Core Viewpoint - Jiangbolong expects a price increase of 5%-10% for eSSD in the third quarter due to production cuts by major storage wafer manufacturers and a recovery in market demand [1] Group 1: Market Trends - Major storage wafer manufacturers have announced new rounds of production cuts, leading to an increase in market prices and expectations for storage products starting from the second half of the first quarter of 2025 [1] - The inventory digestion process among downstream customers has largely concluded, resulting in a substantial increase in downstream demand [1] - The semiconductor storage market has begun to gradually recover since the end of March 2025, according to independent third-party market information [1] Group 2: Price Forecast - The eSSD prices are projected to rise by 5%-10% in the third quarter, influenced by the inventory demand from server OEM customers and pricing strategies from storage wafer manufacturers [1]

Group 1: Storage Sector Insights - The storage sector is expected to see continuous price increases, with upstream DDR4 contract prices projected to rise by 30-40% in Q3 [1] - Demand for storage is driven by rapid upgrades in AI servers, PCs, and mobile devices, leading to increased penetration of high-value products like HBM, eSSD, and RDIMM [1] - The price of DDR4 RDIMM has surged over 30% from early April to mid-June, with 64GB DDR4 RDIMM reaching a price of $220 [1] Group 2: Micron's Performance - Micron reported record revenue in FY2025 Q3, driven by DRAM revenue reaching an all-time high, with HBM revenue increasing nearly 50% quarter-over-quarter [2] - DRAM revenue accounted for $7.071 billion, representing 76% of total revenue, with a quarter-over-quarter growth of 15.5% [2] - NAND revenue was $2.155 billion, making up 23% of total revenue, with a quarter-over-quarter increase of 16.2% [2] Group 3: Semiconductor Market Outlook - The global semiconductor market is expected to maintain an optimistic growth trajectory in 2025, driven by AI and domestic substitution efforts [3] - The storage sector is projected to see continued contract price increases in Q3 2025, with enterprise-level products driving quarterly performance growth [3] - The equipment and materials sector is also expected to benefit from ongoing domestic substitution and industry consolidation efforts [3] Group 4: Investment Recommendations - Companies to focus on in the semiconductor storage sector include Jiangbolong, Zhaoyi Innovation, and others [4] - For IDM, foundry, and testing services, recommended companies include Huahong Semiconductor and SMIC [4] - In the SoC and supporting solutions segment, companies like Hengxuan Technology and Rockchip are highlighted [4]

Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. (Dapu Micro) has become the first unprofitable company to have its IPO application accepted by the Shenzhen Stock Exchange, marking a significant milestone for the ChiNext board's support of innovative unprofitable enterprises [1][4]. Company Overview - Dapu Micro focuses on the research and sales of enterprise-level SSD products for data centers, possessing full-stack self-research capabilities in "controller chips + firmware algorithms + modules" and achieving mass production [1][2]. - The company has shipped over 3,500 PB of enterprise-level SSDs, with more than 70% of shipments featuring self-developed controller chips [2]. Market Position - In 2023, Dapu Micro ranked fourth in the domestic enterprise-level SSD market with a market share of 6.4%, while international manufacturers still dominate the market [2]. - The company's customer base includes major domestic and international internet companies such as Google, ByteDance, Tencent, Alibaba, JD.com, and others, as well as leading server manufacturers and telecom operators [2]. Financial Performance - Dapu Micro reported revenues of 557 million yuan, 519 million yuan, and 962 million yuan for the years 2022 to 2024, with net losses of 534 million yuan, 617 million yuan, and 191 million yuan respectively [3]. - The company attributes its lack of profitability to high R&D investments, limited bargaining power in the early stages, cyclical fluctuations in the storage industry, and significant share-based payment expenses [3]. IPO Details - Dapu Micro plans to raise 1.878 billion yuan through its IPO, which will be allocated to the development and industrialization of next-generation controller chips and enterprise-level SSDs, as well as to establish a mass production testing base for SSD modules [3]. - The company has a special voting rights mechanism, allowing its major shareholders to control a significant portion of the voting rights, with the actual controller holding 66.74% of the voting rights [3]. Industry Context - The China Securities Regulatory Commission has announced the implementation of a third set of standards on the ChiNext board to support high-quality unprofitable innovative enterprises, with Dapu Micro being the first to benefit from this new policy [4][5]. - The introduction of these standards aims to enhance the inclusivity and adaptability of the ChiNext board for quality technology companies, facilitating the aggregation of advanced production factors in the technology sector [5].

Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. has become the first company to apply for an IPO on the ChiNext board under the third set of standards for unprofitable companies, with a reported net loss of 191 million yuan in 2024 [1][6] Group 1: IPO Details - Dapu Microelectronics is the first company to utilize the third set of standards, which requires a market value of no less than 5 billion yuan and revenue of at least 500 million yuan in the most recent year [1] - The company is also the second to apply for an IPO with special voting rights, where the controlling shareholder's shares have enhanced voting power [1][2] Group 2: Company Performance - Despite not being profitable, Dapu Microelectronics holds a strong position in the enterprise SSD market, being one of the few domestic providers with full-stack self-research capabilities [3] - In 2023, Dapu Microelectronics ranked fourth in the domestic enterprise SSD market with a market share of 6.4% [4] - The company's SSD sales surged from 111,200 units in 2022 to 285,300 units in 2024, representing a growth of 156.56% [5] Group 3: Market Trends - The global enterprise SSD market was valued at $20.454 billion in 2022 and is projected to reach $51.418 billion by 2027, with a compound annual growth rate of 20.25% [4] - The demand for enterprise SSDs is increasing due to applications in AI and cloud computing, with Dapu Microelectronics' products being tested by leading AI companies [4][5] Group 4: Future Plans - Dapu Microelectronics plans to raise 1.878 billion yuan through the IPO to fund the development of next-generation control chips, enterprise SSD research, and production testing bases [6] - The recent policy shift towards allowing unprofitable companies to go public is expected to provide more opportunities for innovative firms [8][9]

Core Viewpoint - The article discusses the introduction of the third set of listing standards for the ChiNext board, marking a significant shift in allowing unprofitable companies to go public, with the first case being the IPO application of Dapu Microelectronics [1][2][4]. Group 1: Overview of Dapu Microelectronics - Dapu Microelectronics focuses on the research and sales of enterprise-level SSD products for data centers, and it is one of the few companies in China with full-stack self-research capabilities in enterprise-level SSDs [5]. - The company reported a non-recurring net profit of -1.95 billion yuan in the most recent year, indicating ongoing financial challenges [3][6]. Group 2: Financial Performance - Dapu Microelectronics' revenue for 2022 to 2024 is projected to be 5.57 billion yuan, 5.19 billion yuan, and 9.62 billion yuan respectively, while its non-recurring net profit is expected to be -3.68 billion yuan, -6.42 billion yuan, and -1.95 billion yuan [6]. - The company’s revenue growth rate is notable, with a compound annual growth rate of 57.66% in its main business, and a projected revenue increase of 88.73% in 2024 [10]. Group 3: Listing Standards and Market Implications - The third set of listing standards for the ChiNext board requires a minimum expected market value of 5 billion yuan and a minimum revenue of 300 million yuan in the most recent year, focusing on companies with mature business models and scalable potential [9]. - The introduction of these standards aims to enhance the market's support for high-tech companies with clear commercialization prospects, differentiating it from the Sci-Tech Innovation Board, which emphasizes "hard technology" attributes [8][10].

