1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - On December 24, 2025, the A - share market showed an overall upward trend, with the Shanghai Composite Index achieving six consecutive daily gains. Different futures varieties had diverse price movements and market conditions, influenced by factors such as supply - demand relationships, macro - policies, and international market trends [1]. 3. Summary by Variety Stock Index Futures - On December 24, the A - share market's three major indices all rose. The Shanghai Composite Index increased by 0.53% to close at 3940.95 points, the Shenzhen Component Index rose 0.88% to 13486.42 points, and the ChiNext Index climbed 0.77% to 3229.58 points. The trading volume of the two markets was 1880.3 billion yuan, a slight decrease of 19.6 billion yuan from the previous day. The CSI 300 index was strong, closing at 4634.06, a rise of 13.32 [1][2]. Coke and Coking Coal - Coke: On December 24, the weighted index of coke showed a narrow - range shock, closing at 1727.2, up 5.6. The mainstream steel mills' purchase prices were generally reduced by 50 - 55 yuan/ton, and the third round of price cuts was implemented. The coke enterprises' production declined, and the total coke inventory decreased. The blast furnace operation and molten iron output continued to decline, with overall weak driving force [2][4]. - Coking coal: On December 24, the weighted index of coking coal fluctuated within a range, closing at 1119.7 yuan, up 7.6. The price of Mongolian 5 coking coal in Tangshan was 1320 yuan/ton, equivalent to about 1100 yuan/ton on the futures market. The central government emphasized "dual - carbon" and energy - power construction, which was beneficial for the long - term transformation of the industry. The customs clearance of Mongolian coal was at a high level, and the coking coal inventory was increasing. The load of steel and coking enterprises decreased, and the price cut of coke was implemented, leading to a narrowing of coke enterprises' profits and rigid - demand procurement [3][4]. Zhengzhou Sugar - Affected by short - covering, the US sugar continued to rise on December 23. Driven by the rise of US sugar and the increase of spot prices, the Zhengzhou Sugar 2605 contract rose sharply on December 24. Due to a large short - term increase, it had an oscillatory adjustment at night and closed slightly higher. In November 2025, China's refined sugar production was 1.303 million tons, a year - on - year decrease of 3.8%. From January to November 2025, the production was 12.633 million tons, a year - on - year increase of 7.8%. In November 2025, the dairy product output was 2.431 million tons, a year - on - year decrease of 2.7%; from January to November, it was 26.85 million tons, a year - on - year decrease of 1.2% [4]. Rubber - Supported by the firm crude oil price and the increase of Southeast Asian spot prices, Shanghai rubber rose significantly on December 24. Due to a large short - term increase, it had an oscillatory adjustment at night and closed slightly higher. At the end of November 2025, the inventory of the national passenger vehicle industry was 3.79 million, an increase of 380,000 compared with the previous month and 590,000 compared with November 2024. Based on the inventory at the end of November 2025 and the estimated sales in the next three months, the current inventory can support 61 days of sales, compared with 48 days in November 2024, indicating relatively high inventory pressure in November 2025 [4][6]. Soybean Meal - Internationally, on December 24, due to position adjustment before the Christmas holiday, CBOT soybean futures rebounded slightly, but the market was still cautious about the US soybean export sales speed. Brazil's soybean sowing was basically completed, the weather in South America continued to improve, and sporadic harvesting had begun in northern Brazil, with an optimistic production outlook, which restricted the rise of US soybean prices. Domestically, on December 24, the M2605 main contract closed at 2728 yuan/ton, a decline of 0.51%. Recently, the arrival of imported soybeans in China slowed down, but oil mills maintained a high operating rate. Last week, the domestic soybean meal inventory rose to 1.1371 million tons, an increase of 40,200 tons week - on - week and 554,300 tons compared with the same period last year. The domestic soybean meal supply was abundant, and oil mills had little motivation to support prices. It is recommended to focus on extreme weather changes in South America and the arrival volume of soybeans [6]. Live Pigs - On December 24, the LH2603 main contract closed at 11,480 yuan/ton, a 0.57% increase from the previous trading day. Currently, the enthusiasm for live pig slaughter in the breeding end is generally high. As the effective time for pre - holiday slaughter decreases, the slaughter rhythm of large - scale pig enterprises has significantly accelerated. The slaughter intention of individual farmers and secondary fattening groups has also increased, jointly pushing the market's live pig circulation to a high level. The demand side shows signs of marginal improvement. As the peak of curing and stocking in Southwest China approaches, the sales of fresh pork have accelerated significantly, and the slaughtering enterprises' operating rate is expected to continue to rise. The phased strengthening of consumption demand has a certain boosting effect