Core Viewpoint - Momenta has successfully developed its own driver assistance chip, which has completed initial testing and is now entering vehicle integration trials, indicating a significant step in the company's transition from a software provider to a hardware-software integrated player in the autonomous driving sector [2][14]. Group 1: Chip Development and Features - The self-developed chip by Momenta is designed to reduce PCB and E/E modification requirements, aiming to shorten the integration cycle for automotive manufacturers [2]. - The chip's computational power is expected to compete with NVIDIA's Orin series and Qualcomm's SA8650, focusing on mid-range intelligent driving applications [8]. - The chip is intended to lower the overall cost of urban driving assistance systems to around 5000 RMB, compared to the 7000 RMB cost associated with existing solutions using Qualcomm's SA8650 [9]. Group 2: Talent Acquisition and Team Structure - Momenta has recruited over ten key engineers and managers from the dissolved OPPO chip design team, including COO Li Zonglin, which is seen as a crucial move towards establishing a full-stack model combining chips and algorithms [5][10]. - Li Zonglin, now leading Momenta's chip development, has extensive experience in chip R&D management, having previously led the development of MediaTek's Helio and Dimensity series [12]. Group 3: Funding and Support - Momenta has received significant funding support from the Hefei local government and established a multi-billion RMB automotive semiconductor fund to facilitate its research and supply chain development [6]. Group 4: Industry Context and Trends - The trend of self-developed chips in the intelligent driving sector continues to grow, with both OEMs and Tier 1 suppliers seeking to enhance their competitive edge and control over technology through in-house chip development [13].

Core Viewpoint - The global ultra-thin flexible glass (UTG) industry is experiencing a critical phase of technological iteration and market expansion, with significant growth in the foldable smartphone market, which saw shipments reach 23.8 million units last year, reflecting a compound annual growth rate of over 24% [3][4]. Group 1: Industry Dynamics - The UTG solution has become the mainstream trend for foldable smartphone covers, with UTG covers accounting for 51% of the total domestic foldable smartphone volume in the first half of last year. It is projected that the domestic foldable smartphone UTG cover installation will grow to nearly 6.6 million units by 2025 [3][4]. - The rapid growth of the foldable screen market is driving demand for core glass and metal structural components, continuously enhancing the unit value of smartphones. The cover is a key technology for the "thinning" of foldable screens [3][4]. Group 2: Company Developments - **KaiSheng Technology**: The second phase of the UTG project is expected to reach operational status by October 2025, with four production lines already built and others in installation and debugging phases. The project has experienced some delays but is progressing based on market conditions [4][5]. - **Changxin Technology**: The subsidiary Dongxin Optoelectronics has successfully secured orders for Flip and Fold models, with plans to accelerate the construction of a new industrial park to meet domestic and international demand. They have developed a sliding roll UTG process and can now produce small batches [5][6]. - **Lens Technology**: Positioned to become a major supplier of UTG for Apple's foldable products, Lens has made significant progress in developing and validating new foldable screen products, with plans for capacity expansion to support mass production [6][7]. - **Said Semiconductor**: Currently holds nearly 90% of the domestic market share for UTG in terminal applications, with a production capacity of 700,000 pieces per month across two production lines [7][8]. - **SuChuan Technology**: Recently signed a project for a UTG flexible glass production line with a total investment of 3.8625 billion yuan, aiming for an annual production capacity of 5 million pieces [8][9]. - **Dowooinsys**: Innovating a "hybrid UTG" technology that enhances durability while maintaining thinness, with plans for mass production by 2026 [11][12]. Group 3: Market Trends - In the first half of 2025, seven brands launched new foldable smartphones, all utilizing UTG as the cover material, emphasizing "ultra-light" and "ultra-thin" as key selling points. This shift is pushing competition in the foldable smartphone market to a new level [17][18]. - Apple's first foldable iPhone is expected to be released by the end of 2026 or early 2027, featuring a horizontal fold design and utilizing UTG covers supplied by Lens Technology [17][18].

