2025 Interim Results 7 August 2025 1 Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities or relevant derivatives of China Mobile Limited (the "Company") or the rendering of any investment advice, and no part thereof shall be relied upon or taken as the basis of any contract, commitment or investment decision relating to such securities or relevant derivatives, and this document does not constitute a recommendation in respect of the securities or re ...

Group 1: Communication Equipment - Dongxin Peace has a net buying amount of 207 million, indicating significant institutional interest with a turnover rate of 20.87% and a transaction volume of 1.8 billion [3] - The breakthrough in large-scale array technology by ZTE Corporation has secured its position in the 6G standard, contributing to a 1.75% increase in the communication equipment index [3] - Dongxin Peace, as a leader in smart cards, is deeply integrated with operators' 5G-A construction, with expectations of at least doubling its performance upon the commercial rollout of 6G [3] Group 2: Medical Services - Innovation Medical has a net buying amount of 200 million, with a 10% increase and a 25% turnover rate, indicating a robust exchange of shares [3] - The approval of the second-class certification for the Bolein brain-machine upper limb exoskeleton rehabilitation device is set to tap into the billion-dollar home rehabilitation market [3] - With over 380 million people aged 60 and above in China, the demand for rehabilitation services is expected to grow by 15% annually, positioning the company for long-term benefits despite a previous loss of 34.29 million [3] Group 3: Automation Equipment - Aerospace Science and Technology has seen foreign capital increase by 52.74 million, driven by two main factors: a recovery in orders and foreign exchange gains [3] - The company is projected to turn a profit of 12.27 million in 2024 after a loss of 14.6 million in 2023, indicating a clear turnaround strategy [3] - The push for smart vehicles by policy support is expected to enhance the company's valuation recovery [5] Group 4: Foreign Capital Adjustment - Zhongyida has attracted 49.68 million from the Shanghai Stock Connect, focusing on phosphate chemical production for new energy battery materials, showcasing a strong technical barrier [4] - Aerospace Science and Technology's foreign capital increase reflects a strategic focus on leading technologies in the automotive sector, with 76% of its revenue coming from overseas [4] - The national equipment update fund of 10 billion is now in place, with over 30% penetration in intelligent transformation [4]

1. Report Industry Investment Rating - The investment rating for the industry is "Oscillation" [1] 2. Core Viewpoints of the Report - After the popularity of major financial concepts such as stablecoins ebbed, the market mainly engaged in thematic speculation around "anti - involution" and the Yaxia Hydropower Station in July. There were signs of increasing divergence in funds regarding the cyclical style at the end of the month, and the market was in a relatively strong oscillatory state [3] - In August, there are limited expected macro - level positives. Domestically, after the tone - setting of the Political Bureau meeting, there are no obvious over - expected clues in the short term, and the policy is mainly about implementation. Overseas, Sino - US trade negotiations are ongoing, and issues like the change of the Fed Chairman will indirectly affect foreign investors' willingness to participate in the A - share market [3] - Investors are advised to prepare for defense in August. In the first half of the month, there may be a phased pull - back in stock indices due to strengthened technical pressure. In a six - month perspective, the four major indices are expected to approach the 2023 highs, with small - cap indices like CSI 500 and CSI 1000 performing better in a liquidity - easing cycle [3] 3. Summary by Relevant Catalogs 3.1 Macro Stock Market Information - The central bank, the financial regulatory administration, and the CSRC plan to further clarify the specific requirements for risk - based customer due diligence of financial institutions. For remittances of over RMB 5,000 or foreign currency equivalent to $1,000, the identity of the remitter should be verified [5] - Beijing has introduced 16 measures to promote the development of future industries, focusing on areas such as urban transportation and medical health, and exploring the opening of application demonstration scenarios [5] 3.2 Stock Index盘面回顾 (Stock Index Market Review) - In the previous trading day, the A - share market opened lower and closed higher. Among the four major indices, the Shanghai 50 rose 0.55%, the CSI 300 rose 0.39%, the CSI 500 rose 0.78%, and the CSI 1000 rose 1.04%. The precious metals (+3.84%) and aerospace and military industries (+3.59%) led the gains, while the education (-0.72%) and automobile (-0.66%) sectors lagged. There were more than 3,800 rising stocks and 70 daily limit stocks, indicating a good profit - making effect [5] - The daily and weekly lines maintained an upward trend, indicating short - term market strength, while the monthly line remained in an oscillatory state [5] - The trading volume of the A - share market dropped to around 1.5 trillion yuan, and the trading enthusiasm declined marginally [5] 3.3 Core Logic Summary - After the decline of major financial concepts, the market had new themes in July, and there were signs of divergence in the cyclical style. In August, with limited macro - level positives, investors should be defensive, especially in the first half of the month. In the medium - term, small - cap indices are expected to perform better [3] 3.4 Operation Suggestions - In futures operations, it is recommended to switch to a defensive state temporarily, choose to wait and see or conduct short - term long positions intraday. Buying on dips is a good opportunity, and IH - IM can be pre - arranged on the left side [4] - In options operations, the implied volatility of stock index options has decreased. During the narrow - range oscillation period, the cost - effectiveness of participating in options is not high, and it is recommended to wait for a second wave of rising volatility [4]

