Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The report highlights that the company, Visionary Technology, has become one of the few global enterprises with full-stack self-research capabilities in silicon-based OLED technology, including display chips, micro-displays, and optical systems [3][15] - Visionary Technology is the first company globally to achieve mass production of silicon-based OLED micro-displays using 12-inch wafer backplanes, positioning itself as a key player in China's silicon-based OLED industry [3][15] - The company's silicon-based OLED micro-displays are expected to benefit significantly from the rapid growth of the XR (Extended Reality) market, with a projected compound annual growth rate (CAGR) of 67.3% from 2024 to 2030 [7][8] Summary by Sections Company Overview - Visionary Technology has established itself as a leading provider of micro-display solutions, with its core product being silicon-based OLED micro-displays [15] - The company has been recognized as a national leader in the new display industry chain and is tasked with enhancing the resilience and security of the supply chain [3][15] Financial Performance - From 2022 to 2024, the company's revenue from silicon-based OLED micro-displays is projected to increase from 61.71% to 79.70% of its total revenue, indicating its core product's growing importance [4][32] - The company's total revenue for 2022, 2023, and 2024 is expected to be 190.39 million, 215.45 million, and 280.06 million yuan respectively, with a significant portion coming from its main business [32][37] Market Position and Strategy - Visionary Technology has formed deep partnerships with major clients in the XR field, which is crucial for future bulk orders [4][7] - The company has a strategic focus on developing high-performance silicon-based OLED micro-displays that meet the increasing demands of the XR industry, outperforming traditional silicon-based OLED manufacturers [3][4] Industry Trends - The global XR device market is expected to grow from 31.89 billion yuan in 2024 to 700.04 billion yuan by 2030, with silicon-based OLED technology being the only mass-produced display technology applicable to both AR and VR industries [7][8] - The report indicates that the silicon-based OLED display market is projected to grow from 390 million yuan in 2020 to 1.27 billion yuan in 2024, with a CAGR of 34.3% [8] Customer Base - Visionary Technology has established itself as a strategic supplier for numerous leading clients, including ByteDance and Lenovo, with significant market share in the XR device sector [7][18] - The company has contracts with major clients that ensure a steady demand for its products, contributing to its revenue growth [7][18]

Core Viewpoint - GoerTek announced a significant investment through its subsidiary Hong Kong GoerTech, providing up to $100 million in a secured loan to Haylo Labs Limited for the acquisition of Plessey Semiconductors Limited, aiming to advance Micro-LED technology and support AI smart glasses and AR business development [1][2] Group 1: Investment Details - The loan from Hong Kong GoerTech to Haylo has an annual interest rate of approximately 6.34%, with a five-year term and interest paid annually [2] - Haylo must sign a share transfer agreement with Plessey's original shareholders as a condition for using the loan funds [2] - In the event of Haylo or Plessey being acquired or going public, Hong Kong GoerTech will recover the loan principal and interest, plus 25% of the total acquisition value or market capitalization [2] Group 2: Plessey Overview - Plessey, established in 2000, is recognized in the Micro-LED sector and has developed a high-brightness Micro-LED display specifically for AR glasses [3] - Plessey's projected revenue for the fiscal year 2024 is $74.79 million, with a net profit of $12.41 million, and for fiscal year 2025, revenue is expected to be $72.72 million with a net profit of $2.80 million [3] - As of June 30, 2025, Plessey's total assets are estimated at $119 million, with shareholder equity of $2.33 million [3] Group 3: Financial Assessment - GoerTek believes Plessey's debt repayment capability is better than indicated by its balance sheet, with fair value of assets covering the loan amount [4] - Plessey is currently profitable and is expected to improve its financial performance as the global market for AI smart glasses and AR products grows rapidly [4] - GoerTek, a leader in the acoustic industry, has a strong presence in smart hardware sectors, including VR, MR, and AR, and anticipates a new wave of rapid development in AR products in the coming years [4]

Core Viewpoint - Shiya Technology Co., Ltd. has changed its review status to "inquired" as it plans to raise approximately 2.015 billion yuan for its IPO on the Shanghai Stock Exchange's Sci-Tech Innovation Board [1] Company Overview - Shiya Technology was established in October 2016 and was previously known as Shanghai Shiya Information Technology Co., Ltd. It relocated to Hefei, Anhui Province, in August 2019 and was renamed Hefei Shiya Technology Co., Ltd. before becoming a joint-stock company in May 2022 [3] - The company specializes in micro-display solutions, with its core product being silicon-based OLED micro-displays, and offers value-added services including strategic product development and optical systems [10] Financial Performance - Revenue for Shiya Technology was approximately 190 million yuan in 2022, 215 million yuan in 2023, and projected to be 280 million yuan in 2024. However, the company reported net losses of approximately 247 million yuan, 304 million yuan, and 247 million yuan for the same years [10] - The company has maintained a high R&D investment ratio, with R&D expenditures of approximately 237 million yuan, 287 million yuan, and 269 million yuan over the past three years, representing 95.93%, 133.35%, and 124% of its revenue respectively [11] Market Position - According to a report by Frost & Sullivan, Shiya Technology is one of only two manufacturers that achieved million-level shipments in the silicon-based OLED product market in 2024, ranking second globally with a market share of 35.2% [3] - Sony leads the market with a 50.8% share, indicating a competitive landscape in the XR device sector [3] Shareholding Structure - The largest shareholder, Shanghai Jishan Management Consulting Co., Ltd., holds 15.61% of the shares, while other significant shareholders include Wuhan Jingce Electronics Group Co., Ltd. (6.02%) and Goertek Inc. (5.4%) [4] - The actual controller of Shiya Technology is Gu Tie, who holds significant voting rights through Shanghai Jishan, controlling 61.79% of the voting rights [10][12]

Core Viewpoint - The company, Visionary Technology Co., Ltd., has had its IPO application accepted by the Shanghai Stock Exchange, indicating a significant step towards public listing despite ongoing financial losses and high customer concentration risks [1][3]. Financial Performance - For the reporting period from 2022 to 2024, Visionary Technology is projected to achieve revenues of approximately 190 million yuan, 215 million yuan, and 280 million yuan respectively, while incurring net losses of 247 million yuan, 304 million yuan, and 247 million yuan, totaling a cumulative loss of about 798 million yuan [1][2]. - The company's total assets are expected to grow from 2.26 billion yuan in 2022 to 3.15 billion yuan by the end of 2024, while the equity attributable to shareholders is projected to decrease from 1.56 billion yuan in 2022 to 2.16 billion yuan in 2024 [2]. - The operating revenue for 2024 is estimated at 280 million yuan, up from 215 million yuan in 2023 and 190 million yuan in 2022 [2]. Cash Flow and Investment - The company has faced negative cash flow from operating activities, with net cash flows of -223 million yuan, -287 million yuan, and -75.62 million yuan over the reporting periods [3]. - A significant portion of revenue is allocated to research and development, with R&D expenses accounting for 95.93% of operating revenue in 2024, indicating a strong focus on innovation [2]. Customer Concentration and Market Position - Visionary Technology has a high customer concentration, with the top five customers contributing 75.59%, 76.62%, and 73.61% of total revenue in the respective years [3]. - The company has established strategic partnerships with key players in the XR field, which are crucial for future financial performance and operational development [3]. Risks and Challenges - The company faces risks related to project completion, production capacity, and market demand fluctuations, which could adversely affect future operations and profitability [4].