Summary of Conference Call Records Company and Industry Overview - The conference call primarily discusses **Shanghai Yizhi Electronics** and the **domestic computing power industry** in China, particularly focusing on AI CPU chip development and applications in various sectors such as agriculture, education, and healthcare [2][4][10]. Key Points and Arguments 1. **Market Interest and Trends**: There is a noticeable increase in demand for domestic computing power in 2025, particularly after the launch of Deepseek, which has significantly boosted the understanding and application of large models in China. The initial excitement around integrated machines and inference clusters has stabilized, leading to a focus on vertical applications [3][10]. 2. **Product Development**: Shanghai Yizhi Electronics has developed and mass-produced three AI CPU chips, with two already in the market and a third soon to be launched. These chips are designed to run AI models directly and are compatible with both domestic and international GPU manufacturers [4][6]. 3. **Collaborations and Orders**: The company has secured significant orders from major telecom operators, including China Telecom, which purchased 2,600 servers and 5,200 processors, totaling nearly 300 million yuan. Additionally, Yizhi Electronics is testing products with China Mobile and supplying directly to Unicom [5][6]. 4. **Policy Support**: National policies are expected to favor the use of domestic computing power, which benefits Yizhi Electronics. The company’s chips can adapt to various market needs, enhancing their competitive edge [6][12]. 5. **Agricultural Automation**: A collaboration with Tsinghua University aims to apply AI computing power in agricultural automation, focusing on tasks like automated plowing, sowing, and harvesting, primarily using domestic chips to reduce reliance on NVIDIA products [8][10]. 6. **Progress in Internet Computing Clusters**: Domestic companies are making significant strides in internet computing clusters, with examples like Huawei's 384-node cluster and the Shanghai Cube project demonstrating effective system integration to catch up with NVIDIA [9][10]. 7. **Vertical Application Success**: Domestic computing power has seen substantial usage in vertical fields such as industry, agriculture, education, and healthcare, where Chinese companies are leading the way [10][12]. 8. **General Computing Power Trends**: General-purpose computing power in the internet sector is still catching up, with companies leveraging system-level strategies to enhance competitiveness. Major orders from companies like ByteDance are driving product improvements [11][12]. 9. **Growing Demand in Specific Industries**: The fastest-growing sectors for domestic CPU and GPU demand include telecommunications, finance, and oil, with policies in place to support domestic computing solutions [13][14]. 10. **Changing Attitudes Towards Domestic Chips**: Internet companies are increasingly testing domestic chips, indicating a shift in attitude as AI technology advances. This trend is expected to accelerate as more companies adopt these technologies [14][19]. 11. **Performance of Domestic Brands**: Domestic brands in the inference chip market are showing an upward trend, with more brands gaining significant market presence [20][21]. 12. **Future Development Goals**: Yizhi Electronics aims to position itself as a leader in the semiconductor cycle, focusing on niche markets and striving for leadership in the general AI field as model capacities and user numbers grow [22]. Additional Important Insights - The demand for inference technology is expanding, with applications in various fields, including search engines and educational tools, indicating a shift towards a results-based payment model rather than traditional methods [18][19]. - The competitive advantage of Chinese companies in edge computing products is notable, particularly as these markets are primarily located within China, unlike the Gulf and U.S. markets [16][17].

