Summary of the Conference Call for 澜起科技 (Lianqi Technology) Company Overview - **Company**: 澜起科技 (Lianqi Technology) - **Industry**: Semiconductor, specifically focusing on interconnect chips for memory and PCIe technologies Key Financial Performance - **2025 Revenue**: 5.456 billion, up 49.9% YoY - **Interconnect Chip Revenue**: 5.139 billion, up 53.4% YoY - **Net Profit**: 2.236 billion, up 58.4% YoY; adjusted net profit (excluding share-based payment) is 2.647 billion, up 81% YoY - **Operating Cash Flow**: 2.022 billion, marking four consecutive years of growth - **Total Assets**: 13.75 billion; **Net Assets**: 12.92 billion - **Overall Gross Margin**: 62.2%, up 4.1 percentage points YoY; Interconnect Chip Gross Margin: 65.6%, up 2.9 percentage points YoY, reaching 67.8% in Q4 [2][3][17] Product Development and Market Position - **DDR5 Penetration**: Accelerated, with Gen3 RCD revenue surpassing Gen2; Gen4 has begun mass shipments - **MRCD/MDB Chip**: Significant Q4 shipment increase; Gen2 products will receive full platform support, expected to enter a rapid growth phase in 2-3 years - **PCIe 5.0 Retimer**: Main product; PCIe 6.0 samples sent out, with AEC solutions in development; PCIe 7.0 and Switch chips planned for 2026 - **CXL 2.0/3.0 MXC Chips**: Entered mainstream memory supplier chains, with market scaling expected due to rising AI inference demand [2][4][10][11][17] Research and Development - **R&D Investment**: 915 million, up 19.9%, accounting for 16.8% of revenue; R&D personnel make up 74.4% of total staff, with 64% holding master's degrees or higher - **Intellectual Property**: 36 new patents and 24 integrated circuit layout design certificates granted in 2025, totaling over 300 IPs [5][14] Shareholder Returns - **Dividends and Buybacks**: Total of 1.119 billion (50.1% of net profit) planned for 2025, including 227 million in mid-year dividends and 472 million in annual dividends; ongoing share buyback plans totaling 2-4 billion [7] Strategic Vision and Future Plans - **AI Infrastructure Focus**: Emphasizing "transport capacity" for efficient data interconnectivity; aims to become a leading global interconnect chip design company - **Product Strategy**: Strengthening memory interconnect leadership while expanding into PCIe and CXL interconnect areas; plans to develop Ethernet and optical interconnect products through self-research, partnerships, or acquisitions - **Talent Acquisition**: Continuous recruitment of high-level R&D and management talent [8][20] Market Trends and Challenges - **Super Cycle in Storage**: Driven by AI, leading to increased demand for memory modules and interconnect chips; rapid iteration of DDR5 sub-bands to meet high data throughput requirements - **CXL Technology**: Anticipated to scale with memory pooling applications, particularly in AI inference scenarios; company positioned as a key player in the CXL ecosystem [10][18] Supply Chain Management - **Wafer Supply Stability**: Long-term partnerships with foundries like TSMC ensure stable supply; proactive measures taken to manage supply chain challenges, particularly in substrate shortages [19] Conclusion - **H-Share Listing Impact**: Expected to enhance talent acquisition, strategic investments, and global market presence, leveraging international capital for R&D and business expansion [20]

Montage Technology Co., Ltd. 瀾 起 科 技 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：6809） 海外監管公告 本公告乃根據《香港聯合交易所有限公司證券上市規則》第13.10B條而作出。 茲載列瀾起科技股份有限公司在上海證券交易所網站（www.sse.com.cn）刊登的 《2025年年度報告》《2025年年度報告摘要》，僅供參閱。 承董事會命 瀾起科技股份有限公司 董事長 楊崇和博士 香港，2026年3月30日 於本公告日期，本公司董事為： (i) 執行董事楊崇和博士及 Stephen Kuong-Io Tai 先 生； (ii) 非執行董事 Wang Rui 博士及方周婕女士；及 (iii) 獨立非執行董事李若山博 士、高秉強教授、 Yuhua Cheng 博士及單海玲博士。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不作任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該 等內容而引致的任何損失承擔任何責任。 澜起科技股份有限公司 2025 年年度报告 1 / 247 ...

