Summary of Key Points from the Conference Call Company and Industry Overview - The conference call discusses HeXin Instruments and its acquisition of Liangxi Technology, aimed at enhancing its R&D capabilities and leveraging Liangxi's advantages in quantum computing [2][4][5] - The Chinese scientific instrument industry is undergoing a transformation, benefiting from policy support and domestic substitution demand, with a focus on high-end equipment localization and mergers and acquisitions as key strategies [2][6][7] Core Insights and Arguments - Liangxi Technology reported a profit of approximately 30 million yuan in the first half of 2025, with an expected annual profit exceeding 50 million yuan, indicating a positive outlook for HeXin Instruments post-acquisition [2][3][5] - HeXin Instruments has faced cumulative losses exceeding 200 million yuan over the past three years, which is nearly equivalent to its annual sales, but the acquisition is expected to help turn around its financial performance by 2025 [3][5] - The acquisition of Liangxi Technology is strategic due to its consistent profitability and 20 years of industry experience, which provides HeXin with a stable revenue stream and enhances its competitive position [4][5] Market Dynamics and Trends - The quantum computing industry is expected to see enterprise-level bulk purchases of quantum computers around 2030, with specialized quantum computers already in use for specific applications [11] - The Chinese scientific instrument industry is experiencing a bull market, particularly following China Telecom's acquisition of GuoDun Quantum, which has increased industry attention and support [10] - The liquid cooling segment has made significant progress in reducing power consumption, with domestic companies successfully entering overseas supply chains [12][19] Additional Important Insights - The customer base for Liangxi's products is diverse, primarily serving the domestic market while also exporting some products, which provides stability for the company [8] - The technological landscape includes advancements in liquid cooling and fiber optics, with Chinese companies making significant strides in the fiber optics market, particularly in data centers [15][16] - The overall outlook for the Chinese scientific instrument industry is optimistic, with expectations of policy support and increased investment opportunities as companies focus on innovation and market expansion [6][7]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenues of $776 million, up 6.3% compared to the same quarter last year, and up 5.5% on an organic basis [7][17] - Adjusted EBITDA grew 13.9% year over year to $197 million, with an adjusted EBITDA margin of 25.4%, an increase of 170 basis points from the previous year [7][18] - Adjusted net income for the second quarter was $110 million, up 17% from last year, with adjusted diluted earnings per share increasing to $0.52 from $0.44 [18][19] Performance by Business Segment - **Industrial Segment**: Revenues rose 7.6% to $338 million, with adjusted EBITDA increasing 20.6% to $117 million and an adjusted EBITDA margin of 34.6% [19][20] - **Consumer Segment**: Revenues were $340 million, up 5.6% overall and 4.7% organically, with adjusted EBITDA of $65 million, a 6.6% increase [21][22] - **Software and Advisory Segment**: Revenues increased 4.3% to $98 million, with adjusted EBITDA unchanged at $15 million and a margin of 15.3%, down 70 basis points [22][23] Market Data and Key Metrics Changes - The company noted a favorable impact from foreign exchange movements, particularly with the euro and Japanese yen, contributing to revenue growth [17] - The demand for data center services is expected to grow significantly, with power consumption by data centers projected to increase from 4.4% of total U.S. electricity demand in 2023 to 12% by 2028 [10][11] Company Strategy and Industry Competition - The company is focusing on higher growth megatrends, including global energy transition, electrification, and digitalization, which are expected to drive demand for its services [5][6] - Strategic investments include the launch of new testing facilities in Europe and expansions in HVAC testing capabilities to meet growing demand [9][10] - The company aims to capitalize on emerging opportunities while managing potential risks effectively, affirming its full-year 2025 outlook [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic geopolitical and macroeconomic environment, affirming a mid-single-digit organic revenue growth outlook for 2025 [27][28] - The company highlighted the essential nature of its services, noting a shift in customer behavior due to tariffs and geopolitical uncertainties, but a return to normalcy in June [13][66] Other Important Information - The company generated $208 million in free cash flow in the first half of 2025, a 58.8% increase from the previous year [24] - Capital expenditures for the first half were $93 million, with expectations to maintain capital expenditures at approximately 7% to 8% of revenue for 2025 [24][28] Q&A Session Summary Question: Changes in client behavior related to tariffs - Management noted a shift in client behavior due to uncertainties in 2025, with some pull forward in orders observed [34][35] Question: Update on lab capacity and future investments - Management confirmed ongoing investments in lab capacity and improvements, with a focus on meeting customer demand [36][37] Question: Clarification on full-year guidance and tougher comparisons - Management acknowledged tougher comparisons in the second half but expressed confidence in the business's progress [40][43] Question: Quantifying pull forward activity in segments - Management indicated pull forward activity in both industrial and consumer segments, with specific growth rates provided [46][48] Question: Margin expansion opportunities - Management sees margin expansion opportunities across all segments, with strong progress noted in the industrial segment [50][51] Question: Data center growth and related investments - Management discussed the importance of data centers and the potential for incremental lab capacity investments to capitalize on this trend [54][60] Question: Competitive pressures from recent acquisitions in the industry - Management remains disciplined in M&A activities, focusing on deals that align with their strategic goals [86][88] Question: Trends in the Software and Advisory segment - Management highlighted challenges in the advisory segment due to changing wind policies and pressures in commercial real estate [90][91]

