents, and 3 Korean invention patents); applied for 5 integrated circuit layout designs; and applied for 8 registered trademarks[67] - As of the end of the reporting period, the Company possessed 121 valid patents (domestic and international), 15 software copyrights, 86 integrated circuit layout designs, and 14 registered trademarks[67] R&D Investment Overview | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 105,437,103.94 | 105,765,542.10 | -0.31 | | Total R&D Investment as % of Operating Revenue (%) | 30.74 | 39.72 | Decrease 8.98 percentage points | - R&D projects include 1xnm NAND Flash, 2xnm NAND Flash, 28nm NAND Flash, 48nm NOR Flash, 55nm NOR Flash, DDR3, LPDDR4x, and other DRAM products, with some products already in or nearing mass production; Wi-Fi 7 products are in the R&D stage[73] R&D Personnel Information | Indicator | Current Period | | :--- | :--- | | Number of Company R&D Personnel (persons) | 206 | | R&D Personnel as % of Total Company Staff (%) | 63.19 | | Total R&D Personnel Compensation (10,000 RMB) | 7,441.16 | | Average R&D Personnel Compensation (10,000 RMB) | 36.12 | | Doctoral Degree Holders (%) | 1.46 | | Master's Degree Holders (%) | 39.81 | | Bachelor's Degree Holders (%) | 57.28 | IV. Risk Factors The Company faces multiple risks including performance decline or loss, core competitiveness (technology upgrades, R&D failure, talent loss, core technology leakage), operations (outsourcing and supplier concentration, overseas operations), financial (performance volatility, inventory impairment), and macroeconomic environment (industry cyclicality, international trade environment uncertainty) - The Company continues to maintain high R&D investment, promoting memory chip process upgrades and reliability improvements, and focusing on storage, expanding into "storage, computing, and connectivity" integration. The Wi-Fi sector still requires sustained R&D investment, and the Company's invested GPU sector has not yet generated revenue, further pressuring the Company's profitability and posing a risk of performance decline or continued losses[76] - The integrated circuit design industry, where the Company operates, is characterized by technology intensiveness and rapid product iteration. If the Company fails to accurately grasp technological trends or its product iteration speed lags behind industry developments and customer demand changes, it may weaken market competitiveness and negatively impact operating performance[76] - The integrated circuit design industry has high technical barriers, significant R&D investment, and long product development cycles, posing risks of R&D failure or industrialization failure[77] - The Company adopts a Fabless operating model, and the wafer foundry and packaging and testing markets are highly concentrated, leading to risks of high outsourcing and supplier concentration, which may result in supply shortages, limited production capacity, or increased procurement costs[78] - The book value of the Company's inventory is 952.8372 million RMB, accounting for 27.40% of total assets, a relatively high proportion. As of the end of the reporting period, the inventory impairment provision balance was 174.8332 million RMB, indicating inventory impairment risk[79][80] - The integrated circuit industry, especially the memory chip industry, exhibits certain cyclicality, and is influenced by global macroeconomic fluctuations and industry prosperity, which may have an impact on the Company's operating performance[80] - In recent years, the uncertainty in the international trade environment has increased, and Sino-US trade frictions have intensified, which may adversely affect the integrated circuit industry chain where the Company operates, leading to increased transaction costs for upstream and downstream segments of the industry chain[82] V. Main Operating Performance During the Reporting Period During the reporting period, the Company's operating revenue was 343 million RMB, a year-on-year increase of 28.81%, but net profit attributable to parent company shareholders and net profit after non-recurring gains and losses remained negative. This section provides a detailed analysis of changes in financial statement items, asset and liability status, external equity investments, and the performance of major controlled and investee companies - During the reporting period, the Company achieved operating revenue of 342.9917 million RMB, a year-on-year increase of 28.81%; net profit attributable to shareholders of the listed company was -110.9685 million RMB, with the loss increasing by 19.8474 million RMB year-on-year[83] Analysis of Changes in Financial Statement Items | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 342,991,662.20 | 266,283,618.11 | 28.81 | | Operating Cost | 278,631,498.15 | 230,848,097.09 | 20.70 | | Administrative Expenses | 