1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the A - share market showed a pattern of widespread index gains coexisting with capital differentiation. The Shanghai Composite Index regained the 3600 - point mark, verifying its medium - term resilience. Structurally, there was a "seesaw" effect between the cyclical manufacturing and consumer technology sectors, with small - cap and value styles performing prominently. The continuous upward movement of active equity fund positions and the continuous net outflow of broad - based ETFs may indicate the brewing of a new round of structural market [5][14]. 3. Summaries Based on Related Catalogs 3.1 This Week's Market Review - The A - share market presented a situation where index gains and capital differentiation coexisted. The Shanghai Composite Index recovered the 3600 - point mark. Structurally, there was a "seesaw" effect between cyclical manufacturing and consumer technology sectors, with small - cap and value styles standing out. Active equity fund positions have been rising for 3 consecutive weeks since the low point in mid - July, while broad - based ETFs have had a net outflow for 7 consecutive weeks, with a cumulative net outflow of over 130 billion yuan, suggesting a shift of passive funds from broad - based indexes to thematic opportunities such as cyclical manufacturing and TMT [5][14]. - Major broad - based indexes showed differentiated gains, with small - cap and value styles performing relatively well. As of August 8, 2025, the Shanghai Composite Index closed at 3635.13 points, up about 2.11% for the week; the Shenzhen Component Index closed at 11128.67 points, up about 1.25%; the ChiNext Index closed at 2333.96 points, up about 0.49%; and the CSI 300 closed at 4104.97 points, up about 1.23% [15]. - The A - share market showed obvious structural differentiation. Cyclical and high - end manufacturing sectors became the core mainlines, while consumer and technology sectors underperformed. Industries with top weekly gains included non - ferrous metals, machinery, national defense and military industry, textile and apparel, and coal, with yields of 5.84%, 5.75%, 5.24%, 3.99%, and 3.75% respectively; industries with bottom - ranked weekly gains included medicine, consumer services, computer, commercial retail, and comprehensive finance, with yields of - 0.79%, - 0.01%, 0.03%, 0.17%, and 0.25% respectively [17]. 3.2 Public Funds - The latest position of active equity funds is 87.19%, rising for 3 consecutive weeks. The average net value increase and decrease of active partial - stock funds this week was 1.53%. Among the 4474 funds, 3747 rose, accounting for 83.75%. The top five funds in terms of net value performance were China Ocean Charm Yangtze River Delta Flexible Allocation Mix, Yongying New Energy Smart Selection Mix A, Tongtai Competitive Advantage Mix A, Great Wall Emerging Industries Flexible Allocation Mix A, and Hongyi Yuanfang Selection Mix A, with weekly net value increases and decreases of 10.80%, 10.15%, 10.06%, 9.53%, and 9.43% respectively [5][20]. - As of August 8, 2025, the average position of active equity funds was about 87.19%. Among them, the average position of ordinary stock - type funds was about 90.55% (up 0.21 pct from last week), the average position of partial - stock hybrid funds was about 87.03% (up 0.19 pct from last week), the average position of allocation - type funds was about 85.62% (up 0.41 pct from last week), and the average position of "fixed - income +" funds was about 22.94%, down 0.10 pct from last week [2][22]. - Since April, the style positions of active equity funds have continuously shifted from growth to value, showing a trend of returning to the benchmark. Recently, the style preference of active equity products has been relatively stable, with the proportion of growth slightly declining from the high level. As of August 8, 2025, the large - cap growth position of active partial - stock funds was 27.33% (up 2.26 pct from last week), the large - cap value position was 10.09% (up 0.81 pct from last week), the mid - cap growth position was 9.88% (down 0.69 pct from last week), the mid - cap value position