Core Insights - The company reported a revenue of approximately HKD 177,334,000 for the six months ending June 30, 2025, representing a year-on-year increase of 24.4% [1] - The SMT and semiconductor equipment manufacturing segment accounted for 85.0% of the total revenue, while the energy business saw an increase in its revenue contribution [1] - The profit attributable to the company's owners was approximately HKD 6,180,000, with total comprehensive income reaching about HKD 6,660,000, both showing an increase compared to the same period last year [1] - The improvement in profitability was primarily due to the energy business entering a stable operational phase, along with a reduction in one-time expenses and routine management costs, leading to lower administrative expenses [1]

Report Industry Investment Rating There is no information about the report industry investment rating in the content. Core Viewpoints - Last week, the equity market continued to rise, with the Shanghai Composite Index hitting a ten - year high and breaking through 3800 points. The semiconductor and computing power domestic substitution logic was strengthened, and the technology sector performed well. The bond market generally declined due to the stock - bond seesaw effect, tightened capital at the tax period, and weakened expectations of total easing policies in the second half of the year. The 10 - year treasury bond rate closed at 1.78% on Friday, up 3.53bp from the previous week. The convertible bond market showed a strong performance, with most convertible bond issues rising. The CSI Convertible Bond Index rose 2.83% for the whole week [1][7][8]. - In the future, the short - term popularity of the stock market is expected to remain high. With the dovish speech of the Federal Reserve Chairman at the Jackson Hole meeting, it is recommended to increase the consideration of performance and layout along the directions with strong industrial trend certainty such as computing power, robotics, intelligent driving, and semiconductor self - controllability. Attention can also be paid to the clause game opportunities of convertible bonds with short remaining terms and strong debt - reduction demands [3][15]. Summary According to Relevant Catalogs 1. Market Focus (2025/8/18 - 2025/8/22) Stock Market - The equity market continued to rise last week. The Shanghai Composite Index reached a ten - year high and broke through 3800 points. The semiconductor and computing power domestic substitution logic was strengthened by news such as DeepSeek updating its model to DeepSeek - V3.1, NVIDIA suspending the production of H20 chips, and the 2025 China Computing Power Conference being held in Datong. The technology sector performed well throughout the week [1][7]. - By industry, all Shenwan primary industries closed up last week. Communications (+10.84%), electronics (+8.95%), comprehensive (+8.25%), computer (+7.93%), and beauty care (+5.35%) led the gains, while real estate (+0.50%), coal (+0.92%), pharmaceutical biology (+1.05%), and banks (+1.25%) lagged behind [8]. Bond Market - The bond market generally declined last week. The stock - bond seesaw effect was obvious due to the sharp rise in the equity market. The capital at the tax period tightened marginally, and the central bank's second - quarter monetary policy implementation report weakened the market's expectation of total easing policies in the second half of the year. The 10 - year treasury bond rate closed at 1.78% on Friday, up 3.53bp from the previous week [1][8]. Convertible Bond Market - Most convertible bond issues rose last week. The CSI Convertible Bond Index rose 2.83% for the whole week, the median price rose 2.82%, the calculated arithmetic average parity rose 2.24% for the whole week, and the market conversion premium rate increased by 2.07% compared with the previous week. The arithmetic average conversion premium rates of convertible bonds with parities in [90,100), [100,110), and [110,120) changed by +2.44%, +3.20%, and +1.10%, respectively, and were at the 99%, 100%, and 97% quantiles since 2023 [2][8]. - By industry, most convertible bond industries closed up last week. Beauty care (+7.29%), computer (+5.26%), electronics (+4.54%), and petroleum and petrochemicals (+4.30%) performed well, while media (-0.32%), household appliances (+0.05%), building decoration (+0.66%), and social services (+0.84%) lagged behind [10]. - At the individual bond level, convertible bonds such as Jintong (liquid - cooled server concept), Huayi (semiconductor clean room), Weice (IC testing), Dongjie (control right change), and Shuiyang (skin care products & significant increase in mid - year report performance) led the gains. Convertible bonds such as Linuo (medical glass), Rongtai (massage equipment & announced forced redemption), Sheyan (engineering design and survey & announced forced redemption), Weixin (innovative drugs), and Youzu (game concept & announced forced redemption) led the losses [2][11]. - The total trading volume of the convertible bond market last week was 470.3 billion yuan, with an average daily trading volume of 94.06 billion yuan, basically the same as the previous week [13]. 2. Valuation - As of last Friday (2025/08/22), in the equity - biased convertible bonds, the average conversion premium rates of convertible bonds with parities in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 48.87%, 36.41%, 28.98%, 22.02%, 14.46%, and 11.73%, respectively, at the 99%/100%, 96%/99%, 96%/99%, 95%/98%, 89%/87%, 95%/93% quantiles since 2010/2021. - In the bond - biased convertible bonds, the average YTM of convertible bonds with parities below 70 yuan was - 6.12%, at the 0%/0% quantiles since 2010/2021. - The average implied volatility of all convertible bonds was 43.97%, at the 89%/94% quantiles since 2010/2021. The difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stock was - 3.29%, at the 64%/64% quantiles since 2010/2021 [16]. 3. Primary Market Tracking - Last week (2025/8/18 - 2025/8/22), Jinwei Convertible Bond was issued, and no convertible bonds were listed. Jinwei Convertible Bond has a scale of 1.292 billion yuan, a credit rating of AA, and its underlying stock is Jindawen, a company in the food and beverage industry. After deducting the issuance fees, the funds are planned to be invested in projects such as the coenzyme Q10 reconstruction and expansion project [24]. - In the coming week (2025/8/25 - 2025/8/29), no convertible bonds are announced for issuance, and Weidao Convertible Bond is expected to be listed. Weidao Convertible Bond has a scale of 1.17 billion yuan, a credit rating of AA, and its underlying stock is Weidao Nano, a company in the power equipment industry. After deducting the issuance fees, the funds are planned to be invested in projects such as the intelligent factory construction project for semiconductor thin - film deposition equipment [25]. - Last week, the exchanges accepted applications from JINPAN TECHNOLOGY and UNIRAY NEW MATERIAL, the general meetings of shareholders passed the plans of JINGYAN TECHNOLOGY and AOKE TECHNOLOGY, and the board of directors proposed plans for LONGHUA NEW MATERIAL, TBEA, SHENGQUAN GROUP, JIWU HIGH - TECH, and JINSANJIANG. There were no new companies approved for registration by the exchanges or passed by the listing committee. As of now, there are 77 convertible bonds to be issued, with a total scale of 128.34 billion yuan, including 2 issues with a total scale of 1.45 billion yuan that have been approved for registration and 4 issues with a total scale of 8.98 billion yuan that have passed the listing committee [26].