Research Report Summary 1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The overall market shows a complex situation with different trends in various sectors. In the agricultural products sector, most products are in a state of weak supply - demand balance or facing certain pressure. In the energy - chemical sector, prices are affected by factors such as production, demand, and international market conditions. The industrial metal sector is influenced by supply - demand relationships, macro - economic data, and policy factors. The financial market is affected by macro - economic data, policy expectations, and international market trends [6][9][14]. 3. Summary by Category 3.1 Chemicals - **Price Changes**: On August 5, 2025, compared with August 4, most chemical products' prices decreased. For example, the price of coking coal dropped from 1,141.00 to 1,126.00, a decrease of 15.0 with a decline rate of 1.315%. The price of asphalt decreased from 3,573.00 to 3,549.00, a decrease of 24.0 with a decline rate of 0.672%. Only natural rubber and 20 - number rubber prices increased slightly [6]. 3.2 Agricultural Products - **Price Changes**: Some agricultural products' prices increased, such as yellow soybean No.1, which rose from 4,117.00 to 4,133.00, an increase of 16.0 with an increase rate of 0.389%. However, some products' prices decreased, like white sugar, which dropped from 5,718.00 to 5,709.00, a decrease of 9.0 with a decline rate of 0.157% [6]. - **Market Analysis** - **Peanuts**: The peanut market price is basically stable, with a pattern of weak supply and demand. It is expected to have a strong - side shock but still maintain a downward trend [14]. - **Oils and Fats**: The total trading volume of oils and fats decreased by 57% compared with the previous trading day. The market lacks driving forces and is expected to have a weak - side shock [14]. - **Sugar**: The sugar futures showed a downward - shock trend. The Brazilian sugar production is about to enter the supply peak, and the domestic market needs to be vigilant against the pressure of processed sugar arrival in August [14]. - **Corn**: The corn futures weakened. The wheat substitution effect is prominent, and the import supply pressure increases. It is expected to have a weak - side shock [14]. - **Pigs**: The supply pressure of pigs still exists, and the demand improvement is not obvious. The market is expected to maintain an interval shock [15]. - **Eggs**: The egg spot market has differences between the north and the south. After the correction, the spot is expected to have limited further decline. The 08 - contract futures should avoid long positions and try short positions [15]. - **Cotton**: The ICE cotton continued to decline, and the Zhengzhou cotton rebounded slightly. The domestic cotton spot market has a weak foundation, and short - term long positions should be cautious [17]. 3.3 Macro - economic News - **Policy and Regulation**: The central bank, financial regulatory authorities, and the CSRC plan to further clarify the specific requirements for customer due diligence of financial institutions. Beijing has introduced 16 measures to promote the development of future industries, and Hainan has proposed 20 measures to develop future industries [9][10]. - **Economic Data**: In the first half of the year, China's service import and export volume was 38872.6 billion yuan, a year - on - year increase of 8%. It is expected that the new social financing in July will increase year - on - year. The preliminary estimate of the wholesale sales volume of new energy passenger vehicles in July is 118 million, a year - on - year increase of 25% [9][10]. - **International News**: Trump said he would significantly increase tariffs on India. The EU will suspend the implementation of tariff counter - measures against the US for six months. The probability of a US interest rate cut in September is high [10][11][24]. 3.4 Industrial Metals - **Copper and Aluminum**: The copper price continued to be under pressure, and the aluminum price is expected to continue the high - level adjustment due to factors such as supply increase and consumption off - season [21]. - **Alumina**: The alumina market is in an oversupply pattern, and the futures price is in a high - level adjustment, being vigilant against the impact of macro - emotions [21]. - **Steel Products**: The spot market of steel products has limited demand in the off - season. The prices of rebar and hot - rolled coils are affected by macro - emotions and raw material prices, and they are in a weak - side shock to find the bottom [21]. - **Ferroalloys**: The supply of ferrosilicon and ferromanganese continues to increase, and the demand is weak. The market is affected by macro - policy expectations, and it is recommended to adopt a range - shock strategy [22]. - **Lithium Carbonate**: The lithium carbonate market is under high - supply pressure. It is recommended to wait and see. If it effectively stands above 70,000 yuan, a small - position long position can be tried [23]. 3.5 Options and Finance - **Stock Index Futures and Options**: On August 4, the A - share market showed different trends. The trend investors can pay attention to the strength - weakness arbitrage opportunities among varieties, and the volatility investors can sell wide - straddle options to short volatility. The short - term adjustment of the stock index does not need to be worried, and the medium - term upward trend remains unchanged [23][24].

