Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company focuses on deepening design and process collaboration, enhancing its EDA+IP ecosystem through acquisitions [1] - The company has shown stable revenue growth with a CAGR of 32.13% from 2020 to 2024, and its R&D expenses are significant, with rates of 71.1% and 64.8% for 2023 and 2024 respectively [7][31] - The company is positioned as a leading domestic EDA enterprise, with successful acquisitions enhancing its product offerings and technical capabilities [10] Summary by Sections Company Overview - The company's main products include manufacturing EDA, design EDA, device testing systems, and one-stop technology development [17] - The company has completed three acquisitions from 2010 to 2023, indicating a strategy of innovation and acquisition [7][22] - As of Q3 2025, the top six shareholders hold 59.7% of the shares, indicating a concentrated ownership structure [23] Market Data - As of December 15, 2025, the company's current price is 33.79 yuan, with a total market capitalization of approximately 14.70 billion yuan [4] - The company has shown a 12.71% year-on-year revenue growth for the first three quarters of 2025 [30] Financial Performance - The company's revenue for the first three quarters of 2025 reached 3.15 billion yuan, with a net profit of 42 million yuan, reflecting a significant year-on-year increase of 173.46% [30] - The company’s gross margin remains high at 89.1%, with effective control over expenses [31] EDA Market Insights - The global EDA market is expected to grow steadily, with a projected size of approximately 14.55 billion USD in 2025, increasing to 32.15 billion USD by 2034, representing a CAGR of 9.21% [51] - The EDA industry is highly concentrated, with the top three companies holding 74% of the market share [58] Strategic Acquisitions - The company plans to acquire Ruicheng Chip Micro and Naneng Micro in 2025, aiming to become the first listed company in China to achieve deep collaboration between EDA and semiconductor IP [9][10] - The acquisitions are expected to expand the company's revenue scale and profitability [9]

Core Viewpoint - Chip Original Co., Ltd. announced the termination of its acquisition of 97.0070% equity in Chip Lai Zhi Rong Semiconductor Technology (Shanghai) Co., Ltd. and related fundraising activities due to discrepancies between the core demands of the target company's management and market conditions, policy requirements, and the interests of the company and its shareholders [1][3]. Group 1: Transaction Details - The acquisition was initiated on August 28, 2025, with a suspension of trading on August 29, 2025, and resumption on September 12, 2025 [3]. - The transaction aimed to enhance the company's core processor IP and CPU IP capabilities, as well as improve the design flexibility and innovation of AI ASICs [3]. - Following the termination, the company committed to not planning any major asset restructuring for at least one month and will hold an investor briefing on December 18, 2025 [3]. Group 2: Company Profile - Chip Lai Zhi Rong, established in 2018, is one of the first domestic RISC-V CPU IP providers in China, with over 100 employees and a leading position in CPU IP business revenue among Chinese RISC-V IP companies in 2024 [4]. - Chip Original Co., Ltd. provides comprehensive chip customization services and semiconductor IP licensing, with a portfolio that includes six types of processor IP and over 1,600 mixed-signal and RF IPs [4]. Group 3: Financial Performance - In the first three quarters of the year, Chip Original Co., Ltd. achieved revenue of 2.255 billion yuan, a year-on-year increase of 36.64%, while the net profit attributable to shareholders was a loss of 347 million yuan, reducing the loss by 49.16 million yuan compared to the same period last year [4]. - The company signed new orders worth 1.593 billion yuan in the third quarter of 2025, a significant year-on-year increase of 145.80%, with AI computing-related orders accounting for approximately 65% [4]. - The total new orders signed in the first three quarters of 2025 reached 3.249 billion yuan, surpassing the total new orders for the entire year of 2024 [4]. Group 4: Market Position - According to industry research firm IPnest, Chip Original Co., Ltd. ranks first in China's semiconductor IP licensing market and eighth globally in 2024, with its intellectual property licensing revenue ranking sixth worldwide [5]. - The company's stock has performed exceptionally well this year, with a year-to-date increase of over 184%, bringing its total market capitalization to 78.37 billion yuan as of December 12 [5].