was 5.65% (down 0.21 pct from last week), the small - cap growth position was 41.94% (down 2.41 pct from last week), and the small - cap value position was 5.11% (up 0.24 pct from last week) [3][30]. - From the perspective of the weighted average of stock - holding market value, the industries with relatively large increases in the allocation ratio of active equity funds this week were non - bank finance (about 2.56%, up 0.32 pct from last week), national defense and military industry (about 5.56%, up 0.30 pct from last week), machinery (about 5.02%, up 0.20 pct from last week), banks (about 4.00%, up 0.16 pct from last week), and coal (about 0.93%, up 0.13 pct from last week). The industries with relatively large decreases in the allocation ratio were medicine (about 12.15%, down 0.39 pct from last week), electronics (about 16.53%, down 0.25 pct from last week), building materials (about 0.94%, down 0.18 pct from last week), real estate (about 0.80%, down 0.17 pct from last week), and consumer services (about 0.77%, down 0.16 pct from last week) [4][34]. - This week, domestic stock index ETFs had a net outflow of about 4.707 billion yuan, with a total scale of 312.5164 billion yuan; overseas index ETFs had a net inflow of about 11.801 billion yuan, with a total scale of 66.9345 billion yuan; bond index ETFs had a net inflow of about 8.979 billion yuan, with a total scale of 52.8535 billion yuan; commodity index ETFs had a net outflow of about 2.71 billion yuan, with a total scale of 15.6806 billion yuan. In terms of broad - based ETFs, the net outflow of funds this week was about 9.604 billion yuan, with a total scale of 222.5223 billion yuan [42]. - This week, 34 new domestic funds were established, including 7 active equity funds. The total newly - issued share of active equity funds was about 3.042 billion shares, at the 88.4% quantile in the past 1 year. In 2024, 269 active equity funds were newly issued, with a total scale of about 72.026 billion shares, about 52% of the same - period level in 2023; 285 passive equity funds were newly issued, with a total scale of about 142.014 billion yuan, far exceeding the same - period level in 2023. Since this year, 161 active equity funds have been newly issued, with a total scale of about 65.494 billion yuan, exceeding the same - period level last year; 349 passive equity funds have been newly issued, with a total scale of 180.839 billion yuan, far exceeding the historical same - period levels [47]. 3.3 Main/Active Capital Flows - This week, the net purchase amount of small orders increased day by day, and the outflow of main funds decreased marginally. Main funds flowed into non - ferrous metals and flowed out of medicine and computers. In terms of individual stocks, main funds flowed into and small and medium - sized orders flowed out of stocks such as Han's Laser, Chutian Technology, Ningbo Yun Sheng, Huayin Power, and Borui Medicine; main funds flowed out of and small and medium - sized orders flowed into stocks such as Zhongji Innolight, Jianghuai Automobile, Tibet Tianlu, Hikvision, and Xinyisheng. In terms of industries, main funds flowed into and small and medium - sized orders flowed out of industries such as non - ferrous metals, banks, household appliances, and building materials; main funds flowed out of and small and medium - sized orders flowed into industries such as medicine, computers, electronics, media, and basic chemicals [6][56]. - The net main - buying amount this week was about - 132.942 billion yuan. Active funds flowed into machinery and non - ferrous metals. In terms of individual stocks, active funds were more optimistic about stocks such as Zijin Mining, Sungrow Power Supply, Lanqi Technology, Agricultural Bank of China, and CSSC; stocks such as CATL, Great Wall Military Industry, Shanhe Intelligence, Jianghuai Automobile, and BYD were net - sold by active funds. In terms of industries, the industries with the highest net main - buying amounts were machinery, non - ferrous metals, banks, coal, and transportation; the industries with relatively large outflows were medicine, computers, electronics, media, and basic chemicals [6][56].

