Core Viewpoint - Huatian Technology plans to invest 2 billion yuan to establish an advanced packaging and testing company, Huatian Advanced, focusing on 2.5D/3D packaging technology, in response to the growing demand in the semiconductor industry [1][2]. Company Summary - Huatian Technology announced on August 1 that it will set up a wholly-owned subsidiary, Nanjing Huatian Advanced Packaging Co., Ltd., with a total registered capital of 2 billion yuan [2]. - The investment will be shared among Huatian Technology (Jiangsu) Co., Ltd. (1 billion yuan, 50%), Huatian Technology (Kunshan) Electronics Co., Ltd. (665 million yuan, 33.25%), and Huatian Advanced No. 1 (Nanjing) Equity Investment Partnership (335 million yuan, 16.75%) [2]. - The establishment of Huatian Advanced aims to enhance the company's competitiveness in the advanced packaging sector and expand its market share [2]. Industry Summary - The advanced packaging market is expected to grow significantly, with a projected revenue of 56.9 billion USD in 2025, representing a 9.6% year-on-year increase [3]. - By 2028, the market size is anticipated to reach 78.6 billion USD, with a compound annual growth rate (CAGR) of 10.05% from 2022 to 2028 [3]. - The advanced packaging market is predicted to surpass traditional packaging for the first time in 2027, driven by increasing demands in high-performance computing, AI, data centers, and 5G communications [3].

Group 1: Financial Performance - The company achieved a revenue of 955,879.09 million CNY, representing a year-on-year growth of 12.27% [2] - The net profit attributable to shareholders was 3,251.46 million CNY, a decrease of 32.26% compared to the previous year [2] - The decline in profit was primarily due to a decrease in product prices leading to lower gross margins, an increase in financial expenses by 19.71 million CNY due to exchange rate impacts, and non-recurring gains affecting net profit by approximately 16.28 million CNY from government subsidies [3] Group 2: Profit Distribution - The proposed profit distribution plan for 2024 is to distribute a cash dividend of 0.4 CNY per 10 shares, totaling 12,659,810.60 CNY (tax included) based on a total share capital of 327,551,705 shares, after deducting repurchased shares [3] Group 3: Business Strategy and Outlook - The company is considering optimizing its business structure by eliminating underperforming assets and retaining high-value assets to enhance overall company value [2] - There are ongoing efforts to improve gross margins, control costs, and explore new business growth points to achieve profitability in the second quarter of 2025 [3] - The collaboration with Kunshan Risen Technology is focused on advancing customer resources, technology, and processes for chip packaging projects [3] Group 4: Investor Relations - The investor relations activity was held online on May 13, 2025, with participation from key executives including the Chairman and General Manager, Wan Feng, and the Vice General Manager and CFO, Li Yuyuan [2] - The company will announce any future capital operations in a timely manner [2]