Core Viewpoint - The article discusses the termination of a major asset restructuring by Chip Origin Co., Ltd. (芯原股份), which was set to acquire a 97.0070% stake in Chip Lai Zhirong Semiconductor Technology (芯来智融) due to misalignment of key demands and market conditions [4][6][8]. Group 1: Termination of Asset Restructuring - Chip Origin announced the termination of the acquisition of Chip Lai Zhirong, citing discrepancies between the management's core demands and the interests of the company and its shareholders [4][6]. - The company emphasized that this termination will not adversely affect its normal business operations or harm the interests of shareholders, particularly minority shareholders [8][9]. - Following the termination, Chip Origin committed to not planning any major asset restructuring for at least one month and will hold an investor briefing on December 18, 2025 [8]. Group 2: Company Performance and Market Position - Chip Origin has seen a remarkable stock performance, with a year-to-date increase of over 184%, bringing its market capitalization to approximately 783.7 billion yuan [4][9]. - The company specializes in providing comprehensive chip customization services and semiconductor IP licensing, with a strong focus on RISC-V architecture [11]. - In the first three quarters of 2025, Chip Origin reported revenues of 2.255 billion yuan, a year-on-year increase of 36.64%, and a significant growth in new orders, particularly in AI computing [12].

Core Viewpoint - The major asset restructuring plan of Chip Origin Technology has been abruptly terminated due to discrepancies between the core demands of the management and the transaction counterpart and the market environment, policy requirements, and the interests of the company and all shareholders [2][5][7]. Group 1: Termination of Major Asset Restructuring - On December 12, Chip Origin Technology announced the termination of its acquisition of 97.0070% equity in Xinlai Zhiyuan Semiconductor Technology [2][5]. - The termination was agreed upon after careful consideration to protect the interests of the company and all shareholders, as the key demands from Xinlai Zhiyuan's management did not align with market conditions and policy requirements [5][7]. - The company stated that this termination will not adversely affect its normal business operations and will not harm the interests of shareholders, especially minority shareholders [7]. Group 2: Company Performance and Market Position - As of December 12, Chip Origin Technology's stock price had increased by over 184% year-to-date, with a total market capitalization of 783.7 billion [2][8]. - The company specializes in providing platform-based, comprehensive, and one-stop chip customization services and semiconductor IP licensing, with a focus on RISC-V architecture [10]. - In the first three quarters of this year, the company achieved revenue of 22.55 billion, a year-on-year increase of 36.64%, while the net profit attributable to shareholders was a loss of 3.47 billion, a reduction of 4915.88 million compared to the previous year [10]. Group 3: Future Plans and Collaborations - Chip Origin Technology plans to continue strengthening its layout in the RISC-V field and will maintain and deepen its cooperative relationship with Xinlai Zhiyuan as a shareholder [7]. - The company aims to expand collaborations with multiple RISC-V IP core suppliers to promote the rapid development of the RISC-V ecosystem in China [7]. - The company has reported a significant increase in new orders, with 15.93 billion in new orders signed in the third quarter of 2025, a year-on-year growth of 145.80%, with AI computing-related orders accounting for approximately 65% [11].