Core Insights - HeXin Instruments, a company listed on the Sci-Tech Innovation Board, reported a significant decline in revenue for the first half of 2025, with revenue approximately 52.82 million yuan, down 48.88% year-on-year, and a net loss of about 17.46 million yuan, narrowing losses by 20.86% compared to the previous year [1][2][3] Financial Performance - Revenue for the first half of 2025 was 52,815,737.74 yuan, compared to 103,320,253.11 yuan in the same period last year, reflecting a decrease of 48.88% [2] - The net profit attributable to shareholders was -17,459,570.82 yuan, improving from -22,061,083.13 yuan year-on-year [2] - The company’s total assets decreased by 5.60% to 827,955,211.07 yuan, while net assets increased slightly by 0.28% to 385,345,792.26 yuan [2] Business Operations - HeXin Instruments specializes in the research, production, sales, and technical services of mass spectrometers, which are widely used in various fields such as environmental monitoring, food safety, and medical health [3] - The company experienced a significant decline in revenue and costs due to a slowdown in downstream investment and demand, which affected overall business performance [3] - The company has focused on optimizing sales expenses and reducing employee compensation through organizational restructuring [3] Strategic Initiatives - HeXin Instruments aims to deepen its core resources in the environmental monitoring sector while also diversifying into new business areas to reduce dependency on this sector [4] - The company is actively pursuing a major asset restructuring plan to acquire a controlling stake in Shanghai Liangxi Technology Co., Ltd. for approximately 384 million yuan [5][6] - The acquisition is expected to enhance HeXin Instruments' product offerings in high-end scientific instruments and improve overall competitiveness through technological synergies [6] Market Position and Future Outlook - Liangxi Technology, established in June 2022, specializes in ultra-low temperature measurement and control equipment, with applications in superconducting quantum computing and other advanced research fields [7] - The collaboration between HeXin Instruments and Liangxi Technology is anticipated to expand the product range and enhance the performance of existing products, thereby increasing market share [6][7]

Core Viewpoint - HeXin Instruments (688622) reported a significant decline in revenue and a net loss for the first half of 2025, primarily due to market adjustments and reduced downstream investment demand. The company is also pursuing a major asset restructuring by acquiring a 56% stake in Shanghai Liangxi Technology Co., Ltd. [1][2] Financial Performance - For the first half of 2025, HeXin Instruments achieved revenue of 52.82 million yuan, a decrease of 48.88% from 103 million yuan in the same period last year [2] - The net profit attributable to shareholders turned negative at -17.46 million yuan, compared to a profit in the previous year, with a further decline in net profit after excluding non-recurring items to -19.84 million yuan [2] - The basic and diluted earnings per share were both -0.25 yuan, with a weighted average return on net assets of -4.62% [2] - The net cash flow from operating activities improved to -14.26 million yuan, an increase of 11.82 million yuan compared to -26.08 million yuan in the previous year [2] Asset Restructuring - HeXin Instruments plans to acquire a 56% stake in Liangxi Technology for a total transaction amount of 384 million yuan, which constitutes a major asset restructuring but does not qualify as a restructuring listing [2][3] - The company aims to raise up to 246 million yuan through a share issuance to specific investors to support the acquisition and improve its asset-liability ratio [2][3] Technological Focus and Market Expansion - HeXin Instruments invested 8.90 million yuan in R&D, accounting for 16.85% of its revenue, focusing on the independent development and industrialization of mass spectrometers [4] - The company has launched several new products for environmental monitoring and is expanding into emerging fields such as water quality monitoring and agricultural food safety [4] - The acquisition of Liangxi Technology is expected to enhance technological collaboration and market expansion, particularly in the rapidly growing quantum computing sector [4] Industry Outlook - The global quantum computing market is projected to reach 5.04 billion USD in 2024 and 11.18 billion USD by 2027, with a potential market size of 807.75 billion USD by 2035 [5] - In 2023, global investment in quantum information reached 38.6 billion USD, with China contributing 15 billion USD [5]

