Investment Overview - Dongxin Semiconductor Co., Ltd. plans to invest approximately RMB 500 million in Lisan Technology (Shanghai) Co., Ltd., with Dongxin contributing about RMB 210.53 million for a 35.87% stake [3][4][12] - The investment is part of a broader strategy to enhance core competitiveness and create more value for shareholders [11][12] Financial Data of Target Company - As of July 31, 2025, Lisan Technology reported total assets of RMB 34.34 million and total liabilities of RMB 120.67 million, resulting in a net asset deficit of RMB 86.33 million [7] - The company has not generated any revenue and reported a net loss of RMB 154.82 million for the same period [7] Market Position and Risks - The global discrete graphics card market is dominated by NVIDIA and AMD, creating a highly concentrated oligopoly, which poses significant competition risks for domestic GPU manufacturers like Lisan [2][14] - Lisan's core business is heavily reliant on its "7G100" graphics rendering GPU, making it vulnerable to market acceptance and technological advancements [14][15] Governance and Compliance - The investment transaction has been approved by the company's board and will be submitted for shareholder approval, adhering to relevant regulations [5][13] - Lisan Technology is classified as an associated entity, and the transaction does not constitute a major asset restructuring [5][6] Investment Valuation - The pre-investment valuation of Lisan Technology is set at RMB 3.5 billion, with a subscription price of RMB 259.95 per RMB 1 of registered capital [9][10] - The pricing follows market principles and is based on a comprehensive assessment of the target company's technology and market potential [13]

Core Viewpoint - Dongxin Co., Ltd. (688110) reported a mixed performance in its 2025 mid-year financial results, with revenue growth but continued net losses, indicating challenges in profitability and cost management [1]. Financial Performance - Total revenue for the first half of 2025 reached 343 million yuan, a year-on-year increase of 28.81% [1]. - The net profit attributable to shareholders was -111 million yuan, a decline of 21.78% compared to the previous year [1]. - In Q2 2025, total revenue was 201 million yuan, up 25.43% year-on-year, while net profit was -51.73 million yuan, down 10.96% [1]. - The gross margin improved to 18.76%, reflecting a 41.01% increase year-on-year, while the net margin was -36.28%, a slight deterioration of 3.74% [1]. - The total of selling, administrative, and financial expenses reached 61.75 million yuan, accounting for 18.0% of total revenue, a significant increase of 96.1% year-on-year [1]. Cash Flow and Debt - The company reported a significant decrease in cash assets, with cash and cash equivalents dropping by 60.15% to 579 million yuan [1]. - The average operating cash flow over the past three years was negative, indicating potential liquidity issues [2]. Investment and R&D - Dongxin Co., Ltd. has invested 200 million yuan in Shanghai Lishuan Technology, acquiring a 37.88% stake, which focuses on developing GPU chips [4]. - The company is advancing its "storage, computing, and connectivity" integration strategy, aiming to enhance its product offerings and technological capabilities [5]. - Ongoing R&D includes a Wi-Fi 7 chip, which is currently in development [4]. Market Position and Fund Holdings - The largest fund holding Dongxin shares is Changsheng Electronic Information Theme Flexible Allocation Mixed Fund, with 259,500 shares held [3]. - The company has received attention from notable institutions regarding its investments and product developments, particularly in the GPU sector [3][4].

Group 1 - The core focus of Dongxin Co., Ltd. is on the development of its self-researched GPU chip "7G100" and graphics card Lisuan eXtreme, which are aimed at various applications including personal computers, professional design, IPC, cloud gaming, cloud rendering, and digital twins [1] - Dongxin Co., Ltd. has invested 200 million yuan in Shanghai Lishuan, acquiring a 37.88% stake, and the 7G100 series GPU chip utilizes a self-developed TrueGPU architecture, with independent design from instruction set to computing core [1] - The company is also developing a WiFi7 chip that focuses on high bandwidth and low latency wireless transmission, currently in the research and development phase [1] Group 2 - To address cyclical fluctuations in the storage industry, Dongxin Co., Ltd. is focusing on an integrated approach of "storage, computing, and connectivity" by establishing a subsidiary, Yixin Tonggan, and investing in Shanghai Lishuan to enhance overall R&D capabilities and core competitiveness [1] - The company emphasizes independent research and development, particularly in small-capacity storage chips, and is advancing product process iterations while laying out an integrated strategy in "storage, computing, and connectivity" [1]