Group 1 - Company plans to issue H-shares and apply for listing on the Hong Kong Stock Exchange to enhance international strategy and operational capabilities [1][2] - Company specializes in high-speed mixed-signal chip development and sales, with products used in displays, automotive electronics, and advanced communications [2] - Revenue for the first half of the year reached 247 million, a year-on-year increase of 11.35%, while net profit was 71.52 million, up 15.16% [2] Group 2 - In the automotive electronics sector, the company has expanded its product line and application scenarios, including AI for in-vehicle systems and multi-platform adaptations [3] - The company maintains a high level of R&D investment, with 57.06 million spent in the first half of the year, representing 23.1% of revenue [3] - Future R&D plans include enhancing chip performance, reducing power consumption, and increasing market share in automotive, HPC, and micro-display chip sectors [3]

Core Viewpoint - Longxin Co., Ltd. plans to issue H-shares and apply for listing on the Hong Kong Stock Exchange to enhance its international strategy and operational capabilities [1][2]. Group 1: Company Overview - Longxin Co., Ltd. focuses on the research and sales of high-speed mixed-signal chips, with key products including high-definition video bridging and processing chips, and high-speed signal transmission chips [2]. - The company operates under a Fabless model, outsourcing production and testing to foundries and packaging factories after completing chip design [2]. Group 2: Financial Performance - In the first half of the year, Longxin Co., Ltd. achieved revenue of 247 million yuan, representing a year-on-year growth of 11.35% [2]. - The net profit for the same period was 71.52 million yuan, with a year-on-year increase of 15.16% [2]. Group 3: Product Strategy and R&D - The company has focused on upgrading technology in display and industrial communication product lines, particularly in smart driving and high-performance transmission [2]. - Longxin Co., Ltd. expanded its product line in the automotive electronics sector, developing a car-mounted SerDes chip group for long-distance video transmission and ultra-high-definition display [3]. - R&D investment in the first half of the year was 57.06 million yuan, a year-on-year increase of 22.87%, accounting for 23.1% of revenue [3]. - The company plans to enhance chip performance and reduce power consumption by tracking advanced chip processes and optimizing IP reuse [3].

Core Viewpoint - Longxin Co., Ltd. focuses on high-definition video bridging and processing chips, as well as high-speed signal transmission chips, with applications in various fields including PC peripherals, displays, video conferencing systems, and AR/VR. The company is expanding into automotive and HPC sectors in the future [1]. Financial Performance - In H1 2025, the company reported revenue of 250 million yuan, a year-on-year increase of 11.4%, with a net profit attributable to shareholders of 72 million yuan, up 15.2% year-on-year. The gross margin was 54.88%, slightly up, and the net margin was 29%, an increase of 1 percentage point year-on-year [1]. - In Q2 2025, revenue reached 138 million yuan, a year-on-year increase of 17.4% and a quarter-on-quarter increase of 26.6%. The net profit attributable to shareholders was 43 million yuan, up 38.3% year-on-year and 50.9% quarter-on-quarter. The gross margin was 55.2%, up 0.8 percentage points quarter-on-quarter, primarily due to better profitability from new products [1]. Business Expansion - The company is successfully expanding into new business areas such as AI edge computing, supercomputing, and data centers. The automotive SerDes chips are currently in a full promotion phase, having entered new fields like eBikes, photography gimbals, and drones. In H1, two new products passed AEC-Q100 Grade 2 certification [2]. - The company is actively developing high-speed data transmission chips for AI and edge computing, with ongoing research in PCIe and SATA protocols, and some projects have entered the tape-out stage. These developments have significant market potential in supercomputing, AI, data centers, and consumer electronics [2]. Supply Chain and R&D - In H1 2025, the company added two new wafer fabs to enhance supply stability, with R&D investment amounting to 57.06 million yuan, a year-on-year increase of 23%, representing 23.1% of revenue. The company has initiated a multi-location backup mode for supply stability and cost optimization [3]. - The company is advancing in the development of mixed-signal chips at 28nm and 22nm processes, with products achieving a maximum transmission rate of 20Gbps, marking a significant step in process iteration and upgrade [3]. Investment Outlook - Longxin Co., Ltd. is deeply engaged in the high-speed mixed-signal chip market, with the automotive SerDes chips expected to gradually ramp up production. The company is also positioning itself in AI edge and server sectors, with adjusted revenue expectations for 2025-2027 [3].

Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company achieved a record high revenue of 247 million yuan in Q2 2025, representing a year-on-year growth of 11.35%, and a net profit of 72 million yuan, up 15.16% year-on-year [4][8] - The company is focusing on expanding its product lines in the automotive electronics sector, particularly in high-definition video bridging and processing chips, which remain the core revenue driver [8][9] - The company has made significant advancements in its technology, particularly in AI and edge computing, and is actively developing high-speed data transmission chips [9] Financial Summary - Revenue projections for 2025-2027 are as follows: 636 million yuan in 2025, 905 million yuan in 2026, and 1.27 billion yuan in 2027, with respective year-on-year growth rates of 36.5%, 42.3%, and 40.5% [6][12] - Net profit projections for the same period are 197 million yuan in 2025, 282 million yuan in 2026, and 402 million yuan in 2027, with year-on-year growth rates of 36.3%, 43.3%, and 42.4% [6][12] - The company's gross margin is expected to remain stable around 55.5% from 2025 to 2027, while the net margin is projected to be around 30.9% to 31.6% [12] Product and Market Focus - The company has successfully passed AEC-Q100 testing for 11 bridge chips, with 5 achieving Grade 2 certification, indicating a strong foothold in the automotive electronics market [9] - The company is expanding its applications in the automotive sector, including video transmission and ultra-high-definition display needs, and is also entering new business areas such as eBikes and drones [9]

Core Viewpoint - The report highlights the financial performance and growth prospects of Lontium Semiconductor, emphasizing its focus on high-speed mixed-signal chip development and sales, as well as the overall recovery of the semiconductor industry driven by AI and other technologies [3][5][6]. Company Overview and Financial Indicators - Lontium Semiconductor is a fabless integrated circuit design company based in Hefei, specializing in high-speed mixed-signal chips [6][7]. - For the first half of 2025, the company reported revenue of approximately 246.98 million yuan, a year-on-year increase of 11.35% [6][13]. - The net profit attributable to shareholders was approximately 71.52 million yuan, reflecting a 15.16% increase compared to the same period last year [6][13]. - The company's total assets reached approximately 1.54 billion yuan, with net assets attributable to shareholders at approximately 1.46 billion yuan, marking increases of 2.49% and 2.05% respectively [6][13]. Industry Development - The global semiconductor industry is expected to recover in 2024, with sales projected to exceed $627.6 billion, driven by demand in AI, edge computing, and 5G technologies [5][6]. - In China, the semiconductor industry is experiencing significant growth, with sales reaching $17.2 billion in June 2025, a year-on-year increase of 13.1% [6][7]. - The domestic integrated circuit exports amounted to $90.47 billion in the first half of 2025, reflecting an 18.9% year-on-year growth [6][7]. Business Development - Lontium focuses on developing high-speed mixed-signal chips for applications in display technology, automotive electronics, and AI [6][7][12]. - The company has established partnerships with major global chip manufacturers, integrating its products into their reference design platforms [7][12]. - The company has invested heavily in R&D, with expenditures amounting to approximately 57.06 million yuan in the first half of 2025, representing 23.10% of its revenue [13][21]. Product Lines - The company's product offerings include high-definition video bridging and processing chips, as well as high-speed signal transmission chips [9][10]. - The video bridging chips are designed for protocol conversion and function processing of various high-definition video signals, while the signal transmission chips facilitate high-speed data transfer [9][10][12]. - Recent product developments include chips that support high refresh rates and variable refresh rates, aimed at enhancing performance in commercial display and security applications [14][16]. Competitive Advantages - Lontium has built a strong competitive edge through continuous innovation and a focus on high-quality product development [21]. - The company maintains a high level of R&D investment, ensuring its ability to adapt to market demands and technological advancements [21]. - The firm has established a robust intellectual property portfolio, with 114 domestic patents and 44 international patents, enhancing its market position [18][21].

