Summary of Weijie Chuangxin Conference Call Company Overview - **Company**: Weijie Chuangxin - **Industry**: RF Front-End Chip Market, WiFi Technology, Cellular Communication Key Points Financial Performance - In the first half of 2025, Weijie Chuangxin reported a net profit decline, primarily due to intensified competition in the RF front-end chip market and falling product prices. The net profit attributable to shareholders was negative 9.43 million yuan, a year-on-year decrease of 183.72% [2][3] - Revenue for the first half of 2025 was 987 million yuan, down 7.93% year-on-year. However, the second quarter saw a gross margin increase of 6.75 percentage points to 28.02% [2][3] - The company expects full-year revenue growth of 8%-20% in 2025, with sequential revenue increases in the second half [2][7] Product Performance - **RF Power Amplifier Modules**: Revenue reached 789 million yuan, with 5G PA module revenue at 388 million yuan. The second-generation Face 7 Le Plus module showed significant performance improvements [5] - **WiFi Products**: WiFi 7 revenue surpassed that of WiFi 6, with high-power WiFi modules in mass production. The company achieved 19.81% of its main business revenue from receiving end products, totaling 195 million yuan [6][8] - **Automotive Products**: Achieved tens of millions in revenue with excellent gross margins, becoming a growth point [2][6] Market Trends and Strategy - The company is focusing on high-margin products and customized material development to enhance profitability and customer loyalty. The share of low-margin 4G/2G products has decreased significantly [3][9] - There is a clear trend of domestic manufacturers replacing foreign companies in the video front-end business, with an estimated replacement of 200-300 million USD over the next three years [3][16] - The company is actively seeking partnerships or acquisitions with firms that have resource integration advantages [3][15] Future Outlook - The company is advancing from 5G to 6G technology, with ongoing development in the N104 frequency band and plans for the Face 8L SA to enter mass production within the year [11][12] - New applications in emerging fields such as drones and smart gateways are expected to drive significant revenue growth in the coming years [10][12] - The company anticipates stable pricing in the second half of 2025, with no significant declines expected [17] Competitive Landscape - Weijie Chuangxin is positioned as a leading domestic player in the WiFi FEM market, with significant revenue from high-end mobile devices and plans to expand into new sectors like AI companion products and automotive applications [22][23] - The company has made progress with major clients, including Samsung, focusing on new projects and advanced modules [27] Inventory and Supply Chain Management - The company maintains a healthy inventory level, with effective supply chain management to meet future demand and challenges [24][26] Conclusion Weijie Chuangxin is navigating a competitive landscape with strategic product development and market positioning, focusing on high-margin products and emerging technologies to drive future growth. The company is well-prepared for the anticipated shifts in the market and technology landscape.

Core Viewpoint - The company plans to reduce the investment scale and adjust the construction period of the Xianghe Project due to changes in market demand and its own business strategy, aiming to optimize resource allocation and enhance operational efficiency [1][5][6] Fundraising Overview - The company raised a total of RMB 4,999,999,910.00 through a non-public offering of 261,780,100 shares at RMB 19.10 per share, with actual funds received after fees amounting to RMB 4,972,899,910.31 [1] Fund Management - The company has established a dedicated account for the management of raised funds, ensuring compliance with regulations and protecting investor interests [2] Project Investment Scale and Timeline Adjustment - The total investment scale of the Xianghe Project is reduced from RMB 750,516 million to RMB 527,181.46 million, while the construction period is extended from 52 months to 64 months [3][4] Reasons for Investment Scale Reduction - The decision to reduce the investment scale is influenced by a significant change in the electronic industry market, with a focus on high-end markets such as automotive electronics and industrial control, while slowing down the production of small-sized MLCCs [3][4][5] Impact on the Company - The adjustments are expected to enhance management efficiency and resource allocation without adversely affecting the company's normal operations or shareholder interests [5][6] Review Procedures - The board of directors and the supervisory board have approved the proposal to reduce the investment scale and adjust the construction period, which will be submitted for shareholder approval [6]