Core Viewpoint - The company, Heshun Petroleum, is experiencing significant stock price movement and is planning a strategic acquisition to enhance its business model and market position in the semiconductor industry [1][2][4][8]. Trading Information Summary - Heshun Petroleum's stock closed at 30.59 yuan on November 21, 2025, up 9.13% from the previous week, with a market cap of 5.259 billion yuan [1]. - The stock reached a peak of 35.88 yuan on November 20, 2025, marking a near one-year high, and recorded two instances of limit-up trading without any limit-down occurrences [1][2]. Shareholder Changes - The actual controllers, Yan Ximing and Zhao Zunming, along with their concerted actors, plan to transfer a total of 6% of the company's shares (10,314,360 shares) to Chen Wanyi at a price of 22.932 yuan per share, totaling approximately 236.53 million yuan [3][8]. - Following this transfer, the controlling shareholders' stake will decrease from 66.5817% to 60.5817%, without changing the company's control [3]. Institutional Research Highlights - The company intends to acquire at least 34% of Shanghai Kuixin Integrated Circuit Design Co., Ltd. and will control 51% of the voting rights through a voting rights entrustment [4][8]. - The valuation for 100% of Kuixin's equity is capped at 1.588 billion yuan, with the expected transaction amount not exceeding 540 million yuan [4][8]. Company Announcement Summary - The board of directors approved the acquisition of Kuixin Technology, which is expected to enhance Heshun Petroleum's capabilities in the semiconductor sector, particularly in high-speed interface IP products [8]. - The company plans to hold a shareholder meeting on December 5, 2025, to discuss changes in business scope and amendments to the articles of association [8][9]. Industry Context - Kuixin Technology operates in the semiconductor IP sector, focusing on high-speed interface IP products, with a strong customer base in SSD and AI chip markets [4][5][7]. - The company aims to become a leader in the domestic interconnect IP and Chiplet market, which is projected to be significantly larger than the IP market alone [7].

Core Viewpoint - The company, Heshun Petroleum, plans to acquire at least 34% of the equity of Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology) through cash payment, aiming to gain control over 51% of the voting rights of the target company [1][2] Group 1: Company Overview - Heshun Petroleum is deeply engaged in the refined oil distribution sector, establishing a complete industrial chain ecosystem that includes retail gas stations, refined oil storage, logistics distribution, and wholesale [1] - The company is the first in Hunan Province to obtain national wholesale qualifications for refined oil, indicating its strategic focus on expanding business into surrounding provinces [1] Group 2: Target Company Overview - Kuixin Technology, established in 2021, specializes in high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [2] - The company has a complete product matrix for high-speed interface IP and has a technological edge over some peers, with its latest UCIe Chiplet interconnect IP already utilized in domestic high-performance chips [2] Group 3: Financial Commitments and Projections - The target company has committed to achieving audited revenue of no less than 300 million, 450 million, 600 million, and 750 million yuan from 2025 to 2028, with specific revenue targets for IP and high-speed interconnect products [2] - The net profit attributable to the parent company for the same period is expected to be positive each year [2] Group 4: Transaction Details - The valuation of 100% equity of the target company is capped at 1.588 billion yuan, with the final transaction amount expected to be no more than 540 million yuan [3] - Heshun Petroleum's management believes that the semiconductor IP industry has good development prospects and aims to strategically position itself in this field to seek new growth points for future sustainability [3]

Core Viewpoint - Heshun Petroleum plans to acquire at least 34% of Kuixin Technology's equity, aiming to gain control over the company through a combination of equity purchase and capital increase, with an estimated transaction value not exceeding 540 million yuan [1][2]. Group 1: Acquisition Details - Heshun Petroleum signed a control acquisition intention agreement with Kuixin Technology and its actual controller, Chen Wanyi, to ensure control over 51% of Kuixin Technology's voting shares [1]. - The transaction will allow Heshun Petroleum to appoint two-thirds of the board members at Kuixin Technology and control its operational, personnel, and financial decisions [1]. - The total equity value of Kuixin Technology is estimated to be no more than 1.588 billion yuan, with the final transaction amount expected to be under 540 million yuan [1]. Group 2: Kuixin Technology Overview - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [2]. - The company has developed a complete product matrix for high-speed interface IP, covering protocols such as UCIe, HBM, ONFI, LPDDR, PCIe, eDP, and USB, with performance metrics comparable to leading foreign companies [2]. - Kuixin Technology has established strategic partnerships with international foundries like TSMC and Samsung, developing interface IP applicable from 5nm to 55nm processes [2]. Group 3: Performance Commitments - The performance commitment period for Kuixin Technology spans from 2025 to 2028, with audited revenue targets set at no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan for each respective year [3]. - Specific revenue targets for IP and high-speed interconnect products are set at no less than 105 million yuan, 157.5 million yuan, 210 million yuan, and 262.5 million yuan for the same years [3]. - The net profit for Kuixin Technology is expected to be positive for each year from 2025 to 2028 [3]. Group 4: Heshun Petroleum's Strategic Position - Heshun Petroleum operates in the refined oil circulation sector, with a complete industry chain including retail, storage, logistics, and wholesale [4]. - The company is expanding its business beyond Hunan province and is accelerating its layout in the ultra-fast charging sector, leveraging existing gas station resources [4]. - Management believes that the semiconductor IP industry has significant growth potential, prompting the strategic acquisition of Kuixin Technology to seek new performance growth points [4].

