Company Overview - Shenzhen Xinshi Technology Co., Ltd. (referred to as "Xinshi") was established in September 2020 and focuses on the research and development of silicon-based OLED microdisplay technology [2] - The company aims to provide high-resolution, high-contrast, ultra-thin, low-power, and highly reliable silicon-based OLED microdisplay devices and flexible AMOLED advanced display modules for global customers [2] - Xinshi's products are widely used in various fields, including VR/AR, electronic viewfinders, special applications, automotive, and mobile portable smart devices [2] - The company has a team of over 130 employees, with more than 70% being R&D technical personnel, and has applied for over 100 patents, with more than 20 authorized [2] Recent Financing - Xinshi recently completed a 600 million yuan (approximately 84 million USD) Pre-A round financing led by Chuangdong Capital and Eucalyptus Capital, with participation from Zhenjiang Guokong and Qiancheng Capital [1] - The funds will primarily be used to accelerate the R&D innovation of silicon-based OLED microdisplay technology, promote product iteration and upgrades, and further expand market channels [3] Market Potential and Investment Rationale - The investment director of Chuangdong Capital highlighted Xinshi's strong technical strength and innovation capability in the silicon-based OLED microdisplay technology field, noting the team's rich experience and the broad market prospects for its products [3] - The rapid development of emerging technologies such as VR/AR has led to a continuous increase in market demand for silicon-based OLED microdisplay technology, which is considered a core component [3] - Government policies have been introduced to support the innovation and development of semiconductor display technology, recognizing Xinshi's technical strength and injecting new momentum into the industry [3]

Report Summary 1. Reported Industry Investment Rating No information provided. 2. Core Viewpoints of the Report The report mainly elaborates on the responses of Xiangyuan New Materials to investors' questions, including the company's investment in Hubei Sanhai Optical Co., Ltd., the progress of robot skin products, and market - value management [24][25]. 3. Summary by Directory 3.1. Basic Research Situation - The research object is Xiangyuan New Materials, belonging to the plastics products industry [17]. - The reception time was June 12, 2025, and the reception staff included the director and deputy general manager Huang Yonghong, and the financial controller and board secretary Wang Pan [17]. 3.2. Detailed Research Institutions The reception objects include investors' online questions and others [20]. 3.3. Proportion of Research Institutions No information provided. 3.4. Main Content Data - **Investment in Hubei Sanhai Optical Co., Ltd.**: The company has subscribed 12% of the capital of Hubei Sanhai Optical Co., Ltd. Its main business focuses on robot core components and encoder code disc products, and will enter the R & D, production, and sales of VR/AR - related products [24]. - **Robot Skin Products**: The company is planning to form a joint - venture company in this field, and relevant samples have been sent to potential customers for verification, but there is no batch order yet [24]. - **Market - Value Management**: The company's stock price is not currently below the issue price. In the past two years, it has carried out regular dividend distribution and share repurchase, and will continue to promote market - value management in the future [25].

Group 1: Company Investments and Collaborations - The company has invested in Hubei Sanhai Optical Co., Ltd., holding a 12% stake, focusing on core components for robots and encoder discs, with plans to develop VR/AR products [2] - The company is planning to establish joint ventures in the robotics skin product sector, with samples sent to potential clients for validation [2][3] Group 2: Product Development and Market Position - Currently, there are no bulk orders for robotics skin products, but samples are under validation with potential clients [3] - The company is exploring various strategies to enter the robotics industry, including forming joint ventures, although outcomes remain uncertain [3] Group 3: Stock Performance and Value Management - The company's stock is not currently in a state of decline; it has engaged in regular dividends and share buybacks over the past two years [3] - The company is committed to enhancing its core business operations and will continue to actively pursue value management strategies [3]

Core Viewpoint - The company Insta360, known for its leading position in the panoramic camera market, has successfully launched its IPO on the STAR Market, marking a significant milestone in its growth trajectory [2][7]. Group 1: Market Position and Performance - Insta360 holds a dominant market share in the global consumer panoramic camera market, with a 67.2% share, followed by Ricoh and GoPro at 12.4% and 9.2% respectively [3]. - The company's revenue is projected to grow from 2.041 billion yuan in 2022 to 5.574 billion yuan in 2024, representing a compound annual growth rate (CAGR) of 65.25% [3]. - The net profit after deducting non-recurring items is expected to increase from 381 million yuan to 946 million yuan during the same period, indicating a continuous improvement in profitability [3]. Group 2: Sales and Distribution Strategy - Insta360 has established a sales network in over 60 countries, with overseas revenue projected to reach 4.223 billion yuan in 2024, accounting for 76.35% of total revenue [4]. - The company has partnered with major retailers such as Apple Store, Best Buy, and Media Markt, and online channels contribute nearly 48% of its revenue [4]. Group 3: Technological Innovation and R&D - The company has invested 1.48 billion yuan in R&D over the past three years, maintaining a high R&D expense ratio of over 13% [6]. - Insta360 has developed 189 authorized patents covering key technologies in panoramic imaging, stabilization, and AI [6]. - The company continues to innovate with new product launches, maintaining a pace of 2-3 new products each year, including the latest AI video conferencing all-in-one machine [7]. Group 4: Future Outlook and Industry Position - The successful IPO marks a new development phase for Insta360, positioning it to leverage capital for further growth in the VR/AR and AI imaging sectors [7]. - The company has been recognized as one of the "Top 50 Global Innovative Companies" by Fast Company, enhancing its brand reputation [5].