Core Insights - The Southeast Asian smartphone market experienced a year-on-year decline of 1% in Q2 2025, with a total shipment of 25 million units [1][2][4] Company Performance - Xiaomi regained the top position in the Southeast Asian smartphone market for the first time in four years, with a shipment of 4.7 million units and a market share of 19%, reflecting an 8% year-on-year increase [1][2][4] - Transsion ranked second with a shipment of 4.5 million units and an 18% market share, showing a significant year-on-year growth of 17% [1][4] - Samsung secured the third position with 4.3 million units shipped and a market share of 17%, but experienced a 3% decline year-on-year [1][4] - OPPO (excluding OnePlus) ranked fourth with a shipment of 3.5 million units and a market share of 14%, marking a substantial year-on-year decrease of 19% [1][4] - Vivo came in fifth with 2.8 million units shipped and an 11% market share, reflecting a year-on-year decline of 21% [1][4]

Core Viewpoint - The domestic consumer electronics industry is accelerating its globalization efforts in response to changing global trade dynamics and increasing local service demands from customers [1][4]. Group 1: Hong Kong Listing Trend - Companies like Lens Technology and Luxshare Precision have recently pursued listings on the Hong Kong Stock Exchange, indicating a broader trend among consumer electronics supply chain firms [2][3]. - Lens Technology's IPO aims to fund core technology research, global capacity expansion, and new market ventures, with plans to enhance manufacturing capabilities in Vietnam and Thailand [2]. - Luxshare Precision's listing is closely tied to its global strategy, aiming to leverage international capital to accelerate overseas capacity building and strengthen its global supply chain [2][3]. Group 2: Globalization Strategies - Companies are adopting various strategies to deepen their global presence, including overseas factory investments, mergers and acquisitions, and increased R&D spending [4][5]. - Luxshare Precision has established production capabilities in Southeast Asia, Mexico, North Africa, and Eastern Europe, and has recently acquired a majority stake in the German automotive wiring company Leoni AG to enhance its automotive electronics global strategy [4][5]. - EVE Energy plans to invest up to 8.654 billion yuan in a new energy storage battery project in Malaysia, furthering its international capacity layout [5]. Group 3: Performance Metrics - In 2020, 95 A-share consumer electronics companies generated a total overseas revenue of 369.577 billion yuan, which increased to 694.61 billion yuan by 2024, marking an 87.95% growth [6]. - Luxshare Precision's overseas revenue reached 235.467 billion yuan in 2024, a 37.2-fold increase over ten years, with an overseas revenue share of 87.6% [6]. Group 4: Leading Brands and Market Expansion - Transsion Holdings has established manufacturing centers in Ethiopia, India, and Bangladesh, achieving a global smartphone market share of 8.6% in 2024, ranking fourth overall [7][8]. - OPPO has expanded its global footprint since 2009, with nearly 60% of its revenue coming from overseas markets, emphasizing the importance of localization in its global strategy [8]. Group 5: Industry Insights - The globalization strategies of leading consumer electronics brands significantly influence the global strategies of supply chain companies, which must adapt to changing customer demands and market conditions [9]. - Experts suggest that Chinese companies are entering a new phase of globalization, shifting focus from merely acquiring more customers to seeking better customers for sustainable growth [10].

Core Insights - The Southeast Asian smartphone market is experiencing a year-on-year decline of 1% in Q2 2025, with shipments totaling 25 million units due to ongoing tariff uncertainties [1] Company Performance - Xiaomi regained the top position in the market for the first time in four years, with shipments of 4.7 million units and a market share of 19%, reflecting an 8% year-on-year increase [1] - Transsion ranked second with shipments of 4.5 million units and an 18% market share, showing a significant year-on-year growth of 17% driven by new entry-level model releases [1] - Samsung secured the third position with 4.3 million units shipped and a 17% market share, experiencing a 3% year-on-year decline, although demand for its 5G models increased in markets like Vietnam and Singapore [1] - OPPO (excluding OnePlus) ranked fourth with shipments of 3.5 million units and a 14% market share, facing a year-on-year decline of 19% due to intensified competition in the entry-level market [1] - Vivo placed fifth with shipments of 2.8 million units [1]