Core Viewpoint - The company, Hunan Heshun Petroleum Co., Ltd., plans to acquire at least 34% of the equity in Shanghai Kuixin Integrated Circuit Design Co., Ltd. to gain control over the company, aiming to diversify its business into the semiconductor industry, which is seen as having significant growth potential [2][3]. Group 1: Acquisition Details - The acquisition will allow the company to control 51% of the voting rights in Kuixin Technology, enabling it to influence operational, personnel, and financial decisions [2]. - The total valuation of Kuixin Technology is capped at 1.588 billion yuan, with the expected transaction amount not exceeding 540 million yuan [2]. - The final transaction price will be determined based on an assessment by a qualified asset evaluation agency as per the Securities Law of the People's Republic of China [2][9]. Group 2: Strategic Intent - The management believes that the semiconductor IP sector has promising development prospects and aims to find new growth points for the company's future sustainability [3]. - Kuixin Technology, established in 2021, focuses on high-speed interface IP and Chiplet solutions, filling a domestic gap and gradually breaking foreign monopolies [3][4]. Group 3: Kuixin Technology's Capabilities - Kuixin Technology is one of the few companies in China that can provide a complete Chiplet solution, enhancing computing performance and reducing latency through its UCIe protocol [4]. - The company has developed a strategic cooperation network with international foundries like TSMC and Samsung, covering process nodes from 5nm to 55nm, and its products are widely used in data centers, AI, automotive electronics, and consumer electronics [3][4]. Group 4: Product and Service Offerings - Kuixin Technology has delivered multiple IP products to over 60 clients, including major players in the AI and data center sectors, with a strong emphasis on high performance, low power consumption, and compatibility [5]. - The business model includes providing semiconductor IP to chip design companies and foundries, offering ASIC/Design services, and Chiplet solutions through various commercial arrangements [6].

Group 1 - The company held its fourth board meeting on November 14, 2025, where all seven directors attended, and the meeting was deemed legal and effective [2][5] - The board unanimously approved the proposal to sign a share acquisition intention agreement with Shanghai Kuixin Integrated Circuit Design Co., Ltd., aiming to acquire at least 34% of its shares and control 51% of its voting rights [3][32] - The board also approved a proposal to change the business scope, removing "tobacco product retail," which is not expected to significantly impact the company's performance [7][28] Group 2 - The company plans to hold its third extraordinary general meeting on December 5, 2025, with a combination of on-site and online voting to facilitate participation from minority investors [10][12] - The meeting will address the proposals previously approved by the board, including the share acquisition and business scope changes [12][39] Group 3 - The acquisition of Kuixin Technology is part of the company's strategic move into the semiconductor IP sector, which is expected to provide new growth opportunities [32][37] - The total value of Kuixin Technology's 100% equity is not expected to exceed 1.588 billion yuan, with the final transaction amount anticipated to be no more than 540 million yuan [32][47] - The target company has committed to achieving specific revenue and profit targets from 2025 to 2028, with annual revenues set at 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan respectively [53][54]