42,317,090.50 | 34,824,752.62 | 21.51 | | Financial Expenses | 7,684,279.56 | -21,640,013.74 | Not applicable | | Net Cash Flow from Operating Activities | -56,392,480.18 | -173,050,008.84 | Not applicable | | Net Cash Flow from Investing Activities | -104,166,619.26 | -40,834,095.19 | Not applicable | | Net Cash Flow from Financing Activities | 10,494,717.19 | -23,391,416.49 | Not applicable | - The significant increase in financial expenses was mainly due to decreased interest income from lower bank deposit rates and increased exchange losses[85] - The ending balance of financial assets held for trading was 743,087,000.01 RMB, an increase of 197.03% from the end of the previous year, primarily due to increased purchases of bank structured deposit products[89] - The ending balance of other receivables was 2,095,647.03 RMB, a decrease of 91.21% from the end of the previous year, primarily due to the recovery of capacity deposits[89] - Overseas assets amounted to 484,157,704.89 RMB, accounting for 13.92% of total assets[90] - The Company used 72.50 million RMB of its own funds to increase capital in Yixintonggan Shanghai, subscribing to its newly added registered capital of 72.50 million RMB. As of the end of the reporting period, the Company's cumulative paid-in capital was 101.50 million RMB, used for the R&D and design of Wi-Fi 7 wireless communication chips[92] Operating Performance of Major Controlled and Investee Companies | Company Name | Operating Revenue (10,000 RMB) | Net Profit (10,000 RMB) | | :--- | :--- | :--- | | Fidelix Co.,Ltd. | 11,088.24 | -1,886.69 | | Nemostech Inc. | 877.55 | -31.96 | | Dosilicon Hong Kong | 18,553.15 | 245.39 | | Dosilicon Nanjing | 717.69 | 48.27 | | Yixintonggan Shanghai | 273.58 | -1,586.79 | | Yixintonggan Guangzhou | 0.00 | -1,289.58 | | Lisuo Technology (Shanghai) Co., Ltd. | 0.00 | -13,810.14 | Corporate Governance, Environment, and Society This section covers changes in the company's directors, senior management, and core technical personnel, profit distribution plans, equity incentive plans, environmental information disclosure, and rural revitalization efforts I. Changes in Company Directors, Senior Management, and Core Technical Personnel During the reporting period, there were multiple changes in the Company's directors, senior management, and core technical personnel, including the appointment of Sun Xin as CFO, the election of Zhang Jun and Zhu Jiping as independent directors, and the departure of former independent directors and supervisory board members. The Company has abolished the supervisory board, with its functions now exercised by the Board's Audit Committee - The Company appointed Ms. Sun Xin as its Chief Financial Officer, with a term of office from the date of approval by the Company's Board of Directors until the expiration of the term of the Company's second Board of Directors[100] - The Company elected Mr. Zhang Jun and Mr. Zhu Jiping as independent directors for the Company's third Board of Directors; former independent directors of the second Board of Directors, Mr. Joseph Zhifeng Xie and Mr. Huang Zhiwei, retired after completing their six-year terms[101][102] - The Company will no longer have a Supervisory Board, with its functions to be exercised by the Board's Audit Committee; former supervisors of the second Supervisory Board, Mr. Wang Qinqiang, Mr. Shan Huixing, and Ms. Ye Huihua, retired upon the expiration of their terms on the same day[101][102] - The identification of the Company's core technical personnel is primarily based on a comprehensive assessment of their years of service, scientific and technological achievements, participation in or leadership of core technology development, and contributions to the Company's operations[104] II. Profit Distribution or Capital Reserve Conversion Plan For this semi-annual period, the Company has no profit distribution plan or capital reserve to share capital increase plan - Proposed profit distribution plan and capital reserve to share capital increase plan for this semi-annual period: No[105] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the Company cancelled some restricted shares and completed the share registration procedures for the first grant vesting periods of the 2023 and 2024 restricted stock incentive plans, aiming to establish a sound long-term incentive mechanism - The Company collectively cancelled 400,860 restricted shares from the 2022 incentive plan, 422,880 from the 2023 incentive plan, and 499,800 from the 2024 incentive plan, totaling 1,323,540 restricted shares to be cancelled[106] - The 856,320 restricted shares from the second vesting period of the first grant under the Company's 2023 restricted stock incentive plan, and the 952,800 restricted shares from the first vesting period of the first grant under the 2024 restricted stock incentive