Core Viewpoint - The company reported a decline in net profit due to increased competition and rising management costs, despite a slight increase in revenue [1][4]. Financial Performance - In 2024, the company achieved operating revenue of 2.287 billion yuan, a year-on-year increase of 1.58%, and a net profit of 14.04 million yuan, a year-on-year decrease of 57.33% [1][4]. - The digital retail business generated revenue of 850 million yuan in 2024, representing a year-on-year growth of 7.58%, accounting for 37.17% of total revenue [2][4]. - The new energy vehicle operation business generated revenue of 27.29 million yuan in 2024, with a year-on-year growth of 63.77% [3][4]. Strategic Focus - The company aims to become a leading global technology-driven integrated marketing service group, focusing on three main areas: technology-driven innovation, building a brand product matrix, and international development [2][4]. - The company is actively applying new technologies such as generative AI, VR/AR, and 3D to enhance its marketing capabilities [2]. Financial Position - As of the end of 2024, the company held cash and cash equivalents of 848 million yuan, providing a strong risk resistance capability for future steady development [2][4].

Core Viewpoint - The company reported a slight increase in revenue for 2024 but faced a significant decline in net profit due to increased competition and rising management costs, particularly in the interactive display and retail terminal management sectors [1][2] Group 1: Financial Performance - In 2024, the company achieved operating revenue of 2.287 billion yuan, a year-on-year increase of 1.58% [1] - The net profit attributable to shareholders was 14.04 million yuan, representing a year-on-year decrease of 57.33% [1] Group 2: Business Operations - The company's main business includes interactive display, retail terminal management, brand communication, and digital retail services, establishing itself as a leading experiential marketing service provider in China [1] - The company operates 34 subsidiaries and 268 roadshow lines, covering over 300 prefecture-level cities and nearly 1,400 county-level cities [1] Group 3: New Energy Vehicle Business - The new energy vehicle business became a highlight for the company in 2024, operating 780 vehicles and generating revenue of 27.29 million yuan, a year-on-year increase of 63.77% [2] Group 4: Digital Transformation - The company is focusing on digital and intelligent transformation, planning to utilize technologies such as generative AI, VR/AR, and naked-eye 3D to enhance its marketing services [2][3] - In October 2024, the company will launch ten AI+ products aimed at retail terminal scenarios to further integrate online and offline retail [2] Group 5: International Expansion - The company plans to expand internationally by focusing on domestic brands going abroad, cross-border e-commerce, and overseas brand development [2] - The company aims to provide customized cross-border marketing services to meet diverse market demands in different countries and regions [2] Group 6: Future Development Strategy - The company’s future development strategy includes three main directions: technology-driven innovation, building a brand product matrix, and international expansion [3] - The company is actively seeking investment and acquisition opportunities in IP and consumer brands to meet diverse consumer needs [3]

Group 1: Financial Performance - The company achieved a steady revenue growth in 2024, primarily driven by the antenna, thermal components, and smart module businesses [4] - R&D investment accounted for 8.87% of revenue in 2024, focusing on core business technology upgrades and exploratory projects [3] - The overall operating income and gross margin increased compared to the previous year, with significant improvements in the smart module and thermal component businesses [5] Group 2: Strategic Development - The company plans to enhance its supply chain collaboration and explore new partnerships, particularly in the automotive sector [3] - The 4D millimeter-wave radar waveguide antennas have begun mass delivery, with expectations to provide over one million units to leading domestic customers within the year [3] - The company is actively pursuing opportunities in AI wearable technology and low-orbit satellite communication antennas, having completed R&D for the latter [4][5] Group 3: Market Expansion - Export revenue accounted for 23.26% of the company's total revenue in 2024, primarily targeting Southeast Asia and North America [6] - The company has established deep and ongoing partnerships with major clients in the automotive sector, focusing on 5G, high-precision positioning, and V2X antenna products [4] - The company is committed to optimizing its customer and product structure while actively pursuing cost reduction and efficiency improvement initiatives [5] Group 4: Future Outlook - The management is optimistic about achieving profitability goals for the year, emphasizing a focus on major clients and operational efficiency [6] - The company is exploring potential business collaborations with Huawei and other major clients for low-orbit satellite communication technology [4] - The company is enhancing its product offerings in the VR/AR sector, leveraging unique technologies to gain recognition from American brand clients [3]

