Core Viewpoint - The company, Koal Software Co., Ltd., plans to issue A-shares through a simplified procedure targeting specific investors, with a total fundraising amount not exceeding 283 million RMB, aimed at enhancing its capabilities in the data security sector, particularly in quantum-resistant cryptography [9][12][19]. Group 1: Issuance Details - The issuance will involve no more than 35 specific investors, including qualified institutional investors and other eligible entities, with the final issuance amount determined based on subscription quotes [14][15]. - The total amount raised will not exceed 30% of the company's total share capital prior to the issuance and will be capped at 20% of the company's net assets as of the end of the previous fiscal year [17]. - The shares issued will have a lock-up period of six months post-issuance, during which they cannot be transferred [18]. Group 2: Fund Utilization - The net proceeds from the issuance will be allocated to projects, including the industrialization of quantum-resistant cryptography technology, which has a total investment of 160.28 million RMB [19][23]. - The company plans to use the funds to enhance its technological capabilities in data security, addressing the urgent needs of sectors such as government, military, and finance [12][23]. - If the actual net proceeds are less than the planned investment amount, the company will adjust the investment projects based on urgency and necessity [19][22]. Group 3: Industry Context - The issuance is positioned within the broader context of increasing investments in information security, driven by the implementation of laws such as the Cybersecurity Law and the Data Security Law in China [10][12]. - The global market for quantum-resistant cryptography is expected to grow significantly, with projections indicating a compound annual growth rate of approximately 72.64% from 2024 to 2030 [27]. - The company aims to leverage its existing technological expertise and customer relationships to capitalize on the growing demand for quantum-resistant solutions in various critical sectors [26][27].

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 57.83 CNY over the next six months [5]. Core Insights - The recent release of the "Key Information Infrastructure Commercial Password Usage Management Regulations" is expected to significantly promote the password industry, clarifying regulatory responsibilities, establishing reporting timelines, and ensuring funding for security assessments [2][3]. - The company has a comprehensive range of password products from chips to complete systems, positioning it to benefit from the anticipated growth in industry demand driven by new regulations [3]. - The company is actively developing quantum-resistant password products and engaging in stablecoin-related businesses, which are seen as critical areas for future growth [4][10]. Summary by Sections Regulatory Impact - The new regulations clarify the roles of various regulatory bodies, which is expected to accelerate the development and penetration of the password industry [2]. - A specific reporting deadline for operators to report on the use and security assessments of commercial passwords is established, promoting regular evaluations and driving product sales [2]. - Financial support for security assessments is mandated, which is crucial for enhancing demand for related products [2]. Company Positioning - The company has launched several pioneering products in the password security space, including the first domestic security level three password card and machine, as well as the "SansecHSM" [3]. - The successful mass production of the self-developed password security chip XS100 and the certification of various IoT-specific chips indicate the company's strong product pipeline [3]. Future Growth Areas - The company has developed a full suite of quantum-resistant password products and is involved in pilot applications across various sectors, including finance and telecommunications [4][9]. - The company is also focusing on stablecoin applications, recognizing the importance of password technology in supporting digital currencies for cross-border payments [9][10]. - Revenue projections for the company indicate significant growth, with expected revenues of 6.65 billion CNY in 2025, increasing to 9.05 billion CNY by 2027 [10].

Group 1: Technology Updates - Google has updated its Gemini 2.5 model family, introducing features like a "thinking" mechanism and multi-modal input capabilities, with a pricing standard of $0.3 per million tokens for input [2] - MiniMax launched the MiniMax-M1 model, the world's first open-source large-scale hybrid architecture inference model, supporting 1 million context inputs and 80,000 token outputs, with reinforcement learning costs reduced to $530,000 [3] - The new open-source model Kimi-Dev-72B from 月之暗面 achieved the highest score in the SWE-bench Verified programming benchmark, scoring 60.4% with only 72 billion parameters [4] Group 2: Automotive and Delivery Services - 鸿蒙智行 achieved a weekly delivery of 11,600 units, maintaining the top position among new force brands for four consecutive weeks, with flagship model 问界M8 surpassing 5,000 units in weekly deliveries [5] - 京东's CEO reported that the company has over 120,000 full-time delivery riders, with daily order volume exceeding 25 million and an average monthly income of 13,000 yuan for riders in major cities [7] Group 3: Strategic Partnerships and Collaborations - 传音控股 signed a strategic cooperation agreement with Indonesian telecom operator IOH to enhance 5G terminal penetration and improve user conversion rates [12] - 德马科技 and 上海智元新创 signed a strategic cooperation agreement to explore innovative applications of humanoid intelligent robots in logistics [11] Group 4: Financial and Market Activities - 兆芯集成's IPO application has been accepted, aiming to raise 4.169 billion yuan for new generation processor projects [16] - 曹操出行 announced its IPO plans, targeting to raise 1.853 billion HKD with a share price of 41.94 HKD [17] - 京东方A plans to acquire a 30% stake in 咸阳彩虹光电科技有限公司, with a base price of 4.849 billion yuan [18] Group 5: Industry Developments - The domestic silicon carbide IDM company 芯聚能半导体 has successfully scaled its SiC chip production for automotive applications [14] - The memory market is experiencing significant price increases for DDR4 memory, although market transactions are showing signs of weakness [15]