on live pig prices and alleviates the downward pressure from the supply side to some extent. It is recommended to focus on the changes in the inventory of breeding sows, the slaughter rhythm of large - scale pig enterprises, and the progress of cured meat consumption [6]. Palm Oil - On December 24, palm oil continued to rebound but was blocked when rising. The P2605 contract closed with a doji star with an upper shadow, with the highest price of 8548, the lowest price of 8482, and the closing price of 8488, a 0.02% increase from the previous day. According to the data released by the Malaysian Palm Oil Association (MPOA), the estimated palm oil production in Malaysia from December 1 - 20 decreased by 7.44%, with a 11.66% decrease in the Malay Peninsula, a 2.12% decrease in Sabah, a 0.75% decrease in Sarawak, and a 1.73% decrease in Borneo [6]. Shanghai Copper - The main contract of Shanghai copper rose strongly, closing at 96,100 yuan/ton, with a settlement price of 95,260 yuan. The highest price during the day reached 96,750 yuan/ton, with large intraday fluctuations and active market trading. The final trading volume was 307,141 lots, and the open interest was 258,277 lots. The copper futures warehouse receipts on the Shanghai Futures Exchange increased by 2679 tons to 52,222 tons, and the inventories on LME and COMEX also increased, showing an accumulation trend in global inventory. SMM predicts that China's electrolytic copper production in December will increase by 5.96% month - on - month. The copper concentrate processing fee is at a historical low, and some smelters are in a state of production reduction. Globally, copper mines in many places have frequent accidents, with a 4.7% year - on - year decline in production in major producing areas such as Chile and Indonesia. The copper concentrate processing fee has dropped to a historical low of - 40 US dollars/ton, and smelters at home and abroad have reduced production, which supports the upward movement of copper prices. The demand from traditional home appliances and construction is weak, but the demand from emerging fields such as new - energy vehicles and AI computing centers is remarkable, becoming the core growth engine of copper demand. At the same time, China's power grid investment has stable growth, supporting copper consumption. The expectation of the Fed's interest rate cut continues to heat up, the US dollar index is under pressure to decline, reducing the holding cost of non - ferrous metals. The US has included copper in the list of critical minerals, and the expectation of additional import tariffs has led to an imbalance in the global copper inventory distribution, further boosting the copper price [6][7]. Cotton - On the night of December 24, the main contract of Zhengzhou cotton closed at 14,175 yuan/ton. The rise in crude oil price pushed up the cost of polyester, and the US dollar index weakened. Cotton textile enterprises replenished inventory as needed. The cotton inventory increased by 282 lots compared with the previous trading day [7]. Iron Ore - On December 24, the 2605 main contract of iron ore fluctuated and closed up, with a gain of 0.26% and a closing price of 779.5 yuan. The global iron ore shipment decreased compared with the previous period, the arrival volume also decreased, the port inventory continued to accumulate, the terminal demand in the off - season was still at a low level, and the molten iron output continued to decline. The short - term iron ore price was in an oscillatory trend [7]. Asphalt - On December 24, the 2602 main contract of asphalt fluctuated and closed up, with a gain of 0.27% and a closing price of 2996 yuan. The planned production volume of asphalt from local refineries in January decreased both month - on - month and year - on - year, the inventory decreased slightly, the demand in the off - season continued to shrink, and the refineries' sales were blocked. The short - term asphalt price showed an oscillatory operation [7]. Logs - The 2603 main contract of logs opened at 770 on December 24, with the lowest price of 769.5, the highest price of 777.5, and closed at 776, with a reduction of 112 lots in open interest. The spot - market support should be noted. The spot price of 3.9 - meter medium - grade A radiata pine logs in Shandong was 740 yuan/cubic meter, unchanged from the previous day, and that of 4 - meter medium - grade A radiata pine logs in Jiangsu was 720 yuan/cubic meter, also unchanged. There is no major contradiction in the supply - demand relationship. In the future, attention should be paid to the spot - market price, import data, inventory changes, and the support of macro - expectations and market sentiment on prices [7][8]. Steel - On December 24, rb2605 closed at 3136 yuan/ton, and hc2605 closed at 3285 yuan/ton. The weak demand pattern in the steel market in the off - season is difficult to change, the steel mills' production continues to run at a low level, the supply and demand are generally in a weak - balance pattern, the inventory pressure is not large, and the steel mills' ex - factory prices are mainly stable. At the same time, the prices of raw fuels fluctuate within a narrow range, the coking coal market shows signs of bottoming out and stabilizing, and the iron ore price has a slight decline from a high level. The cost still supports the steel price. In the short term, the steel price may continue to oscillate