Core Viewpoint - OPPO has announced a strategic partnership with the National Key Laboratory of Visual Health to integrate rigorous medical standards into the development of eye care technology for smartphones [1][2] Group 1: Partnership Details - The collaboration aims to address health issues such as visual fatigue and dry eyes caused by prolonged screen use, moving beyond traditional solutions that merely remind users to reduce screen time [1] - This partnership introduces a new paradigm of "medical-engineering crossover," focusing on scientific and effective eye care solutions [1] Group 2: Technological Innovations - OPPO's eye care technology development will utilize clinical medical "gold standards" for evaluation, incorporating professional assessment indicators previously used only in ophthalmic clinical diagnosis [1] - The new approach ensures that technology optimization is based on real benefits to users' visual health rather than just improving paper parameters [1] Group 3: Future Plans - OPPO plans to apply the jointly developed eye care technology in the next generation of its flagship Find series products [2] - The company intends to publish a "White Paper on Eye Care for Smartphones and Tablets" in collaboration with the National Key Laboratory of Visual Health and other industry authorities, sharing cutting-edge research findings with the industry [2] - OPPO aims to establish a more comprehensive and scientific industry standard for eye care technology in smart devices, shifting the focus from parameter competition to genuine user health value competition [2]

Core Viewpoint - The Southeast Asian smartphone market is experiencing a slight decline in shipments due to ongoing tariff uncertainties, with a projected 1% decrease in Q2 2025, resulting in 25 million units shipped [1][3]. Market Performance - Xiaomi regained the top position in the Southeast Asian smartphone market for the first time in four years, with shipments of 4.7 million units and a market share of 19%, reflecting an 8% year-on-year growth [1][8]. - Transsion ranked second with 4.5 million units shipped and an 18% market share, showing a significant 17% increase year-on-year [1][8]. - Samsung followed closely in third place with 4.3 million units and a 17% market share, but experienced a 3% decline year-on-year [1][8]. - OPPO ranked fourth with 3.5 million units shipped and a 14% market share, facing a 19% year-on-year decline [1][8]. - Vivo, in fifth place, shipped 2.8 million units with an 11% market share, down 21% year-on-year [1][8]. Competitive Strategies - Xiaomi's success is attributed to its direct-to-consumer (DTC) and carrier channel expansion, which laid a solid foundation for scaling its sub-brands [3]. - Samsung has strengthened its channel diversification and high-end positioning through its enterprise market strategy, enhancing its average selling price (ASP) and creating new revenue streams beyond traditional retail [3]. - In the competitive landscape, differentiation beyond pricing remains a challenge for all manufacturers, with Xiaomi and Transsion leading in the low-price segment due to competitive pricing and active channel incentives [3]. Emerging Opportunities - TikTok's rapid expansion in the consumer electronics sector is opening new growth channels for smartphone manufacturers in Southeast Asia, with brands like Infinix and Xiaomi leveraging the platform for sales of low-cost models [6]. - The collaboration with local sellers and brands on TikTok, along with significant investments in partnerships and authorized brand stores, mirrors the early development stages of platforms like Shopee and Lazada [6].

Group 1 - The smartphone market has seen a surge in new product launches and sales in the first half of the year, particularly among domestic brands, driven by government subsidies [1] - Active device numbers for major brands such as Huawei, Apple, OPPO, vivo, Xiaomi, and Honor are projected to reach 288 million, 271 million, 233 million, 193 million, 121 million, and 97 million respectively by June 2025, with year-on-year growth rates of 2.2%, 1.2%, 1.1%, 6.3%, 0.5%, and 8.6% [1] - Xiaomi's AI glasses have integrated SenseTime's large model interaction platform, enhancing voice and video interaction experiences, which is expected to improve the penetration rate of AI glasses [1] Group 2 - As of August 13, 2025, the CSI Consumer Electronics Theme Index has increased by 0.35%, with notable gains from stocks such as Pengding Holdings (up 8.74%) and SanHuan Group (up 5.82%) [2] - The Consumer Electronics ETF has risen by 0.66%, marking a three-day consecutive increase, with a recent price of 0.92 yuan [2] - The CSI Consumer Electronics Theme Index includes 50 listed companies involved in component production and consumer electronics, reflecting the overall performance of the sector [2] Group 3 - As of July 31, 2025, the top ten weighted stocks in the CSI Consumer Electronics Theme Index account for 51.57% of the index, including companies like Luxshare Precision and SMIC [3] - The Consumer Electronics ETF has various off-market connections, including multiple classes of the Ping An CSI Consumer Electronics Theme ETF [3]

