Core Viewpoint - Hengxuan Technology (688608.SH) is making significant progress in the development of its next-generation low-power, high-performance wearable chip series, BES6000, which is expected to enter the sampling phase in the first half of next year. The company aims to expand its product offerings in wearable devices such as smartwatches and smart glasses to capitalize on the opportunities presented by the upgrade of edge AI and smart hardware [1][3]. Group 1: Product Development and Market Position - The BES6000 series is positioned as a new generation of low-power, high-performance wearable chips, applicable to smart glasses and smartwatches. The company has established a stable and reliable supply chain to support the upcoming sampling and mass production of new products [1][3]. - The existing BES2800 chip has been widely adopted in the low-power smart hardware market, including applications in various AI glasses products such as Xiaomi AI glasses, Alibaba Quark AI glasses, and Li Auto's Livis AI glasses. The company sees AI glasses as a significant growth area for wearable devices, providing opportunities for future chip shipments and ecosystem collaborations [3]. Group 2: Software and Algorithm Development - Hengxuan Technology emphasizes the importance of software ecosystem and algorithm capability development, embracing open-source systems and conducting customized R&D for wearable applications. The company is building a unified software platform to adapt to the evolving customer demands in the AI era [3]. - The core logic and foundational capabilities of chip software development are expected to remain stable, even as the operating system landscape evolves [3]. Group 3: Financial Performance - In Q3 2025, Hengxuan Technology achieved revenue of 999.5 million yuan, a year-on-year increase of 5.66%, and a net profit attributable to shareholders of 197 million yuan, reflecting a year-on-year growth of 39.11%. The company noted that the slight slowdown in revenue growth was due to diminishing marginal effects of national subsidies and weakened downstream demand [3]. - The company plans to enhance overall profitability through product structure optimization and the introduction of new products [3]. Group 4: Raw Material and Supply Chain Management - The company reports that overall raw material prices remain stable, with storage chips not constituting a significant portion of total raw material costs. Hengxuan Technology will continue to monitor downstream demand and industry conditions while promoting chip platform iterations and deepening customer collaborations in the wearable, audio, and AIoT sectors [4].

Major Companies - Chasing Technology has been selected for the 2025 "Brands That Matter" global list by Fast Company, being the only domestic brand on the list due to its localized innovation and user experience improvements [1] - Chasing Technology's products cover various categories including high-end smart home appliances, smart cars, smart kitchen appliances, smart cleaning devices, outdoor smart devices, and personal care products [1] - The company's sweeping robot products hold the number one market share in 22 countries and regions globally, including Germany, France, and Singapore [1] Investment and Financing - Hengxuan Technology's next-generation low-power, high-performance wearable chip, BES6000, is expected to enter the sample delivery phase in the first half of next year [7] - The BES2800 chip has been widely applied in low-power smart hardware markets such as smartwatches and smart glasses [7] - Zhongke Qiancheng has recently completed several million yuan in angel round financing, with funds primarily aimed at product improvement and technology research and development [8] - Aoluo Pharmaceutical has successfully completed a $100 million Series A financing round, with funds to accelerate its differentiated pipeline layout focusing on unmet clinical needs in immunology, inflammation, and oncology [9] New Products - CATL has launched the world's only "ship-shore-cloud" zero-carbon shipping and smart port integrated solution, achieving full-chain integration from onboard power systems to shore-based energy supply networks and cloud-based intelligent management [10] - Gaode has released the "AI Parking Radar," the first real-time perception function for road parking spaces in the country, providing users with a new smart parking experience [11] - Lenovo has officially launched the "Lenovo AI Factory" solution to help enterprises transition from traditional "computing centers" to efficient "AI factories," along with the release of a new generation of high-end AI server