within a narrow range [8]. Alumina - On December 24, ao2601 closed at 2554 yuan/ton. In the short term, enterprises have little willingness to reduce production. With the inflow of imported goods and the supplement of delivery goods, the short - term supply will remain sufficient, and the oversupply situation will continue, putting pressure on the alumina price. For further production - reduction situations, the market dynamics in 2026 after the execution of long - term contracts need to be noted. On the demand side, the northwest electrolytic aluminum plants had concentrated restocking before, resulting in increased unloading pressure. With high inventory, their willingness to purchase alumina on the spot market has decreased significantly; the supply in the southern region is stable, and only individual aluminum plants purchase at low prices. In the spot market, holders mainly focus on selling, and downstream enterprises maintain the rhythm of purchasing as needed. Most buyers' willingness to purchase at low prices has increased, driving the whole - day trading [8]. Shanghai Aluminum - On December 24, al2602 closed at 22,330 yuan/ton. In the macro - aspect, non - ferrous metals are still strongly driven by precious metals. Silver has continuously reached new highs, and copper and aluminum continue to be driven upward. The market is optimistic about the Fed's interest rate cut next year, and the expectation of loose liquidity strongly supports precious metals and non - ferrous metals. In terms of fundamentals, the supply side operates stably. The downstream aluminum - water consumption capacity in some areas has weakened, and the inventory of aluminum ingots and aluminum rods in the production areas has accumulated significantly. The shipment of aluminum ingots has partially recovered, and the social inventory continues to accumulate. The demand side shows a weakening trend. As the end of the year approaches, both the purchasing and sales sides have cooled down, and there is a certain degree of production reduction and shutdown in Central China. Large - scale downstream processing factories maintain a certain demand. The demand in the plate, strip, foil, and industrial materials fields is relatively stable, while the consumption in the rod and bar fields shows some pressure [9].

Summary of Conference Call Notes Industry Overview - The focus is on the AIDC (Aerospace Industry Development Corporation) and gas turbine sectors, with significant attention on military technology and infrared technology companies like Gaode Infrared [1][6]. Key Points and Arguments 1. **Gas Turbine Demand**: The demand for gas turbines is driven by the electricity bottleneck in AI computing centers, with major players like Siemens, GE, and Mitsubishi holding over 75% market share. Orders and revenues are expected to see significant growth from Q4 2024 to Q3 2025 [1][3][5]. 2. **Military Investment Focus**: Future military investments will prioritize ammunition consumption, particularly low-cost guided munitions and the development of unmanned and intelligent combat clusters [1][4]. 3. **Growth of Aviation Industry**: AVIC (Aviation Industry Corporation of China) is positioned for growth as a key manufacturer of naval aircraft, particularly the J-35 series, which is expected to secure contracts and commence pre-production [1][4][10]. 4. **Gaode Infrared's Market Position**: Gaode Infrared has established itself as a representative company in the infrared technology sector, with a comprehensive layout in military applications and active expansion into domestic and military trade markets [1][6]. 5. **Weaponry Industrial Group's Robotics Development**: The Weaponry Industrial Group is focusing on humanoid robots, leveraging military-civilian integration to enhance competitiveness and innovation in technology [1][7]. 6. **Ammunition Production Advances**: The group is advancing in ammunition production, with new models entering mass production phases, reflecting a significant demand in the context of evolving warfare strategies [8][9]. 7. **Defense Technology Industrial System**: The defense technology industrial system is undergoing a recovery phase, with investors advised to monitor financial indicators such as revenue recognition and cash flow from companies like Zhongbing Hongjian and Beifang Navigation [13]. 8. **Future Development Lines in Military Industry**: The military industry is expected to develop along three main lines: internal installations, military trade, and military-to-civilian transitions, with specific companies recommended for investment [14]. Additional Important Insights - The integration of advanced naval capabilities, such as the Fujian aircraft carrier, marks a significant leap in China's naval equipment development, enhancing long-range and strategic naval capabilities [10]. - The domestic advanced fighter jet development, particularly the J-35, is characterized by a systematic approach to production and export, which is expected to boost China's high-end military trade [11][12]. - The emphasis on maintaining investor relations and market capitalization management is evident among military state-owned enterprises, indicating a strategic focus on transparency and growth [3][4]. This summary encapsulates the critical insights from the conference call, highlighting the strategic directions and market dynamics within the aerospace and military sectors.

