Core Viewpoint - Cambrian Technologies has established a wholly-owned subsidiary, Cambrian Intelligent Computing Technology (Beijing) Co., Ltd., with a registered capital of 100 million RMB, focusing on integrated circuit design and manufacturing [1][2]. Group 1: Company Establishment - The new subsidiary is fully owned by Cambrian Technologies and aims to enhance its capabilities in integrated circuit design, chip manufacturing, and related services [1][3]. - The establishment of the subsidiary is part of Cambrian's strategy to strengthen its presence in the AI chip and computing infrastructure sectors [3]. Group 2: Business Scope and Objectives - The business scope of the new company includes integrated circuit sales, design, manufacturing, and technical services, which aligns with Cambrian's focus on AI chips and computing platforms [2][3]. - The subsidiary is expected to improve local service capabilities and delivery efficiency by being closer to key customers and application scenarios in Beijing, which is rapidly developing its AI and computing infrastructure [3]. Group 3: Industry Context - Cambrian Technologies specializes in AI chips and foundational system software, with products that support data centers, edge computing, and smart terminals [3]. - The company is expanding its industry chain layout to enhance its competitiveness in the domestic AI computing industry [3].

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company reported a significant revenue growth of 2386.38% year-on-year for the first three quarters, achieving a revenue of 4.607 billion yuan and a net profit of 1.605 billion yuan, marking a turnaround from a loss of 724 million yuan in the same period last year [1] - The company expects a revenue range of 5 to 7 billion yuan for the year 2025, supported by continuous inventory growth to ensure future deliveries [2] - The successful completion of a private placement raised 3.985 billion yuan, with funds allocated for the development of new platforms, including a chip platform for large models and a software platform [3] - The company is well-positioned to meet the growing demand in the AI industry, with an upward revision of revenue forecasts for 2025-2027 to 6.773 billion, 12.185 billion, and 20.1 billion yuan respectively [4] Summary by Sections Financial Performance - For the first three quarters, the company achieved a revenue of 4.607 billion yuan, with a net profit of 1.605 billion yuan, compared to a loss of 724 million yuan in the previous year [1] - The gross margin for the first three quarters was 55.29%, with a net margin of 34.81% [2] - The company’s inventory reached 3.729 billion yuan by the end of the third quarter, an increase of approximately 1.04 billion yuan from the previous quarter [2] Future Projections - The company forecasts a revenue of 5 to 7 billion yuan for 2025, with a significant increase in revenue expected in the following years [2] - Revenue projections for 2025-2027 have been revised to 6.773 billion, 12.185 billion, and 20.1 billion yuan, reflecting a growth rate of 476.7%, 79.9%, and 65.0% respectively [4][12] Investment and Development - The company completed a private placement, raising 3.985 billion yuan, with 2.054 billion yuan allocated for chip platform projects and 1.452 billion yuan for software platform projects [3] - The company has launched the DeepSeek-V3.2-Exp, achieving Day 0 adaptation and optimizing performance through advanced development techniques [3] Profitability Forecast - The company is expected to achieve a net profit of 2.09 billion yuan in 2025, with significant growth projected in subsequent years [14] - The earnings per share (EPS) is projected to reach 5.00 yuan in 2025, increasing to 20.41 yuan by 2027 [5][16]

Core Viewpoint - The announcement of the largest private placement in A-share history by Cambricon (688256.SH) aims to raise approximately 3.985 billion yuan to enhance its competitive strength in AI chip and software technology for large model applications [1][2]. Group 1: Private Placement Details - Cambricon plans to issue 3.3349 million shares at a price of 1195.02 yuan per share, raising a total of 3.985 billion yuan, with a net amount of 3.953 billion yuan [1]. - The new shares will be tradable on the Shanghai Stock Exchange's Sci-Tech Innovation Board after a six-month lock-up period [1]. - This issuance will not change the company's control, with Dr. Chen Tian Shi remaining the controlling shareholder [1]. Group 2: Institutional Participation - The private placement attracted 13 institutions, including GF Fund, UBS AG, and Xinhua Asset, with GF Fund acquiring 1,010,861 shares for a total of 1.208 billion yuan [2]. - Other notable public funds such as Huatai-PineBridge, E Fund, and Harvest also participated in the offering [2]. Group 3: Business Impact and Financial Performance - The funds raised will significantly enhance Cambricon's capabilities in the large model market, allowing for rapid development of tailored chip and software solutions [2]. - Cambricon's main business involves the research, design, and sales of AI core chips for various applications, including cloud servers and edge computing devices [2]. - In Q3 2025, Cambricon reported a revenue of 1.727 billion yuan, a year-on-year increase of 1332.52%, and a net profit of 567 million yuan, up 391.47% year-on-year [3]. - For the first three quarters, total revenue reached 4.607 billion yuan, a year-on-year increase of 2386.38%, with a net profit of 1.605 billion yuan, up 321.49% [3]. - However, there was a quarter-on-quarter revenue decline of 2.4% and a net profit decrease of 17% in Q3 compared to Q2 [3]. - As of the end of Q3, the company's inventory was 3.729 billion yuan, a 38.62% increase from the previous quarter [3].

Core Viewpoint - The company, Cambricon Technologies, is focused on raising funds for projects related to AI chip innovation and software platforms to enhance its competitiveness in the AI industry [1][15]. Group 1: Company's Main Business - The company specializes in the research, design, and sales of AI core chips used in various applications such as cloud servers, edge computing devices, and terminal devices [1]. - Main products include cloud-based intelligent chips, edge intelligent chips, and terminal intelligent processors, along with supporting system software [1]. Group 2: Fundraising Plan - The company plans to raise up to 3,985.3273 million yuan through a private placement of A-shares, with the funds allocated to projects focused on large model chip platforms, software platforms, and working capital [1][2]. - The total investment for the projects is estimated at 4,980 million yuan, with the raised funds covering 3,985.3273 million yuan after deducting issuance costs [1][2]. Group 3: Project Details and Feasibility - The fundraising projects aim to innovate smart processors for large model technology, including chips for training, inference, and multi-modal tasks [2][3]. - The implementation of these projects is deemed necessary to support the rapid growth of the AI industry and meet the increasing demands for computing power from large models [3][4]. - The projects align with national policies promoting AI and high-end chip development, providing a favorable environment for their execution [4][12]. Group 4: Software Platform Development - The company recognizes the importance of developing a robust software platform to enhance the usability and adaptability of its AI chips, which is crucial for large model applications [8][9]. - The software platform will facilitate the integration of hardware and algorithms, optimizing performance and expanding application areas [10][11]. - The company has established a foundation for an open service capability, supporting developers in utilizing its products effectively [13]. Group 5: Use of Funds for Working Capital - Part of the raised funds, amounting to 478.9702 million yuan, will be used to supplement working capital, addressing the growing operational funding needs as the company expands [14]. - This allocation is expected to enhance the company's financial stability and support ongoing technological innovation [14]. Group 6: Commitment to Technological Innovation - The fundraising initiatives are closely aligned with the company's commitment to technological innovation in the AI chip sector, aiming to enhance design capabilities and software technology reserves [15][16]. - The company plans to continue improving product efficiency and usability through ongoing technological advancements [15].