Group 1 - Momenta has developed its own advanced driving assistance chip, which has recently been activated and is undergoing vehicle testing, positioning it against mainstream chips like Nvidia's Orin-X and Qualcomm's 8650 [1] - The chip's design allows for minimal modifications to the PCB, facilitating rapid mass production once it passes further tests [1] - Momenta's strategy for self-developed chips is primarily defensive, focusing on cost reduction and efficiency improvements rather than aggressive market capture [3] Group 2 - Momenta is expanding its international presence, with projects in Germany, the UK, Thailand, and Australia, and is nearing the SOP stage for its German project [2][7] - The company aims to reduce the cost of its urban driving assistance solutions to around 5,000 yuan, enhancing development efficiency and integration with its software [4] - Momenta has secured partnerships with major automotive manufacturers like BMW, Mercedes-Benz, and Toyota, which will help dilute the high costs associated with chip development [5] Group 3 - The company is also pursuing L4 autonomous driving technology, having established partnerships with Uber for Robotaxi services outside of China, which could significantly enhance its data collection and market valuation [8] - Momenta's major shareholder, SAIC Group, is supporting its overseas expansion, with plans to sell vehicles through MG channels in Europe [7] - The company is actively preparing for a potential public listing, which could reshape the landscape of the autonomous driving technology market [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $8.3 million, compared to $7.1 million in Q1 2025 and $8.5 million in Q2 2024, indicating a sequential increase driven by product shipments in the home and enterprise market [26] - Non-GAAP gross profit margin for Q2 2025 was 46%, down from 49.9% in Q1 2025 and 51% in Q2 2024, reflecting a unique product mix [26] - Non-GAAP operating expenses decreased to $9.7 million in Q2 2025 from $10.4 million in Q1 2025 and $12.8 million in Q2 2024, showing effective cost reduction measures [27] - The net loss for Q2 2025 was $5.3 million, or a loss of $1 per share, compared to a net loss of $6.5 million in Q1 2025 and $7.7 million in Q2 2024 [28] - Cash and cash equivalents at the end of Q2 2025 were $14.3 million, down from $18.5 million at the end of Q1 2025 [28] Business Line Data and Key Metrics Changes - Home and enterprise revenue was approximately $7.1 million in Q2 2025, while mobile revenue was approximately $1.2 million [26] - The mobile business saw a similar revenue profile to the prior quarter, with shipments supporting residual demand from previously launched smartphone models [14] - Revenue from the home and enterprise market increased over 20% sequentially, driven by a combination of seasonal demand recovery and ramping shipments of new SOCs [18] Market Data and Key Metrics Changes - The TrueCut Motion platform has been credited with three new theatrical releases, indicating growing acceptance and demand in the market [10] - Titles utilizing TrueCut Motion have achieved over $4 billion at the box office, demonstrating the format's value to studio partners [12] - The mobile market is expected to remain flat, with Chinese OEMs focusing on differentiation to expand globally [33] Company Strategy and Development Direction - The company is focusing on two defined approaches in the mobile segment: expanding the target market with a low-cost mobile graphics accelerator and pursuing premium gaming experiences [15] - The strategic review process for the Pixelworks Shanghai subsidiary is nearing closure, with potential new ownership structures being evaluated [23] - The company aims to reach profitability for its Shanghai subsidiary by Q4 2025, despite delays in mobile revenue recovery [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the TrueCut Motion format, anticipating it to become a standard for premium large format cinemas [12] - The company is better positioned to drive bottom-line results from a small uplift in revenue due to previous cost structure reductions [22] - Management noted that the overall market for projectors is expected to remain similar to 2024, with no significant impacts from global trade dynamics observed so far [18] Other Important Information - The company received approximately $1.6 million in cash subsidies as part of China's Little Giant program, aiding in R&D expenses [27] - The company completed all scheduled end-of-life shipments of transcoding products in Q4 2024, with potential one-time orders from prior customers being evaluated [19] Q&A Session Summary Question: Why are mobile customers in China emphasizing custom ASIC? - Management indicated that differentiation is key for Chinese OEMs in a flat market, as they seek to expand globally and compete against established brands [33][38] Question: Will the transcoding one-time customer revenue hit in Q3 or Q4? - Management confirmed that the revenue from the transcoding order would be recognized in Q4 [42] Question: How will Pixelworks be different post-transaction regarding the Shanghai division? - Management stated it is too early to provide details on the strategic direction post-transaction [44] Question: How broad is the ASIC design and IP application? - Management clarified that the IP is not limited to smartphones and can be applied in tablets, AR/VR markets, and other display technologies [48] Question: What is driving the strength in the home and enterprise market? - Management noted that the strength is partly due to a higher ASP of new SOCs and stocking needs from customers [52]