Core Viewpoint - The domestic CPU manufacturer Zhaoxin Integrated Circuit Co., Ltd. is planning to go public on the Sci-Tech Innovation Board, following other companies like Haiguang Information and Loongson Technology [1][3]. Company Overview - Zhaoxin Integrated is one of the six major domestic CPU manufacturers, with a cumulative loss of 2.354 billion yuan over the past three years. The company aims to raise 4.169 billion yuan through its IPO [3]. - The projected operating revenues for Zhaoxin Integrated from 2022 to 2024 are 340 million yuan, 555 million yuan, and 889 million yuan, respectively. The net profits attributable to shareholders for the same period are projected to be -727 million yuan, -676 million yuan, and -951 million yuan, indicating ongoing losses [3]. - The company is primarily focused on R&D investments to maintain technological advancement, which has led to significant financial losses. It is currently in a rapid development phase and faces risks related to sales expansion and market demand [3]. Shareholding Structure - Shanghai Lianhe Investment Co., Ltd., wholly owned by the Shanghai State-owned Assets Supervision and Administration Commission, holds 50.07% of Zhaoxin Integrated, making it the controlling shareholder. Via a partnership agreement, VIA Technologies holds 7.89% of the shares [3][4]. Competitive Landscape - Zhaoxin Integrated operates within a competitive environment dominated by global giants Intel and AMD, which maintain a duopoly in the x86 architecture processor market. Domestically, it faces competition from other CPU manufacturers like Huawei HiSilicon, Haiguang Information, and Loongson Technology [5][6]. - The company’s gross margin is projected to be 15.4% in 2024, significantly lower than the industry average of 50.49% and below Loongson Technology's 31.03% [5][6]. Financial Performance Comparison - In 2024, Haiguang Information is expected to generate revenues of 9.162 billion yuan with a net profit of 1.931 billion yuan, while Loongson Technology is projected to have revenues of 504 million yuan and a net loss of 625 million yuan. Zhaoxin Integrated's revenues are expected to be 889 million yuan with a net loss of 951 million yuan, indicating weaker performance compared to its competitors [6].

Core Viewpoint - The article discusses the IPO application of Shanghai Zhaoxin Integrated Circuit Co., Ltd. on the Sci-Tech Innovation Board, highlighting its financial struggles and competitive landscape in the CPU industry. Company Overview - Zhaoxin Integrated is one of the six major domestic CPU manufacturers in China, with a cumulative loss of 2.354 billion yuan over the past three years and plans to raise 4.169 billion yuan through the IPO [3][4]. Financial Performance - Projected revenues for Zhaoxin Integrated from 2022 to 2024 are 340 million yuan, 555 million yuan, and 889 million yuan, respectively. The net profits attributable to shareholders are projected to be -727 million yuan, -676 million yuan, and -951 million yuan for the same years [5]. - The company has not yet achieved profitability and has significant cumulative losses due to high R&D costs associated with CPU chip development [5]. Shareholding Structure - Shanghai Lianhe Investment Co., Ltd., wholly owned by the Shanghai State-owned Assets Supervision and Administration Commission, holds 50.07% of Zhaoxin Integrated's shares, making it the controlling shareholder [5]. - VIA Technologies holds 7.89% of Zhaoxin Integrated's shares, with various subsidiaries and related parties being considered as acting in concert [6][7]. Competitive Landscape - The global x86 architecture processor market is dominated by Intel and AMD, creating a duopoly. Domestically, Zhaoxin Integrated faces competition from other CPU manufacturers like Huawei HiSilicon, Hygon Information, and Loongson Technology [10]. - Zhaoxin Integrated's products are compatible with the x86 instruction set, while competitors like Huawei and Feiteng Information use ARM instruction sets, and Loongson Technology employs its own LoongArch instruction set [10]. Market Position and Challenges - Zhaoxin Integrated's projected gross margin for 2024 is 15.4%, significantly lower than the industry average of 50.49% and below Loongson Technology's 31.03% [10]. - In terms of operational performance, Zhaoxin Integrated's projected revenue for 2024 is 889 million yuan, with a net loss of 951 million yuan, indicating a weaker performance compared to Hygon Information, which is expected to generate 9.162 billion yuan in revenue and 1.931 billion yuan in net profit [11].

Core Viewpoint - Shanghai Zhaoxin Integrated Circuit Co., Ltd. has been accepted for an IPO on the Sci-Tech Innovation Board, aiming to raise 4.169 billion yuan [1] Company Overview - Zhaoxin Integrated specializes in the research, design, and sales of high-end general-purpose processors and supporting chips, focusing on x86 architecture CPUs, which are crucial for information security and the information industry in China [3][4] - The company is a leading domestic CPU design firm capable of serving multiple fields including desktop PCs, servers, workstations, and embedded systems, while maintaining compatibility with the x86 instruction set [3] Market Position - The x86 architecture processors dominate the desktop PC and server markets globally, primarily led by Intel and AMD, creating a duopoly [4] - Zhaoxin Integrated, along with other domestic firms like Haiguang Information and Loongson Technology, represents a growing segment of the CPU market, with Zhaoxin's products being compatible with the x86 instruction set [4] Performance and Financials - From 2022 to 2024, Zhaoxin Integrated's revenue is projected to grow from 340 million yuan to 889 million yuan, while net losses are expected to increase from 727 million yuan to 951 million yuan [5] - The company attributes its ongoing losses to significant R&D investments necessary for maintaining technological advancement in CPU development [5] IPO Utilization - The funds raised from the IPO will be allocated to projects including next-generation server processors, desktop processors, advanced process technology, and the establishment of a research and development center [5]

