Core Viewpoint - The company has entered a phase of accelerated strategic implementation, showcasing significant growth in its core toy business and a strong performance in IP development and supply chain efficiency [1][14]. Financial Performance - In Q1 of FY2026, the company reported total revenue of 127.1 million yuan from its toy business, a remarkable increase of 93.3% quarter-over-quarter, exceeding the guidance range of 100 to 110 million yuan [2]. - The revenue guidance for Q2 of FY2026 is projected to be between 150 million and 160 million yuan [2]. IP Development - The company has demonstrated systematic capabilities in IP incubation and development, owning 11 proprietary IPs and several exclusive and non-exclusive licensed IPs as of September 30 [9]. - Key IPs such as WAKUKU and ZIYULI generated revenues of 89.73 million yuan and 20.76 million yuan, respectively, while the newly launched SIINONO IP contributed 12.89 million yuan [9]. Supply Chain Efficiency - The company achieved a significant breakthrough in supply chain efficiency, with monthly production of plush blind boxes exceeding 1 million units in August 2025, representing over a 20-fold increase since the beginning of the year [10]. - By October, the monthly production of plush blind boxes surged to 35 times the output from January, indicating strong scalability and flexible production capabilities [10]. Online and Offline Growth Strategies - The online sales for Q1 of FY2026 reached 44.6 million yuan, driven by brand popularity and channel expansion [11]. - The company’s social media presence is robust, with total content views on platforms like Douyin and Xiaohongshu reaching 678 million and 171 million, respectively, leading to a 97.2% quarter-over-quarter increase in GMV from Douyin flagship store [11]. - The offline network has expanded to cover over a hundred key channels, with plans for flagship and pop-up stores in major cities, enhancing the "online-to-offline" experience [11]. International Market Expansion - The company is steadily advancing in international markets through both online and offline strategies, becoming a leading player in the collectibles category on the North American TikTok Shop platform [13]. - As of Q1 of FY2026, the company’s products have entered nearly 20 countries across North America, Europe, Southeast Asia, and the Middle East, indicating significant overseas market potential [13].

Core Viewpoint - Recent shareholder reduction plan announced by Canxin Co., with three related shareholders planning to reduce their stake by up to 1.71%, potentially cashing out over 425 million yuan based on the latest closing price [1][8]. Group 1: Shareholder Reduction Details - The three shareholders, Liaoning Zhongde, Huzhou Yuntong, and Haitong Innovation, plan to reduce a total of 3,247,939 shares, representing no more than 1.71% of the total share capital [1][2]. - These shareholders had previously reduced their holdings on September 19, 2025, selling a total of 1.24 million shares at an average price of 61.88 yuan per share, amounting to 76.73 million yuan [3][4]. Group 2: Shareholder Composition - As of now, the three shareholders collectively hold 5,982,560 shares, accounting for 4.99% of the total share capital, with Liaoning Zhongde holding 2,354,380 shares and Huzhou Yuntong holding 442,220 shares [2][3]. - Haitong Innovation holds 3,185,960 shares, with a portion acquired before the IPO [2][3]. Group 3: Stock Performance and Financials - Following the announcement of the reduction plan, Canxin Co.'s stock price dropped significantly by 11.72% on October 17, 2025, closing at 131.10 yuan, with a market capitalization of 15.73 billion yuan [8]. - Despite the stock price surge, Canxin Co. reported disappointing financial results, with a revenue of 1.09 billion yuan in 2024, down 18.77% year-on-year, and a net profit of 61.05 million yuan, down 64.19% [8][9]. - In the first half of 2025, the company continued to face challenges, with revenue of 282 million yuan, a decline of 52.56%, and a net loss of 60.88 million yuan [9][12]. Group 4: Business Operations - The decline in revenue is primarily attributed to a decrease in chip volume business, which saw a 71.11% year-on-year drop due to reduced customer orders, although there are signs of improvement in the second quarter of 2025 [9][12]. - The company is focusing on long-term development, increasing R&D expenses by 43.25% in the first half of 2025, particularly in high-speed interface IP and high-performance analog IP [12].

Group 1 - The company has raised a total of RMB 1,806,856,851.88 through the issuance of 24,860,441 shares at a price of RMB 72.68 per share, with a net amount of RMB 1,780,262,125.56 after deducting issuance costs [1][2] - The raised funds are allocated for projects in the AIGC and smart mobility sectors, with a total investment of RMB 180,815.69 million, of which RMB 180,685.69 million is planned to be funded by the raised capital [2][3] - The company has pre-invested RMB 38,453.54 million of its own funds into the projects from December 22, 2023, to May 31, 2025, and plans to replace this with the raised funds [2][4] Group 2 - The company has incurred issuance costs totaling RMB 2,659.47 million, of which RMB 416.01 million was paid from its own funds prior to the capital being raised, and it intends to replace this amount with the raised funds [4][5] - The board of directors has approved the use of raised funds to replace pre-invested self-raised funds and issuance costs, confirming that this does not alter the intended use of the funds or harm shareholder interests [6][7] - The independent auditor, Deloitte, has verified the pre-invested funds and issuance costs, confirming compliance with relevant regulations and reflecting the actual expenditures accurately [7][8]

Fundraising Overview - The company, Chiplet Microelectronics (Shanghai) Co., Ltd., has received approval from the China Securities Regulatory Commission to issue shares to specific investors, raising a total of RMB 1,806,856,851.88 [1][2] Special Account and Supervision Agreement - The company has established a special account for the raised funds, which will only be used for the designated projects and not for any other purposes [2][3] - A tripartite supervision agreement has been signed between the company, the sponsoring institution (Guotai Junan Securities Co., Ltd.), and the banks holding the funds to ensure proper management and usage of the raised capital [2][3] Specific Projects and Fund Allocation - The funds will be allocated to research and development projects in the fields of AIGC (Artificial Intelligence Generated Content) and smart mobility, specifically for the Chiplet solution platform [3][4] - The agreement stipulates that the funds must be used solely for the specified projects, ensuring investor protection and compliance with relevant regulations [4][5] Monitoring and Reporting - The sponsoring institution is responsible for ongoing supervision of the fund usage, conducting at least biannual on-site inspections to verify compliance with the agreement [6][7] - The company is required to notify the sponsoring institution of any significant expenditures from the special account and provide detailed expenditure reports [8][9]