plan, completed share registration procedures on July 9, 2025[107] - The shares vested in this period originated from the Company's repurchase of its A-share common stock from the secondary market, thus the Company's total share capital will not change[107] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law There is no information regarding enterprises required to disclose environmental information by law for this reporting period V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc. There is no specific progress in consolidating and expanding poverty alleviation achievements, rural revitalization, etc., for this reporting period Significant Matters This section details the fulfillment of commitments by the company and its related parties, absence of illegal fund occupation or guarantees, and provides an overview of major contracts, fundraising utilization, and other significant events I. Fulfillment of Commitments This section details the commitments made by the Company's actual controllers, shareholders, related parties, and the Company itself regarding initial public offerings, equity incentives, including share lock-up, repurchase for fraudulent issuance, measures to offset diluted immediate returns, profit distribution policies, regulation of related-party transactions, and disciplinary measures for non-fulfillment of commitments, stating that all commitments have been strictly fulfilled - The Company's controlling shareholder, actual controllers, non-independent directors, senior management, supervisors, and core technical personnel all have share lock-up commitments, including lock-up periods, reduction prices not lower than the issue price, and annual reduction proportion limits[111][112][113][114][115][116][117] - The Company, its controlling shareholder, and actual controllers commit that if there is any fraudulent issuance and listing, they will initiate a share repurchase procedure within 5 working days after confirmation by the China Securities Regulatory Commission and other competent authorities, repurchasing all new shares issued in this public offering[118] - The Company, its controlling shareholder, actual controllers, directors, and senior management commit to strengthening the management of raised funds, accelerating the investment progress of fundraising projects, and further improving and strictly implementing cash dividend policies, among other measures, to offset diluted immediate returns[118][119] - The Company, its controlling shareholder, and actual controllers commit to strictly distribute profits to shareholders in accordance with the profit distribution policies stipulated in the "Articles of Association (Draft)" and the "Three-Year Dividend Return Plan After the Company's Initial Public Offering and Listing," as approved by the General Meeting of Shareholders[119] - The controlling shareholder, actual controllers, directors, supervisors, senior management, and some shareholders commit to minimizing related-party transactions with the Company and its subsidiaries, and for unavoidable related-party transactions, they will adhere to the principles of fairness, reasonableness, and fair pricing[121][122][123] - If the Company, its controlling shareholder, actual controllers, directors, supervisors, senior management, and core technical personnel fail to fulfill their public commitments, they will publicly explain the reasons and apologize, and accept restrictive measures such as salary reduction and prohibition of share transfer[123][124][125] - The Company commits not to provide loans or any other form of financial assistance to the beneficiaries of the equity incentive plan; beneficiaries commit that if the Company's information disclosure documents contain false records or other issues leading to non-compliance with equity grant or exercise arrangements, they will return all benefits obtained from this incentive plan[125][126][127] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties III. Irregular Guarantees During the reporting period, there were no irregular guarantees IV. Semi-Annual Report Audit Status This semi-annual report is unaudited - This semi-annual report is unaudited[4] V. