Summary of Zhengfan Technology Conference Call Company Overview - **Company**: Zhengfan Technology - **Industry**: Semiconductor and Emerging Industries Key Points Financial Performance - In the first half of 2025, Zhengfan Technology achieved a revenue of **2.02 billion** yuan, representing a year-on-year growth of **8.9%** [3] - The net profit attributable to shareholders was **90 million** yuan, a decline of **10%** year-on-year [3] - Revenue from the semiconductor sector accounted for **56.9%**, with a year-on-year increase of **6.9%** [2][3] - Revenue from emerging industries made up **18.5%**, growing by **7.2%** year-on-year [2][3] - Non-equipment business revenue constituted **37.3%**, reflecting a growth of **6.3%** compared to the previous year [3] Strategic Initiatives - The company focused on core business and leading industry clients to enhance competitiveness and market penetration [2][4] - Zhengfan Technology successfully expanded its OPEX business through its CAPEX operations, significantly increasing the share of non-equipment business [2][4] - The acquisition of **Hanxin Semiconductor** shares strengthened domestic substitution and enhanced competitiveness in core semiconductor components [2][4] Market Expansion - The company made significant progress in exploring new markets, exceeding management expectations, indicating strong growth potential in global markets [2][4] - Plans to increase investment in overseas markets and accelerate international expansion to improve the overseas business share [6] Competitive Strategy - In response to intense market competition, Zhengfan Technology emphasized continuous innovation, optimized capacity layout, and improved accounts receivable management [7] - Adjustments in order structure were made to mitigate negative impacts from the photovoltaic industry's cyclical nature [7] - The issuance of convertible bonds was utilized to support the development of emerging fields such as gases, advanced materials, and biopharmaceutical equipment [7] Talent Development - The company prioritizes talent reserve, training, and incentives, launching the second phase of the employee stock ownership plan at the end of 2024, granting approximately **6.1 million** repurchased shares to core employees [8][9] Future Outlook - Zhengfan Technology will continue to implement a three-dimensional business expansion strategy focusing on CAPEX and OPEX growth, industry resource utilization, and cross-industry application of core technologies [6] - The company aims to ensure the timely completion of ongoing projects and the release of production capacity from completed projects [6] Geopolitical Considerations - The current geopolitical landscape presents both unprecedented opportunities and unpredictable challenges for Zhengfan Technology [10] - The company is equipped with clear strategic goals, a pragmatic roadmap, and a strong team to navigate through these changes [10]