Monetary Market Overview - The central bank's OMO net withdrawal this week was CNY 536.5 billion, with an additional CNY 700 billion in 3M reverse repos on Friday[3] - The average daily transaction volume of pledged repos increased to CNY 8.11 trillion, with a peak of CNY 8.4 trillion on Wednesday[4] - The overnight interest rate (DR001) has seen a downward adjustment, with the lower limit dropping to 1.25% from 1.3%[3][20] Interbank Certificate of Deposit Market - The 1Y Shibor rate decreased by 0.7 basis points to 1.64%, while the 1-year AAA interbank certificate of deposit secondary rate fell by 1.75 basis points to 1.6175%[4] - The net financing scale of interbank certificates of deposit rose to CNY 192 billion, with state-owned banks contributing CNY 74.4 billion[4] Government Bond Issuance - This week, the actual net payment for government bonds was CNY 370.6 billion, with an expected increase to CNY 410.1 billion next week[22] - Cumulative issuance of new general bonds reached CNY 542.6 billion, while new special bonds totaled CNY 28,179 billion[22] Future Expectations - The central bank is expected to maintain a stable monetary policy, with the lower limit of DR001 projected to decrease to 1.2% by September[21] - The government bond issuance forecast for August and September remains unchanged at CNY 2.5 trillion and CNY 2.1 trillion, respectively[31]

Report Industry Investment Rating No relevant content provided. Core View of the Report - This week, the new VAT regulations have disrupted market expectations. Interest - rate bonds have fluctuated narrowly, with policy - bank bonds performing weaker than treasury bonds. Credit spreads have compressed across the board. The spreads of urban investment bonds, industrial bonds, and secondary perpetual bonds have mostly declined, while the excess spreads of 5Y industrial perpetual bonds have increased and those of urban investment bonds have remained largely stable [2]. Summary According to the Table of Contents 1. New VAT Regulations Disrupt Interest Rates, Credit Spreads Compress Across the Board - The new VAT regulations have disturbed market expectations. Interest - rate bonds fluctuated narrowly, and policy - bank bonds underperformed treasury bonds. The 10Y policy - bank bond yield rose 2BP, while the 1Y and 7Y yields of China Development Bank bonds remained flat, and the 3Y and 5Y yields declined 1BP respectively. Ordinary credit bonds were not affected by the new regulations, performing stronger than interest - rate bonds, with most yields declining, and high - grade varieties performing slightly better. Credit spreads compressed across the board [2][5]. 2. Urban Investment Bond Spreads Mostly Decline by 2 - 3BP - The spreads of externally rated AAA, AA +, and AA urban investment platforms declined by 2BP, 3BP, and 3BP respectively compared to last week. By administrative level, the spreads of provincial, prefecture - level, and district - county - level platforms generally declined by 3BP [2][9]. 3. Industrial Bond Spreads Mostly Decline, Spreads of Mixed - Ownership Real - Estate Bonds Compress Significantly - The spreads of central and state - owned enterprise real - estate bonds declined by 1 - 3BP, those of mixed - ownership real - estate bonds declined by 19BP, and those of private real - estate bonds declined by 249BP. The spreads of AAA and AA + coal bonds declined by 2BP and 3BP respectively, and those of AA coal bonds remained flat. The spreads of all grades of steel bonds declined by 2 - 3BP, and the spreads of AAA and AA + chemical bonds declined by 1BP and 3BP respectively [2][18]. 4. Yields of Secondary Perpetual Bonds Decline Across the Board, Medium - and Low - Grade Varieties Perform Slightly Better - This week, the yields of secondary perpetual bonds declined across the board, with medium - and low - grade varieties performing slightly better, and the spread reduction of high - grade 3 - 5 year varieties being smaller. The 1Y yields of all grades of secondary perpetual bonds declined by 3 - 4BP, and the spreads compressed similarly. The 3Y yields of AAA - secondary perpetual bonds declined by 2 - 3BP, with spreads compressing by 1 - 2BP; the yields of AA + and AA grades declined by 4 - 5BP, with spreads compressing by 3 - 4BP. The 5Y yields of AA + and above grades declined by 1 - 2BP, with spreads compressing by 0 - 1BP; the yields of AA grades declined by 4 - 6BP, with spreads compressing by 3 - 4BP [2][24]. 5. Excess Spreads of 5Y Industrial Perpetual Bonds Increase, Excess Spreads of Urban Investment Bonds Remain Largely Stable - This week, the excess spreads of industrial AAA 3Y perpetual bonds increased by 0.25BP to 7.41BP, at the 7.41% percentile since 2015; the excess spreads of industrial AAA 5Y perpetual bonds increased by 4.17BP to 11.82BP, at the 23.04% percentile since 2015. The excess spreads of urban investment AAA 3Y perpetual bonds increased by 0.56BP to 5.16BP, at the 2.79% percentile; the excess spreads of urban investment AAA 5Y perpetual bonds decreased by 0.42BP to 10.91BP, at the 13.94% percentile [2][26]. 6. Explanation of Credit Spread Database Compilation - The overall market credit spreads, commercial bank secondary perpetual spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium - and short - term notes and ChinaBond perpetual bond data, with historical percentiles starting from the beginning of 2015. The credit spreads related to urban investment and industrial bonds are compiled and statistically analyzed by the R & D center of Cinda Securities, also with historical percentiles starting from the beginning of 2015 [28][31].