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Previous Annual Report Not applicable VI. Bankruptcy and Reorganization Matters Not applicable VII. Major Litigation and Arbitration Matters During the reporting period, the Company had no major litigation or arbitration matters VIII. Alleged Violations, Penalties, and Rectification of Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controllers Not applicable IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controllers During the Reporting Period During the reporting period, the Company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled obligations determined by effective legal documents, or large overdue debts - During the reporting period, the Company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled obligations determined by effective legal documents, or large overdue debts[129] X. Major Related-Party Transactions During the reporting period, there were no disclosed or undisclosed major related-party transactions related to daily operations, asset acquisitions/disposals, joint external investments, nor any related-party creditor-debtor relationships or financial business with affiliated finance companies XI. Major Contracts and Their Fulfillment During the reporting period, the Company had no entrustment, contracting, or leasing matters, but disclosed significant guarantees provided by the Company and its subsidiaries to subsidiaries, with a total guarantee amount of 129 million RMB, accounting for 4.11% of the Company's net assets Guarantees Provided by the Company and Its Subsidiaries to Subsidiaries | Guaranteed Party | Guarantee Amount (RMB) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Dosilicon Semiconductor (Hong Kong) Co., Ltd. | 24,000,000.00 | 2022/7/20 | 2025/7/31 | No | | Dosilicon Semiconductor (Hong Kong) Co., Ltd. | 30,000,000.00 | 2023/9/13 | 2025/1/26 | Yes | | Dosilicon Semiconductor (Hong Kong) Co., Ltd. | 128,854,800.00 | 2021/9/1 | 2026/8/31 | No | - The Company's total guarantee amount (including guarantees to subsidiaries) is 128,854,800.00 RMB[135] - The total guarantee amount accounts for 4.11% of the Company's net assets[135] - The debt guarantee amount provided for guaranteed parties with an asset-liability ratio exceeding 70% is 128,854,800.00 RMB[135] XII. Explanation of Progress in Use of Raised Funds This section discloses the overall use of the Company's raised funds and details of the fundraising projects. As of the end of the reporting period, cumulative raised funds invested totaled 2.13 billion RMB, with an investment progress of 69.53%. The "1xnm Flash Product R&D and Industrialization Project" has been completed, and the remaining 124 million RMB of raised funds will permanently supplement working capital. The Company also used idle raised funds for cash management Overall Use of Raised Funds | Indicator | Amount (10,000 RMB) | | :--- | :--- | | Total Raised Funds | 333,677.44 | | Net Raised Funds | 306,358.16 | | Cumulative Raised Funds Invested as of End of Reporting Period | 213,013.06 | | Cumulative Investment Progress of Raised Funds as of End of Reporting Period (%) | 69.53 | - The "1xnm Flash Product R&D and Industrialization Project," a fundraising investment project from the Company's initial public offering, has been completed and reached its intended usable state, closing on June 30, 2025. The remaining raised funds of 124.2391 million RMB will be used to permanently supplement the Company's working capital[141][149][150] Detailed Use of Over-Raised Funds | Purpose | Total Over-Raised Funds Planned for Investment (10,000 RMB) | Cumulative Over-Raised Funds Invested as of End of Reporting Period (10,000 RMB) | | :--- | :--- | :--- | | Permanent Supplement to Working Capital from Over-Raised Funds | 129,300.00 | 129,300.00 | | Repurchase of Company Shares with Over-Raised Funds | 20,028.97 | 20,028.97 | | Over-Raised Funds Unused | 82,029.19 | 0 | | Total | 231,358.16 | 149,328.97 | - During this reporting period, the Company cumulatively used 968 million RMB of temporarily idle raised funds to purchase principal-protected products such as negotiable large-denomination certificates of deposit, notice deposits, and structured deposits, with a cumulative redemption amount of 1.106 billion RMB; as of June 30, 2025, the unredeemed balance of principal-protected products was 862 million RMB[146][147] XIII. Explanation of Other Significant Matters Not applicable Share Changes and Shareholder Information This section details the company's share capital changes, shareholder structure, and information on directors, senior management, and core technical personnel holdings I. Share Capital Changes During the reporting period, there were no changes in the Company's total number of common shares or share capital structure - During the reporting period, there were no changes in the Company's total number of common shares or share capital structure[152] II. Shareholder Information As of the end of the reporting period, the total number of common shareholders was 19,095. This section discloses the shareholdings of the top ten shareholders and the top ten shareholders with unrestricted shares, with controlling shareholder Oriental Hengxin Group Co., Ltd. holding 34.28%. The Company's dedicated share repurchase account held 8,725,033 shares - Total number of common shareholders as of the end of the reporting period: 19,095 households[153] Top Ten Shareholders' Shareholdings (Excluding Shares Lent via Securities Relending) | Shareholder Name | Number of Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Oriental Hengxin Group Co., Ltd. | 151,624,562 | 34.28 | Domestic Non-State-Owned Legal Person | | Suzhou Dosilicon Sci-Tech Equity Investment Partnership (Limited Partnership) | 22,500,000 | 5.09 | Other | | CITIC Securities Co., Ltd. - Harvest SSE STAR Market Chip ETF | 7,323,301 | 1.66 | Other | | Zhao Jianping | 5,130,000 | 1.16 | Domestic Natural Person | | Ningbo Meishan Bonded Port Area Lingding Investment Management Co., Ltd. - Lingding Hengrui No. 8 Private Securities Investment Fund | 3,361,388 | 0.76 | Other | - Among the Company's top ten shareholders is the "Dosilicon Semiconductor Co., Ltd. Repurchase Dedicated Securities Account," which held 8,725,033 shares as of the end of the reporting period[157] - Oriental Strait Capital Management Co., Ltd., the executive partner of Suzhou Dosilicon Sci-Tech Equity Investment Partnership (Limited Partnership), is a controlled subsidiary of Oriental Hengxin Group Co., Ltd[157] III. Information on Directors, Senior Management, and Core Technical Personnel During the reporting period, the indirect shareholdings of the Company's directors, senior management, and core technical personnel increased due to the controlling shareholder's additional purchases. Additionally, this section discloses the number of second-class restricted shares granted to and vested by some directors, senior management, and core technical personnel - During the reporting period, the Company's controlling shareholder, Oriental Hengxin, cumulatively increased its shareholding in the Company by 4,571,727 shares through centralized bidding transactions on the Shanghai Stock Exchange, leading to an increase in the indirect shareholdings of Chairman Jiang Xueming, Director and General Manager Xie Yingxia, Director Lü Jianguo, former Supervisory Board Chairman Wang Qinqiang, and former Supervisor Shan Huixing[159] Number of Restricted Shares Granted to Directors, Senior Management, and Core Technical Personnel at Period End | Name | Position | Number of Restricted Shares Granted at Period End (shares) | | :--- | :--- | :--- | | Jiang Xueming | Chairman | 276,000 | | Xie Yingxia | Director, General Manager | 245,280 | | Jiang Yuzhou | Director, Deputy General Manager, Board Secretary | 115,080 | | Chen Lei | Deputy General Manager | 132,760 | | KIM HACK SOO | Deputy General Manager | 160,720 | | Feng Yusheng | Deputy General Manager | 115,080 | | Pan Huizhong | Deputy General Manager | 132,760 | | Chen Hui | Core Technical Personnel | 146,000 | | Chen Weirong | Core Technical Personnel | 146,000 | | LEE HYUNGSANG | Core Technical Personnel | 63,800 | | Total | / | 1,533,480 | - The share registration procedures for 599,520 shares vested from the second vesting period of the first grant under the Company's 2023 restricted stock incentive plan, and 615,840 shares vested from the first vesting period of the first grant under the 2024 restricted stock incentive plan, were completed on July 9, 2025[161] IV. Changes in Controlling Shareholder or Actual Controllers During the reporting period, there were no changes in the Company's controlling shareholder or actual controllers V. Implementation and Changes of Depositary Receipt Arrangements During the Reporting Period Not applicable VI. Special Voting Rights Shares Not applicable VII. Preferred Shares Information Not applicable Bond-Related Information This section confirms the absence of company bonds, corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds I. Company Bonds (Including Corporate Bonds) and Non-Financial Enterprise Debt Financing Instruments Not applicable II. Convertible Corporate Bonds Not applicable Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, along with detailed notes on accounting policies, tax items, and financial statement items I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[4] II. Financial Statements This section provides the Company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for the first half of 2025, comprehensively reflecting the Company's financial position, operating results, and cash flows Consolidated Balance Sheet (June 30, 2025) | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Monetary Funds | 579,391,443.19 | 729,533,640.15 | | Financial Assets Held for Trading | 743,087,000.01 | 250,168,611.11 | | Inventory | 952,837,229.32 | 892,341,994.94 | | Total Assets | 3,478,058,964.22 | 3,530,781,006.35 | | Total Liabilities | 184,251,504.81 | 161,204,671.14 | | Total Owner's Equity Attributable to Parent Company | 3,135,977,131.46 | 3,209,317,640.11 | Consolidated Income Statement (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Operating Revenue | 342,991,662.20 | 266,283,618.11 | | Operating Cost | 278,631,498.15 | 230,848,097.09 | | Total Profit | -129,051,283.47 | -93,274,194.12 | | Net Profit Attributable