Summary of the Conference Call Company Overview - The conference call featured **Langke Technology**, a storage company focusing on storage modules and expanding into computing power sectors after being acquired by Shaoguan State-owned Assets [2][6][27]. Financial Performance - For the first three quarters of 2023, Langke Technology reported revenues of approximately **800 million** CNY, reflecting a **35%** year-on-year increase [2]. - In Q3 alone, the company achieved revenues of over **300 million** CNY, marking an **80%** increase year-on-year [2]. - The net loss for the first three quarters was around **28 million** CNY, which is an improvement of over **60%** compared to the previous year [2]. - Q3 net loss was approximately **8.5 million** CNY, also showing an **80%** improvement year-on-year [2]. Inventory Management - The inventory at the end of Q3 was about **300 million** CNY, up **56%** from the beginning of the year [2][3]. - The inventory structure is primarily composed of **NAND** products, which account for over **80%** of the inventory [4]. Product Structure - The product mix includes **SSD** (over **50%**), **DRAM** (around **10%**), and other storage products like USB drives and mobile storage [4][24]. Strategic Partnerships and Market Position - Langke Technology has formed a strategic partnership with **Huawei** to enhance its market presence in the **Guangdong-Hong Kong-Macao Greater Bay Area**, which accounts for over **1/8** of national demand [7][8]. - The company is establishing a joint venture with **Huixin Information Technology**, a diamond-level agent of Huawei, to promote sales in the computing power and storage sectors [8][10]. Industry Outlook - The storage industry is experiencing a favorable cycle, and Langke Technology is optimistic about price increases and market demand [12][13]. - The company is focused on expanding its presence in the enterprise storage market, driven by domestic demand for localized products due to geopolitical factors [20]. Future Plans - Langke Technology plans to increase inventory levels in anticipation of rising prices and demand [16][17]. - The company is exploring opportunities in the computing power sector, aligning with national strategies like the **East Data West Computing** initiative [6][27]. Government Support - The Shaoguan government is expected to provide support through policies and funding to facilitate the development of the computing power industry [26][27]. Conclusion - Langke Technology is positioned to benefit from favorable market conditions and government support, with a focus on expanding its product offerings and market reach in the storage and computing power sectors [48].

Core Viewpoint - The company, Langke Technology, currently does not engage in the AISSD business and focuses on various storage products and consumer electronics [1] Group 1: Company Products - The main products of the company include SSD solid-state drives, DRAM memory modules, embedded storage, mobile storage, wearable devices, and computer peripherals [1] - The company is committed to continuous innovation and optimization of its storage product lines based on market trends and customer demands [1]

Group 1 - The company confirmed that it does not currently engage in AISSD business despite inquiries about a collaboration with Huawei in this area [2] - The main products of the company include SSD solid-state drives, DRAM memory modules, embedded storage, mobile storage, and consumer electronics such as wearable devices and computer peripherals [2] - The company is continuously innovating and optimizing various storage product lines in response to market conditions and customer demands [2]

Industry Insights - The storage industry is experiencing a significant price increase due to a sudden shortage that began in late August, with expectations that this trend will continue [1] - Major manufacturers have ceased production of DDR4 memory, leading to a sustained supply gap and the highest price increases in the storage sector, particularly for DDR4 and DDR5 products [1] - NAND flash shortages are expected to persist into the first half of next year, driven by strong demand from cloud service providers [1] - HDD shortages are also becoming more severe, with anticipated price increases of 20%-30% for new products announced by Korean manufacturers [1] Company Developments - Micron Technology, Western Digital, and Seagate Technology saw pre-market stock increases of 4.88%, 5.12%, and 4.48% respectively, reflecting positive market sentiment in the storage sector [1] - With major players like Samsung, SK Hynix, and Micron exiting the DDR4 and LPDDR4X markets, there is an optimistic outlook for companies like Zhaoyi Innovation to increase their market share by 2025-2026 [2] - The price of DDR4 and LPDDR4X products is expected to rise significantly, with projections indicating a 40% increase in the first half of 2025 and a potential 75% year-over-year increase by the end of that year [2] - Companies such as Langke Technology and Dawi Co., Ltd. are involved in the production of various storage products, including SSDs and DRAM memory [3]

Group 1 - The company anticipates a comprehensive price increase in the storage market for the fourth quarter, according to CFM flash memory market research [2] - Morgan Stanley's report predicts a supply shortage in the memory market by 2026, particularly in the NAND sector, due to production cuts and limited wafer capacity in recent years [2] - The company offers a range of products including SSDs, DRAM memory modules, embedded storage, and mobile storage, as well as consumer electronics like wearable devices and computer peripherals [2] Group 2 - The company will closely monitor changes in the storage market and adjust its procurement and sales strategies accordingly [2]

Group 1 - Micron has notified its channels of a price increase of 20%-30% for storage products, while Samsung has informed major clients of a projected price increase of 15%-30% for DRAM products in Q4 [1] - North American internet giants have reported higher-than-expected revenue and profits this year, driven by the expanding scale of AI usage and rapid penetration of AI applications [1] - Research institutions believe that the price increases by SanDisk, Micron, and Samsung indicate an unexpected rise in the storage market, with previous concerns about price pressure in Q1 2026 now shifting to expectations of continued price increases [1] Group 2 - Data center demand remains strong, with high utilization rates for high-end products like DDR5 and HBM, while new capacity additions are limited [1] - Major semiconductor storage companies, such as Daway and Langke Technology, provide a range of high-performance storage products, including NAND and DRAM [1]

Group 1 - The company currently focuses on products such as SSD solid-state drives, DRAM memory modules, embedded storage, mobile storage, and consumer electronics like wearable devices and computer peripherals [2] - The company has no current involvement in the robotics sector as per the investor inquiry [2]

Company Overview - The company is the inventor of flash drives, focusing on the research, production, and sales of storage products, aiming to provide solutions for global storage applications [5] - The main products include SSDs, DRAM memory modules, embedded storage, and mobile storage, with applications in various consumer electronics such as smartphones, tablets, and wearable devices [6][7] Industry Situation - The company's products belong to the storage industry, primarily semiconductor storage, which is characterized by small size and fast storage speed [9] - According to CFM flash market data, the global storage market size reached $120.225 billion in the first three quarters of 2024, a year-on-year increase of 96.8%, with an expected rebound of 77% to $160.7 billion for the entire year [9] - The NAND Flash and DRAM markets are expected to face price pressures in 2025 due to slowing demand and increased competition, with DRAM market growth anticipated due to the rise of HBM3e and DDR5 applications [9] - The server market is projected to be the most important application market for NAND Flash and DRAM in 2025, driven by the demand for AI and big data [11] Performance Drivers - The main performance drivers for the company's storage products include brand advantage, product cost-performance ratio, customer base in sales channels, and operational efficiency [8] Recent Developments - In February 2024, the company signed a cooperation agreement with the Shaoguan Municipal Government and other partners to enhance data center construction and digital transformation [15] - The company is collaborating on a project to establish a storage industry base in the Guangdong-Hong Kong-Macao Greater Bay Area [17] - The company has agreed to transfer 25% of its stake in a subsidiary, which will no longer be included in the consolidated financial statements [18] - The company has also signed a patent licensing agreement with Kingston, transferring rights and obligations related to a previous contract [19]