based on Intel® Xeon® 6 processors [12]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In the first three quarters of 2025, the company achieved revenue of 2.933 billion yuan, a year-on-year increase of 18.61%, and a net profit attributable to the parent company of 502 million yuan, a year-on-year increase of 73.50% [5][10]. - In Q3 2025, the company reported revenue of 999.5 million yuan, a year-on-year increase of 5.66% and a quarter-on-quarter increase of 5.42%, with a net profit of 197 million yuan, a year-on-year increase of 39.11% and a quarter-on-quarter increase of 72.19% [5][10]. - Despite the impact of national subsidy reductions and weakened downstream demand, the company still achieved growth in both year-on-year and quarter-on-quarter revenue in Q3 [10]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a gross margin of 38.51%, an increase of 4.75 percentage points year-on-year [10]. - The company has successfully expanded its market share through its leading technology and quality customer service, with rapid growth in the shipment of its 2800 series chips used in TWS headphones, smartwatches, and glasses [10]. - The company has introduced new clients such as Xiaotianzi and Songtu, and the shipment of smart watch chips continues to grow rapidly [10]. Research and Development - In the first three quarters of 2025, the company's R&D expenses amounted to 539 million yuan, a year-on-year increase of 13.73% [10]. - The company maintains a high level of R&D investment, which supports the continuous improvement of its core technological capabilities [10]. - The BES2800 series chips have advantages such as multi-concurrency, low latency, high bandwidth, and low power consumption, applicable in various scenarios including headphones, watches, and wireless microphones [10]. Future Outlook - The next-generation low-power high-performance smart wearable chip, the BES6000 series, is progressing well in development and is expected to enter the sample delivery stage in the first half of 2026 [10]. - The company is positioned as a leader in wearable SoC, with proven capabilities in expanding product categories from TWS headphones to smartwatches and wristbands [10]. - The company forecasts net profits attributable to the parent company of 703 million yuan, 951 million yuan, and 1.511 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 4.17 yuan, 5.64 yuan, and 8.96 yuan [10].

Core Viewpoint - Hengxuan Technology is a leading company in the global smart audio SoC chip sector, with significant investment value due to its high technical barriers and comprehensive industry chain coverage [1] Group 1: Business Performance - In Q3 2025, Hengxuan Technology reported revenue of 2.933 billion yuan, ranking 16th among 48 companies in the industry, surpassing the industry average of 2.912 billion yuan and the median of 1.156 billion yuan, but significantly lower than the top two competitors, OmniVision and Jiangbo Long, with revenues of 21.783 billion yuan and 16.734 billion yuan respectively [2] - The net profit for the same period was 502 million yuan, ranking 11th in the industry, above the average of 348 million yuan and the median of 107 million yuan, but still trailing behind the leading companies, which reported net profits of 3.199 billion yuan and 2.841 billion yuan [2] Group 2: Financial Ratios - As of Q3 2025, Hengxuan Technology's debt-to-asset ratio was 7.59%, down from 8.19% year-on-year and significantly lower than the industry average of 24.46%, indicating strong solvency [3] - The gross profit margin for the same period was 38.51%, an increase from 33.76% year-on-year, and higher than the industry average of 36.52%, reflecting robust profitability [3] Group 3: Executive Compensation - The chairman, Liang Zhang, received a salary of 2.6706 million yuan in 2024, an increase of 214,200 yuan from 2023 [4] - The general manager, Zhao Guoguang, earned 2.0704 million yuan in 2024, up by 490,700 yuan from the previous year [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 65.90% to 20,600, while the average number of circulating A-shares held per shareholder decreased by 15.46% to 8,165.98 [5] Group 5: Future Projections - Guotou Securities forecasts that Hengxuan Technology's revenue will reach 4.657 billion yuan, 5.965 billion yuan, and 7.635 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 803 million yuan, 1.101 billion yuan, and 1.492 billion yuan [6] - Caitong Securities also projects revenues of 4.559 billion yuan, 5.876 billion yuan, and 7.220 billion yuan for the same years, with corresponding net profits of 840 million yuan, 1.181 billion yuan, and 1.472 billion yuan [6]