Summary of Fujida's Conference Call Company Overview - **Company**: Fujida - **Industry**: Aerospace and Defense, Commercial Space Key Points and Arguments Industry and Market Dynamics - **Military Orders Recovery**: Fujida's military orders are expected to resume growth by March 2025, with approximately 300 million yuan in backlog as of the end of April, of which 65%-70% are military orders, indicating strong support for annual performance [2][5][6] - **Commercial Space Projects**: The company is deeply involved in domestic Starlink projects, including the Qianfan constellation and G60 Starlink, with market shares exceeding 70% and 60% respectively, benefiting from the acceleration of commercial satellite launches in China [2][5][8] - **Connector Market Growth**: China holds a 32% share of the global connector market, with increasing downstream demand driven by transitions from 5G-A to 6G, rising defense and aerospace budgets, and the emergence of electric vehicles and AI computing centers [4][13] Financial Performance - **Revenue and Profitability**: In 2024, revenue from RF connectors is projected to reach 439 million yuan, accounting for 57.56% of total revenue, with a 24% year-on-year growth in the first half of 2025 and a gross margin of 37.15%, the highest in three years [2][10][18] - **Profit Forecast**: Expected net profits for 2025 to 2027 are 105 million, 151 million, and 178 million yuan respectively, with corresponding earnings per share (EPS) of 0.56, 0.81, and 0.95 yuan, maintaining a buy rating [4][18][37] Strategic Partnerships - **Collaboration with Huawei**: Fujida has been a key partner of Huawei for over 20 years, with revenue from Huawei expected to reach 215 million yuan in 2024, nearly 30% of total revenue. The partnership is expanding from communication base stations to high-end equipment manufacturing and satellite projects [2][11][36] Emerging Markets and Technologies - **Expansion into New Fields**: Fujida is actively exploring emerging sectors such as low-altitude economy, industrial drones, medical devices, and quantum communication, which currently contribute modestly to revenue but have significant growth potential [2][12][13] - **HTCC Technology**: The company is developing High-Temperature Co-fired Ceramic (HTCC) products, expected to enter mass production by 2026, enhancing its capabilities in high-reliability applications [2][33] Competitive Advantages - **Core Supplier in Defense and Aerospace**: As a key supplier within the AVIC system, Fujida is positioned to benefit from the increasing demand for high-reliability RF interconnect products due to trends in defense modernization and commercial space development [6][7] - **R&D Investment**: Fujida has shown a steady increase in R&D personnel and expenditures, with a focus on advanced technologies and products, which is expected to drive future growth [31] Customer Structure - **High Customer Concentration**: The top five customers account for 74% of revenue, with Huawei being the largest, highlighting the company's reliance on a few key clients [11][36] Future Outlook - **Positive Market Trends**: The overall outlook for the RF connector industry is optimistic, with projections indicating a market size of 5.57 billion USD by 2030, driven by advancements in telecommunications and aerospace sectors [15][30] Additional Important Information - **Production Capacity**: Fujida has two major capacity expansion projects nearing completion, which are expected to contribute to revenue growth as market conditions improve [32] - **Sales Performance by Region**: Domestic sales accounted for 99.12% of total revenue in 2024, indicating a strong focus on the local market [22] This summary encapsulates the key insights from Fujida's conference call, highlighting the company's strategic positioning, financial performance, and growth prospects within the aerospace and defense industry.

