Core Viewpoint - The company, Saiwei Electronics, has sold the control of its core subsidiary, Silex Microsystems AB, to mitigate risks associated with the increasingly complex international geopolitical environment, receiving approximately 1.783 billion RMB from the transaction [1][2][5]. Financial Performance - In 2024, Silex contributed 71.60% of Saiwei's total revenue, amounting to 863 million RMB [2][5]. - Since its listing over ten years ago, Saiwei has reported a cumulative net profit of 629 million RMB, with a loss of 170 million RMB in 2024 [2]. - The company has raised a total of 3.868 billion RMB through equity financing and distributed only 155 million RMB in cash dividends [3][11]. Transaction Details - The transaction involved the sale of 4.4101 million shares of Silex, representing 45.24% of the company, for a total valuation of 5.25 billion SEK (approximately 3.942 billion RMB) [5]. - Prior to the sale, Silex had distributed dividends of 250 million SEK to Saiwei [5]. Business Operations - Saiwei's primary business includes MEMS chip process development and wafer manufacturing, with significant operations in both Sweden and Beijing [6]. - Following the sale, Silex will remain a subsidiary, but Saiwei will focus on its Beijing operations, which are expected to expand production capacity from 15,000 to 30,000 wafers per month [6]. Management Actions - The actual controller of Saiwei, Yang Yunchun, has reportedly cashed out approximately 2.37 billion RMB through various means, including share reductions [4][13]. - Yang's shareholding has decreased from 45.58% in Q3 2019 to 24.46% by Q1 2025 [14].

Core Viewpoint - The company Saimo Electronics has completed the transfer of control of its wholly-owned subsidiary Silex Microsystems AB to seven trading parties, marking a significant asset restructuring without constituting a related party transaction [1][4]. Group 1: Transaction Details - The transaction involved the sale of 4.41 million shares of Silex Microsystems, with an initial valuation of 5.525 billion Swedish Krona, adjusted to a final valuation of 5.25 billion Swedish Krona (approximately 3.94 billion RMB) [5]. - The final payment for the transaction amounted to 2.375 billion Swedish Krona (approximately 1.783 billion RMB) after deducting intermediary fees and adding interest [5][6]. - Following the transaction, Saimo Electronics retains a 45.24% stake in Silex Microsystems, which will now be classified as an associate company [4][3]. Group 2: Strategic Considerations - The decision to sell control of Silex Microsystems was influenced by the increasingly complex international geopolitical environment, which posed uncertainties for the subsidiary [8]. - The company aims to maximize the value of Silex Microsystems while avoiding potential value loss, as the subsidiary is an important overseas operational entity for MEMS chip development and wafer manufacturing [7][8]. - Despite the sale, Saimo Electronics maintains that its core business in MEMS chip development and wafer manufacturing remains unchanged, and the transaction provides substantial funds for future investments and acquisitions [9]. Group 3: Financial Performance - In the first quarter of the year, Saimo Electronics reported revenue of 264 million RMB, a year-on-year decrease of 2.24%, with a net profit of 2.6421 million RMB, indicating a turnaround from previous losses [9]. - As of July 25, the company's stock price was 17.88 RMB per share, with a total market capitalization of 13.09 billion RMB [9].

Core Viewpoint - The company has completed the transfer of control of its wholly-owned subsidiary, Silex Microsystems AB, to Bure Equity AB and Creades AB, marking a significant asset restructuring without constituting a related party transaction [1][6]. Group 1: Transaction Details - The transaction involved the sale of 4.41 million shares of Silex Microsystems, with an initial valuation of 5.525 billion Swedish Krona, adjusted to a final valuation of 5.25 billion Swedish Krona (approximately 3.94 billion RMB) after deductions [7][8]. - The final payment for the shares amounted to 2.375 billion Swedish Krona (approximately 1.783 billion RMB), with the total payment after fees and interest being 2.382 billion Swedish Krona (approximately 1.788 billion RMB) [8][9]. Group 2: Strategic Rationale - The decision to sell control of Silex was influenced by increasing uncertainties due to the complex international geopolitical environment, aiming to preserve the company's interests and avoid potential value loss [10][12]. - Post-transaction, Silex will become an associate company of the firm, retaining a 45.24% stake, while the company will continue to focus on its core MEMS chip development and wafer manufacturing business [6][12]. Group 3: Financial Performance - In the first quarter, the company reported revenues of 264 million RMB, a year-on-year decline of 2.24%, with a net profit of 2.6421 million RMB, indicating a turnaround from previous losses [12]. - As of July 25, the company's stock price was 17.88 RMB per share, with a total market capitalization of 13.09 billion RMB [13].

Summary of the Conference Call Company Overview - The company, Lingyun Optical, operates primarily in the optical communication and visual systems sectors, with optical communication accounting for 30% of its revenue. It focuses on high-end foreign products and is actively developing next-generation computing center products like OCS all-optical switches and optical chips to support domestic AI computing center construction [2][3]. Key Industry Insights Optical Communication - The optical communication business is stable, representing 30% of total revenue, with products such as 400G, 800G, and 1.6T optical modules and switches being sold domestically [3]. Consumer Electronics - The consumer electronics sector, which serves major clients like Apple and Huawei, generated approximately 700 million yuan last year, accounting for over 40% of the visual business. The demand for optical motion capture has increased significantly, rising from 10% to 30-40% due to the domestic production of components for Huawei's Mate series [4][5]. Printing and Packaging - The printing and packaging segment contributes 20% of the company's revenue, with a growth rate expected to exceed 30% this year. The business focuses on soft packaging inspection, including high-speed scanning and AI software algorithms for quality control [6]. New Energy Sector - The lithium battery business is showing signs of recovery, with increased demand for visual components and inspection equipment, while the photovoltaic sector faces challenges but is expected to recover gradually [7]. Digital Human Project - The digital human project, in collaboration with Zhipu, is progressing well, with a focus on enhancing the optical motion capture product line. The revenue from this product line is expected to increase significantly this year [8]. Scientific Imaging and Semiconductor Business - The scientific imaging and device business has made significant progress, with semiconductor revenue exceeding 100 million yuan. The acquisition of a Danish company has positively impacted the semiconductor segment, contributing over 20% to total revenue [11]. Additional Insights Market Growth Projections - The domestic motion capture market is projected to reach approximately 800 million yuan by 2025, with an annual growth rate of 20-30%, driven by smart manufacturing and unmanned systems [4][28]. Customer Base and Trends - The customer base has shifted from primarily universities to more local enterprises, indicating a growing demand for the company's solutions in various industries [25]. Competitive Advantages - The company's products are competitively priced compared to foreign brands, which are often three to four times more expensive. The company offers a complete data acquisition toolchain, integrating various data types for customer convenience [19][20]. R&D and Workforce - The company has over 100 employees, with more than half dedicated to research and development, indicating a strong focus on innovation [24]. Strategic Developments - The acquisition of AIT has led to a tighter integration of operations and a shift to a calendar year for production cycles, enhancing quality standards and market responsiveness [26]. Conclusion Lingyun Optical is well-positioned in the optical communication and visual systems markets, with strong growth prospects across various sectors, particularly in consumer electronics and motion capture technologies. The company's strategic focus on R&D and competitive pricing enhances its market position, while ongoing collaborations and acquisitions are expected to drive future growth.