Economic Indicators - Multiple economic indicators showed improvement in May, with a significant rebound in consumption growth [1][11] - The market is experiencing rapid rotation among sectors, indicating clear structural opportunities despite a background of reduced trading volume [1][11] Stock Market Performance - US stock markets experienced a decline, with major indices falling: Dow Jones down 299.29 points (-0.7%), S&P 500 down 50.39 points (-0.84%), and Nasdaq down 180.12 points (-0.91%) [4][3] - Technology stocks faced pressure, with Tesla leading the decline at nearly 4%, and other major companies like Apple, Microsoft, and Amazon also experiencing losses [4] Foreign Exchange Market - In May, the foreign exchange market in China remained stable, with a net inflow of $33 billion from non-bank sectors [5] - The demand for foreign exchange decreased, while the willingness to settle foreign exchange remained stable, indicating a rational and orderly market [5] Commodity Market - Oil prices rebounded significantly due to risks in the Middle East, with WTI crude oil futures rising 4.3% to $73.27 per barrel and Brent crude oil increasing 4.4% to $76.45 [4] - Gold prices faced a slight decline, with COMEX gold futures down 0.3% to $3406.9 per ounce [4] Corporate Developments - BOE announced plans to acquire a 30% stake in Rainbow Optoelectronics for a base price of 4.849 billion yuan, aiming to enhance competitiveness [8] - Guoxin Technology successfully tested a new quantum-resistant encryption card, indicating advancements in information security products [9] - Rongchang Bio's drug, Tai Itasip, received orphan drug designation from the EU, which will provide policy support for its development [10]

Group 1 - Guoxin Technology successfully tested its new quantum-resistant password card product CCUPHPQ01, which combines quantum-resistant algorithms with classical national encryption algorithms [3] - The product supports various national encryption algorithms such as SM1, SM2, SM3, SM4, and mainstream quantum-resistant algorithms like Kyber and Dilithium [3] - Guoxin Technology has sent samples to multiple clients, who are developing information security applications based on the new product [3] Group 2 - Huayang New Materials issued a risk warning regarding irrational speculation, clarifying that it does not possess rare earth permanent magnet attributes and its main business is precious metal recycling [4] - The company noted significant stock price fluctuations, with a cumulative increase that deviated from the industry average, indicating potential irrational market behavior [4] - Huayang New Materials faces rising raw material procurement costs due to increasing precious metal prices [4] Group 3 - Guodian Nanrui elected Zheng Zongqiang as the chairman of its ninth board of directors [5] - Daqin Railway appointed Zhang Hongyi as the new general manager following the retirement of the previous general manager [6] Group 4 - Jingyi Equipment expects a year-on-year revenue increase of 36.54% to 42.48%, projecting revenue between 690 million to 720 million yuan for the first half of 2025 [8] Group 5 - Enhua Pharmaceutical's chairman, Sun Pengsheng, increased his stake by purchasing 237,900 shares of the company [10] - Yunlu Co., Ltd. announced that its directors and senior management plan to collectively increase their holdings by 4 million to 12 million yuan [11][12] Group 6 - Guoda Special Materials' chairman proposed a share buyback plan with a total amount between 200 million to 400 million yuan [14] Group 7 - Zhongchao Holdings' subsidiaries won multiple power cable projects with a total bid amount of 1.061 billion yuan, representing 19.29% of the company's audited revenue for 2024 [16]

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [6] Core Insights - Quantum technology is expected to bring disruptive innovations in computing power, driving demand for quantum secure communication and post-quantum cryptography [12] - Major advancements in quantum computing have been made by leading companies, indicating a competitive landscape in the industry [13][14] - The establishment of dedicated quantum research centers by companies like NVIDIA signifies a strategic shift towards integrating quantum computing with AI [15][16] Summary by Sections 1. Industry Insights - Quantum computing is based on quantum mechanics, utilizing quantum bits for processing, which offers unparalleled information capacity and parallel processing capabilities [12] - The emergence of quantum secure communication and post-quantum cryptography is a response to the potential threats posed by quantum computing to traditional encryption methods [12] 2. Chip Developments - Microsoft launched the Majorana 1 quantum chip, while Amazon introduced the Ocelot chip, which significantly reduces error correction overhead [13] - D-Wave's Advantage2™ system marks a pivotal shift from laboratory to enterprise-level applications, featuring over 4,400 qubits [13] - IBM's roadmap includes the release of a large-scale fault-tolerant quantum computer by 2029, expected to outperform current systems by 20,000 times [13] 3. Algorithmic Advancements - D-Wave demonstrated quantum superiority by solving a magnetic material simulation problem in 20 minutes, a task that would take traditional supercomputers nearly 1 million years [14] - Google's research indicates that a million noisy qubits could crack RSA-2048 encryption in a week, significantly shortening the traditional security period [14] 4. Industry Participation - NVIDIA's establishment of the Accelerated Quantum Research Center aims to integrate quantum hardware with AI supercomputing [15] - The CEO of NVIDIA has shifted his stance on quantum computing, predicting significant advancements in the coming years [16] 5. Market Performance - The computer industry index decreased by 2.25%, underperforming compared to major indices [17] - The report highlights the need to monitor long-term trends in AI, robotics, and self-controllable industries [21]