Core Insights - The article highlights a significant surge in China's semiconductor exports, with integrated circuit (IC) exports reaching $43.3 billion in the first two months of 2026, marking a year-on-year increase of 72.6% [4][5]. - This growth outpaces China's overall export growth of 21.8% during the same period and sets a historical high for recent years [5]. - The increase in export value is attributed to a shift in China's semiconductor industry from passive defense to active output, focusing on high-value products despite geopolitical restrictions [8][43]. Export Data Analysis - In the first two months of 2026, China's IC export volume increased by 13.7% to 525 billion units, while the average selling price (ASP) of exported chips surged by approximately 52% [19]. - The article notes that the growth in export value is not solely due to volume but also reflects a significant increase in the average price of chips exported [19][20]. Market Dynamics - The global semiconductor market is experiencing a re-evaluation of storage cycles, with prices for DRAM and NAND Flash chips rising by 40%-50% in early 2026 due to supply shortages [22][24]. - Chinese storage manufacturers, such as Changxin Memory and Yangtze Memory Technologies, are capitalizing on this price surge by increasing exports, thereby enhancing China's overall IC export value [24][25]. Strategic Shifts - The article discusses China's strategic pivot towards mature process nodes (28nm and above) in semiconductor manufacturing, as opposed to focusing solely on advanced nodes, which are currently restricted by U.S. sanctions [31][32]. - This shift allows China to dominate the production of chips that are essential for various applications, including electric vehicles and IoT devices, which do not require the latest technology [32][39]. Competitive Landscape - The article emphasizes that while China faces challenges in advanced semiconductor manufacturing, it is successfully establishing a competitive edge in mature process technologies and peripheral chips that support AI infrastructure [17][43]. - The increasing reliance on Chinese chips for essential applications in global supply chains poses a dilemma for Western countries attempting to restrict China's semiconductor capabilities [42][43]. Future Outlook - The article concludes that despite the current successes, China must navigate several challenges, including potential overcapacity in mature process technologies and ongoing geopolitical tensions that may lead to further trade restrictions [45][48]. - The semiconductor industry is at a critical juncture, with China's recent export growth symbolizing a shift from being a passive importer to an active player with significant global influence [52][53].

Core Viewpoint - The article highlights the impressive growth of 澜起科技 (Changqi Technology), projecting a significant increase in net profit for 2025, driven by advancements in memory interface chips and the emergence of new "capacity" chips for AI applications [3][11]. Group 1: Financial Performance - For 2025, 澜起科技 expects a net profit of 2.15 billion to 2.35 billion yuan, representing a year-on-year growth of 52.3% to 66.5% [3]. - The company's non-recurring net profit is projected to be between 1.92 billion and 2.12 billion yuan, indicating a growth of 53.8% to 69.8% [3]. - In the first three quarters of 2025, the sales revenue from interconnect chip products reached 3.832 billion yuan, a year-on-year increase of 61.21% [10]. Group 2: Market Position and Product Development - 澜起科技 is the global leader in memory interface chips, serving major clients like Samsung, SK Hynix, and Micron Technology [6]. - The company is actively involved in the development of DDR5 memory interface solutions, with the penetration rate of DDR5 in servers expected to rise from 50.1% in 2024 to 85.3% in 2025 [7]. - The company has updated its main products to the third generation of DDR5, with revenues from this segment expected to surpass those from the second generation in 2025 [9]. Group 3: Emerging Opportunities - 澜起科技 is transitioning from a focus solely on memory interface chips to a broader platform for high-speed interconnect chips, with significant potential in the "capacity" chip market [11]. - The PCIe Retimer chips are crucial for AI applications, with 澜起科技 being the second company globally to achieve mass production capabilities, capturing approximately 15% of the market share in 2024 [13]. - The CXL memory controller chip, launched in Q3 2025, aims to enhance memory resource allocation in data centers, with commercial progress being made [14]. Group 4: Shareholder Dynamics - The top two shareholders of 澜起科技 have reduced their holdings by approximately 4.5 billion yuan this year, raising concerns about shareholder concentration [15]. - As of Q3 2025, the largest shareholder holds only 5.1% of the company, indicating a dispersed ownership structure [15].