Summary of the Conference Call Company and Industry Involved - The conference call discusses the merger between **Haiguang** and **Shuguang**, focusing on the semiconductor and AI chip industry in China [2][3][7]. Core Points and Arguments - **Merger Details**: Shuguang is acquiring Haiguang at a 10% premium, with a reference to the price-to-earnings ratio for valuation. The pre-suspension market value of Shuguang was 90.5 billion yuan, which was considered undervalued [2][5]. - **Strategic Goals**: The merger aims to leverage the integration of chips, software, and systems to become a leading domestic computing power supplier, particularly in the AI chip sector, enhancing market share and shareholder returns [2][7]. - **Financial Performance**: Haiguang has benefited from AMD's authorization, with a revenue and profit compound annual growth rate exceeding 50%. The core growth drivers are CPU and DCU chip designs [2][7]. - **Market Position**: Shuguang leads in liquid cooling technology with over 60% market share and a low PUE value of 1.04. The merger is expected to create a complete industrial chain [2][3]. - **Valuation Post-Merger**: The overall valuation of the merged entity is expected to be more reasonable, with Haiguang maintaining rapid growth in the CPU sector and significant potential in domestic chip replacement [9]. Additional Important Content - **Market Trends**: There is a noticeable trend of mergers and acquisitions in the software, operating systems, and industrial software sectors, indicating a consolidation in the domestic computing power market [4][10]. - **Future Outlook**: The merged company is projected to achieve a profit scale of 10 billion yuan within three to five years, with stock prices expected to respond positively to investor expectations [9]. - **Industry Integration**: The merger reflects a broader trend of integration within the CPU computing power sector, with various architectures and chip manufacturers collaborating to enhance the industry landscape [10][12]. - **Investment Opportunities**: The call highlights potential investment opportunities in the semiconductor and AI sectors, driven by ongoing consolidation and technological advancements [11][13][14].

Group 1 - The core viewpoint of the articles highlights the importance of continuous innovation and the market logic of "the strong survive," as evidenced by the reverse acquisition of a parent company by its subsidiary [1][2] - Recently, two A-share listed companies, Haiguang Information and Zhongke Shuguang, announced a major asset restructuring, with Haiguang Information planning to merge with Zhongke Shuguang [1] - Haiguang Information, established in 2014, has outperformed its parent company, Zhongke Shuguang, in both business development and capital market performance, with a market capitalization of 316.41 billion yuan compared to Zhongke Shuguang's 90.57 billion yuan as of May 23 [1] Group 2 - The relationship between Haiguang Information and Zhongke Shuguang is complementary, with Haiguang providing essential CPU and DCU chips that support Zhongke's servers and computing platforms [1] - The article discusses other similar cases where subsidiaries have merged with their parent companies, such as Wanhua Chemical's acquisition of Yantai Wanhua Chemical for 52.21 billion yuan, highlighting a trend in the A-share market [2] - Maintaining innovation and actively seeking new opportunities is crucial for companies to thrive, as demonstrated by the success of new business ventures that can eventually lead to significant growth [2]