Group 1 - The company held its 2024 annual performance briefing on May 23, 2025, with key executives present to interact with investors [1] - The company aims to enhance its performance by expanding into new business areas such as IoT, low-altitude economy, and artificial intelligence, while also strengthening its international presence, particularly in the "Belt and Road" markets [1][2] - The company has completed upgrades to its entire line of cryptographic products to be quantum-resistant and has launched several quantum-safe products at a technology trade fair in June 2024 [1] Group 2 - The company primarily serves domestic clients and has minimal exposure to U.S. tariffs, which do not significantly impact its performance [2] - The company focuses on digital sovereignty and security, aiming to establish a leading position in the digital security sector through a comprehensive strategy that includes cryptographic security and digital transformation [2]

Market Performance - On May 14, 2025, the CSI 300 index rose by 1.21%, while the machinery sector declined by 0.43%, ranking 29th among all primary industries [2][1] - Within the sub-sectors, semiconductor equipment had the highest increase of 0.79%, whereas engineering machinery experienced the largest drop of 1.96% [2][1] - The top three gainers in individual stocks were Heng Er Da (+20.00%), Zhong Ji Huan Ke (+19.97%), and Da Ye Co. (+12.98%); the top three losers were Magnetic Valley Technology (-8.20%), Xin Yu Ren (-7.46%), and De Ma Technology (-6.19%) [2][1] Company Announcements - New Era's shareholder Wang Chunxiang plans to reduce his stake by 0.15% through block trading or centralized bidding, having previously held 2.12% [3] - Guangge Technology's major shareholder Beijing Jishi Chuangye Investment Fund reduced its stake by 0.27% from 5.00% between May 7 and May 13, 2025 [3] - Fengxing Co.'s major shareholder Jiangxi Taihao Technology Development Co. has reduced its stake by 1.02% from 7.92% through centralized bidding [3] - Zhuozhao Point Glue's shareholder Yinghao (Hainan) Venture Capital Co. has reduced its stake by 0.2914% from 1.2230% through centralized bidding [3] Industry News - Zhiyuan Robotics and the University of Hong Kong launched UniVLA, a new framework for universal strategy learning in robotics, which allows for cross-domain, cross-scenario, and cross-task capabilities [6] - UniVLA's core innovation is the task-centric latent action space, enabling efficient learning from vast amounts of unlabeled video data, achieving state-of-the-art performance with significantly lower computational resources [6] - The model demonstrated an average success rate improvement of 18.5% across four evaluation metrics and achieved state-of-the-art results with only 10% of the data in specific tasks [6] - The first practical quantum-resistant chip "Mi Xin PQC01" was released by Zhengzhou Xinda Yimi Technology Co., featuring 100% domestic production and core technology [7][8] - The chip supports dynamic switching between quantum-resistant and classical algorithms, operates on a 28nm process, and reduces power consumption by 60%, making it suitable for IoT and mobile devices [8]

Group 1 - Dapu Asset recently conducted research on two listed companies, Guoxin Technology and Nasda [1][2] - Guoxin Technology has launched the anti-quantum password chip HC001 in collaboration with Xinda Yimi, which is suitable for high-security requirements in sectors such as finance, communication, electricity, and IoT [1] - The HC001 chip supports both traditional and anti-quantum password algorithms, addressing the security challenges posed by the development of quantum computing [1] Group 2 - Nasda achieved a total operating revenue of 26.415 billion yuan in 2024, a year-on-year increase of 9.78%, with a net profit attributable to shareholders of 749 million yuan, up 112.11% [2] - In the first quarter of 2025, Nasda's revenue was 5.927 billion yuan, a year-on-year decrease of 5.79%, and the net profit attributable to shareholders was 84 million yuan, down 69.64% [2] - The company is actively promoting its industry-specific innovation market, particularly in the financial and energy sectors, as well as normalizing government market trends [2]

Core Viewpoint - The company has successfully tested a new quantum-resistant encryption chip, AHC001, in collaboration with its affiliate Zhengzhou Xinda Yimi Technology Co., Ltd. [1] Group 1: Product Development - The AHC001 chip is based on a domestic 28nm process and features a self-designed CPU core [1] - It integrates a quantum-resistant encryption algorithm engine, ECC engine, and symmetric encryption processor [1] - The chip supports various quantum-resistant and traditional encryption algorithms [1] Group 2: Performance Metrics - The typical operating power consumption of the chip is as low as 350mW, while the static low power consumption can reach approximately 0.13mW [1] - The Kyber512 quantum-resistant algorithm achieves a key generation speed of 3600 times per second, an encryption speed of 2600 times per second, and a decryption speed of 1300 times per second [1] Group 3: Application Areas - The AHC001 chip is suitable for high-security information security devices in sectors such as finance, communications, electricity, and the Internet of Things [1]