Core Insights - Guangzhou is emerging as a significant player in the gaming industry, with a focus on creating a "Gaming Valley" to enhance its competitive edge in the Greater Bay Area [1][9] - The gaming industry in Guangzhou has seen substantial growth, with a market size reaching 140.67 billion yuan in 2024 and over 6,783 gaming companies operating in the region [2][10] - New policies and infrastructure developments are being introduced to support the gaming industry, including the establishment of a gaming industry service center and specialized esports venues [5][9] Industry Development - The "Gaming Valley" in Guangzhou is home to over 200 gaming companies, creating a comprehensive ecosystem that includes game planning, design, operation, and international expansion [3][10] - Companies like Sekai Group have reported significant growth, with a compound annual growth rate exceeding 50% over the past three years, indicating a thriving gaming market [2][3] - The gaming industry is structured in a pyramid model, comprising large gaming enterprises, small and medium-sized companies, and innovative studios, fostering a collaborative development environment [10] Policy and Infrastructure - A new gaming industry service center is being established in the Yuzhu area, providing a range of services including regulatory support and talent development [4][5] - The Huangpu District is set to introduce attractive policies to support the gaming and esports sectors, aiming to create specialized gaming towns and venues [9][10] - The Guangdong Provincial Gaming Industry Association is actively involved in providing a one-stop support system for gaming companies, enhancing operational efficiency and resource allocation [5][6] Future Prospects - The gaming industry in Guangzhou is expected to continue its upward trajectory, with plans for further integration with other sectors such as tourism and education [10] - The establishment of the "China Software Gaming Valley" project, with a total investment of 4.5 billion yuan, aims to create a significant industrial space for gaming development [8] - Experts suggest that Guangzhou's gaming industry should leverage its strengths to become a global benchmark for digital cultural industries [9][10]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [8]. Core Views - The company reported a revenue of 16.305 billion yuan for Q1 2025, a year-on-year decline of 15.57%. However, the net profit attributable to shareholders was 469 million yuan, showing a year-on-year increase of 23.53%. The non-recurring net profit was 292 million yuan, up 6.09% year-on-year. The gross margin for the quarter was 12.41%, significantly improving both sequentially and year-on-year by over 3 percentage points [2][6]. - The decline in revenue is attributed to a transition period for major headphone clients, affecting short-term sales. However, there is an expectation for improved market share in new products in the second half of the year. The company’s operational efficiency improvements have also contributed to the rise in gross margin [11]. - The company is strategically positioned in the XR industry, with a focus on expanding its consumer electronics business into the VR/AR sector. This diversification is expected to create synergies across various business lines, enhancing its competitive edge in the market [11]. Summary by Sections Financial Performance - For Q1 2025, the company achieved a total revenue of 16.305 billion yuan, a decrease of 15.57% year-on-year. The net profit attributable to shareholders was 469 million yuan, an increase of 23.53% year-on-year. The non-recurring net profit was 292 million yuan, reflecting a growth of 6.09% year-on-year. The gross margin improved to 12.41%, showing a significant increase of over 3 percentage points compared to the previous year [2][6]. Future Outlook - The company anticipates that revenue factors in 2025 will be influenced by various sectors including VR, headphones, gaming consoles, components, and AI glasses. While some products are in the later stages of their life cycles, the emerging AI/AR market is expected to see significant growth, providing the company with a competitive advantage to capture market share [11]. - The company is expected to continue improving its profit margins in 2025, driven by operational efficiency and changes in product structure [11]. Strategic Positioning - The company is actively expanding into the VR/AR industry, positioning itself as a leader in precision manufacturing that integrates sound, light, and electricity. This strategic move is expected to enhance its capabilities in producing key components and modules for VR/AR products, benefiting from the ongoing technological advancements in the 5G and AI sectors [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company has returned to growth in 2024, with a revenue of 1009.54 billion yuan, a year-on-year increase of 2.41%. The net profit attributable to shareholders reached 26.65 billion yuan, up 144.93% year-on-year, while the net profit excluding non-recurring items was 23.93 billion yuan, reflecting a growth of 178.30% [2][6]. - In Q4 2024, the company achieved a revenue of 313.08 billion yuan, marking a year-on-year growth of 27.13% and a quarter-on-quarter increase of 6.99%. The net profit for this quarter was 3.20 billion yuan, up 63.23% year-on-year, although it saw a significant quarter-on-quarter decline of 71.45% [2][6]. - The company’s precision components and smart acoustic products have shown strong performance, with revenues of 150.51 billion yuan and 262.96 billion yuan respectively, growing by 15.9% and 8.7% year-on-year. The smart hardware segment experienced a slight decline of 2.6% due to product lifecycle adjustments [12]. - The company is strategically positioned in the XR industry, benefiting from the integration of 5G and AI trends, with expectations for significant growth in VR/AR headsets as the next generation of smart human-computer interaction devices [12]. Financial Summary - The company’s earnings per share (EPS) are projected to be 1.02, 1.21, and 1.44 for the years 2025, 2026, and 2027 respectively [12]. - The gross margin for the electronic components business improved by 2.21 percentage points to 11.14% in 2024, driven by a higher proportion of high-margin components and improved production efficiency [12]. - The company’s total assets are expected to grow from 82,707 million yuan in 2024 to 104,221 million yuan by 2027, indicating a robust financial outlook [18].