Market Performance - As of July 29, the Shanghai Composite Index rose by 0.33% to close at 3609.71 points, the Shenzhen Component Index increased by 0.64% to 11217.58 points, and the ChiNext Index surged by 1.86% to 2406.59 points [1] - The Kweichow Moutai Semiconductor ETF (588170) increased by 1.85%, reaching a new high for the year during intraday trading, while the Semiconductor Materials ETF (562590) rose by 1.03% [1] - In the overnight U.S. market, the Dow Jones Industrial Average fell by 0.46%, the S&P 500 decreased by 0.3%, and the Nasdaq Composite dropped by 0.38% [1] Industry News - NVIDIA's CEO Jensen Huang announced that the Trump administration has granted them an export license, allowing NVIDIA to begin selling H20 chips to the Chinese market. Due to strong demand, NVIDIA has placed an order for 300,000 H20 chips with TSMC, supplementing its existing inventory of 600,000 to 700,000 chips [2] - Micron has launched the industry's highest density radiation-resistant SLC NAND flash memory, designed for extreme environments such as space. This product has passed various rigorous standards and marks Micron's entry into the aerospace-grade edge computing storage market [2] - Anhui Jingmei Photomask Co., Ltd., the first semiconductor photomask company in Anhui, is set to be established with a total investment of 1.195 billion yuan from multiple investors. The technology assets for photomasks will be transferred from Jinghe Integration, and the company will focus on producing photomasks for 28nm and above process nodes [2] AI and Semiconductor Industry Trends - Huatai Securities believes that AI agents have become a "killer application" across various industries, enhancing efficiency and reducing costs while gradually changing business logic and organizational structures. The focus is shifting from "pre-training" to post-training and inference needs, with many companies leveraging foundational models like Deepseek and Qwen for practical AI capabilities [3] - China holds significant advantages in application scenarios and product cost reduction, which may shift the U.S.-China AI industry chain from parallel development to a competitive and cooperative state [3] - The Kweichow Moutai Semiconductor ETF (588170) tracks the Shanghai Stock Exchange's semiconductor materials and equipment theme index, focusing on semiconductor equipment (59%) and materials (25%), which are crucial areas for domestic substitution [3][4]

Core Viewpoint - The company plans to spin off its photomask business into a separate entity, Anhui Jingmei Photomask Co., Ltd., to enhance operational efficiency and market competitiveness in the semiconductor photomask production sector [2][3]. Group 1: Business Strategy - The company aims to establish a dedicated production line for photomasks focusing on semiconductor processes of 28nm and above [2]. - The spin-off is intended to better capture market opportunities, expand production scale, and enhance supply chain stability and industry synergy [3]. Group 2: Intellectual Property and Technology - Anhui Jingmei currently holds 24 patents, including 20 invention patents and 4 utility model patents, with 17 patents already certified and 7 pending [2]. - The company possesses 73 proprietary technologies, which are essential for the operation of photomask equipment and production processes, ensuring product yield [2]. Group 3: Financial Aspects - The estimated value of the transferred photomask-related technology is approximately 27.73 million yuan [2]. - The company plans to raise a total of 1.195 billion yuan through investments from various partners, with the company itself contributing 200 million yuan from its own funds [3].

Core Viewpoint - The company, Hefei Jinghe Integrated Circuit Co., Ltd., is planning to invest in and establish Anhui Jingmei Photomask Co., Ltd. to enhance its photomask production capabilities, which are crucial for the semiconductor industry, particularly for 28nm and above process nodes [1][2][3]. Summary by Sections 1. Overview of Related Transactions - The company is establishing a photomask production line, with the first semiconductor photomask produced in July 2024, filling a gap in Anhui Province [1]. - The investment aims to separate the photomask business for independent operation, enhancing market competitiveness and operational flexibility [2]. 2. Investment Details - The company plans to invest a total of 1.195 billion yuan in Anhui Jingmei, with its own contribution being 200 million yuan, representing a 16.67% equity stake post-investment [3][4]. - The investment will involve multiple investors, including Hefei State-owned Capital Venture Investment Co., Ltd. and Hefei Jianxiang Investment Co., Ltd. [3]. 3. Related Party Transactions - The transaction is classified as a related party investment due to the involvement of companies controlled by the company's major shareholder [4]. - The company has not previously held any equity in Anhui Jingmei, and the transaction does not affect its independence or financial status significantly [4][5]. 4. Financial and Operational Impact - Anhui Jingmei has not yet commenced operations, and its financials currently show zero assets and liabilities [13]. - The investment is expected to enhance the company's supply chain stability and overall competitiveness in the semiconductor industry [22]. 5. Governance and Compliance - The investment proposal has been approved by the company's board and independent directors, ensuring compliance with relevant regulations [23][25]. - The pricing for the investment is deemed fair and reasonable, with no adverse effects on the interests of shareholders, particularly minority shareholders [25].