Core Insights - PCIe is the bus standard in servers, with continuous improvements in data transfer rates, expected to reach 256GT/s with the upcoming PCIe 8.0 specification by 2028 [1] - The number of PCIe lanes in server CPUs is increasing, which will drive demand for PCIe slots [2] - The transition to PCIe 6.0 in future server CPUs will create additional demand for PCIe Retimer chips to maintain signal integrity over longer distances [3] Group 1: PCIe Technology Development - PCIe is a high-speed serial computer expansion bus standard used for data exchange between CPUs and other devices, addressing bandwidth limitations of the older PCI standard [1] - The PCIe standard has evolved, with PCIe 5.0 achieving a data transfer rate of 32GT/s and a single lane bandwidth of approximately 4GB/s, allowing for a throughput of 128GB/s in x16 configuration [1] - The PCI-SIG association is developing PCIe 8.0, which is expected to enhance data rates significantly by 2025 [1] Group 2: Server CPU and PCIe Lane Configuration - The configuration of PCIe lanes is crucial for device performance, with common configurations being x1, x4, x8, and x16 [2] - Intel's sixth-generation server CPUs can support up to 88 PCIe 5.0 lanes, a 10% increase from the previous generation, while performance cores can support up to 96 lanes, a 20% increase [2] - As the number of PCIe lanes increases, the demand for PCIe slots is expected to rise correspondingly [2] Group 3: Future Trends and Opportunities - Intel's sixth-generation server CPUs support PCIe 5.0, while AMD's upcoming EPYC "Venice" processors are expected to support PCIe 6.0, anticipated for release in 2026 [3] - The insertion loss budget for PCIe 6.0 is set at 32dB, necessitating the use of PCI Retimer chips to enhance signal quality and extend transmission distances [3] - PCI Retimer chips are essential for addressing issues related to signal integrity and loss in high-speed data transmission environments [3] Group 4: Investment Opportunities - Companies to watch include Hongteng Precision (06088), a PCIe slot supplier, and Lanke Technology (688008.SH, 06809), a supplier of PCIe Retimer chips [4] - Wan Tong Development (600246.SH) is noted for acquiring a PCIe Switch chip supplier, Shudu Technology, indicating strategic moves in the PCIe supply chain [4]

Core Insights - The PCIe interconnect chip industry is experiencing exponential growth due to the increasing demand for high bandwidth, low latency, and multi-device high-speed interconnects, driven by advancements in large model training, inference, and distributed computing [1][7] - The global market size for PCIe interconnect chips is projected to reach $3.109 billion by 2025, with a year-on-year growth of 35.9%, where PCIe Switch accounts for approximately 81.20% and PCIe Retimer for about 18.80% [1][7] Market Overview - High-speed interconnect chips are essential for enabling high-speed data exchange in data centers, servers, and computers, addressing bottlenecks in data transmission amid the continuous upgrade of intelligent computing systems [2] - The PCIe interconnect chip market is categorized into PCIe Retimer and PCIe Switch chips, which are critical components for high-speed data interconnect in data centers and servers [2] Market Policies - China has established strategic goals for the semiconductor industry, promoting self-sufficiency and providing a favorable policy environment for the development of the PCIe interconnect chip industry through various supportive policies [4][5] Industry Chain - The upstream of the PCIe interconnect chip industry includes semiconductor material suppliers, equipment manufacturers, and IP core providers, while the midstream involves design, manufacturing, packaging, and testing [6] - The downstream applications encompass servers, storage devices, network equipment, high-end PCs, consumer electronics, industrial control, and automotive electronics, with servers being the core application market [6] Development Status - The demand for PCIe interconnect chips is significantly driven by the rapid deployment of GPUs and AI chips, with the domestic market projected to reach 5.24 billion yuan by 2025, reflecting a year-on-year growth of 28.6% [7][8] Competitive Landscape - The PCIe interconnect chip industry is characterized by high technical, financial, and ecological barriers, leading to a concentrated market where the top players dominate, with PCIe Retimer CR2 market share reaching 96.9% and PCIe Switch suppliers holding over 90% of the market [9][10] Company Analysis - Lanqi Technology Co., Ltd. is a leading international data processing and interconnect chip design company, with a reported revenue of 4.058 billion yuan in the first nine months of 2025, where PCIe/CXL interconnect chip revenue accounted for 7.56% [10] - Beijing Shudu Information Technology Co., Ltd. focuses on developing high-speed interconnect technology products, aiming to meet core demands in the global computing field [10] Development Trends - Future PCIe interface standards will evolve towards higher transmission rates and multi-functional integration, enhancing data transmission, signal optimization, and power control [12] - Domestic PCIe interconnect chip companies are expected to overcome core technology barriers and gradually penetrate high-end markets, reducing reliance on overseas IP cores [13] - The industry is moving towards a collaborative ecosystem, with leading companies forming alliances to promote technology standards and enhance overall competitiveness [14]