Investment Rating - The investment rating for the public utility sector is "Positive" [2] Core Insights - The electricity sector is expected to see profit improvement and value reassessment following multiple rounds of supply-demand tensions. The continuous advancement of electricity market reforms is likely to lead to a stable but slight increase in electricity prices. The introduction of a capacity pricing mechanism will clarify the foundational role of coal power [4] - The natural gas sector is anticipated to benefit from the recovery in domestic consumption and the decline in upstream gas prices, with city gas businesses expected to achieve stable margins and high sales growth [4] Summary by Sections Market Performance - As of August 8, the public utility sector rose by 1.6%, underperforming the Shanghai Composite Index. The electricity sector increased by 1.41%, while the gas sector rose by 3.60% [3][10] - Key companies in the electricity sector saw significant stock performance variations, with Shanghai Electric rising by 11.35% and Guodian Power declining by 2.89% [11][13] Electricity Industry Data Tracking - The price of Qinhuangdao port thermal coal (Q5500) increased by 23 CNY/ton week-on-week, reaching 678 CNY/ton as of August 8 [3][19] - Coal inventory at Qinhuangdao port increased by 250,000 tons week-on-week, totaling 5.47 million tons [28] - Daily coal consumption in inland provinces rose by 6.42% week-on-week, reaching 4.09 million tons [28] Natural Gas Industry Data Tracking - As of August 8, the LNG ex-factory price index in Shanghai was 4,220 CNY/ton, down 14.38% year-on-year [52] - The EU's natural gas supply for week 29 of 2025 was 6.08 billion cubic meters, a year-on-year increase of 4.2% [60] - Domestic natural gas consumption in June 2025 was 35.05 billion cubic meters, a year-on-year increase of 1.9% [4] Key Industry News - The State Grid's electricity load reached a historical high of 1.233 billion kilowatts due to extreme weather conditions [4] - In July, China's natural gas imports totaled 10.632 million tons, a year-on-year decrease of 2.1% [4] Investment Recommendations - For the electricity sector, focus on leading coal power companies such as Guodian Power, Huaneng International, and Huadian International, as well as regional leaders in tight supply areas [4] - In the natural gas sector, companies with low-cost long-term gas sources and receiving station assets are recommended, such as Xin'ao Group and Guanghui Energy [4]

- The report discusses the construction and performance of various quantitative models and factors related to stock index futures and options markets[2][4][6] Quantitative Models and Construction Methods 1. **Model Name: Stock Index Futures Basis Adjustment Model** - **Model Construction Idea**: The model aims to adjust the basis of stock index futures by considering the impact of dividends during the contract period[9] - **Model Construction Process**: - The basis is defined as the difference between the futures contract closing price and the underlying index closing price - The formula for the expected dividend-adjusted basis is: $ \text{Expected Dividend-Adjusted Basis} = \text{Actual Basis} + \text{Expected Dividends during the Contract Period} $ - The annualized basis is calculated as: $ \text{Annualized Basis} = (\text{Actual Basis} + \text{Expected Dividend Points}) / \text{Index Price} \times 360 / \text{Remaining Days of the Contract} $[21] - **Model Evaluation**: The model effectively adjusts the basis by accounting for the impact of dividends, providing a more accurate measure of the futures contract's value[21] 2. **Model Name: Continuous Hedging Strategy** - **Model Construction Idea**: The strategy aims to hedge the spot index by continuously holding futures contracts and adjusting positions based on the contract's expiration[44] - **Model Construction Process**: - The strategy involves holding the total return index of the corresponding underlying index on the spot side - On the futures side, 70% of the funds are used for the spot side, and the same nominal principal amount is used for short hedging with stock index futures contracts - The positions are adjusted continuously by holding the quarterly/monthly contracts until the remaining days to expiration are less than 2 days, then rolling over to the next contract[45] - **Model Evaluation**: The strategy provides a systematic approach to hedging, reducing the impact of market fluctuations on the portfolio[45] 