Group 1 - Huahai Qingsi Co., Ltd. has completed a strategic investment in Suzhou Bohongyuan Equipment Co., Ltd. [1] - Huahai Qingsi, established in 2013 and listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2022, specializes in semiconductor equipment manufacturing, including CMP, thinning, and cutting equipment [1] - Suzhou Bohongyuan, founded in 2016, focuses on high-precision grinding and polishing equipment for hard and brittle materials, successfully entering overseas markets [1] Group 2 - The power semiconductor sector is evolving towards higher efficiency and power density, particularly with the adoption of wide bandgap semiconductor technologies like silicon carbide and gallium nitride, which demand improved substrate material performance [1] - Advanced packaging technology is also raising stringent standards for substrate flatness and purity, driving increased market demand for silicon carbide and gallium nitride [1] - The collaboration between Huahai Qingsi and Suzhou Bohongyuan aims to leverage their expertise in precision manufacturing equipment to create a one-stop platform for thinning, grinding, and polishing equipment, expanding market opportunities [2]

Core Insights - The successful delivery of the 500th stepper lithography machine by Shanghai Chip-on-Micro is a milestone for China's semiconductor equipment manufacturing industry, reflecting the accelerating support of domestic high-end equipment for strategic industries like AI chips [1] - The advanced packaging lithography machine from Chip-on-Micro has achieved an impressive 90% market share domestically, meeting the stringent requirements of AI chips for wafer-level packaging and testing [3] - The rapid technological iteration of Chip-on-Micro, which delivered 500 machines within just six months, showcases the innovative vitality of China's semiconductor equipment sector, supported by a young technical team with an average age of 33 [3] Industry Overview - The breakthrough in domestic lithography machines has a multiplier effect on the semiconductor industry, with Chip-on-Micro holding a 35% share of the global market, indicating that Chinese equipment is not only serving the domestic market but also participating in international standard-setting [3] - The story of Chip-on-Micro highlights that the autonomy of the semiconductor industry requires collaborative progress across the entire supply chain, including equipment, materials, design, and manufacturing [4] - The emergence of innovative leaders like Chip-on-Micro injects confidence into the localization of AI chips, enhancing the resilience of China's semiconductor ecosystem [4]

Core Viewpoint - The successful acceptance and delivery of China's first PL-SR series inkjet stepper nano-imprinting equipment marks a significant advancement in the high-end semiconductor equipment manufacturing sector, breaking the foreign monopoly in this technology [1] Group 1: Technological Breakthroughs - The PL-SR series equipment supports nano-imprinting lithography processes with a line width of less than 10nm, surpassing Canon's FPA-1200NZ2C, which supports a line width of 14nm [1] - The equipment features several key innovations, including a self-developed template profile control system and an inkjet algorithm system for nano-imprinting photoresist, showcasing strong independent innovation capabilities [1] Group 2: Cost and Efficiency Advantages - Compared to traditional EUV lithography technology, nano-imprinting technology can reduce equipment investment costs by 60% and limit power consumption to 10% of that required by EUV technology [1] - This technology presents unique advantages in the storage chip manufacturing sector due to its suitability for repetitive graphic structures, providing a new technological pathway for domestic storage chip manufacturers to overcome process bottlenecks [1]

Core Insights - The Yangtze River Delta (YRD) is focusing on cross-domain innovation and collaboration to enhance its development momentum and advantages, with the recent high-level forum highlighting key initiatives and partnerships [1][2][3] Group 1: Innovation and Collaboration - The second batch of YRD innovation alliances consists of 12 entities across various sectors, including biomedicine, smart robotics, integrated circuits, and artificial intelligence, aimed at addressing national strategic needs and local industry directions [2] - The YRD integrated circuit polishing technology innovation alliance aims to increase the localization rate of equipment and core components, potentially reducing costs by approximately 20% [3] - Seven cooperation agreements were signed during the forum, covering areas such as the large aircraft industry cluster, new energy vehicle export bases, and technology innovation collaboration along the Yangtze River Economic Belt [3][4] Group 2: Practical Projects and Public Services - The 2025 YRD integration development practical project list was released, focusing on enhancing cross-regional services and addressing social welfare needs, including a "satisfaction consumption" brand and integrated health services [6][7] - The new project list emphasizes broad coverage and social relevance, aiming to create over 1.5 million job opportunities through collaborative recruitment efforts [7] - Future initiatives will include improving transportation connectivity and establishing ecological protection mechanisms, as well as standardizing public service recognition across medical institutions [7]