Core Viewpoint - The company plans to acquire at least 34% of the equity of Shanghai Kuixin Integrated Circuit Design Co., Ltd. (Kuixin Technology) through cash payment, aiming to control 51% of the voting rights and thus gain control of the company [1][3] Group 1: Transaction Details - The total value of 100% equity of Kuixin Technology is not more than 1.588 billion yuan (post-investment valuation), with the expected final transaction amount not exceeding 540 million yuan [1][3] - After the transaction, the company will appoint two-thirds of the board seats at Kuixin Technology, and the financial director will be recommended by the company, allowing it to have decision-making power over operations, personnel, and financial matters [3] - The transaction does not constitute a major asset restructuring as defined by the relevant regulations, and it will not involve issuing new shares or changing the controlling shareholder [3] Group 2: Performance Commitments - Kuixin Technology has committed to achieving audited annual revenues of no less than 300 million yuan, 450 million yuan, 600 million yuan, and 750 million yuan from 2025 to 2028, with specific revenue targets for IP and high-speed interconnect products [4] Group 3: Company Background and Financials - The company has been focusing on the refined oil distribution sector, establishing a complete industrial chain ecosystem that includes retail, storage, logistics, and wholesale [5] - In the first three quarters of 2025, the company reported total revenue of approximately 2.126 billion yuan, a year-on-year decrease of 0.13%, and a net profit attributable to shareholders of approximately 21.81 million yuan, down 49.44% year-on-year [5] - Kuixin Technology, established in 2021, specializes in high-value semiconductor IP solutions and is one of the few companies in China with a complete matrix of high-speed interface IP products, filling a domestic gap and gradually breaking foreign monopolies [6]

Core Insights - The company, Xinyaohui Technology Co., Ltd., completed a Series B financing round in May, with participation from notable investors including China Internet Investment Fund and Shanghai Guotou [1][2] - The funds from the Series B financing will be primarily used to accelerate core technology innovation, deepen industry ecosystem construction, and promote the large-scale application of domestic semiconductor IP [1] - Xinyaohui aims to become a leading semiconductor IP company in China and a key player in strengthening the domestic semiconductor industry [1] Company Overview - Xinyaohui Technology was established in June 2020 and is headquartered in Shanghai, focusing on the research and development of semiconductor high-speed interconnect technology and advanced semiconductor IP services [2] - The company’s self-developed IP products are characterized by high stability, strong compatibility, and cross-process portability, making them widely applicable in various core areas of the digital society [2] - With support from the Shanghai municipal government, Xinyaohui has introduced a full suite of IP licenses from leading industry players, covering all process nodes from 22nm to 4nm [2] Industry Context - The semiconductor IP industry is currently undergoing dual transformations driven by technological and market changes, particularly with the emergence of new processes and chiplet technology, presenting new opportunities for domestic semiconductor IP manufacturers [2] - The company employs a dual strategy of "self-research + introduction" to provide foundational "root technology" support for the chip industry [2] - The chairman of Xinyaohui emphasized that interface IP is a crucial component for AI computing power, predicting that it will define the competitiveness of AI chips in the next decade [1]

Core Viewpoint - The acquisition of Chiplet by Chip Origin is seen as a strategic move to enhance its position in the RISC-V industry, aiming to become a leading player in this sector while also addressing its own market valuation challenges [2][4][11]. Group 1: Acquisition Details - Chip Origin announced the acquisition of Chiplet, a well-known RISC-V CPU IP supplier, through a combination of stock issuance and cash payment [2]. - Analysts view the acquisition as a win-win situation, with Chip Origin needing to establish itself as a leader in a specific field to enhance its strength [3][11]. - The market reacted positively, with Chip Origin's stock hitting a 20% limit up on the first trading day after the announcement [3]. Group 2: Strategic Implications - The acquisition is expected to have long-term strategic significance for Chip Origin, enhancing its product portfolio, although it may not immediately impact financial performance [4][11]. - There are concerns about how this acquisition might affect Chip Origin's relationships with existing partners, particularly with Arm, as it shifts to a more direct involvement in the RISC-V space [4][15]. - The acquisition aligns with Chip Origin's long-term goal of becoming a leader in the RISC-V industry, which is currently fragmented among a few key players [7][12]. Group 3: Market Position and Financials - Chiplet, established in 2018, has developed numerous IP products and is close to breakeven, making it an attractive target for acquisition [8][10]. - Chiplet's valuation before the acquisition was estimated between 2.5 billion to 3 billion yuan, which is relatively low compared to Chip Origin's market capitalization of nearly 100 billion yuan [10]. - Chip Origin's financial performance shows significant growth in its core businesses, with a notable increase in IP licensing revenue and a record high in orders [20][21]. Group 4: Future Acquisition Plans - Analysts suggest that the acquisition of Chiplet is just one part of Chip Origin's broader strategy, with expectations of further acquisitions to enhance its market position [19][22]. - The company is likely to target other IP companies, particularly in high-speed interface IP, to complement its existing offerings [22]. - The favorable market conditions and Chip Origin's substantial market capitalization provide a strong foundation for future acquisitions [22].