Core Viewpoint - The company has shown steady revenue growth in Q3 2025, but net profit has slightly declined, indicating a need for strategic adjustments to maintain profitability while expanding operations [1]. Financial Performance - For the first three quarters of 2025, the company reported revenue of 1.338 billion yuan, a year-over-year increase of 26%, and a net profit attributable to shareholders of 113 million yuan, up 8% year-over-year. The non-recurring net profit was 103 million yuan, reflecting a 15% increase year-over-year. The gross margin was 20.3%, down 1 percentage point, and the net margin was 8.4%, also down 1 percentage point [1]. - In Q3 2025, revenue reached 483 million yuan, a year-over-year increase of 21% and a quarter-over-quarter increase of 5%. However, the net profit attributable to shareholders was 38 million yuan, down 5% year-over-year and 3% quarter-over-quarter. The non-recurring net profit was 34 million yuan, down 7% year-over-year and 3% quarter-over-quarter. The gross margin was 19.6%, down 3 percentage points year-over-year and 1 percentage point quarter-over-quarter, while the net margin was 7.9%, down 2 percentage points year-over-year and 1 percentage point quarter-over-quarter [1]. Business Development - The company is focusing on the development of complex modules and automotive electronic smart terminals, with the Lingshan base gradually advancing construction to support high-end production lines. The complex modules have begun small-scale supply, marking a breakthrough from zero to one in 2024. These modules integrate various components to create comprehensive solutions for smart home applications [2]. - The automotive electronics segment is experiencing rapid growth, with key clients including BYD, Dongfeng, Wuling, and Changan. The company is enhancing its product offerings with new technologies, such as the LC variable light anti-glare rearview mirror module, which is expected to upgrade the business [2]. - The company is leveraging dual-base collaboration between the Tanwei and Lingshan bases to enhance production capacity. The Tanwei base focuses on flexible production of monochrome LCD modules, while the Lingshan base specializes in large-size TFT automotive and complex modules [2]. Industry Trends - The ASIC and enterprise-level storage sectors are poised for significant growth. The demand for AI inference at the edge is driving ASIC to become a mainstream architecture, with leading manufacturers accelerating their chip development [4]. - The demand for enterprise-level SSDs is being propelled by AI large models and data center construction, with IDC predicting that the global enterprise SSD market will reach $39.6 billion by 2029, and the Chinese market is expected to reach $9.1 billion [4]. - PCM is emerging as a new high-cost-performance storage solution, effectively bridging the performance gap between DRAM and NAND. It has already been commercialized in servers, AI, and cloud computing, showing strong expansion potential [4]. Strategic Investments - The company is actively collaborating with Tianlianxin and Xincun Technology to establish a full-chain layout for ASIC and enterprise-level storage modules. Tianlianxin focuses on ASIC chip development and enterprise-level storage control chips, while Xincun Technology, incubated by Yangtze Memory Technologies, is dedicated to PCM chip design and manufacturing [3][5]. - Tianlianxin has developed a domestic CXL near-storage computing architecture, significantly accelerating AI training and inference performance. The next-generation products are expected to reduce power consumption by 25% and latency by 18% [5]. - Xincun Technology has launched a new generation of memory-level storage chips, achieving significant improvements in performance and reliability, with durability enhanced by over 10 times compared to previous models [5].