Summary of Avnet (AVT) Conference Call - August 12, 2025 Industry Overview - The semiconductor industry is showing signs of recovery, particularly starting in Asia, which typically leads cycles [1][2][3] - Avnet's Asia business grew approximately 12% in fiscal year 2025, marking four consecutive quarters of growth [2][3] - The company experienced a prolonged downturn prior to this growth, with six straight quarters of year-on-year declines in Asia [3] Company Performance - Asia now constitutes roughly 50% of Avnet's business, up from about 40% five quarters ago [6] - The company is seeing improvements in bookings, with a book-to-bill ratio above parity in Europe and Asia, and at parity in The Americas [3][4] - There is a notable increase in orders within lead times, indicating depleted inventories among customers [4][5] Demand Trends - Growth has been observed in the compute, communications, and transportation sectors, while industrial markets remain weak [15][16] - The company is optimistic about sequential growth in Europe and The Americas, despite modest expectations [5][6] Inventory Management - Avnet is currently managing approximately 94 days of inventory, with a goal to reduce this to the 80s [41][42] - The company aims to optimize inventory composition and reduce excess stock to align with customer demand [39][40] Pricing and Margins - Pricing has remained stable, with no significant downward pressure on average selling prices (ASPs) [43][44] - Gross margins are holding up well across regions, with some fluctuations [45] Tariff Impact - Tariffs have not significantly impacted financial results but have posed operational challenges [67][68] - The company has seen demand pull-ins in Asia due to uncertainty in the trade environment, amounting to $50 million to $100 million per quarter [68][69] Farnell Business Segment - Farnell, Avnet's high-service business, represents less than 10% of total revenues but contributes about 20% of operating profits [87] - The segment has potential for outsized growth due to its premium margins and operational improvements [84][88] - Farnell's gross margins were previously over 30%, and the company aims to restore these levels through operational efficiencies [84] Strategic Focus - Avnet is focused on dual sourcing and optimizing its regional footprint to mitigate tariff impacts [73][74] - The company is also enhancing its e-commerce capabilities to improve conversion rates and leverage synergies with its customer base [81][82] Conclusion - Overall, Avnet is positioned to capitalize on the recovery in the semiconductor industry, with a strong focus on inventory management, pricing stability, and operational efficiency in its high-service segment, Farnell. The company remains optimistic about future growth driven by demand across various sectors and regions.

Market Overview - The global semiconductor market size in 2024 is projected to be $626.9 billion, with a year-on-year growth of 19% [2] - The recovery trend in the semiconductor industry is expected to continue into 2025, driven by demand from emerging fields such as AI computing, robotics, and AIoT [2] Company Performance - In 2024, the revenue from the company's memory products reached ¥20.685 billion, marking a year-on-year increase of 134.32% [4] - The company has over 100 authorized product lines, representing 12 of the top 20 domestic semiconductor brands and 9 of the top 20 global semiconductor brands [5] Innovation and Services - The company focuses on application innovation and ecosystem services, enhancing capabilities in supply chain services and industrial data services [3] - The "Firefly Workshop" initiative provides technical support and application innovation solutions, targeting key industries and product lines [6] Client Base and Market Segments - Major clients are concentrated in sectors such as consumer electronics, artificial intelligence, automotive electronics, and network communication [7] - The company has accumulated over 5,000 high-quality clients across various fields, demonstrating strong risk resistance [8] Competitive Advantages - The company integrates international and domestic high-quality resources, forming a robust core authorization resource that meets diverse industry needs [8] - A three-tier warehouse system with a total storage area of 72,000 square meters supports comprehensive supply chain services, enhancing customer experience [9]