Core Viewpoint - The article highlights the successful listing of Lanqi Technology (06809.HK) on the Hong Kong Stock Exchange, marking a significant milestone in China's semiconductor industry, particularly in memory interface chips, and emphasizes the role of early investors like Huangpujiang Capital in supporting such high-tech enterprises [1][3][7]. Group 1: Company Overview - Lanqi Technology's stock closed at HK$175.00 on its listing day, a 63.72% increase from its issue price, with a combined market capitalization exceeding HK$210 billion across A and H shares [1]. - The company represents a breakthrough in China's high-end semiconductor sector, contributing to the security and resilience of the national digital infrastructure supply chain [1][9]. Group 2: Investment Journey - Huangpujiang Capital made a decisive investment in Lanqi Technology after its privatization from NASDAQ, becoming one of the major private strategic shareholders based on in-depth industry research [3]. - The capital firm accompanied Lanqi Technology through its journey from a market value of HK$100 billion to HK$1 trillion, and then to HK$1.6 trillion, demonstrating a complete cycle of investment and support [4]. - The strategic exit from the Science and Technology Innovation Board (STAR Market) was not a departure but a tactical move aligned with market conditions, maintaining a long-term positive outlook on the company [5]. Group 3: Market Dynamics - The surge in AI computing demand has been a significant driver for Lanqi Technology's value, as its products are essential for high-speed communication between CPUs and memory, addressing the needs of AI servers [9][11]. - The company's performance forecast indicates a projected net profit growth of over 50% year-on-year, driven by its interconnect chips for data centers and AI applications [11]. - Lanqi Technology's transition from the STAR Market to the Hong Kong market signifies its evolution from relying on domestic markets to competing globally through international capital [11].

Company Overview - Company was established in 2004, focusing on memory interface and high-speed interconnect chip design, serving cloud computing and AI training platforms [2] - Products include DDR memory interface chips, PCIe Retimer, and CXL controllers, holding over 36% market share in the global memory interface chip market [2][5] - Returned to A-shares in 2019 and plans to initiate a Hong Kong IPO in 2025, with funds directed towards cutting-edge interconnect chip technology, global market expansion, and strategic acquisitions [4] Market Position - Leading position in memory interface chips with a market share of 36.8% in 2024, ahead of competitors like Renesas and Rambus [5][6] - Second in PCIe Retimer chip market with a 10.9% market share, following Astera Labs [6] - First to mass-produce CXL MXC chips, with costs 30% lower than Marvell, showcasing technological and commercial leadership [6] Financial Performance - Revenue growth is expected to rebound in 2024, driven by AI-related DDR5 memory interface chips and new capacity chips, with net profit growth significantly outpacing revenue growth [7] - Revenue figures: - 2021: 2.562 billion RMB - 2022: 3.672 billion RMB - 2023: 2.286 billion RMB - 2024: 3.639 billion RMB - 2025 Q3: 4.058 billion RMB - Year-on-year growth rates show a recovery from a -37.76% decline in 2023 to 59.20% in 2024 [8] Customer Base - Over 70% of revenue comes from overseas markets, with major clients including global DRAM leaders (Samsung, SK Hynix, Micron) and mainstream server OEMs/ODMs [9] Cost Structure - Maintains low sales expense ratio, around 2% to 4%, due to a direct sales model that minimizes distribution costs [12] - R&D expenses have been consistently high, reflecting a strong commitment to technology-driven growth, with R&D personnel making up 75% of the workforce [11][12] Asset Management - Operates with a fabless model, resulting in low fixed asset and inventory ratios, ensuring high asset liquidity and minimal inventory risk [14] - Total assets and fixed asset ratios remain low, with fixed assets around 5% of total assets [14] Debt and Liquidity - Strong debt repayment capacity with low asset-liability ratios, indicating financial stability [15] - Cash and financial assets have consistently been high, with no interest-bearing debt, leading to negligible interest expenses [15] Industry Comparison - High ROE and gross profit margins compared to peers, indicating strong market positioning and pricing power [16] - Expected net profit for 2025 is projected between 2.15 billion to 2.35 billion RMB, reflecting a growth of 52.29% to 66.46% year-on-year [17][18]

