Core Viewpoint - The company, Chip World Technology Co., Ltd., has submitted an application for listing on the Hong Kong Stock Exchange after experiencing a decline in revenue, with plans to return to profitability by 2025 [1][2]. Financial Performance - In the past performance period, the company's revenue showed fluctuations, with revenues of 663 million yuan, 442 million yuan, and 379 million yuan for the years 2023, 2024, and the first nine months of 2025, respectively [1]. - The gross profit for the same periods was 103 million yuan, 62 million yuan, and 71 million yuan, with corresponding gross profit margins of 15.5%, 14.0%, and 18.8% [1]. - The company recorded net losses of 14 million yuan and 37 million yuan for 2023 and 2024, respectively, with a significant revenue decline of 33.3% in 2024 compared to 2023, and a net loss increase of 164.8% year-on-year [2]. Research and Development - In the first nine months of 2025, the company's R&D expenditure significantly decreased from 50.14 million yuan in 2024 to 33.32 million yuan, marking a reduction of 33.6% [2]. - The R&D team consists of 74 members, accounting for 48.1% of the total workforce, which raises concerns about the potential impact of reduced R&D spending on the company's long-term technological competitiveness and market expansion capabilities [2].

Summary of Lixun Precision's Conference Call Company Overview - Lixun Precision has achieved comprehensive layout in copper connectivity, optical connectivity, thermal management, and power management through acquisitions of KOTON and Huiju Technology, particularly providing complete solutions in the data center sector [2][3]. Core Business Insights - In the first half of 2025, Lixun's communication business revenue reached 11.1 billion yuan, a year-on-year increase of nearly 50%, with an expected annual growth rate exceeding 60%, driven by the demand for high-speed connectors [2][5]. - Lixun is positioned in the top tier of the copper interconnect industry, having upgraded its high-speed connectors to 224G and is researching the 448G CPC solution to meet the growing bandwidth demands of applications like NVIDIA NVLink [2][6]. - The CPC technology, which integrates high-speed connectors directly onto chips, is expected to gradually ramp up production from 2026 to 2027, becoming a mainstream solution for short-distance interconnects [2][7]. Financial Performance - The communication business's significant revenue growth in 2022 was primarily due to the acquisition of Huiju Technology, with rapid growth observed in 2024 and the first half of 2025 [5]. Industry Trends and Developments - The liquid cooling market for data centers is rapidly growing, projected to reach 10 billion USD by 2026. Lixun has a complete set of server liquid cooling solutions and is focusing on advanced technologies like microchannel cooling, with mass production expected in 2026 [2][12]. - The optical interconnect industry is experiencing accelerated iterations in module speeds, with a shift from 400G in 2019 to 800G in 2023, and expected mainstream adoption of 800G and 1.6T by 2026 [9][10]. - New optical interconnect technologies such as LPO and CPO are emerging, with LPO reducing power consumption and latency, while CPO integrates silicon photonics with switching chips for improved performance [10]. Future Growth Drivers - Key factors expected to drive Lixun's growth in the coming years include advancements in the 448G solution, increased demand from North American customers, and the large-scale application of CPC technology [8]. - Lixun aims to be among the top three globally in copper, optical, thermal, and electrical sectors by 2030, with a market size projected to exceed 1 trillion yuan. Capturing 10%-20% market share could yield revenues of 100-200 billion yuan, equivalent to creating another Lixun Precision [3][14]. Additional Insights - Lixun has made significant advancements in thermal management and power management, with a full range of products expected to contribute to revenue growth starting in 2026 [12][13]. - The integration of Huiju Technology has expanded Lixun's capabilities in wire components and server assembly, with future growth driven by demand from major clients like Google [13].