Core Viewpoint - Shenzhen Dapu Microelectronics Co., Ltd. has become the first loss-making company to be accepted for an IPO on the ChiNext board since the implementation of the registration system, with significant accumulated losses over the past three years [1][3]. Group 1: Financial Performance - The company reported net profits attributable to the parent company of -368.31 million yuan, -641.65 million yuan, and -195.05 million yuan for the years 2022, 2023, and 2024 respectively, totaling an accumulated loss of over 1.205 billion yuan [3][4]. - The operating revenues for the same years were 556.77 million yuan, 519.49 million yuan, and 962.18 million yuan, indicating a significant increase in 2024 [3][4]. - The company's net profit margin has been negative, with a net profit margin of -19.09 million yuan in 2024, -61.69 million yuan in 2023, and -53.40 million yuan in 2022 [4]. Group 2: Corporate Structure and Governance - The company has a special voting rights mechanism, allowing its controlling shareholder to maintain significant control despite holding a minority of shares [5]. - The actual controller, Yang Yafei, holds a combined voting power of 66.74% through entities he controls, despite owning only 16.71% of the shares [5][6]. - The company was established in April 2016 and transitioned to a joint-stock company in September 2023, with a registered capital of 392.59 million yuan [5]. Group 3: IPO Details - The company has chosen to meet the listing standards of having an expected market value of no less than 5 billion yuan and recent annual revenue of no less than 500 million yuan [1][8]. - The IPO aims to raise approximately 1.87785 billion yuan, with 700 million yuan allocated for working capital and the remainder for two specific projects [10].

Important Market News - The three major US stock indices closed higher, with the S&P 500 rising by 0.96% and the Nasdaq increasing by 0.94%. Major tech stocks mostly rose, with Tesla surging over 8%, marking its largest single-day gain since April 28. Circle, the first stablecoin stock, rose over 9%, with a cumulative increase of approximately 750% since its listing. Chinese concept stocks also saw gains, with the Nasdaq Golden Dragon China Index up 0.85% [1] - International oil prices fell significantly, with West Texas Intermediate (WTI) crude oil futures at $67.23 per barrel and Brent crude oil down 8.37% at $69.16 per barrel. European stock indices closed slightly lower, with Germany's DAX down 0.35%, France's CAC40 down 0.69%, and the UK's FTSE 100 down 0.19% [1] Industry Insights - According to TrendForce's DRAMeXchange, the spot price of DDR4 has surged significantly. The price of DDR4 8Gb (1G×8) 3200 increased from an average of $2.73 on May 30 to $3.775, a rise of 38.27% in just half a month. Major manufacturers have announced plans to halt DDR4 production, leading to a supply-demand imbalance as the market transitions to DDR5. The storage industry is expected to see a price upturn starting in the second half of 2025 due to reduced production and increased demand from AI devices [2] - US startup Lon Storage Systems has begun producing solid-state batteries and is shipping test units to unnamed electronics manufacturers, paving the way for large-scale commercialization. Major Chinese companies like BYD and CATL are accelerating the mass production of solid-state batteries, with plans for application in vehicles by 2026 to 2028. The solid-state battery technology is gaining attention for its high safety and energy density, with significant industry collaboration [3] - The Democratic Republic of Congo has extended its cobalt export ban for an additional three months. Cobalt prices have surged, with the price of 1 cobalt reaching 256,000 yuan per ton, marking the largest single-day increase in nearly a decade. The ban aims to address oversupply issues and is expected to support a price recovery, with projections for domestic cobalt prices to exceed 250,000 yuan per ton [4]