民生证券8月5日发布研报称，给予禾信仪器（688622.SH，最新价：108.39元）推荐评级。评级理由主 要包括：1）禾信仪器发布2025年半年度业绩；2）投资量羲技术，布局量子计算业务；3）海外巨头纷 纷加码量子计算。风险提示：行业竞争加剧，技术研发不及预期，收购整合不及预期，质谱仪国产化替 代进度不及预期，质谱仪技术突破不及预期。 （文章来源：每日经济新闻） ...

Core Viewpoint - HeXin Instruments reported a significant narrowing of losses in its traditional business while advancing into quantum computing, leading to an "accumulate" rating from Minsheng Securities [1] Financial Performance - For the first half of 2025, HeXin Instruments achieved revenue of 53 million yuan, a year-on-year decline of 48.9%, with a net loss attributable to shareholders of 17.65 million yuan, which is a 20.9% improvement compared to the same period last year [2] - In the second quarter of 2025, the company reported revenue of 21.44 million yuan, down 62.7% year-on-year and 33.2% quarter-on-quarter; the net loss attributable to shareholders was 10.39 million yuan, a decrease of 47.6% year-on-year and 47.0% quarter-on-quarter [2] Investment in Quantum Computing - The company plans to acquire a 56% stake in Shanghai Liangxi Technology Co., which specializes in quantum computing patents and low-temperature measurement equipment [3] - Liangxi Technology generated revenue of 70.8 million yuan in the first half of 2025, nearing its total revenue of 74.35 million yuan for 2024, with a gross margin of 62.1%, an increase of 2.3 percentage points from 2024 [3] - Research and development expenses for Liangxi Technology in the first half of 2025 were 4.21 million yuan, 10.66 million yuan, and 5.55 million yuan, representing 15.72%, 14.33%, and 7.85% of revenue, respectively [3] - Liangxi Technology achieved a net profit of 28.15 million yuan in the first half of 2025 [3] Industry Trends - Major global players are increasing investments in quantum computing, with Microsoft’s CEO stating that quantum computing will be a significant accelerator in cloud services [4] - NVIDIA's CEO indicated that the quantum computing sector is at a historic turning point, predicting that the next generation of supercomputers will integrate quantum processing units (QPU) with GPUs [4] - Amazon has launched a new 54-qubit superconducting quantum processor on its Amazon Braket platform [4] Future Outlook - Without considering the acquisition, the company is expected to achieve revenues of 210 million yuan, 230 million yuan, and 240 million yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-sales ratios of 37x, 34x, and 32x based on the closing price on May 30, 2025 [5] - The company is anticipated to benefit from strong product capabilities and potential policy support, with its core product, the dilution refrigerator, expected to break the overseas monopoly [5] - The overall competitive advantage and resource reserves of the company are expected to accelerate its development in the quantum computing sector [5]

Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [6]. Core Views - The company's traditional main business has significantly reduced its losses, while it is advancing into the quantum computing sector [1]. - The company plans to acquire a 56% stake in Shanghai Liangxi Technology Co., which specializes in quantum computing patents and products [2]. - Major overseas companies are increasing their investments in quantum computing, indicating a growing trend in the industry [3]. - The company is expected to achieve revenues of 210 million, 230 million, and 240 million yuan from 2025 to 2027, with corresponding P/S ratios of 37x, 34x, and 32x [4]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenues of 53 million yuan, a year-on-year decline of 48.9%, and a net loss attributable to shareholders of 17.65 million yuan, which is a 20.9% improvement compared to the same period last year [1]. - For the second quarter of 2025, revenues were 21.44 million yuan, down 62.7% year-on-year and 33.2% quarter-on-quarter, with a net loss of 10.39 million yuan, a decrease of 47.6% year-on-year and 47.0% quarter-on-quarter [1]. Investment in Quantum Computing - The acquisition of Liangxi Technology is aimed at enhancing the company's capabilities in quantum computing, particularly in providing ultra-low temperature and weak signal measurement equipment [2]. - Liangxi Technology achieved revenues of 70.8 million yuan in the first half of 2025, nearing its total revenue of 74.35 million yuan for 2024, with a gross margin of 62.1% [2]. Industry Trends - Major players like Microsoft and NVIDIA are emphasizing the importance of quantum computing, with predictions of significant advancements in the field [3]. - The report highlights that the quantum computing sector is expected to grow, benefiting companies like the one under review [3]. Future Projections - The company is projected to achieve revenues of 213 million, 228 million, and 244 million yuan from 2025 to 2027, with a growth rate of 5.1%, 7.3%, and 6.9% respectively [5]. - The net profit attributable to shareholders is expected to improve from a loss of 19 million yuan in 2025 to a loss of 13 million yuan in 2027 [5].