Core Viewpoint - The company, Ruikeda, has begun small-scale supply of humanoid robot products, with projected sales revenue of approximately 10 million yuan in 2025, representing 0.41% of the expected revenue for 2024. However, the actual sales revenue remains uncertain due to the early stage of the industry [2][3]. Group 1: Company Performance and Financials - Ruikeda expects to achieve a net profit attributable to shareholders of between 151 million yuan and 171 million yuan for the first half of 2025, reflecting a year-on-year growth of 132.44% to 163.22% [3]. - The increase in profit is attributed to steady growth across various business segments, leading to a rise in order volume, along with advancements in technology, process innovation, and production automation [3]. - The company has seen an increase in orders from overseas factories compared to the previous year, indicating improved operational capacity [3]. Group 2: Business Development and Market Strategy - Future development focuses on several key areas: research and industrialization of products related to 6G communication and AI data centers, development of high-speed automotive products, expansion of overseas customer base, and exploration in humanoid robots and medical devices [3]. - The global connector industry is experiencing steady demand growth, particularly in China, which presents a broad market outlook for connectors [3]. - The company plans to enhance technological research and product development, while also expanding into new application fields such as AI and data centers, humanoid robots, and low-altitude economy [3].

Group 1 - The core viewpoint of the news is that Ruikeda (688800) has begun small-scale supply of humanoid robot products, with expected sales revenue of approximately 10 million yuan in 2025, accounting for 0.41% of the 2024 revenue [1] - Ruikeda's stock price experienced a significant increase, with a cumulative deviation of 30% over three trading days, closing at 67.2 yuan per share on August 4, with a trading volume of 2.597 billion yuan [1] - The company emphasizes that its production and operations are normal, and there have been no significant changes, urging investors to approach market trends rationally [1] Group 2 - According to the performance forecast, Ruikeda expects a net profit attributable to shareholders of 151 million to 171 million yuan for the first half of 2025, representing a year-on-year growth of 132.44% to 163.22% [2] - The growth in performance is attributed to steady growth across various business segments, increased order volume, and advancements in technology and production automation [2] - The company is focusing on several key development areas, including 6G communication and AI data centers, automotive smart solutions, overseas market expansion, and research in humanoid robots and medical devices [2]

