Group 1 - The company, Weichai Power (000338), has indicated that its M55 series products are fully prepared for production and have high delivery efficiency [1] - The company plans to seize the growth opportunities in the global data center market, leveraging its product performance and delivery advantages to further increase product sales [1]

Group 1: Nandu Power (南都电源) - Nandu Power, established in 1994, focuses on the energy storage sector, providing lithium-ion and lead batteries as core products and services, covering over 160 countries and regions globally [1] - In the first half of 2025, the company's revenue is approximately 3.923 billion yuan, a year-on-year decrease of 1.8 billion yuan, with a net profit of approximately -230 million yuan. The second quarter showed a profit of about 34 million yuan, with a net cash flow from operating activities of 590 million yuan [1] - The company turned a profit in Q2 due to deepening its presence in the global energy storage market, securing high-margin orders, and rapid growth in the data center market, winning multiple major projects [1] - Current lithium battery cell capacity is 10 GWh, with new power storage integration capacity also at 10 GWh. Projects in Huatuo Phase II and Yangzhou are progressing smoothly, while the recycled lead segment is reducing production and increasing research on phosphorous iron resource utilization [1] - The company has developed large-capacity iron-lithium storage cells and completed the development of a 5 MWh liquid-cooled storage system. The overseas large storage market is expanding rapidly, with unfulfilled orders totaling 7.8 GWh, including 2.3 GWh from overseas markets such as Australia, Europe, the UK, and the Middle East [1] - Nandu Power has continuously won multiple high-voltage lithium battery data center projects, with unfulfilled orders of approximately 0.8 GWh, and is developing third-generation high-voltage lithium battery products to provide "energy storage + backup power" solutions [1] - The company's consumer lithium battery business focuses on battery swapping and vehicle distribution, promoting products through partnerships with vehicle manufacturers and distributors [1] - An 8 GWh semi-solid project consists of three independent energy storage projects located in Shenzhen and Shanwei, effectively alleviating power supply and demand conflicts in the Guangdong-Hong Kong-Macao Greater Bay Area [1] - The company aims to continue being customer-oriented, relying on technological innovation to build core competitiveness, and adopting a dual-driven model of "technology research and development + market expansion" [1] Group 2: Milkway (密尔克卫) - Milkway has over 300 employees in Southeast Asia, with most being locally recruited middle management and staff, except for a few expatriate management members [2] - The company emphasizes cultural alignment with local core management personnel in overseas talent management while continuously expanding the recruitment of senior management talent [2]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 declined by $2 million or 0.6% year-over-year to $311.6 million, driven by a 20.9% decline in Aon branded sales, offset by a 90% increase in Basics branded sales [22][23] - Gross margin decreased to 26.6%, down 950 basis points, primarily due to lower production volumes of Aon branded equipment [23][24] - Non-GAAP adjusted EBITDA was 14.9%, down 1120 basis points, and non-GAAP adjusted EPS was $0.22, a decrease of 64.5% from the previous year [23] Business Line Data and Key Metrics Changes - Aon Oklahoma segment net sales declined by 18%, impacted by supply chain disruptions and coil supply shortages due to ERP implementation [25][26] - Aon Coil Products sales grew by $27.1 million or 86.4%, primarily driven by Basics brand products [28] - Basics segment sales increased by 20.4% due to continued demand for data center solutions, with gross margin contracting by 60 basis points [29] Market Data and Key Metrics Changes - Basics branded data center sales surged by 127% in Q2 and 269% year-to-date, indicating strong market demand [19] - National accounts orders for Aon brand grew by 163% year-over-year in Q2, reflecting effective customer engagement [20] - Aon branded Alpha Class heat pump business saw sales growth of 8% in Q2, with bookings increasing by approximately 61% [21] Company Strategy and Development Direction - The company is focused on addressing ERP implementation challenges while maintaining confidence in its long-term strategy [6][7] - The Basics brand is identified as the primary growth engine, with expectations of a 40% year-over-year increase in sales [35] - The company plans to ramp up production at both Tulsa and Longview facilities to meet strong demand, particularly in the data center market [36][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q2 due to ERP implementation but expressed confidence in recovery and long-term growth [6][42] - The company revised its full-year 2025 outlook to anticipate low teens sales growth and gross margins of 28% to 29% [38] - Management highlighted strong underlying fundamentals and a solid backlog, expecting significant growth in Aon branded sales in the second half of the year [41] Other Important Information - The company incurred $3 million in costs related to the new Memphis facility during the quarter, impacting overall financial performance [23] - Cash flow used in operations year-to-date was $31 million, compared to $127.9 million in the same period last year, reflecting increased investments in working capital [31] Q&A Session Summary Question: Guidance and ERP Implementation Impact - Management indicated that the revised guidance reflects the impact of ERP implementation and lower production volumes, with a focus on recovery in the second half of the year [44][45] Question: Data Center Backlog Health - Management confirmed strong activity in the data center market, with year-over-year sales up 127% in Q2, and emphasized the importance of capacity to meet demand [50][51] Question: Applied Digital Partnership Significance - The partnership with Applied Digital is crucial for Basics, as it involves supplying thermal management solutions for AI data centers, indicating strong future order potential [57][59] Question: Fourth Quarter Growth Expectations - Management expects strong growth in Q4, with a focus on ramping production and leveraging backlog, while still considering ERP impacts [61][62] Question: Aon Brand Booking Strength - The increase in Aon brand bookings is attributed to a successful national account strategy and strong product value proposition, despite a challenging non-residential market [66][68]

Core Viewpoint - Qualcomm is re-entering the data center market by acquiring Alphawave, a leading semiconductor IP company, to enhance its competitive edge in this sector, particularly in AI chip development [1][2]. Group 1: Acquisition Details - Qualcomm announced the acquisition of Alphawave IP Group plc for an implied enterprise value of approximately $2.4 billion, expected to be completed by Q1 2026 [1][2]. - The acquisition aims to accelerate Qualcomm's expansion into the data center market and provide critical assets, particularly in high-performance, low-power computing [2][4]. Group 2: Financial Performance of Alphawave - Alphawave reported revenues of $308 million for FY2024, a 4% decline year-over-year, while FY2023 revenues were $322 million, showing a significant growth of 74% [2]. - The company achieved a booking amount of $520 million in FY2024, a 34% increase year-over-year, with a gross margin of 59%, up by 8 percentage points [2]. Group 3: Market Position and Technology - Alphawave ranks fourth globally in the semiconductor design IP market with a market share of 3.2% [3]. - The company specializes in high-end interface IP products, which are crucial for building high-performance computing applications, particularly in AI systems [3]. Group 4: Strategic Implications for Qualcomm - The acquisition is expected to enhance the data transmission efficiency of Qualcomm's Oryon CPU and Hexagon NPU in AI training and inference scenarios [4]. - Analysts suggest Qualcomm may pursue two development paths: launching Arm-based data center processors to compete directly with Nvidia and AMD, or adopting a chip design service model similar to Broadcom [4][5]. Group 5: Historical Context and Future Outlook - Qualcomm previously attempted to enter the data center market with the Centriq 2400 processor in 2017 but faced challenges due to the dominance of Intel's x86 architecture [5]. - The company has been gradually building its capabilities, including the acquisition of Nuvia in 2021, which focused on data center CPUs [5][6]. - Qualcomm's CEO indicated that the company is well-positioned to capitalize on the growing demand for AI data centers and plans to re-enter the server market with new products by 2025 [7][8].