本报告依据中国资产评估准则编制 广州禾信仪器股份有限公司拟发行股份及支付现金 购买资产所涉及的上海量羲技术有限公司 股东全部权益价值项目 资产评估报告 中同华评报字（2025）第 071406 号 共壹册 第壹册 北京中同华资产评估有限公司 China Alliance Appraisal Co.,Ltd. 日期：2025 年 07 月 28 日 地址：北京市丰台区丽泽路 16 号院北京汇亚大厦 28 层 邮编：100073 电话：010-68090001 传真：010-68090099 广州禾信仪器股份有限公司拟发行股份及支付现金 购买资产所涉及的上海量羲技术有限公司股东全部权益价值项目·资产评估报告 一、委托人、被评估单位和资产评估委托合同约定的其他资产评估报告使用人概况..4 北京中同华资产评估有限公 司 i 广州禾信仪器股份有限公司拟发行股份及支付现金 购买资产所涉及的上海量羲技术有限公司股东全部权益价值项目·资产评估报告 声明 一、本资产评估报告依据财政部发布的资产评估基本准则和中国资产评估协会发 布的资产评估执业准则和职业道德准则编制。 二、委托人或者其他资产评估报告使用人应当按照法律、行政法规规 ...

Core Viewpoint - The company, Guangzhou Hexin Instrument Co., Ltd., plans to acquire a 56.00% stake in Shanghai Liangxi Technology Co., Ltd. through a combination of issuing shares and cash payment, while also raising supporting funds from specific investors [1][10]. Group 1: Transaction Overview - The transaction involves issuing shares and cash to purchase the 56.00% equity of Shanghai Liangxi Technology, which specializes in ultra-low temperature and weak signal measurement equipment [9][12]. - The total cash consideration for the transaction is set at 137.2 million yuan, while the total amount raised through share issuance is capped at 246.4 million yuan [10][11]. - The transaction is classified as a major asset restructuring under the relevant regulations, and it is expected to enhance the company's product offerings and market competitiveness [12]. Group 2: Financial and Regulatory Aspects - The valuation of the target company, based on the income approach, is approximately 686 million yuan, indicating a premium of 1,083.71% over the transaction price [11]. - The company will issue shares to no more than 35 specific investors, with the final number of shares subject to approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission [10][12]. - The transaction is not expected to change the control of the company, as the current controlling shareholder will remain the same post-transaction [12]. Group 3: Strategic Implications - The acquisition is anticipated to create synergies between the company's existing mass spectrometry business and the target's expertise in ultra-low temperature technology, thereby broadening the product range and enhancing technological capabilities [12]. - The integration of the target's technology is expected to improve product performance and expand the overall sales scale, strengthening the company's competitive position in the high-end scientific instrument market [12].

Core Viewpoint - The company plans to issue shares and pay cash to acquire a 56% stake in Shanghai Liangxi Technology Co., Ltd. and raise supporting funds through a private placement of shares to no more than 35 specific investors [1][11][21]. Transaction Overview - The transaction involves issuing shares and paying cash to acquire 56% equity in Shanghai Liangxi Technology, with a total cash consideration of CNY 13,720 million and a total fundraising amount not exceeding CNY 24,640 million [11][12][21]. - The fundraising will be used for cash transaction payments, intermediary fees, taxes, and to supplement working capital [12][16]. Financial Details - The valuation of the target company, Shanghai Liangxi Technology, is set at CNY 68,600 million, resulting in a premium of 1,083.71% based on the income approach [14][20]. - The total transaction price for the acquisition is CNY 38,360 million, which includes both cash and share payments [14][21]. Impact on Business - The acquisition is expected to enhance the company's product offerings in high-end scientific instruments, particularly in areas such as superconducting quantum computing and extreme physical research, thereby improving overall product performance and market competitiveness [21][22]. - The transaction will not change the control of the company, as the controlling shareholder remains the same before and after the transaction [21][22]. Regulatory Compliance - The transaction is subject to approval from the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission [2][3]. - The company and its executives have committed to providing accurate information and will face legal responsibilities for any misrepresentation [2][3].