3. **Model Name: Minimum Discount Strategy** - **Model Construction Idea**: The strategy selects futures contracts with the smallest annualized basis discount for hedging[46] - **Model Construction Process**: - The strategy involves holding the total return index of the corresponding underlying index on the spot side - On the futures side, 70% of the funds are used for the spot side, and the same nominal principal amount is used for short hedging with stock index futures contracts - The positions are adjusted by selecting the futures contract with the smallest annualized basis discount and holding it for 8 trading days or until the remaining days to expiration are less than 2 days[46] - **Model Evaluation**: The strategy aims to optimize the hedging performance by selecting contracts with the least discount, potentially improving returns[46] Model Backtesting Results 1. **IC Hedging Strategy** - Annualized Return: -2.87% (Monthly Continuous Hedging), -1.87% (Quarterly Continuous Hedging), -1.12% (Minimum Discount Strategy), 0.18% (Index Performance) - Volatility: 3.83%, 4.72%, 4.61%, 20.97% - Maximum Drawdown: -8.65%, -8.34%, -7.97%, -31.46% - Net Value: 0.9155, 0.9443, 0.9665, 1.0054 - Annual Turnover: 12, 4, 17.15 - 2025 YTD Return: -3.90%, -0.97%, -1.22%, 14.02%[48] 2. **IF Hedging Strategy** - Annualized Return: 0.55% (Monthly Continuous Hedging), 0.78% (Quarterly Continuous Hedging), 1.36% (Minimum Discount Strategy), -1.05% (Index Performance) - Volatility: 2.97%, 3.32%, 3.10%, 17.08% - Maximum Drawdown: -3.95%, -4.03%, -4.06%, -25.59% - Net Value: 1.0169, 1.0239, 1.0417, 0.9686 - Annual Turnover: 12, 4, 15.17 - 2025 YTD Return: -0.65%, 0.40%, 0.80%, 7.45%[51] 3. **IH Hedging Strategy** - Annualized Return: 1.11% (Monthly Continuous Hedging), 2.04% (Quarterly Continuous Hedging), 1.77% (Minimum Discount Strategy), -0.69% (Index Performance) - Volatility: 3.08%, 3.50%, 3.10%, 16.29% - Maximum Drawdown: -4.22%, -3.76%, -3.91%, -22.96% - Net Value: 1.0340, 1.0630, 1.0548, 0.9792 - Annual Turnover: 12, 4, 15.83 - 2025 YTD Return: 0.32%, 1.36%, 1.36%, 6.85%[54] 4. **IM Hedging Strategy** - Annualized Return: -6.07% (Monthly Continuous Hedging), -4.44% (Quarterly Continuous Hedging), -3.88% (Minimum Discount Strategy), -0.49% (Index Performance) - Volatility: 4.72%, 5.76%, 5.56%, 25.72% - Maximum Drawdown: -14.01%, -12.63%, -11.11%, -41.60% - Net Value: 0.8346, 0.8629, 0.8725, 0.9185 - Annual Turnover: 12, 4, 15.85 - 2025 YTD Return: -9.60%, -4.77%, -4.37%, 17.96%[59] Quantitative Factors and Construction Methods 1. **Factor Name: Cinda-VIX** - **Factor Construction Idea**: The Cinda-VIX index reflects the market's expectation of future volatility of the underlying asset based on option prices[61] - **Factor Construction Process**: - The index is constructed by adjusting the methodology used in international markets to suit the Chinese market - It captures the implied volatility of options on major indices over different time horizons[61] - **Factor Evaluation**: The Cinda-VIX index provides valuable insights into market sentiment and expected volatility, aiding in risk management and investment decisions[61] 2. **Factor Name: Cinda-SKEW** - **Factor Construction Idea**: The Cinda-SKEW index measures the skewness of implied volatility across different strike prices, indicating market expectations of tail risk[67] - **Factor Construction Process**: - The index captures the skewness in implied volatility by analyzing the differences in implied volatility for options with different strike prices - A higher SKEW index indicates greater concern about potential market downturns[67] - **Factor Evaluation**: The Cinda-SKEW index is a useful tool for assessing market sentiment regarding tail risks and potential extreme events[67] Factor Backtesting Results 1. **Cinda-VIX** - 30-day VIX values as of August 8, 2025: 18.48 (SSE 50), 18.32 (CSI 300), 23.46 (CSI 500), 23.00 (CSI 1000)[61] 2. **Cinda-SKEW** - SKEW values as of August 8, 2025: 102.35 (SSE 50), 109.58 (CSI 300), 105.49 (CSI 500), 114.07 (CSI 1000)[68]