Core Viewpoint - The acquisition of Lijing Technology by Shangluo Electronics is a strategic move to enhance market share and operational efficiency in the semiconductor distribution sector, aligning with the company's long-term development strategy [3][19][20]. Group 1: Company Overview - Lijing Technology, established in 1999, specializes in providing chip solutions for industrial and automotive electronics, with a significant portion of its revenue coming from IC value-added distribution [5][12]. - In 2019, Lijing Technology reported a revenue of 1.887 billion yuan, with IC value-added distribution accounting for 83.25% of its total revenue [5]. - Shangluo Electronics, founded in 1999, has evolved from passive component distribution to a balanced business model that includes both active and passive electronic components, with a revenue of 5.103 billion yuan in 2023 [10][11][15]. Group 2: Financial Performance - Shangluo Electronics' revenue grew from 2.068 billion yuan in 2019 to 5.103 billion yuan in 2023, with a projected increase to 6.546 billion yuan in 2024, reflecting a growth rate of 28.27% [15][18]. - Lijing Technology's revenue structure shows a significant reliance on NXP, which accounted for over 50% of its procurement from 2017 to 2020 [7][12]. - In 2023, Shangluo Electronics reported a net profit of 71 million yuan, a substantial increase of 108.28% year-on-year, despite facing pricing pressures in the industry [18]. Group 3: Strategic Rationale for Acquisition - The acquisition aims to leverage synergies between Shangluo Electronics and Lijing Technology, enhancing their distribution capabilities and expanding their customer base [19][20]. - The move aligns with Shangluo's strategy of growth through acquisitions, as seen in previous investments in companies focused on automotive electronics and domestic chip production [20]. - Lijing Technology's previous unsuccessful IPO attempts may have prompted its shareholders to consider selling equity to secure a more stable financial future [21].

芯片超人在2019年就推出了【工厂呆料】业务，主要为用户提供库存发布、需求匹配、质检及交 易服务，迄今为止服务了 8000+ 用户。通过快速匹配买家，芯片超人可以帮助企业将呆料转化 为 现金流 ，避免长期积压导致的资金占用。 同时，芯片超人拥有1600平米芯片智能仓储基地，现货库存型号 1000+ ，品牌高达 100种 ， 5000万 颗 现货库存芯片，总重量 10吨 ，库存价值高达 1亿+ 。此外，芯片超人在深圳设有独立 实验室，每颗物料均 安排 QC质检 。 现在，我们打算整合已有的资源，更加全力以赴投入【工厂呆料】业务！！！ 加芯片超人花姐微信 快速帮你处理呆料、库存料 今年春节之后，做芯片分销的朋友多数觉得行情好起来了，很多上一波挣到钱的芯片分销商老板开 始回来做生意了，躺平的老板开始回来进货了。甚至，来咨询芯片超人 【工厂呆料】 业务的人 都变多了。 呆料是啥？ 呆料，即呆滞物料的简称，E&O（Excess and Obsolete），是指暂时不用或者永远没有机会使用 的具有风险的库存。 零库存是最理想的库存状态，但呆料总是让人头疼，尤其是很多长期不用、难以消化的物料，用没 地方用，扔又舍不得扔，卖 ...

Core Viewpoint - The company KETON Technology, a subsidiary of Hard Egg Innovation, is attempting to restart its IPO process after previously withdrawing its application due to valuation concerns and other issues raised by the Shenzhen Stock Exchange [2][3]. Group 1: IPO Journey - KETON Technology submitted its IPO application to the Shenzhen Stock Exchange in June 2022 but had to withdraw it in April 2024 due to a sudden cancellation of the review process [3]. - The company faced scrutiny over its soaring valuation, independence issues, and a significant increase in inventory, particularly a valuation jump from approximately 350 million to 2.4 billion within two months in 2020 [3]. - The proposed fundraising of 2.049 billion yuan included 1.447 billion for expanding the distribution network, raising concerns about the balance between innovation investment and business positioning [3]. Group 2: Financial Performance - From 2020 to 2022, the company's revenue grew from 4.221 billion to 8.074 billion yuan, but net profit fell by 1.6% to 308 million yuan in 2022, indicating a "revenue without profit" situation [4]. - In the first half of 2023, both revenue and net profit declined to 3.507 billion and 122 million yuan, respectively, underperforming compared to industry averages [4]. - The company's debt levels are concerning, with asset-liability ratios increasing from 76.36% in 2020 to 83.42% in the first half of 2023, significantly higher than the industry average [4]. Group 3: Market Opportunities - Despite past setbacks, KETON Technology is experiencing growth in AI chip orders, with a revenue increase of 11.9% to 4.3214 billion yuan in the first half of 2024, driven by AI-related products [5]. - The company is shifting its focus towards AI chip distribution, capitalizing on the growing demand for AI computing power across various sectors [5]. - KETON Technology launched the "DeepSeek+AI chip" solution, providing a comprehensive service from cloud training to edge computing, aiming to meet diverse AI application needs [5]. Group 4: Leadership and Company Structure - The company's actual controller, Kang Jingwei, has been pivotal in its operations since founding KETON Technology in 2005, leveraging industry resources for growth [6]. - Following challenges, the company restructured its business model, renaming KETON Technology and focusing on AI chip distribution as a strategic move [8]. - Hard Egg Innovation holds a 66.84% stake in KETON Technology, giving Kang significant control over its direction [8].