Core Viewpoint - The IPO process of Shanghai Zhaoxin Integrated Circuit Co., Ltd. has made significant progress, with the company responding to the first round of inquiry letters from the Shanghai Stock Exchange, addressing key issues such as product technology routes, revenue composition, customer structure, and fundraising project planning [1] Group 1: Revenue Sources and Product Development - The desktop PC processor remains the cornerstone of current revenue, with the KX series gaining market recognition. The KX-6000, KX-6000G, and KX-7000 processors are the main sales drivers, accounting for up to 106.55% of the main business revenue during the reporting period [2] - The KX-6000 processor has achieved nearly 3.5 million units in cumulative sales, indicating significant market acceptance. The KX-7000 processor, set to launch in 2024, is expected to further enhance performance and increase its revenue share [2] Group 2: Server Market Strategy and Challenges - The "Kaisheng" series of server processors is in the exploratory phase, with the KH-40000 product launched in 2023 generating revenue of 183 million yuan, marking the company's entry into the mainstream server market [3] - A strategic adjustment in sales model and pricing for the KH-40000 in late 2024 has led to a temporary reduction in revenue, but aims to enhance long-term market penetration. Sales to major clients like Lenovo and Donghai Information have accounted for over 80% of the series' revenue since 2023 [3] Group 3: Competitive Landscape and Technological Development - The company acknowledges a gap in technology compared to international giants like Intel and AMD, but sees opportunities in domestic policy support and a slowing global semiconductor industry, which provides a window for catching up [4] - Technological advancements include an x86 core microarchitecture with a frequency of 3.7GHz and an increase in core count from 32 in KH-40000 to an expected 96 in KH-50000, along with alignment with domestic standards for DDR5 memory and PCIe 5.0 interfaces [4] Group 4: Fundraising and Future Projects - The IPO aims to raise funds for four core projects, focusing on the development of next-generation server processors with advanced features and a domestic supply chain for high-end processors [5] - The company is also establishing a research and development center in Shanghai to support innovations in AI PC, high-performance cores, and advanced packaging and testing technologies [6] - The inquiry response outlines how the company aims to solidify its desktop market advantage while strategically investing in the server market, leveraging capital market support for core technology iteration and domestic ecosystem development [6]

Group 1: Company Overview and Market Dynamics - The company hosted a research meeting on January 23, 2026, with participation from seven institutions, focusing on its strategic core business in automotive displays, which has seen a 24% growth in sales in the first three quarters of 2025 [1][2] - The company has maintained its position as the global leader in automotive TFT-LCD and instrument display shipments since 2020, with its head-up display (HUD) expected to reach the top position globally in 2024 [2] Group 2: Profitability and Competitive Landscape - The gross margin for the automotive business has shown a steady increase in the first three quarters of 2025, despite facing competitive pressures and price challenges [3] - The company aims to enhance product value through a strategy of increasing the complexity and integration of its modules, focusing on high-value-added products to maintain a robust gross margin [3] Group 3: Technological Advancements - The company has been developing Micro-LED technology since 2017, achieving significant breakthroughs in automotive and large-screen applications, with over 30 mass production devices and materials developed in collaboration [4] - In response to the competitive OLED market, the company plans to enhance production capabilities and optimize product structures to adapt to market changes, focusing on high-end and diversified applications [4] Group 4: Supply Chain and Emerging Business - The company collaborates with thousands of global suppliers to enhance material diversification and domestic supplier development, resulting in increased localization of materials and strengthened supply chain resilience [5] - The establishment of the MPG platform aims to explore non-display applications, with ongoing technical development in areas such as smart antennas and flexible sensors, currently in the incubation phase [5] Group 5: Market Value Management - The company emphasizes market value management, incorporating relevant metrics into its assessment system, and has implemented several initiatives to protect shareholder interests and enhance investor confidence since 2025 [6]