Core Viewpoint - Hope Sea Inc. is pursuing an IPO on the Hong Kong Stock Exchange, positioning itself as a leading provider of cross-border supply chain solutions for electronic products, particularly in the semiconductor sector, amid a recovering industry environment [1][2]. Company Overview - Hope Sea Inc. specializes in comprehensive supply chain solutions for electronic products, focusing on importing from international suppliers to China, with a projected GMV of approximately RMB 34.8 billion in 2024 [2][3]. - The company serves over 40 vertical industries, including IoT communication, semiconductors, and renewable energy [2]. Financial Performance - The company's total revenue for the fiscal years 2022, 2023, and 2024 was RMB 252.8 million, RMB 220.5 million, and RMB 234.9 million, respectively, with annual profits of RMB 86.9 million, RMB 83.6 million, and RMB 85.5 million [2][3]. - Revenue from supply chain solutions decreased from RMB 135.7 million in 2022 to RMB 116.5 million in 2023, before recovering to RMB 123.0 million in 2024 [4]. Business Strategy - Hope Sea employs a "four flows integration" strategy, which includes the integration of goods flow, capital flow, information flow, and business flow to enhance operational efficiency [3]. - The company has adopted a pricing strategy to increase customer GMV, resulting in a rise from approximately RMB 20.2 million in 2023 to RMB 25.6 million in 2024, despite a decrease in average fee rates [4][5]. Market Environment - The semiconductor industry is experiencing a recovery, with China's integrated circuit exports reaching USD 159.55 billion in 2024, a 17.4% increase year-on-year [6][8]. - The company’s performance is closely tied to the semiconductor import and export dynamics, with integrated circuits accounting for about 70.1%, 65.2%, and 68.5% of its GMV from 2022 to 2024 [8][10]. Customer Base - The average business relationship with the top 20 clients exceeds nine years, with eight clients contributing over RMB 1 billion in GMV in 2024 [8]. - The customer composition has shifted, with IoT communication clients increasing their GMV share from 30% to 37.3% from 2022 to 2024, while the semiconductor sector's share has declined [11]. Challenges and Outlook - The company faces rising costs, particularly in transportation, which increased from 9.9% of total revenue in 2023 to 13.0% in 2024 [4]. - The ongoing price competition strategy may raise concerns about the sustainability of revenue growth and the company's bargaining power within the supply chain [5][12]. - Despite challenges, the semiconductor industry's high demand is expected to provide a favorable environment for Hope Sea's growth, especially as it prepares for its IPO [12].

Group 1: Company Overview and Strategic Focus - The company is focused on the development and production of aluminum alloy precision die-casting parts primarily for the telecommunications and automotive sectors [5] - In 2025, the company aims to enhance its core business, accelerate market expansion, strengthen technological innovation, and improve operational efficiency [4] Group 2: Future Developments and Innovations - The company is actively researching and applying brazing die-casting technology, with plans to expand into the semiconductor and high-end precision manufacturing industries [3] - The company has successfully collaborated with Chongqing University to develop magnesium alloy die-casting components, although it currently does not produce magnesium alloy products [5] Group 3: Market Challenges and Responses - The decline in revenue from telecommunications structural components is attributed to a slowdown in investment cycles and reduced capital expenditures from major global 5G infrastructure operators [6] - The company is preparing for the 6G market by updating its technology and maintaining close communication with leading telecommunications equipment manufacturers [6] Group 4: Operational Expansion and Profitability Improvement - The North American factory is undergoing preparations for production, including facility renovations and equipment installation [7] - Measures to improve profitability in 2025 include the gradual utilization of new factories, increased R&D investment, and optimizing product structures to enhance competitiveness [8]

