Core Viewpoint - The company GeKowei (688728.SH) has demonstrated significant growth in revenue and profitability in the first half of 2025, driven by the recovery in the consumer electronics industry and its continuous expansion into high-end markets [1] Financial Performance - In the first half of 2025, GeKowei achieved revenue of 3.636 billion yuan, a year-on-year increase of 30.33%, with EBITDA reaching 699 million yuan [1] - The second quarter of 2025 saw a record revenue of 2.112 billion yuan, a quarter-on-quarter increase of 38.56%, marking the highest quarterly revenue since the company's listing [1] - The net cash flow from operating activities reached 814 million yuan, a year-on-year increase of 858.11% [1] Business Segments - The main business of GeKowei includes the research, design, manufacturing, packaging, and sales of CMOS image sensors and display driver chips, with all segments showing steady growth in the first half of 2025 [2] - Sales of mobile CMOS image sensors reached 524 million units, generating revenue of 2.212 billion yuan, a year-on-year increase of 41.47%, accounting for 60.88% of total revenue [2] - Non-mobile CMOS image sensors sold 140 million units, with revenue of 715 million yuan, a year-on-year increase of 11.38%, making up 19.69% of total revenue [2] - Display driver chips sold 249 million units, generating revenue of 706 million yuan, a year-on-year increase of 20.96%, accounting for 19.43% of total revenue [2] Product Innovation - In the mobile CIS sector, GeKowei has enhanced its high-pixel product offerings, with revenue from products of 13 million pixels and above exceeding 1 billion yuan, representing about 46% of mobile CIS revenue [3] - The company launched several new products based on the GalaxyCell® 2.0 platform, including a 1.0μm high frame rate HDR 13 million pixel CIS product designed for high-quality video output [4] - The second-generation 0.7μm 50 million pixel image sensor was introduced, improving performance in low-light conditions and enhancing autofocus capabilities [5] Non-Mobile CIS Developments - GeKowei has upgraded its product matrix in the non-mobile CIS sector, launching a new generation 2.35μm 2 million pixel image sensor that significantly reduces power consumption by 30% compared to previous models [6] - The company is actively expanding into emerging markets, including a 1.116μm 5 million pixel image sensor designed for AIPC applications, which operates at a low power of 2mW [6] Automotive and AI Applications - In the automotive electronics sector, GeKowei is developing front-mounted chips for vehicles, with its first 3.0μm 130 thousand pixel product undergoing customer testing [7] - The company has successfully achieved mass production of a 5 million pixel CIS for AI glasses, aiming to penetrate further into niche markets such as mirrorless cameras and telescopes [7] Display Driver Chip Growth - GeKowei's display driver chip business is expanding, with a focus on AMOLED products, including the successful delivery of its first AMOLED display driver chip for smartwatches [9] - The OLED display driver chip market is projected to grow at a compound annual growth rate of approximately 9.1% from 2024 to 2030, driven by smartphones and wearable devices [9] Manufacturing and Future Outlook - GeKowei has successfully transitioned to a Fab-Lite model, with its self-owned factory operating at full capacity and shifting production towards high-value products [10] - The company aims to enhance its integrated competitive advantage and deepen its supply chain layout, focusing on chip design and manufacturing resource integration [10]

Market Performance - The main board saw significant gains with stocks like Dongxin Heping (+10.03%), Shiyun Electric (+10.02%), and Xinjun Network (+10.02%) leading the charge [1] - The ChiNext board experienced a surge with Tianli Technology (+20.02%), Wanma Technology (+20.01%), and Bingchuan Network (+20.01%) [1] - The Sci-Tech Innovation board also performed well, highlighted by Lais Information (+13.58%) and Changyang Technology (+9.68%) [1] - Active sub-industries included SW Robotics (+5.00%) and SW Communication Application Value-Added Services (+4.11%) [1] Domestic News - A collaboration between the National Research Institute and Dingji Technology aims to develop laser grinding technology to address cost and efficiency issues in SiC wafer processing, with plans for technical validation with Onsemi in the Czech Republic [1] - Trade data indicates that since China's export restrictions in 2024, prices for drone components shipped to the U.S. have tripled in some cases, with new regulations requiring export licenses for dual-use products [1] - IDC reports that China's PC monitor market is expected to ship 7.07 million units in Q1 2025, a 14.0% year-on-year increase, driven by consumer market growth due to national subsidies [1] - GalaxyCore announced the successful delivery of its first AMOLED display driver chip, GC3A71, for smartwatches, praised for its high resolution and low power consumption [1] Company Announcements - Sanan Optoelectronics announced a cash dividend of 0.02 yuan per share, totaling approximately 94.12 million yuan, which represents 37.22% of its net profit [3] - Huaya Intelligent reported the completion of a share reduction plan by a major shareholder, reducing their stake from 5.00% to 4.81% [3] - Zhongjing Technology declared a cash dividend of 1.50 yuan per 10 shares, amounting to approximately 19.38 million yuan [3] - Weic Technology plans to invest up to 1 billion yuan in Chengdu for equipment acquisition and site development to enhance its strategic layout in the Southwest region [3] Overseas News - Samsung Electronics has postponed the construction of its 1.4nm test line, focusing resources on the upcoming 2nm process set for mass production by the end of the year [2] - Counterpoint's latest report predicts that leading nodes (3nm and 2nm) will account for about one-third of smartphone SoC shipments by 2026, with 3nm becoming the dominant node for new flagship SoCs by 2025 [2] - DDR4 chip prices have surged, with 16Gb DDR4 chips now priced about twice that of the more advanced DDR5, marking a historic pricing anomaly in the DRAM market [2] - TDK Corporation announced the acquisition of QEI's power business assets, enhancing its position in the semiconductor equipment market [2]

Core Viewpoint - The delivery of the GC3A71 AMOLED display driver chip marks a significant technological expansion for the company from TFT-LCD to OLED, with plans to enhance wearable OLED DDIC products and accelerate the development of OLED solutions for smartphones and other terminals [3]. Group 1: Product Development - The GC3A71 chip features a resolution of 400*400, flexible packaging adaptability, low power consumption, and a wide color gamut display effect [1]. - The chip supports the company's proprietary COG packaging, which significantly reduces module borders, enhancing device screen-to-body ratio and visual integration [1]. - It integrates SRAM and dynamic refresh technology, supporting a refresh rate of 1-60Hz, and offers 11-bit digital GMA output for richer grayscale performance and a broader color range [1]. Group 2: Financial Performance - In 2024, the company achieved revenue of 6.383 billion yuan, a year-on-year increase of 35.90%, and a net profit attributable to shareholders of 187 million yuan, up 287.20% [3]. - The revenue from display driver chips was 1.356 billion yuan, accounting for 21.26% of total revenue [4]. - In Q1 2025, the company reported revenue of 1.524 billion yuan, a year-on-year growth of 18.21%, but a net loss attributable to shareholders of 51.73 million yuan [4].