to Parent Company Shareholders | -110,968,499.83 | -91,121,081.89 | Consolidated Cash Flow Statement (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -56,392,480.18 | -173,050,008.84 | | Net Cash Flow from Investing Activities | -104,166,619.26 | -40,834,095.19 | | Net Cash Flow from Financing Activities | 10,494,717.19 | -23,391,416.49 | | Net Increase in Cash and Cash Equivalents | -150,142,196.96 | -240,602,853.15 | III. Basic Company Information This section provides an overview of Dosilicon Semiconductor Co., Ltd., including its establishment date, listing date, registered capital, legal representative, registered address, headquarters address, and main business activities, namely the R&D, design, production, and sales of semiconductor chips - Company Name: Dosilicon Semiconductor Co., Ltd[200] - Listing Date: December 10, 2021[200] - Registered Capital: 442,249,758.00 RMB[200] - Main Business Activities: R&D, design, and sales of semiconductor chips, providing semiconductor chip-related development services and product technical support[200] IV. Basis of Financial Statement Preparation The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, and on a going concern basis - These financial statements are prepared in accordance with the "Basic Standards for Business Accounting Standards" and various specific accounting standards, application guidelines, interpretations of accounting standards, and other relevant regulations issued by the Ministry of Finance, as well as the relevant provisions of the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports"[201] - These financial statements are prepared on a going concern basis[202] V. Significant Accounting Policies and Estimates This section details the Company's specific accounting policies and estimates regarding accounting period, operating cycle, functional currency, materiality standards, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions and translation, financial instruments, inventories, contract assets, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, preferred shares/perpetual bonds, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases, as well as the impact of implementing Interpretation No. 18 of the new accounting standards on the presentation of operating costs starting from 2025 - The Company uses RMB as its functional currency. Its subsidiaries determine their functional currency based on their primary economic environment; Dosilicon Semiconductor (Hong Kong) Co., Ltd. uses USD, while Fidelix Co., Ltd. and Nemostech Inc. use KRW[207] - Based on the Company's business model for managing financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified at initial recognition as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[220] - Inventories are valued using the weighted average method when issued. At the balance sheet date, inventories are measured at the lower of cost and net realizable value[239][242] - Expenditures for the Company's internal research and development projects are divided into research phase expenditures and development phase expenditures. Research phase expenditures are recognized in profit or loss when incurred. Development phase expenditures that meet specific conditions are recognized as intangible assets[267][268] - The Company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services. For contracts containing two or more performance obligations, the Company allocates the transaction price to each distinct performance obligation at contract inception based on the relative standalone selling prices of the goods or services promised in each distinct performance obligation[285] - The Company has implemented "Interpretation No. 18 of Accounting Standards for Business Enterprises" starting from 2024, reclassifying warranty-type quality assurance provisions previously included in "selling expenses" to "operating costs," and retrospectively adjusting prior period figures[313][314] VI. Taxes This section discloses the Company's main tax categories and rates, including VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax. The Company enjoys a 15% corporate income tax preferential rate as a high-tech enterprise and is recognized as a key integrated circuit design enterprise encouraged by the state, benefiting from a "five-year exemption, five-year half reduction" policy Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | VAT | 13%, 10%, 6% | | Urban Maintenance and Construction Tax | 5%, 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%, 25%, 16.5%, 20.9%, 9.9% | - The Company's high-tech enterprise qualification review passed, obtaining the "High-Tech Enterprise Certificate," and enjoys a 15% corporate income tax preferential rate during its validity period[317] - The Company was first recognized as a key integrated circuit design enterprise encouraged by the