Core Viewpoint - The storage industry is facing both opportunities and challenges this year, with leading companies finding it relatively easy to secure financing, while a wave of mergers and acquisitions and capacity battles are imminent [1]. Group 1: Company Strategy and Goals - The company, Changqi Technology, plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international strategy, attract talent, and improve overseas financing capabilities [2][4]. - The strategic goal for the next five to ten years is to become a leading international full interconnect chip design company, focusing on high-performance interconnect solutions for cloud computing and AI infrastructure [4]. Group 2: Financial Performance - In Q1 2025, the sales revenue from interconnect chip products reached 1.139 billion yuan, a year-on-year increase of 63.92% and a quarter-on-quarter increase of 17.19%, marking eight consecutive quarters of growth [4]. - For 2024, the company reported a revenue of 3.639 billion yuan, up 59.2%, and a net profit of 1.412 billion yuan, up 213.1% [5]. - The company anticipates that the order amount for interconnect chips to be delivered in Q2 2025 will exceed 1.29 billion yuan, driven by the demand for DDR5 memory interface chips and high-performance interconnect chips [5]. Group 3: Market Trends and Projections - The global memory interface chip market is projected to grow from 1.009 billion USD in 2024 to 1.268 billion USD in 2025, with a CAGR of 28.5% from 2025 to 2031 [5]. - By 2028, the global storage interface chip market is expected to reach 19.475 billion yuan, with the Chinese market projected to exceed 100 billion yuan in the same year [6]. Group 4: Competitive Position - Changqi Technology holds a 43.35% market share in the memory interface chip market as of 2023, having established itself as a leader in the design and development of memory interface chips [6]. - The company has successfully positioned itself in the DDR4 and DDR5 generations, leading the formulation of international standards for DDR5 interface chips [6].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Semiconductor Storage Industry, specifically focusing on DRAM, NAND Flash, and related technologies [1][3][5][21] Core Insights and Arguments - **DRAM Market Trends**: The DRAM market is expected to see price increases in Q2 and Q3 of 2025 due to supply constraints from manufacturers ceasing production of DDR3 and DDR4, alongside significant demand for server DDR4 modules and consumer electronics DDR4 chips [1][4][16] - **NAND Flash Demand**: The NAND Flash market is experiencing price increases driven by international circumstances, with enterprise SSD demand expected to support price growth in Q3 [1][21] - **AI Impact on Storage**: The global AI-driven storage market is projected to grow from $28.7 billion in 2024 to $255.2 billion by 2034, with a compound annual growth rate (CAGR) of 22.4% [1][5] - **CXL Technology**: CXL (Compute Express Link) is anticipated to reach a market size of nearly $16 billion by 2028, with China accounting for approximately $8 billion. CXL enhances memory utilization and reduces costs by about 50% per GB compared to traditional solutions [2][9][10] - **HBM Advantages**: High Bandwidth Memory (HBM) is expected to constitute over 10% of global DRAM capacity by 2025, with a market size projected to grow from $697.9 billion in 2024 to $893.4 billion in 2029, reflecting a CAGR of about 5% [1][8] Additional Important Insights - **Domestic Market Growth**: The Chinese enterprise SSD market is projected to recover to $6.25 billion in 2024, with expectations to reach $9.1 billion by 2029, indicating significant growth potential for local storage module manufacturers [3][24] - **3D DRAM Development**: The transition to 3D DRAM is gaining momentum, with manufacturers focusing on advanced packaging technologies to enhance performance and efficiency [6][18] - **Market Dynamics**: The DRAM market is witnessing a reshaping of niche market dynamics, with a notable shift towards 3D DRAM production as manufacturers pivot to DDR5 and HBM technologies [16][19] - **Emerging Applications**: The demand for NOR Flash is increasing due to growth in IoT, automotive electronics, and 5G applications, with specific requirements for capacity, lifespan, and reliability [25][26] - **Investment in AI Infrastructure**: Major cloud service providers are significantly increasing their capital expenditures for AI infrastructure, with companies like Meta, Google, and Alibaba planning substantial investments [22][23] Companies to Watch - **Key Companies**: Notable companies in the storage IC design and module sectors include Zhaoyi Innovation, Beijing Junzheng, Dongxin Technology, and others involved in various aspects of the semiconductor storage industry [28] Risks and Considerations - **Supply Chain Risks**: Potential disruptions in supply chains due to international policy changes could impact pricing and market conditions. Additionally, if the AI industry does not develop as expected, overall growth may be constrained [29]

Group 1: OLED Display Panel Market - The demand for OLED display panels remains strong, with a projected shipment growth rate of 69% for 2025, up from a previous estimate of 40% [1] - TrendForce has revised the expected shipment volume for OLED display panels in 2025 from 2.8 million units to 3.4 million units, following a significant growth of 132% in 2024 [1] Group 2: Enterprise SSD Market - The revenue of the top five enterprise SSD brands is expected to decline in Q1 2025 due to inventory digestion and challenges in AI product assembly [4][5] - The average selling price of enterprise SSDs has dropped nearly 20%, leading to a quarter-over-quarter revenue decrease for the top five brands [5] - Samsung, SK Group, Micron, Kioxia, and SanDisk are the top five enterprise SSD brands, with total revenues of $4.53 billion in Q1 2025, representing a market share of 95.1% [6]