Core Viewpoint - The report outlines the progress and effectiveness of the "Quality Improvement and Efficiency Enhancement Return" action plan for the first half of 2025, highlighting the company's focus on high-quality development and shareholder returns. Group 1: Business Performance - The company achieved total revenue of 246.98 million yuan, an increase of 11.35% year-on-year, and a net profit attributable to shareholders of 71.52 million yuan, up 15.16% year-on-year [1] - The net profit after excluding non-recurring gains and losses was 56.90 million yuan, reflecting a growth of 17.56% compared to the previous year [1] Group 2: Research and Development - The company invested 57.06 million yuan in R&D during the first half of 2025, a 22.87% increase year-on-year, representing 23.10% of total revenue [2] - The company successfully developed a chip for commercial display and security applications that supports high refresh rates and can switch between multiple input signals, significantly reducing design complexity and production costs [3] Group 3: Product Development and Market Expansion - The company is expanding its product line in high-definition video bridging and processing chips, leveraging AI technology to meet the growing demand for edge computing and advanced communication [4][5] - The company has made significant progress in automotive electronics, with new products being promoted in the market, including a vehicle-mounted SerDes chip group [5] Group 4: Talent Development and Incentives - The company emphasizes talent development, with 72.84% of employees in R&D roles, and 54.24% of R&D personnel holding master's degrees or higher [6] - The implementation of the 2024 restricted stock incentive plan aims to attract and retain talent while enhancing team stability and creativity [7] Group 5: Supply Chain and Production Capacity - The company is optimizing its supply chain management and has expanded its production capacity by adding two wafer fabs and one packaging plant [8] - The company is conducting R&D on mixed-signal chips with advanced manufacturing processes, achieving transmission rates of up to 20 Gbps [8] Group 6: Shareholder Returns - The company has implemented cash dividends and capital reserve transfers to enhance shareholder returns, distributing 7.00 yuan per 10 shares, totaling approximately 70.99 million yuan [9] - The capital reserve transfer increased the total share capital from 102,280,590 shares to 132,704,525 shares [9] Group 7: Corporate Governance and Transparency - The company has established a public opinion management system to enhance its response capabilities and protect investor interests [10] - The company has improved its information disclosure practices, holding 21 investor communication events in the first half of 2025 to enhance transparency [10]

Summary of Key Points Core Viewpoint The report provides a detailed account of the fundraising activities and the actual usage of the raised funds by Longxun Semiconductor (Hefei) Co., Ltd. for the first half of 2025, ensuring compliance with relevant regulations and highlighting the management of the funds. Fundraising Overview - The company raised a total of RMB 1,121,301,008.16 through the issuance of 17,314,716 shares at a price of RMB 64.76 per share, with net proceeds amounting to RMB 1,030,280,987.25 after deducting issuance costs of RMB 91,020,020.91 [1][2] - As of June 30, 2025, the balance in the fundraising account was RMB 54,652,144.00, which includes interest income after deducting fees [2][3] Fund Management - The company has established a fundraising management system to ensure proper storage and usage of the funds, adhering to various legal and regulatory requirements [2][4] - A tripartite supervision agreement was signed with the underwriter and banks to clarify the rights and obligations of all parties involved in managing the funds [2][4] Actual Usage of Funds - The company has directly invested RMB 213,822,073.62 in fundraising projects, with RMB 52,888,175.13 being invested during the reporting period [2][7] - There were no changes in the implementation locations or methods for the fundraising projects during the reporting period [3][6] - The company did not use idle funds to temporarily supplement working capital during the reporting period [5][8] Cash Management of Idle Funds - The company approved the use of idle funds for cash management, with a maximum amount of RMB 90,000,000.00 allocated for safe and liquid investment products [5][6] - Specific cash management activities included investments in structured deposits and other financial products, ensuring that these activities do not affect the implementation of fundraising projects [5][6] Project Status and Adjustments - The company has postponed the expected completion dates for certain fundraising projects, including the "HD Video Bridge and Processing Chip Development and Industrialization Project" and the "High-Speed Signal Transmission Chip Development and Industrialization Project" [6][8] - The total amount of funds invested in these projects as of the reporting period was RMB 28,432.36 million, with a completion rate of 27.60% [7][8]

Core Viewpoint - Longxin Co., Ltd. is positioned as a leading domestic player in the high-definition video chip market, with growth potential in automotive and AR sectors [1][3]. Group 1: Company Overview - Longxin Semiconductor, established in 2006, focuses on the research and sales of high-speed mixed-signal chips, with products used in various fields including automotive electronics and AR/VR [1]. - The company has a strong client base, including major firms like Foxconn and Qualcomm, and is actively expanding its product offerings [1]. Group 2: Market Position and Growth - Longxin holds a 4.2% share of the global HD video bridge chip market, ranking first among domestic companies, and a 0.9% share of the global high-speed signal transmission chip market, ranking second domestically [3]. - The automotive sector is projected to grow significantly, with the market for automotive SerDes chips expected to increase from $14 million in 2023 to $60 million by 2030, reflecting a CAGR of 23% [3]. - The AR/VR market is also anticipated to grow, with projections indicating an increase from $15.2 billion in 2024 to $39.7 billion by 2029, achieving a CAGR of 21% [3]. Group 3: Financial Projections - Longxin is expected to achieve revenues of 470 million yuan in 2024, a 44% increase year-on-year, and a net profit of 140 million yuan, a 41% increase [1]. - Future revenue projections for 2025, 2026, and 2027 are 700 million, 1.02 billion, and 1.38 billion yuan respectively, with corresponding net profits of 210 million, 310 million, and 430 million yuan [4].

