Core Viewpoint - The company, Jinghe Integrated (688249), is actively expanding its production capacity and has made significant advancements in its research and development, particularly in the semiconductor sector, with a focus on CIS and OLED display driver chips. Production Expansion - The company plans to expand production by approximately 20,000 wafers per month in the second half of the year [2] - All necessary equipment for the production expansion has been ordered and will be installed according to the capacity expansion plan [9] Research and Development Progress - The company has successfully mass-produced 55nm stacked CIS and expects to continue increasing output [3] - The 40nm OLED display driver chip has also entered mass production and is anticipated to contribute to revenue starting in the first half of 2025, with gradual ramp-up in the second half [3] - The 28nm OLED display driver chip is expected to enter risk production by the end of 2025 [3] - R&D investment in the first half of 2025 increased by 13.13% year-on-year, with stable growth expected in the coming years [8] Strategic Partnerships - The investment from Huakin, a leading company in the smart hardware ODM industry, is expected to enhance resource integration and collaboration along the supply chain, benefiting Jinghe's product validation and market ramp-up [4] Automotive Product Development - The company has successfully applied several products, including DDIC, CIS, PMIC, and MCU, in the automotive sector, all of which have achieved mass production [6] Financial Performance - For the first half of 2025, the company reported a main revenue of 5.198 billion yuan, an increase of 18.21% year-on-year, and a net profit of 332 million yuan, up 77.61% year-on-year [9] - The second quarter of 2025 saw a single-quarter main revenue of 2.631 billion yuan, a year-on-year increase of 21.24%, and a net profit of 197 million yuan, up 82.52% year-on-year [9] - The company's debt ratio stands at 48.95%, with a gross profit margin of 25.76% [9] Market Sentiment - In the last 90 days, two institutions have rated the stock, with one buy rating and one hold rating, and the average target price set at 32.22 yuan [10]

Core Viewpoint - The company plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international strategy, accelerate overseas business development, and improve its competitive edge and brand image [2] Financial Performance - In 2023 and 2024, the company achieved revenues of 7.244 billion and 9.249 billion yuan, respectively, with a year-on-year growth of 27.69% in 2024 [3] - Net profits for the same years were approximately 119 million and 482 million yuan, reflecting a significant year-on-year growth of 304.65% in 2024 [3] - For the first half of the year, the company reported operating revenue of 519.85 million yuan, an increase of 18.21% year-on-year, and a net profit of 231.99 million yuan, up 19.07% year-on-year [4] Business Segmentation - The main business revenue for the first half of the year was 512.98 million yuan, with revenue contributions from process nodes as follows: 55nm (10.38%), 90nm (43.14%), 110nm (26.74%), and 150nm (19.67%) [4] - From an application product perspective, the revenue contributions were: DDIC (60.61%), CIS (20.51%), PMIC (12.07%), MCU (2.14%), and Logic (4.09%) [4] Research and Development - The company invested 694.82 million yuan in R&D in the first half of the year, a 13.13% increase year-on-year, accounting for 13.37% of total revenue [5] - The company has made significant progress in R&D, achieving mass production of new products such as 40nm high-voltage OLED display driver chips and 28nm logic chips [5] Shareholder Changes - In July, the company announced that Huakin Technology would acquire approximately 120 million shares, representing 6% of the total share capital, at a price of 19.88 yuan per share, totaling around 2.4 billion yuan [5][6] - Following the transaction, Huakin Technology will become the fourth largest shareholder, committing to hold the shares for at least 36 months [6][7] Strategic Intent - Huakin Technology expressed confidence in the company's future and aims to deepen resource integration and explore collaboration opportunities in various projects to enhance overall competitiveness [7] - The partnership is expected to facilitate the company's products entering the supply chain of high-performance computing and smart terminal sectors [7]