Investment Rating - The industry investment rating is "Positive" [2] Core Insights - Duolingo's Q2 2025 results exceeded expectations with revenue of $252 million, surpassing the guidance of $243.5 to $246.5 million, and an adjusted EBITDA margin of 31.2%, exceeding the guidance of 24.5% to 25.5% [3] - Monthly Active Users (MAUs) grew by 24% year-over-year to 128 million, while Daily Active Users (DAUs) increased by 40% to 48 million, indicating strong user engagement [3] - The paid user base reached 10.9 million, a 36% increase year-over-year, with a paid penetration rate of 9%, up 0.4 percentage points year-over-year [3] - Revenue growth was robust at 41% year-over-year, with subscription revenue increasing by 46.4% [3] - The company raised its full-year revenue guidance to $1.011 to $1.019 billion, up from the previous guidance of $987 to $996 million [3] - The report emphasizes the potential for non-linear growth driven by AI applications in the education sector, recommending a focus on companies leading in educational AI agent development [3] Summary by Sections Revenue and Profitability - Duolingo achieved revenue of $252 million in Q2 2025, exceeding guidance [3] - Adjusted EBITDA margin reached 31.2%, surpassing previous expectations [3] User Engagement - MAUs reached 128 million, with a year-over-year growth of 24% [3] - DAUs increased to 48 million, reflecting a 40% year-over-year growth [3] - User stickiness improved, with DAUs/MAUs ratio at 37.2%, up 4.3 percentage points year-over-year [3] Paid User Metrics - Paid users grew to 10.9 million, a 36% increase year-over-year [3] - Paid penetration rate reached 9%, with a slight increase from the previous year [3] Future Outlook - Full-year revenue guidance was raised to $1.011 to $1.019 billion [3] - The report suggests focusing on companies at the forefront of educational AI development [3]

Group 1: Export Trends - July exports exceeded expectations due to underestimated "export rush" effects, with a significant low base from last year contributing to this growth[5] - The global manufacturing PMI shifted from expansion to contraction in July, indicating weaker global manufacturing demand, which contradicts the export growth logic[5] - China's exports to non-US regions showed steady growth, with a cumulative growth rate of 9.2% as of July, outperforming the -12.4% decline in exports to the US[16] Group 2: Market Dynamics - The "export rush" effect is expected to contribute to exports from August to November, but its impact is anticipated to weaken over time[26] - The contribution of non-major countries to export growth was greater than that of major countries, with non-major regions increasing their contribution by 1.1 percentage points[22] - Exports to Belt and Road Initiative countries have outperformed total exports, with a cumulative growth rate improvement of 0.8 percentage points[22] Group 3: Risks and Future Outlook - The potential expiration of the 24% tariff on China in Q4 could create a weak export window, highlighting the importance of non-US markets for long-term support[27] - Risks include the possibility of insufficient growth policies and lower-than-expected global economic conditions[29]

Investment Rating - The investment rating for the company is not explicitly stated in the provided documents, but the overall sentiment appears positive based on the growth metrics and strategic initiatives discussed. Core Insights - The company has demonstrated stable operational trends with high growth in its CDMO (Contract Development and Manufacturing Organization) business, achieving a revenue of 22.91 billion yuan in H1 2025, a year-on-year increase of 16.27% [2] - The new molecular business layout is expected to create new growth points, with significant investments in peptide, conjugate, and small nucleic acid drug platforms [4][5] Summary by Sections Financial Performance - In H1 2025, the company reported total revenue of 28.71 billion yuan, a 3.86% increase year-on-year, and a net profit attributable to shareholders of 5.26 billion yuan, reflecting a 10.70% growth [1] - The operating cash flow net amount reached 8.45 billion yuan, marking a substantial increase of 164.50% [1] CDMO Business - The CDMO segment continues to thrive, with a revenue of 22.91 billion yuan in H1 2025, maintaining a gross margin of 41.02% [2] - The project pipeline has expanded significantly, with 1,214 projects under contract, including 1,086 in clinical phases I and II, and 90 in phase III [2] API Business - The API (Active Pharmaceutical Ingredient) business saw a decline in revenue to 5.23 billion yuan, down 28.48% year-on-year, attributed to reduced demand for respiratory disease-related products [3] New Molecular Business - The company is actively expanding its new molecular business, having onboarded over 20 new clients in H1 2025, with a notable increase in overseas orders [4] - The global market for TEDIS (including peptides and oligonucleotides) CRDMO is projected to grow from 5.5 billion USD in 2023 to 37.3 billion USD by 2032, with a CAGR of 23.8% [5] Financial Projections - Revenue projections for 2025-2027 are 55.09 billion yuan, 61.77 billion yuan, and 68.42 billion yuan respectively, with net profits expected to be 9.28 billion yuan, 10.66 billion yuan, and 12.07 billion yuan [7]