Core Viewpoint - The company reported a significant decline in overall revenue for the first three quarters of 2025, primarily due to fluctuations in demand from downstream customers, while the chip design business showed growth [3]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 468 million yuan, a year-on-year decrease of 45.74% [3]. - The chip design business generated a revenue of 239 million yuan, reflecting a year-on-year increase of 24.24% [3]. - The chip volume business reported a revenue of 229 million yuan, down 65.83% year-on-year, attributed to demand fluctuations [3]. - In Q3 2025, the company recorded a revenue of 186 million yuan, a quarter-on-quarter increase of 30.28% [3]. - The chip design business in Q3 2025 achieved a revenue of 97 million yuan, up 49.44% quarter-on-quarter [3]. - The chip volume business in Q3 2025 reported a revenue of 89 million yuan, a quarter-on-quarter increase of 14.23% [3]. - As of September 30, 2025, the company had an order backlog of 872 million yuan, with 289 million yuan from the chip design business and 582 million yuan from the chip volume business [3]. Governance and Compliance - The company’s board of directors and senior management confirmed the accuracy and completeness of the quarterly report, assuming legal responsibility for its content [2]. - The company revised certain governance systems to comply with regulatory requirements and improve corporate governance [7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 250 RMB, indicating a potential upside from the current price of 183 RMB [1][9]. Core Insights - The company has experienced significant revenue growth, with a 79% year-over-year increase and a 120% quarter-over-quarter increase in Q3 2025, reaching a historical high of 1.28 billion RMB [9][12]. - The company is positioned as a leading IP enterprise in China, focusing on key application areas such as Chiplet technology, AI technology, and Risc-V architecture, which are expected to drive future growth [9][12]. - The company has seen a rapid increase in new orders, with a 146% year-over-year growth in Q3 2025, indicating strong demand driven by AI computing needs [12]. Summary by Sections Company Overview - The company operates in the electronics industry, with a current A-share price of 183 RMB and a market capitalization of 91.66 billion RMB [2]. Recent Ratings - The company has consistently received "Buy" ratings in recent evaluations, with the latest rating issued on August 25, 2025 [3]. Product Mix - The revenue breakdown includes 43.4% from chip volume business, 33.5% from IP licensing fees, 17.8% from chip design services, and 5.3% from royalties [4]. Financial Performance - The company forecasts revenues of 3.06 billion RMB, 4.25 billion RMB, and 5.39 billion RMB for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 32%, 39%, and 27% [12][16]. - The net profit is projected to turn positive in 2025, with estimates of 26 million RMB, 155 million RMB, and 245 million RMB for the years 2025, 2026, and 2027, respectively [11][12]. Cash Flow and Balance Sheet - The company is expected to generate positive cash flow from operating activities starting in 2026, with a net increase in cash and cash equivalents projected for the following years [18]. - Total assets are projected to grow from 52.64 billion RMB in 2025 to 68.42 billion RMB in 2027, reflecting a strong balance sheet [17].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [9][15]. Core Insights - The company is recognized as the leading IP enterprise in China, leveraging its IP resources and R&D capabilities to provide comprehensive chip customization services from design to mass production. The growth in its volume business and new orders reflects the increasing demand driven by AI and IoT [9]. - The company is expected to benefit from the ongoing transformation in the industry, particularly as internet firms continue to invest in AI computing capabilities, enhancing their specialized processing chip (ASIC) strategies [9]. - The stock is currently trading at a price-to-sales (P/S) ratio of 11 times for 2027, maintaining the "Buy" recommendation based on significant performance potential [9]. Financial Performance Summary - For Q2 2025, the company anticipates a revenue of 584 million RMB, representing a 49.9% quarter-over-quarter increase but a 4.7% year-over-year decline. The IP licensing revenue is expected to be 187 million RMB, up 99.6% quarter-over-quarter and 17% year-over-year [12]. - The company has a robust order backlog of 3.025 billion RMB, which has remained high for seven consecutive quarters, providing a solid foundation for future revenue growth [12]. - Revenue projections for 2025-2027 are 3.067 billion RMB, 3.384 billion RMB, and 4.740 billion RMB, with year-over-year growth rates of 32%, 25%, and 23% respectively. Net profits are forecasted to be -26 million RMB, 53 million RMB, and 201 million RMB for the same period [12][11]. Shareholder Information - The major shareholder is Xinyuan Co., Ltd., holding 14.40% of the shares. The company has a total market capitalization of 47.326 billion RMB, with 525.71 million shares issued [2]. - The stock price as of August 1, 2025, was 94.49 RMB, with a 12-month high of 111 RMB and a low of 24.45 RMB [2]. Product Mix - The company's revenue composition includes 43.4% from chip volume business, 33.5% from IP licensing fees, 17.8% from chip design services, and 5.3% from royalties [4]. Market Position - The company has a significant presence among institutional investors, with 29.7% of the circulating A-shares held by funds [6]. The stock has shown a strong performance relative to the market, with a 181.7% increase over the past year [2].