state, enjoying corporate income tax exemption for the first five years from its first profitable year, and a reduced rate of 10% for subsequent years[318] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various assets, liabilities, owner's equity, revenue, costs, expenses, and other items in the consolidated financial statements, including ending balances, beginning balances, current period changes, and related explanations - The ending balance of monetary funds was 579,391,443.19 RMB, of which 64,395,762.96 RMB was deposited overseas[320][321] - The ending balance of financial assets held for trading was 743,087,000.01 RMB, primarily structured deposits, representing a 197.03% increase from the beginning of the period[323][89] - The ending book value of accounts receivable was 118,813,053.52 RMB, of which 29,465,400.89 RMB was provided for bad debts on an individual basis[327][329] - The ending book value of inventory was 952,837,229.32 RMB, with an inventory impairment provision balance of 174,833,169.57 RMB at period end[352] - Among long-term equity investments, the investment loss in associate Lisuo Technology (Shanghai) Co., Ltd. was -52,311,146.71 RMB[363] - The ending balance of other equity instrument investments was 111,735,739.03 RMB, with a current period increase of 20,000,000.00 RMB, primarily due to investment in Shanghai Daohe Chanxin Private Equity Investment Partnership (Limited Partnership)[366] - The ending book value of fixed assets was 116,747,933.33 RMB, with an accumulated depreciation ending balance of 194,953,117.31 RMB[370] - The ending original book value of goodwill was 46,836,302.20 RMB, with a full impairment provision of 46,836,302.20 RMB already made[380][382] - The ending balance of deferred income tax assets was 24,108,850.79 RMB, and deferred income tax liabilities was 42,465.91 RMB[389] - The ending balance of short-term borrowings was 5,269,190.15 RMB, a decrease of 64.53% from the beginning of the period, primarily due to the repayment of some bank loans[397][89] - The ending balance of accounts payable was 101,572,609.98 RMB, an increase of 69.24% from the beginning of the period, primarily due to increased payables for goods[401][89] - The ending balance of employee benefits payable was 24,611,523.73 RMB, a decrease of 30.30% from the beginning of the period, primarily due to the payment of last year's annual bonus in the current period[405][89] - The ending balance of long-term employee benefits payable was 10,673,094.87 RMB, primarily net defined benefit liabilities[420] - The ending balance of provisions was 2,668,707.99 RMB, an increase of 49.62% from the beginning of the period, primarily due to the Company's expanded sales scale and a corresponding increase in accrued return costs[427][89] - The ending balance of deferred income was 7,936,243.95 RMB, an increase of 88.66% from the beginning of the period, primarily due to increased government grants[428][89] - The ending balance of capital reserves was 3,255,252,555.85 RMB, with a current period increase of 30,262,232.69 RMB, primarily due to equity incentive contributions and share-based payment expenses[431][432] - The ending balance of undistributed profits was -407,784,457.66 RMB, an expanded loss compared to -296,815,957.83 RMB at the beginning of the period[437] - Current period operating revenue was 342,991,662.20 RMB, and operating cost was 278,631,498.15 RMB[440] - Current period financial expenses were 7,684,279.56 RMB, compared to -21,640,013.74 RMB in the prior period, mainly due to decreased interest income and increased exchange losses[448] - Current period investment income was -42,155,167.97 RMB, compared to 9,950,900.35 RMB in the prior period, primarily affected by investment losses in associates[451] - Current period fair value change gain was 2,037,074.84 RMB, compared to -1,349,326.07 RMB in the prior period, mainly due to fair value changes in financial assets held for trading[452] - Current period credit impairment loss was -3,221,034.83 RMB, and asset impairment loss was -3,204,216.48 RMB[453][454] - Current period income tax expense was -4,629,269.14 RMB, compared to -161,478.38 RMB in the prior period[458] - Net cash flow from operating activities was -56,392,480.18 RMB, an improvement of 116.6575 million RMB compared to -173,050,008.84 RMB in the prior period[467] - Net cash flow from investing activities was -104,166,619.26 RMB, an increased outflow compared to -40,834,095.19 RMB in the prior period[467] - Net cash flow from financing activities was 10,494,717.19 RMB, changing from an outflow to an inflow compared to -23,391,416.49 RMB in the prior period[467] VIII. R&D Expenses During the reporting period, the Company's total R&D expenses were 105 million RMB, primarily consisting of salaries and benefits, depreciation and amortization, and processing service fees,