Core Viewpoint - 澜起科技 is preparing for an H-share IPO amid a surge of semiconductor companies entering the Hong Kong market, with significant growth in revenue and profit projected for 2025, driven by strong sales of memory interface chips and modules [1][3]. Financial Performance - As of January 28, 2026, 澜起科技's market capitalization reached 198.6 billion yuan [1]. - Revenue from 2022 to the first three quarters of 2025 was 3.672 billion yuan, 2.286 billion yuan, 3.639 billion yuan, and 4.058 billion yuan, respectively [1]. - Net profit attributable to shareholders for the same periods was 1.299 billion yuan, 0.451 billion yuan, 1.412 billion yuan, and 1.630 billion yuan [1]. - The company expects a net profit of 2.150 billion to 2.350 billion yuan for 2025, representing a year-on-year growth of 52.29% to 66.46% [1]. Business Segments - The interconnect chip business accounted for over 94% of total revenue in the first three quarters of 2025, generating 3.832 billion yuan [1]. - Gross margin improved from 58.7% in 2022 to 64.8% in the first three quarters of 2025 [1]. Market Trends - The server memory module market is transitioning to DDR5, with penetration expected to rise from 50% in 2024 to 85% in 2025, providing growth opportunities for 澜起科技 [3]. - The demand for memory modules is anticipated to increase due to trends in the AI industry, positively impacting the sales of interconnect chips [3]. Market Position - 澜起科技 holds a 36.8% market share in the memory interconnect chip market, leading the sector [3]. - In the emerging PCIe Retimer chip market, 澜起科技 ranks second with a 10.9% global market share [3]. Inventory and Risks - The company's inventory increased significantly, from 350 million yuan at the end of 2024 to 795 million yuan by the end of September 2025 [4]. - The rise in raw material costs and the need for inventory impairment provisions indicate potential risks associated with inventory management [4]. Customer Dependency - 澜起科技's revenue is heavily reliant on a few major clients, with the top five customers contributing 84.2% to 76.8% of total revenue from 2022 to 2025 [5]. - The largest customer accounted for 25.6% to 28.1% of total revenue during the same period, highlighting the risks of customer concentration [5]. Financial Health - As of the end of Q3 2025, 澜起科技 had a low debt ratio of 10.87% and held 8.9 billion yuan in cash [6]. - The company has consistently generated positive operating cash flow, with 1.691 billion yuan in Q3 2025 [6]. Strategic Outlook - 澜起科技 aims to attract international talent and enhance its global presence through the Hong Kong listing [6]. - The company is navigating the cyclical nature of the semiconductor industry and focusing on inventory management and customer diversification to ensure long-term stability [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company's Q3 performance, excluding share-based payment expenses, showed significant year-on-year growth, with interconnect chip revenue reaching a new high [7][11] - The company is positioned as a leader in memory interface chips, with rapid growth in AI and accelerated penetration of DDR5 technology expected to drive future growth [11] Financial Summary - For Q1-Q3 2025, the company reported revenue of 4.058 billion yuan, a year-on-year increase of 58%, and a net profit attributable to shareholders of 1.632 billion yuan, up 67% year-on-year [8] - In Q3 2025, revenue was 1.424 billion yuan, reflecting a year-on-year increase of 57%, while net profit was 470 million yuan, up 23% year-on-year [8] - The gross margin for Q3 2025 was 63.3%, an increase of 5 percentage points year-on-year [8] - The company expects to achieve net profits of 2.1 billion yuan, 3.4 billion yuan, and 4.2 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 68, 43, and 35 [11] Product and Market Developments - Q3 2025 saw interconnect chip revenue reach 1.371 billion yuan, a year-on-year increase of 62%, with a gross margin of 65.7% [9] - The company has transitioned its stock appreciation rights to restricted stock to mitigate the negative impact of share-based payments on profits [9] - The DDR5 memory interface chip continues to evolve, with the third generation RCD chip sales surpassing the second generation for the first time [9][10]