Core Viewpoint - Langke Technology, a leader in flash memory applications and mobile storage technology, is positioned to benefit from the global increase in electronic device shipments and data center construction, despite current financial challenges [5]. Group 1: Company Overview - Langke Technology was established on May 14, 1999, and listed on the Shenzhen Stock Exchange on January 8, 2010, with its headquarters in Shenzhen, Guangdong Province [1]. - The company is recognized as the inventor of the flash drive and holds leading global technology and patents in flash applications and mobile storage, with products sold in over 60 countries [1]. Group 2: Financial Performance - For Q3 2025, Langke Technology reported revenue of 795 million yuan, ranking 24th out of 63 in the industry, while the industry leader, Inspur Information, had revenue of 120.67 billion yuan [2]. - The net profit for the same period was -29.10 million yuan, placing the company 47th in the industry, with the top performer, Inspur Information, reporting a net profit of 1.49 billion yuan [2]. Group 3: Financial Ratios - As of Q3 2025, Langke Technology's debt-to-asset ratio was 22.30%, an increase from 14.78% year-on-year, which is below the industry average of 34.38%, indicating relatively low debt pressure [3]. - The company's gross profit margin for Q3 2025 was 7.90%, down from 9.84% year-on-year, and below the industry average of 34.46%, suggesting a need for improvement in profitability [3]. Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 1.52% to 33,500, with an average holding of 5,981.36 shares, a decrease of 1.50% [5]. - Hong Kong Central Clearing Limited is the third-largest shareholder, holding 2.78 million shares as a new shareholder [5]. Group 5: Future Outlook - The company is expected to benefit from the "East Data West Computing" initiative, with its operations in Shaoguan being strategically significant [5]. - Langke Technology is diversifying its product offerings, including power scheduling, power leasing, and AI server/integrated machine products, while exploring new business models based on computing power [5]. - Revenue projections for 2025-2027 are 851 million, 1.046 billion, and 1.301 billion yuan, with net profits expected to shift from -31 million to 217 million yuan [5].

Fundraising Overview - The company raised a total of RMB 61,198.32 million from its initial public offering, after deducting issuance costs of RMB 4,321.68 million [1] - As of June 30, 2025, the company has unused and idle raised funds totaling RMB 46,899.93 million, which includes interest and investment income [2][12] - The balance of the unused raised funds consists of RMB 8,360.32 million in excess funds and RMB 16,686.09 million in idle funds [2][12] Fund Management and Usage - The company has established special accounts for the management of raised funds, ensuring strict approval procedures for their usage [2] - The company has invested RMB 4,900.00 million of excess funds into its wholly-owned subsidiary, Guangxi Langke Technology Investment Co., Ltd., for the construction of the Langke International Storage Technology Industrial Park [2][3] - The company has signed tripartite supervision agreements with banks and sponsors to regulate the management and usage of raised funds [2][3] Changes in Fund Usage - The company has decided to terminate several fundraising projects, including the "Patent Application, Maintenance, and Operation Project" and the "Flash Application and Mobile Storage Technology Research Platform Expansion Project" due to changes in market conditions and strategic alignment [16][17] - The company has adjusted the implementation content and progress of certain projects, extending the construction period to December 1, 2015, to better align with operational needs [15][18] Financial Management - The company has continued to use excess and idle funds for cash management, investing in low-risk financial products with high liquidity [10][11] - As of June 30, 2025, the company has RMB 46,800.00 million in financial products that have not yet matured [11] Issues Identified - The company identified several instances where funds were improperly paid from the fundraising account, including payments for patent fees and legal fees, which have since been reimbursed [5][6][13] - The company has acknowledged that the actual investment in fundraising projects is only 21.8% of the expected total, indicating a significant delay in project execution [9][18]