Investment Rating - The report assigns a "Buy" rating for the company, Longxin Co., Ltd. (龙迅股份) [1] Core Views - Longxin Co., Ltd. is positioned as a rising star in the semiconductor industry, focusing on high-speed mixed-signal chips with applications in various fields including consumer electronics, VR/AR, automotive electronics, and more [2][14] - The company has a strong international competitive edge, collaborating closely with major firms like Qualcomm, Intel, and Samsung [2][14] - The growth potential in automotive and AR/VR markets is significant, with the company actively expanding its product offerings and customer base [3][4] Summary by Sections Company Overview - Longxin Co., Ltd. specializes in high-speed mixed-signal chips, offering over 140 models that integrate analog and digital circuit functions [14] - The company has established a solid reputation and trust among global leading manufacturers due to its high-performance, low-power products [14] Financial Analysis - The company has shown robust revenue growth, with total revenue expected to reach 3.23 billion yuan in 2023, a year-on-year increase of approximately 34.12% [1][23] - The net profit attributable to shareholders is projected to grow significantly, reaching 1.02 billion yuan in 2023, reflecting a 48.39% increase year-on-year [1][23] - The gross margin is expected to remain strong, with a forecasted gross margin of 55% in 2024, supported by high-value product offerings [24][26] Automotive Sector - Longxin has made significant inroads into the automotive sector, particularly in in-car display and intelligent cockpit solutions, with several products already certified for automotive applications [3][29] - The company is actively promoting its automotive SerDes chipsets, which are essential for high-definition video transmission in vehicles [42][47] AR/VR Market - The AR/VR market presents a substantial growth opportunity, with Longxin's 4K/8K video signal bridging chips already in mass production to meet market demands [3][4] - The company has established partnerships with leading AR/VR hardware manufacturers, indicating a strong market presence [3][4] PC and Peripheral Development - Longxin is also advancing in the PC and peripheral markets, with its docking and converter chips positioned among the industry's top tier [4][4] - The company is developing PCIe bridge chips and switch chips for high-performance computing applications, further diversifying its product portfolio [4][4]

Investment Rating - The report assigns a "Buy" rating for the company, Longxin Co., Ltd. (龙迅股份) [1] Core Viewpoints - Longxin Co., Ltd. is positioned as a rising star in the semiconductor industry, focusing on high-speed mixed-signal chips, with applications in consumer electronics, VR/AR, automotive electronics, and more [2][14] - The company has a strong international competitive edge, collaborating closely with major firms like Qualcomm, Intel, and Samsung [2][14] - The growth potential in automotive, AR/VR, and PC sectors is significant, with the company actively expanding its product offerings [3][4] Summary by Sections Company Overview - Longxin Co., Ltd. specializes in high-speed mixed-signal chips, offering over 140 models with high integration, performance, and low power consumption [2][14] - The company has established a solid market presence and is recognized for its technological capabilities [14] Financial Performance - The company has shown robust revenue growth, with total revenue projected to reach 6.94 billion yuan in 2025, 9.91 billion yuan in 2026, and 13.78 billion yuan in 2027 [1][4] - The net profit attributable to shareholders is expected to grow significantly, reaching 2.1 billion yuan in 2025 and 4.4 billion yuan in 2027 [1][4] - The company maintains a healthy gross margin of 55% and a net margin of 31% in 2024, indicating strong profitability [23][26] Automotive Sector - Longxin has made significant inroads into the automotive display market, with its video bridge chips being integrated into various vehicle systems [3][29] - The company is actively developing automotive SerDes chips to meet the increasing demand for high-bandwidth data transmission in advanced driver-assistance systems (ADAS) [42][47] - The automotive SerDes market is projected to grow significantly, with a compound annual growth rate of 10.3% from 2021 to 2026 [48] AR/VR Sector - The AR/VR market presents substantial growth opportunities, with Longxin's 4K/8K video signal bridge chips already in mass production [3][4] - The company has established partnerships with leading AR/VR hardware manufacturers, positioning itself well in this expanding market [3][4] PC Sector - Longxin is a leader in the development of docking and converter chips for PCs, supporting resolutions up to 8K60Hz [4] - The company is also working on PCIe bridge chips and switch chips for high-performance computing applications [4]