Safe Harbor Advanced Energy (AEIS) Q4 and 2025 Financial Results FEBRUARY 10, 2026 Q4 2025 Financial Highlights $489 million 39.7% $80 million $1.94 17.8% $791 million REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) NON-GAAP EPS NON-GAAP OP MARGIN(1) TOTAL CASH Up 18% YoY Up 49% YoY Up 170 bps YoY Up 426 bps YoY Net Cash³ of $224 million (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation (2) Cash flow from ...

Core Insights - The current market is not suitable for "lazy" static allocation, and while opportunities exist in 2026, the approach will be more challenging [1] - Foreign institutions are increasingly optimistic about Chinese assets, citing the complete industrial chain, strong innovation capabilities, and relatively attractive valuations [1][2] Group 1: Market Trends - Global asset allocation is shifting away from a heavy concentration on USD assets towards a more diversified approach, with China showing renewed vitality [1][2] - The intertwining of five major trends—AI, geopolitical situations, energy transition, aging population, and new finance—is reshaping global capital markets and increasing asset volatility [1] Group 2: Investment Strategies - Investors are encouraged to adopt a more proactive asset allocation strategy, with quarterly or semi-annual rebalancing proving more effective than a buy-and-hold approach in high-volatility markets [4] - The demand for global allocation among Chinese investors is rising, and foreign investment in China is also increasing due to the country's unique market characteristics and growth potential [2] Group 3: Sector Focus - The logic for Chinese equity assets is expected to shift from valuation expansion to profit-driven growth, with a focus on sectors like technology, power equipment, healthcare, and undervalued traditional industries [3] - The AI-driven technology revolution is anticipated to enhance productivity and corporate performance, particularly in sectors such as power equipment and healthcare, which are seen as having significant potential [3] Group 4: Fixed Income Strategies - In a low-interest-rate environment, traditional bond investments face challenges, prompting the need for new return sources or strategies, including short-term trading and credit exploration [4] - The "fixed income plus" strategy is highlighted as a crucial tool for balancing risk and return, with a focus on maintaining fixed income assets as a foundation while selectively increasing exposure to volatile assets [4][5]

Group 1 - The core viewpoint emphasizes that the combination of technology and cyclical sectors remains a key investment theme, with expectations of PPI turning positive driving EPS growth and liquidity support [1] - The article highlights the importance of focusing on stable growth in end-user sectors and the commercialization of ToB applications, particularly in areas such as computing hardware, energy storage, AI applications, and intelligent driving [1] - The Guotai Science and Innovation ETF (588360) tracks the Science and Innovation 50 Index (931643), which includes 50 large-cap emerging industry companies from the Sci-Tech and ChiNext boards, reflecting the overall performance of representative emerging industries [1] Group 2 - The index focuses on industries such as electronics, power equipment, communications, and biomedicine, emphasizing technological attributes and innovative growth, with a relatively balanced industry allocation [1] - The cyclical sectors are expected to show significant price and valuation elasticity during the phase of PPI turning positive, with reduced competition potentially leading to improved performance in sectors like non-ferrous metals, chemicals, machinery, steel, and building materials [1]

Group 1 - The overall performance of A-shares is expected to continue improving, with a projected net profit growth rate of 26.8% for 2025, indicating a single-digit growth trend [5][23][27] - Approximately 2954 A-share companies have disclosed their 2025 annual performance forecasts, with a disclosure rate of about 54% and a positive forecast rate of 36.9%, which is lower than the mid-year report but higher than the same period last year [12][18][23] - Key sectors expected to see performance improvement include the price increase chain, overseas expansion chain, and TMT (Technology, Media, and Telecommunications) sectors, driven by demand from AI and new energy [2][29][30] Group 2 - The major industry performance rankings for 2025 are led by Information Technology, followed by Healthcare, Midstream Manufacturing, Resource Products, Financial Real Estate, and Public Utilities [26][27] - The sectors with the highest expected profit growth include non-bank financials, beauty care, textiles, retail, and non-ferrous metals, with non-bank financials showing a positive forecast rate of 87.5% [18][20] - The price increase chain, which includes industrial metals, energy metals, and chemical products, is expected to benefit from limited capacity expansion and demand driven by AI and new energy, leading to improved performance [29][31] Group 3 - The TMT sector is projected to maintain high growth due to strong demand for AI computing and storage, with specific areas like semiconductors and communication devices expected to see significant profit increases [29][30] - The overseas expansion chain, including automotive parts and medical devices, is anticipated to benefit from stable domestic demand and improving external demand [29][30] - Other sectors such as personal care products, medical services, and seasoning products are also recommended for attention due to their potential for performance improvement [2][29]