国产AI芯片最近杀疯了！曾经的"亏损王"寒武纪，最近突然逆袭，一季度营收暴涨40倍！国产芯片真要 崛起了吗？ 寒武纪扭亏，关键靠两点——技术硬了，风口来了。 以前国内AI芯片主要依靠进口显卡，贵还经常被卡脖子。现在寒武纪的国产GPU性能追上来了，加上 大模型爆发产生的芯片需求，让国内企业疯狂抢算力。 新的变化是，美国计划收紧英伟达对中国出口H20芯片。根据央视财经报道，英伟达首席执行官黄仁勋 近日谈道，美国政府加强芯片出口管制已对英伟达业务产生重大影响。 海通证券认为，H20原本占中国AI推理市场60%份额。如果英伟达受此影响完全退出中国数据中心业 务，预计中国数据中心AI芯片市场将重构为华为、寒武纪、昆仑芯三家公司主导的格局——国产芯片 的机会，这不就来了吗。 不止寒武纪一家，同行海光信息业绩也很好。2024年收入同比增长52.4%，净利润同比增长52.87%。 不同的是，寒武纪主要产品是GPU芯片，主要被用来与英伟达旗下产品对标；海光信息旗下主要产品是 CPU芯片，在海外的竞争对手主要是英特尔、AMD这些巨头。 现在外部不确定性增加，真正的机会还在后头。中国AI产业狂奔，每年需要百万张GPU；政策也在助 ...

Investment Rating - The industry investment rating is "Outperform" [11] Core Viewpoints - The modification of the origin recognition method for integrated circuits to the "wafer fab location" rule by the General Administration of Customs may provide domestic manufacturers with opportunities for import substitution [1] - The change is expected to significantly impact semiconductor companies with fabs in the U.S. [1] - Domestic integrated circuit manufacturers are likely to benefit from price increases in CPU, memory, and analog products due to the new customs policy [1] Summary by Sections Investment Recommendations - Recommended companies to focus on include: SMIC, Hua Hong Semiconductor, Haiguang Information, Loongson Technology, Cambricon, Shengke Communication, Anlu Technology, Fudan Microelectronics, Unisoc, Sanan Optoelectronics, Sierpu, Naxin Micro, Chipsea Technologies, Longsys, Silan Microelectronics, Zhaoxin, Weijie Chuangxin, and Huizhi Micro [3] Supporting Points for Rating - The modification of the origin recognition method is expected to lead to price increases for various semiconductor products, benefiting domestic manufacturers [2] - In 2024, China's integrated circuit imports are projected to be approximately $385.6 billion, with significant contributions from Taiwan, South Korea, and other regions [1] - The U.S. semiconductor companies, despite having a smaller direct export amount to China, have extensive wafer fabs and packaging facilities in East Asia and Southeast Asia, which may indirectly affect their exports to China [1]

Investment Rating - The report maintains an "Outperform" rating for the industry [2]. Core Insights - The AI chip and CPU sectors are moving towards self-sufficiency, with significant growth potential in domestic chip production as companies like Alibaba, Tencent, and Huawei increase their investments in chip development [3][10]. - The domestic software industry is expected to accelerate, with the foundational software market projected to grow from approximately 153.8 billion RMB in 2023 to 432.76 billion RMB by 2025, reflecting a compound annual growth rate (CAGR) of about 48% [48]. - The autonomous driving chip market is also seeing a shift towards domestic production, with a notable increase in the output of domestic chips as the new energy vehicle industry expands [3][10]. Summary by Sections 01: AI Hardware: AI Chips + CPUs - The U.S. has added several Chinese AI companies to its entity list, increasing the difficulty of importing related components, which emphasizes the need for self-sufficiency in the AI industry [5]. - In 2024, China's AI chip shipments are estimated at 2.7 million units, with domestic brands accounting for only 30% of the market, indicating a significant reliance on imports [15]. - The market for AI chips in China is projected to grow rapidly, with a CAGR of 66.4% from 2020 to 2024, reaching a market size of approximately 1.412 trillion RMB in 2024 [15]. 02: Accelerated Development of the Trustworthy Computing Industry - The trustworthy computing industry is expected to grow significantly, with a market size projected to reach 3.38 trillion RMB by 2025, driven by increased domestic demand and government support [48]. - The foundational software market is anticipated to see rapid growth, with key segments such as operating systems and databases showing substantial potential for domestic replacement [48][51]. 03: Domestic Autonomous Driving Chips - In 2024, the output of domestic autonomous driving chips is expected to increase, with domestic manufacturers gradually catching up in terms of technology and production capacity [3][10]. - The market for intelligent cockpit chips is also expanding, with domestic chips currently accounting for only 10% of the market, indicating significant room for growth [3][10]. 04: Investment Recommendations - The report suggests actively monitoring the trustworthy computing industry chain due to the ongoing U.S. trade policies and technology restrictions, which are likely to drive domestic production and innovation [3].