Group 1 - The company, Changzhou Aohong Electronics Co., Ltd., is issuing convertible bonds to unspecified investors, with a total fundraising amount not exceeding RMB 580 million [17][18] - The funds raised will be used for the construction of a production base in Thailand, aimed at enhancing the company's overall production capacity and supporting balanced domestic and international business development [7][18] - The company specializes in the research, production, and sales of printed circuit boards (PCBs), with products including single-sided, double-sided, and multi-layer boards [4][5] Group 2 - The company has established a diverse market strategy, maintaining competitiveness in traditional sectors while rapidly penetrating new application areas such as electric vehicles and AI computing centers [4] - The company has accumulated 137 patents, including 28 invention patents, demonstrating its commitment to innovation and technology development [5] - Recent financial data shows total assets of approximately RMB 258.85 million and total liabilities of about RMB 87.16 million as of June 30, 2025 [6] Group 3 - The company has a strong customer base, including major domestic and international firms such as LG, Haier, and Whirlpool, which enhances its market position [4] - The company’s revenue for the first half of 2025 was approximately RMB 67.37 million, with a net profit of around RMB 8.07 million [6] - The company’s financial ratios indicate a current ratio of 2.25 and a quick ratio of 1.88 as of June 30, 2025, reflecting a stable liquidity position [6]

Summary of the Conference Call Company Overview - The company, Lingyun Optical, operates primarily in the optical communication and visual systems sectors, with optical communication accounting for 30% of its revenue. It focuses on high-end foreign products and is actively developing next-generation computing center products like OCS all-optical switches and optical chips to support domestic AI computing center construction [2][3]. Key Industry Insights Optical Communication - The optical communication business is stable, representing 30% of total revenue, with products such as 400G, 800G, and 1.6T optical modules and switches being sold domestically [3]. Consumer Electronics - The consumer electronics sector, which serves major clients like Apple and Huawei, generated approximately 700 million yuan last year, accounting for over 40% of the visual business. The demand for optical motion capture has increased significantly, rising from 10% to 30-40% due to the domestic production of components for Huawei's Mate series [4][5]. Printing and Packaging - The printing and packaging segment contributes 20% of the company's revenue, with a growth rate expected to exceed 30% this year. The business focuses on soft packaging inspection, including high-speed scanning and AI software algorithms for quality control [6]. New Energy Sector - The lithium battery business is showing signs of recovery, with increased demand for visual components and inspection equipment, while the photovoltaic sector faces challenges but is expected to recover gradually [7]. Digital Human Project - The digital human project, in collaboration with Zhipu, is progressing well, with a focus on enhancing the optical motion capture product line. The revenue from this product line is expected to increase significantly this year [8]. Scientific Imaging and Semiconductor Business - The scientific imaging and device business has made significant progress, with semiconductor revenue exceeding 100 million yuan. The acquisition of a Danish company has positively impacted the semiconductor segment, contributing over 20% to total revenue [11]. Additional Insights Market Growth Projections - The domestic motion capture market is projected to reach approximately 800 million yuan by 2025, with an annual growth rate of 20-30%, driven by smart manufacturing and unmanned systems [4][28]. Customer Base and Trends - The customer base has shifted from primarily universities to more local enterprises, indicating a growing demand for the company's solutions in various industries [25]. Competitive Advantages - The company's products are competitively priced compared to foreign brands, which are often three to four times more expensive. The company offers a complete data acquisition toolchain, integrating various data types for customer convenience [19][20]. R&D and Workforce - The company has over 100 employees, with more than half dedicated to research and development, indicating a strong focus on innovation [24]. Strategic Developments - The acquisition of AIT has led to a tighter integration of operations and a shift to a calendar year for production cycles, enhancing quality standards and market responsiveness [26]. Conclusion Lingyun Optical is well-positioned in the optical communication and visual systems markets, with strong growth prospects across various sectors, particularly in consumer electronics and motion capture technologies. The company's strategic focus on R&D and competitive pricing enhances its market position, while ongoing collaborations and acquisitions are expected to drive future growth.