Investment Rating - The investment rating for the company is not explicitly stated in the provided content, but the report indicates a positive outlook on the company's performance and growth potential [1]. Core Viewpoints - The company reported a revenue of 579 million yuan in the first half of 2025, representing a year-over-year increase of 6.69%, and a net profit attributable to the parent company of 189 million yuan, which is a year-over-year increase of 31.41% [1][3]. - The profit growth rate outpaced revenue growth, indicating enhanced profitability with a net profit margin of 32.63%, an increase of 6.14 percentage points compared to the same period last year [3]. - The company is a leader in tumor drug companion diagnostics, with a comprehensive product system covering various technology platforms [3]. - The internationalization process is ongoing, with the company generating 137 million yuan in international sales in the first half of 2025, reflecting a year-over-year increase of 5.36% [3]. Financial Performance Summary - In the first half of 2025, the company achieved a net cash flow from operating activities of 171 million yuan, a year-over-year increase of 22.59% [1]. - The revenue from testing reagents was 483 million yuan, showing a year-over-year growth of 7.93%, while the revenue from testing services was 33 million yuan, a year-over-year increase of 0.92% [3]. - The company expects revenues of 1.255 billion yuan, 1.499 billion yuan, and 1.771 billion yuan for 2025, 2026, and 2027, respectively, with corresponding year-over-year growth rates of 13.1%, 19.5%, and 18.2% [3][4]. - The projected net profit attributable to the parent company for the same years is 355 million yuan, 439 million yuan, and 535 million yuan, with year-over-year growth rates of 39.2%, 23.6%, and 22.0% [4]. Business Segmentation - The domestic sales for the first half of 2025 reached 442 million yuan, reflecting a year-over-year increase of 7.11% despite industry pressures [3]. - The company has a dedicated international business team of over 70 people, covering more than 60 countries and regions, indicating a strong commitment to expanding its global footprint [3].

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company, Chiplet Technology Co., Ltd. (芯原股份), is expected to achieve approximately 584 million yuan in revenue for Q2 2025, representing a quarter-on-quarter growth of 49.90% and a significant improvement in profitability [2] - The company's IP licensing revenue reached 187 million yuan, showing a year-on-year increase of 16.97% and a quarter-on-quarter increase of 99.63% [5] - The company has a record high backlog of orders at 3.025 billion yuan, with a quarter-on-quarter growth of 23.17%, indicating strong future revenue growth potential [5] - The company has been investing heavily in R&D, particularly in Chiplet technology, which is expected to support its growth in emerging markets [5] Summary by Sections Revenue and Profitability - The company reported total revenue of 2.338 billion yuan in 2023, with a projected revenue of 3.016 billion yuan in 2025, reflecting a year-on-year growth rate of 29.9% [6] - The net profit attributable to the parent company is projected to improve from a loss of 296 million yuan in 2023 to a profit of 237 million yuan by 2027, indicating a significant turnaround [6] Order Backlog and Future Growth - As of the end of Q2 2025, the company’s backlog of orders reached a historical high, with approximately 81% of these orders expected to convert within a year, providing a solid foundation for future revenue growth [5] R&D Investment - The company has been focusing on R&D investments, with a decreasing proportion of R&D expenses relative to revenue, as it aims to allocate more resources to customer projects [5] Financial Projections - The company’s projected revenues for 2025, 2026, and 2027 are 3.016 billion yuan, 4.321 billion yuan, and 5.627 billion yuan, respectively, with corresponding net profits expected to be -281 million yuan, 25 million yuan, and 237 million yuan [6]