Core Viewpoint - The company, Aojie Technology (688220), is experiencing growth in its custom chip business, with expectations for significant revenue increases in the coming years, particularly in 2026. Group 1: Business Model and Revenue Recognition - The company employs a Turnkey model for its custom chip business, providing comprehensive services from design to mass production, with revenue recognized upon client acceptance after project completion, typically taking 1 to 2 years [2] - During the mass production phase, the company charges based on a cost-plus principle, and the revenue from these sales is included in the custom chip business segment, not in self-developed chip sales [3] Group 2: Order Status and Revenue Forecast - The company has a strong order backlog in its custom chip business, with expectations for revenue to grow significantly in 2026 compared to 2024, although specific client details cannot be disclosed due to confidentiality agreements [4] Group 3: Product Development and Market Position - The company is focusing on developing wearable and cloud inference chips in collaboration with internet companies [5] - The company has advantages in AP (Application Processor) design, with expertise in complex chip designs and proprietary modules for graphics, image, and signal processing, positioning itself to meet demands in automotive and robotics sectors [6] Group 4: Market Outlook and Performance - The company is optimistic about the RISC-V server chip market and has initiated collaborations with several enterprises in this area, expecting strong sales growth in the second half of the year, traditionally a peak season for the semiconductor industry [7] - The company is advancing its 5G smartphone chip, which is in the late stages of development and is expected to enhance its product lineup starting in the second half of next year [10] Group 5: Financial Performance - For the first half of 2025, the company reported a main revenue of 1.898 billion yuan, a year-on-year increase of 14.67%, while the net profit attributable to shareholders was -245 million yuan, up 7.29% year-on-year [13] - The company’s gross margin stands at 24.72%, with a debt ratio of 16.05% [13] Group 6: Analyst Ratings and Predictions - Recent analyst reports indicate a positive outlook for the company, with three institutions giving buy ratings and a target price averaging 136.7 yuan [14]