Core Viewpoint - The company, Xi'an Pairui Power Semiconductor Technology Co., Ltd., is adjusting its fundraising project by changing part of the construction content, project location, and extending the implementation period due to market conditions and operational considerations [2][9]. Fundraising Project Adjustment Overview - The company raised a total of RMB 318.4 million by issuing 80 million shares at RMB 3.98 per share, with a net amount of RMB 269.31 million after deducting issuance costs [1]. - The adjustments were approved in meetings held on January 17, 2024, and February 2, 2024, and will be submitted for shareholder approval [2][8]. Original and Adjusted Project Details - The original project was focused on the industrialization of high-power semiconductor devices, with a total planned investment of RMB 57 million, using RMB 26.93 million from the raised funds [4][6]. - The adjusted project will now focus on 5-inch and 6-inch thyristors, IGCT, FRD, and other power semiconductor modules, with a revised total investment of RMB 53.53 million, maintaining the use of RMB 26.93 million from the raised funds [7][4]. Reasons for Adjustment - The company identified intense competition in the SiC market, dominated by international firms, leading to the decision to cancel SiC-related R&D and production plans due to high investment costs and limited market entry channels [6][3]. - The adjustments are deemed necessary to align with market conditions and the company's strategic development, aiming to reduce investment risks and protect shareholder interests [9][8]. Review and Approval Process - The adjustments have been reviewed and approved by the company's board and supervisory committee, and are pending approval from the shareholders [9][8]. - The sponsor institution, China International Capital Corporation, has confirmed that the adjustments comply with relevant regulations and do not harm shareholder interests [9].

Investment Rating - The report indicates a positive outlook for the flexible converter valve industry in China, driven by domestic production acceleration and technological advancements [3][6]. Core Insights - The flexible converter valve industry in China is experiencing significant growth opportunities due to the acceleration of UHV (Ultra High Voltage) projects and the promotion of carbon neutrality goals. The localization of key components is advancing rapidly, with breakthroughs in domestic R&D for critical components like IGBT (Insulated Gate Bipolar Transistor) and thyristors [3][4]. - The report analyzes the current state of the flexible converter valve industry, focusing on the localization of core components, paths for intelligent upgrades, and application prospects in UHV projects. It also discusses strategic recommendations for leading the new era of UHV construction through intelligent upgrades [3][6]. Summary by Sections Flexible DC Transmission Technology - Flexible DC transmission technology originated from research at McGill University in 1990 and has evolved significantly, particularly with the breakthrough of MMC (Modular Multilevel Converter) technology in 2003, which addressed IGBT voltage balancing issues and reduced losses to 1% [4][20]. Market Size and Investment Trends - The investment share of converter valves in flexible DC transmission has increased from 27% in traditional DC projects to 57% in flexible DC projects, with individual project values reaching several billion yuan [5][28]. - The market for flexible converter valves in China is projected to grow from 120 billion yuan in 2024 to 168 billion yuan by 2030, with offshore wind power contributing significantly to this growth [6][55]. Key Component Localization - Significant breakthroughs have been made in the localization of core components such as IGBT and IGCT (Integrated Gate Commutated Thyristor), with advancements in performance metrics and successful applications in various projects [39][40]. Competitive Landscape - The report highlights the dominance of domestic manufacturers in the flexible converter valve market, with companies like State Grid NARI and XJ Electric leading in various projects. The competitive landscape is becoming increasingly diverse, with several players gaining market share [43][44]. Future Development and Strategic Recommendations - The report emphasizes the need for continued innovation and strategic planning to enhance the intelligent upgrade of flexible converter valves, which is crucial for the future of UHV construction in China [3][6].