Market Overview - The U.S. stock market saw all three major indices rise, with the Nasdaq increasing by nearly 1%, the Dow Jones slightly up, and the S&P 500 rising by 0.5%[2] - The Hang Seng Index closed at 27,027, up 1.76%, while the Hang Seng Tech Index rose by 1.34% to 5,418[3] Key Stock Performances - AI application stocks showed strong performance, with Zhizhu rising by 36.22% and MINIMAX-WP increasing by 11.71%[9] - Chip and semiconductor stocks also performed well, with Lanke Technology up 63.72% on its first trading day[9] - Major financial stocks rose, with Ping An Insurance increasing by over 4%[9] Economic Indicators - Alphabet plans to issue $20 billion in bonds, exceeding the initial estimate of $15 billion, to support its financial strategies[14] - The global semiconductor market is expected to face significant supply shortages from 2026 to 2027, according to Goldman Sachs[9] International Market Trends - The Nikkei 225 index rose by 3.89%, driven by expectations of stable governance under Prime Minister Fumio Kishida[12] - Japanese defense stocks surged following Kishida's electoral victory, with Kawasaki Heavy Industries rising by 17%[12] Commodity Insights - Gold and precious metal stocks saw significant gains, with Wan Guo Gold rising over 8%[9] - Morgan Stanley predicts that major metals like gold and silver may enter a consolidation phase but are not at the end of a bull market[9]

Market Overview - On February 10, A-shares experienced a narrow range consolidation, with AI applications seeing a surge while sectors like photovoltaic and consumer goods weakened. The Shanghai Composite Index rose by 0.13%, the Shenzhen Component Index increased by 0.02%, and the ChiNext Index fell by 0.37%. The total trading volume for A-shares was 2.12 trillion yuan, down from 2.27 trillion yuan the previous day [2]. Capital Flow - The net outflow of main funds from the Shanghai and Shenzhen markets exceeded 32 billion yuan, with an opening net outflow of 14.475 billion yuan and a closing net outflow of 4.452 billion yuan, totaling 32.204 billion yuan for the day [3]. - Over the last five trading days, the main funds have shown a consistent trend of outflow, particularly in the ChiNext, which saw a net outflow of 131.42 billion yuan on February 10 [4][5]. Sector Performance - The media sector led in net inflows, with a 5.22% increase and a net inflow of 8.613 billion yuan, primarily driven by Light Media. Other sectors with positive inflows included computer (0.74%, 1.780 billion yuan) and banking (0.20%, 1.486 billion yuan) [6]. - Conversely, the power equipment sector experienced the largest net outflow, declining by 0.82% with a net outflow of 12.059 billion yuan, followed by the electronics sector with a net outflow of 11.110 billion yuan [6]. Institutional Activity - The top stocks with significant institutional net purchases included JuLi SuoJu (8.212 million yuan), Hangdian Co. (7.610 million yuan), and Xibu Materials (4.821 million yuan) [8]. - Notable stocks with high institutional interest also included AoFei Entertainment, which saw a 10.01% increase, and Wanxiang Qianchao, which rose by 10.03% [9]. Analyst Ratings - Recent analyst ratings highlighted several stocks with potential upside, including Nanwei Medical (target price 97.65 yuan, current price 82.38 yuan, upside 18.54%), and BaLong ChuangYuan (target price 31.36 yuan, current price 24.92 yuan, upside 25.84%) [10].

Core Insights - The overall performance of the Beijing Stock Exchange (BSE) on February 10, 2026, showed a decline, with the BSE 50 index falling by 0.61% to 1,532.17 points, while the specialized and innovative index dropped by 1.26% to 2,549.98 points [1] - The total market capitalization of the BSE reached 935.799 billion, with a circulating market value of 576.068 billion, indicating a slight decrease in trading activity compared to the previous week [1] - The average price-to-earnings (P/E) ratio for BSE-listed companies was reported at 47.54 times, which is higher than the P/E ratios of the STAR Market (78.62 times) and the ChiNext (45.98 times) [1] Industry Performance - On February 10, 2026, the media sector led the gains with a rise of 16.8%, followed by the pharmaceutical and biological sector at 6.9%, and the communication sector at 1.4%. Conversely, the oil and petrochemical sector saw a decline of 2.2%, the non-ferrous metals sector fell by 2.0%, and the beauty and personal care sector decreased by 1.9% [1] - Among the 293 listed companies on the BSE, 44 experienced an increase in stock price, while 244 saw a decline. Notably, the new stock Aide Technology surged by 176.79%, while companies like Tongxiang Technology and Meibang Technology faced significant declines of 6.36% and 5.88%, respectively [1][6][7] Valuation Insights - The average P/E ratio for the non-ferrous metals sector was the highest at 123.3 times, followed by the communication sector at 93.3 times and the food and beverage sector at 83.8 times, indicating varying levels of investor confidence across sectors [1][9] - The overall valuation of BSE-listed companies has shown a slight decrease compared to the previous trading day, reflecting market adjustments and investor sentiment [1]