Group 1: Company Overview and Strategic Development - The company is focusing on expanding its modified materials business, particularly in the automotive sector, which is experiencing stable growth due to new capacity releases [1] - The company is also seeing rapid growth in non-automotive sectors, benefiting from new customer acquisitions and market expansions [1] - The company aims to develop lithium batteries as a core product while prioritizing sodium-ion and solid-state batteries in its future strategy [1] Group 2: Capacity Planning and Production Facilities - The completion of new factories in Anhui and Tianjin by the end of this year will alleviate capacity shortages and enhance market share in modified materials [2] - The establishment of a South China headquarters and procurement platform in Nansha will support the construction of a production base and R&D center for plastic modification materials [2] - The company operates 13 manufacturing bases globally, including locations in Shanghai, Zhejiang, Chongqing, and the United States, which helps mitigate tariff risks [2] Group 3: LCP Business Progress - The company is the only global entity with capabilities in LCP resin synthesis, modification, film, and fiber technology [3] - LCP products are primarily used in high-frequency signal transmission industries, with applications expected to expand in 6G, automotive radar, AI servers, and low-orbit satellites [3] - Successful validation with a leading domestic client in the communication sector is anticipated to lead to mass deliveries this year [3] Group 4: Sodium and Solid-State Battery Development - The company has secured bulk orders for sodium-ion batteries in various sectors, including special engineering vehicles and energy storage [4] - It has won the largest domestic sodium-ion energy storage demonstration project and is actively engaging in backup power projects [4] - The company has successfully launched its first batch of 314Ah semi-solid-state batteries, becoming the first in China to transition this technology from lab to mass production [5] Group 5: Robotics Material Applications - The company produces modified PEEK, PPS, and PA materials for use in robotics, with some materials already in bulk supply to the industrial robotics sector [5] - Although the robotics business currently represents a small proportion of overall operations, the company is actively pursuing partnerships with leading clients to enhance material applications in this field [5]

Core Viewpoint - The article discusses the advancements in polymer dielectric materials, particularly Liquid Crystal Polymer (LCP), which are essential for the transition from 5G to 6G technology, highlighting their superior properties and applications in high-frequency communication systems [2][8]. Group 1: 6G Technology and Material Requirements - The 6G frequency band ranges from 100GHz to 10THz, with peak transmission speeds reaching 100Gbps to 1Tbps and communication latency below 0.1 milliseconds, necessitating advanced materials for antennas and semiconductors [2]. - LCP materials are identified as critical for high-frequency applications due to their high strength, thermal resistance, low thermal expansion coefficient, flame retardancy, and excellent dielectric properties, making them a key domestic alternative for the transition from 5.5G to 6G [2][3]. Group 2: LCP Film Characteristics - The LCP film developed by the company features ultra-low dielectric loss (Df) ranging from 0.001 to 0.003 at 10GHz, with a dielectric constant (Dk) between 2.9 and 3.2, significantly outperforming traditional PI films [3]. - The film's low signal attenuation at 5G frequencies (28GHz/39GHz) ensures stable and complete high-speed data transmission, while its thin and flexible nature (thickness controlled between 5 to 100μm) makes it suitable for flexible circuit designs in foldable smartphones and wearable devices [3]. Group 3: Future Market and Demand - The article raises questions about how to integrate low loss, low thermal expansion, high temperature resistance, and high flexibility in future 5.5G/6G applications, as well as the market potential and demand for LCP films [5]. - The company has achieved breakthroughs from LCP film research to device innovation and module integration, establishing a comprehensive solution that supports the entire 6G ecosystem [8]. Group 4: Forum Information - The 2025 (Third) Polymer Electromagnetic Composite Materials and Applications Forum will be held on September 11-12, 2025, in Hefei, Anhui, where industry experts will discuss the latest advancements in electromagnetic functional materials [11][13]. - The forum aims to enhance collaboration between academia and industry, focusing on the urgent need for high-performance polymer electromagnetic composite materials in various rapidly developing sectors, including AI, 5.5G/6G, and new energy vehicles [12][14].