Group 1: Company Strategy and Development - The company focuses on product and market structure adjustments, emphasizing both internal development and external expansion in the power semiconductor sector [2] - In 2025, the company aims to develop pulse power devices, IGBTs, new optical switches, and IGCTs, targeting high-end application fields such as digital energy and smart manufacturing [2] - The company is committed to reducing costs and optimizing the supply chain to better meet market demands [2] Group 2: Product Innovation and Market Position - The company specializes in power semiconductor technology and products, continuously achieving import substitution [3] - The company maintains a leading position in the domestic industry for high-power semiconductor device technology, with its pulse switch technology reaching international standards [3] - The company collaborates with research institutions and universities to advance the development and application of third-generation wide bandgap semiconductor technologies [3] Group 3: Investor Relations and Market Management - The company has developed a "Quality Return Dual Improvement" action plan to enhance shareholder interests and investor confidence [3] - The company emphasizes the importance of market capitalization management to promote long-term sustainable development [3] - The company has established a complete integrated production line for wafer processing, chip processing, and packaging testing [3]

Group 1: Financial Performance - In 2024, the company achieved a revenue growth of 64.14% and a net profit increase of 157.84% compared to 2023 [20] - The first quarter of 2025 saw a revenue decline of 1.59%, with a net profit of 15.22 million, reflecting a year-on-year growth of 107.62% [4] - In 2024, government subsidies accounted for 68,000, representing a low proportion of net profit, indicating that the company does not overly rely on non-recurring gains [4] Group 2: Operational Efficiency - Employee count in 2024 increased by 8.5%, but revenue per employee decreased by 10.2%, prompting a need for better alignment of human resources with business transformation [2] - R&D expenses rose by 38% in 2024, but the capitalization rate fell to 15%, highlighting challenges in converting R&D investments into intangible assets [3] - The accounts receivable turnover days increased by 40 days, with 25% of accounts receivable aging over one year, raising concerns about customer credit risk [5] Group 3: Market Strategy - The sales expense ratio increased by 2.1 percentage points to 8.3% in 2024, with marketing efforts contributing positively to the growth of flexible DC product orders [6] - The company plans to enhance its market penetration for high-value products like IGBT modules, which currently account for less than 15% of revenue [19] - In 2024, related party transactions increased by 65%, but the overall proportion remains low, ensuring independence in transactions [8] Group 4: Debt and Cash Flow Management - Short-term borrowings increased by 90% in 2024, while long-term borrowings decreased by 50%, raising questions about short-term debt repayment pressure [13] - Operating cash flow decreased by 70% year-on-year, primarily due to changes in accounts receivable cycles, necessitating measures to stabilize cash flow [16] - Inventory turnover rate fell by 25%, with inventory levels rising by 35%, indicating potential issues with market demand or inventory management strategies [14] Group 5: Future Outlook and Innovation - The company is focusing on technology innovation, quality control, and market expansion to enhance overall competitiveness and achieve sustainable growth [7] - Plans to develop new products such as IGCT and FRD are underway, alongside market research for device products to meet market demands [19] - The company is committed to integrating ESG principles into its operations, aiming for sustainable high-quality development [22]

Core Viewpoint - The company, Pairui Co., Ltd., reported significant growth in its 2024 annual performance, with a focus on power semiconductor devices and a strong market position in high-voltage and high-power thyristors [1][2]. Financial Performance - In 2024, the company achieved an operating income of 192 million yuan, representing a year-on-year increase of 64.14% [1]. - The net profit attributable to shareholders reached 56.7752 million yuan, up 157.84% year-on-year [1]. - The non-recurring net profit was 52.256 million yuan, marking a 248.17% increase compared to the previous year [1]. - Basic earnings per share were reported at 0.18 yuan [1]. - The company plans to distribute a cash dividend of 0.3722 yuan per 10 shares, totaling 11.9104 million yuan [2]. Industry Position and Technology - Pairui Co., Ltd. has established itself as a leader in the domestic market for high-voltage, high-power thyristors, benefiting from a strong foundation laid by the Xi'an Electric Research Institute [2]. - The company possesses key technologies such as high-voltage thyristor full-pressure connection technology and high-voltage low-temperature welding technology, contributing to its competitive edge in the high-end power semiconductor market [2][3]. - The company has submitted 21 patent applications, including 4 invention patents, and has received 6 patent authorizations during the reporting period [3]. Research and Development - The company invested 9.4672 million yuan in R&D in 2024, accounting for 4.94% of its operating income [3]. - New power devices like IGCT and FRD have been developed and successfully applied in several ultra-high voltage direct current transmission projects [3]. Future Plans - In 2025, the company aims to focus on technological innovation, quality and cost control, market expansion, talent development, and sustainable growth to enhance its overall competitiveness [4]. - Planned new products include IGCT, FRD, and IGBT, with a strategy to conduct market research on device products to understand market demand and competition [4].