Company Summary - In the first half of 2025, the company achieved total revenue of 907 million yuan, representing a year-on-year growth of 1.19% [2] - The company is a leading player in the NOR Flash and EEPROM sectors in China, continuously investing in technology research and development to enhance product competitiveness [2] - The company's NOR Flash products utilize SONOS and ETOX dual-process platforms, covering a full capacity range from 512Kbit to 1Gbit, with significant cost advantages [2] - The company’s small and medium capacity SONOS NOR Flash automotive products have completed AEC-Q100 certification, and the full capacity ETOX NOR Flash series has passed automotive certification, facilitating entry into the high-growth automotive storage market [2] - The company’s automotive EEPROM has also received AEC-Q100 Grade 1 certification, leading to bulk deliveries for applications such as vehicle cameras and central control systems, thereby increasing the revenue share from automotive electronics [2] Industry Analysis - The automotive-grade storage market is entering a high-growth phase, with the global automotive NOR Flash market expected to reach approximately 810 million USD in 2024 and grow to 1.685 billion USD by 2031, reflecting a compound annual growth rate (CAGR) of 11.2% [3] - The automotive EEPROM market is projected to grow from 373 million USD in 2024 to 786 million USD by 2031, with a CAGR of about 11.1% [3] - Future demand for NOR Flash, EEPROM, and MCU in smart vehicles is anticipated to increase rapidly [3] - The company expects significant revenue growth in the automotive electronics sector as multiple products gain automotive certification and are integrated into the supply chains of major domestic and international automotive manufacturers [3]

Group 1 - Xianghe Investment recently conducted research on Dongxin Co., which has made significant progress in automotive-grade storage products, with SLC NND, NOR, and MCP products passing EC-Q100 certification, suitable for harsher application environments [1] - Dongxin Co. has completed supplier qualification for several domestic automakers and domestic and foreign tier-one automotive suppliers, and has begun selling automotive-grade products to well-known overseas tier-one suppliers [1] - The G100 chip from Lisan received its first batch of packaged chips on May 24, 2025, and has started functional testing, with results meeting expectations; further performance testing and optimization will continue [1] Group 2 - Current terminal demand is in the early development stage but is expected to experience explosive growth in the future, with the company actively laying out high-bandwidth demand terminal applications such as AR glasses, smart robots, and IPC [1] - The company's R&D expenses are continuously increasing, projected to reach 213 million yuan in 2024, accounting for 33.27% of revenue, with further growth expected in 2025, particularly for the new R&D investments in the WiFi7 product line [1]

Group 1 - The company has successfully passed AEC-Q100 certification for various automotive-grade storage products, including SLC NAND, NOR, and MCP, indicating readiness for stringent automotive applications [2] - In 2024, the company plans to complete the whitelist onboarding for several domestic automakers and gain supplier qualifications from multiple Tier 1 automotive suppliers, including well-known international ones [2] - Revenue growth in 2024 is primarily driven by increased shipment volumes, with significant year-on-year sales growth and improved gross margins due to optimized product structure and operational efficiency [2] Group 2 - The market for NAND-based MCP is expected to reach a scale of tens of billions of dollars, with applications in industrial controllers and automotive ADAS due to its high reliability and performance [3] - The first quarter revenue growth was mainly attributed to the recovery in demand from networking and consumer electronics, while the second quarter is expected to see sustained demand growth in the networking sector [3] - The demand in the Internet of Things (IoT) and Vehicle-to-Everything (V2X) sectors remains stable, with gradual recovery anticipated in the surveillance and security market in the third quarter [3]