Group 1 - Beijing will leverage its advantages in education, technology, and talent resources to establish a mechanism for coordinated input, integration, and reasonable growth, enhancing overall productivity and promoting the development of future industries from R&D innovation to large-scale development [1] - The measures encourage investment from municipal and district government funds, state-owned enterprise funds, and long-term capital such as social security and insurance funds into future industries, as well as utilizing policy bank loans for strategic sectors [1] - The city aims to utilize its large urban market as an incubator, focusing on sectors like urban transportation, healthcare, green energy, and public services, while exploring the establishment of influential application demonstration scenarios [1] Group 2 - The measures propose improving the engineering transformation system, encouraging collaboration between universities, research institutions, and enterprises for technology validation and process optimization, and establishing a gradient development mechanism covering prototype design to pilot samples [2] - Support is provided for large enterprises to engage in "new investments" and "new mergers and acquisitions," promoting entrepreneurial activities along the industrial chain and enhancing supply chain strength [2] - The measures also support enterprises in expanding overseas markets and gathering high-quality international resources [2]

Core Insights - InterDigital, Inc. (IDCC) reported strong second-quarter 2025 results, with revenues and net income exceeding expectations, driven by robust licensing momentum in the smartphone sector and advancements in AI applications for wireless and video technology [1][9]. Financial Performance - GAAP net income rose to $180.6 million or $5.35 per share, up from $109.7 million or $3.93 per share year-over-year, reflecting healthy top-line growth [2]. - Non-GAAP net income increased to $195.3 million or $6.52 per share, compared to $118.9 million or $4.57 per share in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.36 [2]. - Net sales for the quarter reached $300.6 million, a significant increase from $223.5 million in the prior year, driven by new licensing agreements with Samsung and HP, exceeding the consensus estimate of $193 million [3][9]. Revenue Breakdown - Smartphone revenues grew by 18% year-over-year to $235.1 million, bolstered by a licensing agreement with Samsung, with IDCC now licensing 80% of the global smartphone market [4]. - Revenues from the Consumer Electronics (CE) and IoT/Auto group increased to $65.3 million from $23.7 million in the previous year [4]. - Annualized recurring revenue rose to $553.1 million, marking a 44% year-over-year increase, while catch-up revenues increased to $162.3 million from $127.6 million a year ago [5]. Operational Metrics - Adjusted EBITDA climbed to $237 million, up 50% year-over-year, while total operating expenses rose to $95.2 million from $89.6 million in the prior year [6]. - Operating income increased to $205.4 million from $133.9 million in the year-ago quarter [6]. Cash Flow and Liquidity - In Q2, InterDigital utilized $105.1 million in cash for operations, compared to $48.9 million in the same quarter last year [7]. - As of June 30, 2025, the company had $937 million in cash, cash equivalents, and short-term investments, with $75.4 million in long-term debt and other liabilities [7]. Future Outlook - IDCC upgraded its 2025 revenue guidance to a range of $790-850 million, up from the previous estimate of $660-760 million, and adjusted EBITDA is now forecasted at $551-569 million, up from $400-495 million [8]. - Non-GAAP earnings are expected to be between $14.17 and $14.77, an increase from the prior range of $9.69 to $12.92 [8]. - The company is making significant progress in 6G development and emphasizes AI integration, which is expected to support long-term growth [8].