Group 1 - The company is extending its expertise in display technology into the semiconductor storage sector, focusing on three main product lines: CXL extended memory modules, SSD solid-state drives, and storage peripherals [1] - The strategy combines "chip-screen collaboration and computing-storage integration" to build a complete storage ecosystem from AI computing support to smart terminal applications [1] - The development and design of the first enterprise-level SSD hybrid drive are progressing in an orderly manner [1] Group 2 - The company is concentrating on the research and application of customized liquid crystal display modules and touch products, evolving from single display modules to integrated solutions that include main control boards, structural components, and software systems [1] - This upgrade to complex modules provides end customers with a comprehensive product matrix covering various scenarios, including smart home applications [1] - The company is strategically investing in the vertical integration of the entire chain from "storage chip research and manufacturing to main control chip and memory module research, memory module manufacturing, and market commercialization" through investments in Wuhan Dingdian and new storage technology [1]

Core Viewpoint - Tianshan Electronics (301379) is expanding into the semiconductor storage sector, focusing on three main product lines: CXL extended memory modules, SSD solid-state drives, and storage peripherals, aiming to create a complete storage ecosystem from AI computing support to smart terminal applications [1] Group 1: Company Strategy - The company is leveraging its expertise in display technology to enter the semiconductor storage market [1] - The strategic combination of "chip-screen collaboration and computing-storage integration" is central to the company's approach [1] Group 2: Product Development - The development and design of the first enterprise-grade SSD hybrid drive are progressing in an orderly manner [1]

Core Insights - The company reported a revenue of 856 million yuan for the first half of 2025, representing a year-on-year increase of 29.66%, with a net profit attributable to shareholders of 75 million yuan, up 15.46% year-on-year [1] - The gross margin and net margin were 20.60% and 8.76%, showing a year-on-year change of +0.07 and -1.08 percentage points respectively [1] Group 1: Business Performance - The automotive business is experiencing rapid growth, primarily focusing on dashboard products with key clients including BYD and partnerships with Dongfeng, Wuling, and Changan [1] - The company is leveraging technological and production process barriers in the automotive sector, anticipating increased demand for automotive displays as smart and electric vehicles evolve [1] - New products like the LC variable light anti-glare rearview mirror module are being introduced to capture the growing automotive electronics market [1] Group 2: Product Development - The company achieved a breakthrough in complex modules, moving from zero to small-scale supply in the first half of the year [2] - Focus is on customized LCD display modules and touch products, creating a diverse product matrix covering various scenarios including smart home applications [2] - Production capacity for complex modules is expanding, with new facilities at the Lingshan base nearing completion [2] Group 3: Strategic Investments - The company is strategically investing in the storage ecosystem through partnerships with Wuhan Dingdian and Tianlian Chip, aiming for vertical integration in the storage chip development and manufacturing chain [2] - Plans include focusing on three product lines: CXL extended memory modules, SSDs, and storage peripherals, enhancing capabilities from AI computing support to smart terminal applications [2] - The company expects to see revenue growth from 1.978 billion yuan in 2025 to 2.893 billion yuan in 2027, with net profits projected to rise from 190 million yuan to 317 million yuan in the same period [2]