Core Viewpoint - The company achieved a historical breakthrough in its Q3 2025 performance, turning profitable for the first time in a single quarter, with both revenue and profit reaching record highs, indicating strong recovery momentum and structural growth potential [1] Financial Performance - In Q3 2025, the company reported a net profit of 256 million yuan, marking a historical high for a single quarter; revenue reached 2.663 billion yuan, a year-on-year increase of 68.06% and a quarter-on-quarter increase of 12.4%, also a record high [2] - For the first three quarters of 2025, the company achieved revenue of 6.575 billion yuan, a year-on-year increase of 30.84, setting a historical high for the same period; net profit attributable to shareholders was 30.414 million yuan [4] Profitability Improvement - The company's gross margin improved significantly, with a Q3 sales gross margin of 21.02%, up 5.11 percentage points year-on-year and 7.34 percentage points quarter-on-quarter; the net profit margin reached 9.12%, a historical high [5] - The return on equity (ROE) for Q3 was 5.77%, reflecting enhanced cost control and product pricing power; the debt-to-asset ratio decreased to 64.18%, down 2.6 percentage points year-on-year [5] Inventory and Market Confidence - The company increased its inventory significantly to 5.695 billion yuan by the end of Q3, up over 1.3 billion yuan from the end of Q2, indicating confidence in continued price increases and preparation for peak season orders from major clients [5] R&D Investment - The company maintained high R&D investment, with expenses reaching 410 million yuan in the first three quarters of 2025, a year-on-year increase of 20.98%, nearing last year's total of 447 million yuan [6][7] - Key focus areas include chip design, firmware development, and advanced packaging; the company is preparing to launch its advanced packaging manufacturing project in Dongguan [7] Capital Operations - The company successfully completed a private placement in April, raising approximately 1.9 billion yuan, primarily for the construction of advanced packaging bases, enhancing competitiveness in storage chip and packaging fields [8] - The company plans to pursue an H-share listing to broaden financing channels and strengthen its global market presence, having submitted a listing application to the Hong Kong Stock Exchange [8]

Core Viewpoint - The global storage market is experiencing a recovery, driven by stable pricing, seasonal demand, and strong interest in emerging applications like AI glasses. The positive outlook is expected to continue [1]. Company Performance - In the first half of the year, the company achieved a revenue of 3.912 billion yuan, representing a year-on-year growth of 13.70%. The second quarter saw a quarter-on-quarter revenue increase of 53.5% [3]. - The company reported a net loss of 75.57 million yuan after excluding share-based payment expenses, with a net profit of 41.29 million yuan in the second quarter after similar exclusions [3]. Client Acquisition and Market Expansion - The company has successfully entered various first-tier clients across multiple sectors, including mobile (new partnerships with vivo, continued collaboration with OPPO, Transsion, and Motorola), PC (partnerships with Lenovo, Xiaomi, Acer, HP), and smart wearables (collaborations with Meta, Google, and others) [2]. - In the enterprise sector, the company is rapidly developing its products and has gained core supplier qualifications from AI server manufacturers and leading internet companies [2]. Innovation and R&D Investment - The company is focusing on AI edge innovation, enhancing its competitive edge in high-end storage solutions for AI applications. It has successfully mass-produced its first domestically developed eMMC controller, SP1800, and is developing UFS (SP9300) [4]. - R&D expenses have increased by 29.77% year-on-year, reflecting the company's commitment to chip design, firmware development, and new product innovation [5]. Advanced Packaging Technology - The company is advancing its wafer-level packaging project, which is expected to be operational by the second half of 2025. This will provide a comprehensive solution combining storage and advanced packaging [6]. - The project includes two main product lines: FOMS series for advanced storage chips and CMC series for integrated storage and computing solutions, targeting AI edge and smart driving applications [6]. Industry Outlook - The storage market is expected to see a price recovery starting from the second quarter of 2025, following a period of price decline and inventory adjustments. Major companies have begun to stabilize prices, particularly in NAND and DRAM segments [7]. - Reports indicate a positive trend in the profitability and inventory management of domestic companies, with expectations for overall price recovery in the storage sector [7].