Group 1: Macroeconomic Insights - The Japanese Liberal Democratic Party (LDP) achieved a significant victory in the recent elections, gaining over 20% more seats in the House of Representatives, which is unprecedented since World War II. This victory is expected to facilitate the implementation of loose monetary and fiscal policies, as well as a "Japan First" foreign policy [2][3] - The global manufacturing PMI rose for the sixth consecutive month in January, indicating ongoing recovery in the manufacturing sector. Developed countries showed more significant improvements compared to emerging markets, with new orders and export orders also improving [3] Group 2: Fixed Income and Market Trends - The A-share market experienced a decline due to macroeconomic fluctuations, with net outflows of financing funds exceeding 50 billion. The pricing power is shifting towards institutional funds, with a notable increase in the positions of active equity funds [4][5] - The liquidity tracking report indicated a marginal easing in the funding environment, with DR007 averaging 1.48%, down 9 basis points from the previous week. The overall net injection in the open market was -6,560 billion [5] Group 3: Real Estate and Commercial Property - The Hong Kong real estate market is showing signs of recovery, with residential prices experiencing the largest monthly increase since April 2025. The inventory of unsold new homes is decreasing, and rental prices have reached historical highs [8] - The introduction of REITs in commercial real estate is progressing rapidly, with 10 projects successfully submitted for approval. This development is expected to enhance asset liquidity and drive value re-evaluation for related companies [12] Group 4: Industry-Specific Developments - Enphase Energy reported a revenue of $343 million for Q4 2025, a year-on-year decline of 10.3%. However, the company anticipates a recovery in performance due to new product launches and favorable market conditions [19] - The domestic chemical industry is expected to see improved profitability as the price spread between raw materials and products has widened, driven by geopolitical tensions and seasonal demand [10] Group 5: Investment Opportunities - The report highlights the potential for companies like Minshi Group, which is expanding its robotics business in the U.S. and Europe, indicating a strong growth trajectory in traditional and new business segments [18] - The approval of D-allohexose enzyme preparations in China is expected to benefit Baolong Chuangyuan, a leader in functional sugars, as it accelerates the application of allulose in the market [20]

Group 1 - Samsung Medical (601567.SH) announced that its wholly-owned subsidiary, Ningbo Aux Intelligent Technology Co., Ltd. (referred to as "Aux Intelligent Technology"), has been recommended as a candidate for the bid in the second batch of framework bidding projects for distribution network equipment by the Southern Power Grid Company for 2025 [1] - The expected bid amount is approximately 321 million yuan [1]

Core Viewpoint - The article highlights the significant impact of AI applications on the media industry, particularly driven by the launch of Seedance 2.0, which has catalyzed a surge in various media sectors, including short dramas, films, digital reading, and AI marketing [1][16]. Market Performance - On February 10, the market showed a clear main line with orderly rotation, with the media sector standing out by having 25 stocks hitting the daily limit, accounting for over 30% of the total limit-up stocks [1]. - The media sector attracted nearly 19 billion yuan in net inflow, with a notable increase of 4.27% in the sector's overall performance [10][11]. Stock Performance - A total of 47 stocks hit the first limit-up, indicating a vibrant market sentiment, with key representatives from the media, chemical, and electronics sectors [5]. - The second limit-up stocks were only 19, showing a significant drop in continuity, while only 2 stocks reached three limit-ups, indicating cautious market sentiment at high levels [6][7]. AI Application Impact - Seedance 2.0 has transformed AI video generation capabilities, allowing for the creation of complete video works from simple prompts, which has led to a strong performance in related sectors [16][18]. - The model's capabilities include multi-modal reference inputs, maintaining consistency across shots, and synchronizing audio and video, significantly lowering production costs and technical barriers in content creation [18][19]. Challenges in Data Utilization - The industry faces challenges related to data quality and supply, technical processing, and compliance with safety regulations, which could hinder the broader application of AI technologies [20][21].