Core Viewpoint - In 2024, the company experienced a decline in revenue and net profit, primarily due to lower prices of quartz crucibles and significant impairment losses [1][2][3] Financial Performance - In 2024, the company achieved revenue of 17.6 billion yuan, a year-on-year decrease of 2% - The net profit attributable to shareholders was 2.5 billion yuan, down 45% year-on-year - The gross margin was 33%, a decrease of 8 percentage points year-on-year - The net profit margin was 15%, down 14 percentage points year-on-year [1] Quarterly Performance - In Q4 2024, the company reported revenue of 3.1 billion yuan, a year-on-year decrease of 31% and a quarter-on-quarter decrease of 28% - The net profit attributable to shareholders was -450 million yuan, indicating a loss due to significant impairment losses totaling approximately 1 billion yuan - The gross margin for Q4 was 23%, down 18 percentage points year-on-year and 9 percentage points quarter-on-quarter [1] Business Segments - Equipment and Services: Revenue was 13.4 billion yuan, up 4.3% year-on-year, with 8,308 units of crystal growth furnaces sold, a 22% increase; gross margin was 36.36%, down 2.46 percentage points year-on-year [2] - Materials: Revenue was 3.3 billion yuan, down 20% year-on-year; gross margin was 28.71%, down 27.44 percentage points year-on-year, with significant pressure on crucible business [2] Inventory and Impairment - As of the end of 2024, the company's inventory was 10.9 billion yuan, a decrease of 30% year-on-year - The company made provisions for bad debts and inventory impairment totaling 2.5 billion yuan and 3.41 billion yuan, respectively, along with 3.49 billion yuan for quartz crucible raw materials [3] Future Outlook - The company anticipates a reduction in impairments in 2025-2026 as the photovoltaic industry stabilizes and the company enhances lean manufacturing management - New products and technologies in the battery and component sectors are expected to see rapid growth in the next industry cycle [3][4] Semiconductor Business - The company is expanding its semiconductor business, focusing on large silicon wafer equipment, silicon carbide substrates, and advanced packaging equipment - As of the end of 2024, the company had over 3.3 billion yuan in orders for semiconductor equipment, indicating slight growth year-on-year [4] Revenue Forecast - The company forecasts revenues of 16.5 billion yuan, 15.5 billion yuan, and 14.6 billion yuan for 2025-2027, with net profits of 2.354 billion yuan, 2.427 billion yuan, and 2.522 billion yuan, respectively [5]

Group 1: Optical Chip Industry - The global optical chip market is expected to grow at a compound annual growth rate (CAGR) of 14.86% from 2023 to 2027, with high-speed chips growing significantly faster than medium and low-speed products [1] - China's domestic production rate of laser chips at 25G and above is currently low, with the US and Japan leading in technology; however, the US-China friction is accelerating the "de-Americanization" process, creating substantial opportunities for domestic alternatives [1] - Henan province is establishing a leading optical chip industry cluster, with Hebi city as the core area, focusing on creating a "full-chain" optoelectronic industry ecosystem led by Shijia Photon [1] Group 2: Data Center and AI Market - The data center market in China has seen steady growth in 2023, with a total rack scale exceeding 8.1 million standard racks and a total computing power of 230 EFLOPS, ranking second globally [2] - The implementation of internet antitrust policies since 2021 has led to a slowdown in market demand, particularly among public cloud customers, resulting in an imbalance in supply and demand within the IDC industry [2] - The growth in demand is primarily driven by the proliferation of AI applications, such as the DeepSeek large model, which enhances cost efficiency and narrows the AI technology gap between China and the US [2] Group 3: Electronic Industry Lifecycle and Penetration - The electronic industry is characterized by material and process innovations that push product performance limits, evolving from 28nm, 14nm to 7nm, 3nm, and future 2nm technologies [3] - According to the product lifecycle theory, the electronic industry can be divided into investment, growth, and maturity phases, each corresponding to different investment styles and valuation methods [3] - Investment in areas with new technologies and policy support, such as AR/VR, is recommended due to their significant market potential and uncertain future development [3] Group 4: Autonomous Driving Technology - The advancement of AI technology has transitioned autonomous driving from a hardware-centric approach to a competition focused on AI integration and high-level intelligent driving [4] - Over 20 automotive companies and suppliers, including BYD and Geely, announced deep integration with the DeepSeek large model, enhancing efficiency and reducing costs in autonomous driving technology [4] - The laser radar market is rapidly growing due to the demand for Navigation Assisted Driving (NOA), with companies like Suteng Juchuang and Huawei being noteworthy players [4] Group 5: Income Growth and Consumption Patterns - As of 2023, China's household consumption rate stands at 39.6%, significantly lower than developed countries like the US and Japan, which have consumption rates of 23.1% and 45.8% respectively [5] - The income disparity among rural residents is pronounced, with the income gap between the top 20% and bottom 20% of earners being much larger than that of urban residents [5] - Policies should focus on transitioning subsidies from price-based to income-based, such as increasing agricultural product purchase prices and providing income support to rural families [5]

Core Viewpoint - Intel has appointed a new CEO, Li P-Bu Tan, marking a significant leadership change as the company faces ongoing challenges in the semiconductor industry [1][2]. Group 1: Leadership Change - Li P-Bu Tan will officially take over as CEO on March 18, succeeding interim co-CEOs David Zinsner and Michelle Johnston Holthaus [1]. - This appointment comes three months after the resignation of former CEO Pat Gelsinger, and Tan is noted as the first Chinese CEO in Intel's history [2]. - Tan previously served on Intel's board and has extensive experience in the semiconductor industry, having been recognized as a leading figure in chip design and venture capital [5][6]. Group 2: Current Challenges - Intel has been experiencing significant operational difficulties, with a reported net loss of $18.8 billion in 2024, marking its first net loss since 1986 [9]. - The company's market capitalization has halved, dropping to $89.5 billion, which is below the $100 billion mark, highlighting a widening gap with competitors like TSMC, AMD, and NVIDIA [9]. - Intel's core business is under pressure due to declining demand in the traditional PC market and increased competition in the data center sector, particularly from AI chip competitors [9][10]. Group 3: Strategic Direction - The company is undergoing a transformation, with plans to restructure its manufacturing and foundry operations to focus more on core chip design and production [10]. - There are ongoing discussions about potential partnerships, including TSMC's proposal to invest in a joint venture to operate Intel's factories, which could reshape Intel's operational strategy [10][11]. - Analysts suggest that Tan's leadership may bring necessary strategic adjustments and internal restructuring to improve Intel's profitability in the long term, although the transition may face challenges [11].

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $1.901 billion, an increase of 8.6% sequentially [5] - Gross margin was 13.9%, up 0.2 percentage points sequentially [5] - Profit from operations was RMB 87 million, and EBITDA was RMB 1.056 billion with an EBITDA margin of 55.5% [6] - For the first half of 2024, revenue was RMB 3.651 billion, up 20.8% year over year, while gross margin decreased by 6.8 percentage points to 13.8% [8] Business Line Data and Key Metrics Changes - Wafer revenue accounted for 93% of total revenue, with smartphone applications contributing 32%, followed by consumer electronics at 36% [14] - 8-inch wafer shipments increased by 18% sequentially, while blended ASP declined by 8% due to product mix changes [13] - Revenue from the BCD platform increased by over 20% sequentially, and RF CMOS platform revenue increased nearly 30% sequentially [15] Market Data and Key Metrics Changes - Revenue distribution by region was 80% from China, 16% from America, and 4% from New Asia [13] - The overall utilization rate increased by 4 percentage points to 85% due to recovery in demand and new capacity being put into production [12] Company Strategy and Development Direction - The company aims to achieve annual revenue growth that exceeds the industry average and expects second-half revenue to surpass first-half revenue [18] - Focus on wafer manufacturing while balancing short-term objectives with long-term development [19] - The company plans to increase overall capacity by around 60,000 12-inch wafers per month by the end of the year [18] Management's Comments on Operating Environment and Future Outlook - Management noted a gradual recovery in mid and low-end consumer electronics, leading to increased inventory restocking by customers [10] - Geopolitical disruptions have created opportunities for customers to penetrate the industrial chain, resulting in incremental demand [10] - The company remains cautiously optimistic about Q4, despite uncertainties in the external environment [17] Other Important Information - Total assets at the end of Q2 were RMB 47.4 billion, with total cash on hand of RMB 13 billion [6] - The company generated $19 million in cash from operating activities in Q2 [7] Q&A Session Summary Question: Inquiry about revenue growth expectations - Management expects revenue growth in Q3 2024 to be between 13% to 15% sequentially, with gross margin projected to be in the range of 18% to 20% [8][16] Question: Impact of geopolitical factors on demand - Geopolitical impacts have accelerated localization demand, leading to tight capacity in certain 12-inch nodes and upward price trends [16] Question: Clarification on capacity expansion plans - The company plans to expand capacity significantly, focusing on high-value-added 12-inch capacity [18]

f 本次股票发行后拟在科创板市场上市，该市场具有较高的投资风险。科 创板公司具有研发投入大、经营风险高、业绩不稳定、退市风险高等特点， 投资者面临较大的市场风险。投资者应充分了解科创板市场的投资风险及本 公司所披露的风险因素，审慎作出投资决定。 华虹半导体有限公司 HUA HONG SEMICONDUCTOR LIMITED （香港中环夏悫道 12 号美国银行中心 2212 室） 首次公开发行人民币普通股（A 股）股票 并在科创板上市招股意向书 联席保荐人（联席主承销商） 中国（上海）自由贸易试验区商城路 618 号 上海市广东路 689 号 联席主承销商 广东省深圳市福田区中心三路 8 号卓越时代 广场（二期）北座 上海市黄浦区中山南路 318 号东方国际金融 北京市朝阳区建国门外大街 1 号国贸大厦 2 座 27 层及 28 层 北京市西城区阜成门外大街 29 号 1-9 层 华虹半导体有限公司 招股意向书 | 发行股票类型 | 人民币普通股（A 股） | | | | --- | --- | --- | --- | | 发行股数 | 本次初始发行的股票数量 股，占发行后总股本的 407,750,000 | ...