Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook despite short-term performance challenges [2][12]. Core Viewpoints - The company is experiencing short-term pressure on its performance, with a forecasted revenue of approximately 506 million yuan for 2024, remaining stable compared to the previous year. However, the expected net profit attributable to shareholders is projected to decline significantly to -619 million yuan, a decrease of about 87.89% year-on-year [3][6]. - The company is actively addressing operational pressures and is optimistic about long-term growth potential, particularly in the AI and information technology sectors. The local deployment of AI models using the company's processors is seen as a significant advancement [5][12]. Summary by Sections Financial Performance - The company anticipates a revenue of approximately 506.53 million yuan for 2024, which is nearly flat compared to the previous year. The net profit is expected to drop to -617.82 million yuan, reflecting a year-on-year decline of 87.54% [3][13]. - The company has reported a significant increase in sales of information technology products, which has positively impacted gross margins, although overall gross margin levels have not fully recovered due to high fixed costs and declining contributions from industrial control chip revenues [4][6]. Market Position and Strategy - The company is leveraging its strengths in the electronic government market, which is beginning to recover, and is focusing on the cost-performance advantages of its new products, such as the 3A6000 and 2K0300 processors [4][5]. - The collaboration with industry partners to deploy AI models locally is a strategic move to enhance productivity and reduce reliance on cloud services, which is expected to benefit the company in the evolving "AI + information technology" landscape [5][12]. Future Outlook - The company is projected to return to a growth cycle in the second half of 2024, driven by the recovery in the electronic government market and the successful deployment of new products [4][6]. - The forecast for net profit for 2025 and 2026 is set at 13.34 million yuan and 88.74 million yuan, respectively, indicating a potential recovery in profitability [12][13].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook despite short-term performance challenges [2][12]. Core Insights - The company is experiencing short-term pressure on its performance, with a projected revenue of approximately 506 million yuan for 2024, remaining stable compared to the previous year. However, the net profit attributable to shareholders is expected to decline significantly to -619 million yuan, a decrease of about 87.89% year-on-year [3][4]. - The company is actively exploring AI integration with its products, achieving local deployment of AI models, which is expected to enhance operational efficiency and align with industry trends [5][12]. Summary by Sections Financial Performance - The company anticipates a revenue of 5.06 billion yuan for 2024, which is roughly flat year-on-year. The net profit is expected to decrease by approximately 290 million yuan compared to the previous year, resulting in a projected loss of 619 million yuan [3][4]. - The company has seen a significant decline in its solution business, while chip product revenues have increased substantially. The overall gross margin remains under pressure due to high fixed costs and reduced contributions from industrial control chip revenues [4][6]. Market Position and Strategy - The company is recognized as a leader in domestic CPU development, focusing on processor and supporting chip research, sales, and services. It has established a comprehensive market collaboration in various sectors, including electronic government, energy, transportation, finance, telecommunications, and education [6][12]. - The company is leveraging its new products' cost-performance advantages to capture opportunities in the recovering electronic government market, aiming for revenue growth in the latter half of 2024 [4][6]. Future Outlook - The company has adjusted its net profit forecasts for 2024-2026 to -618 million yuan, 13 million yuan, and 89 million yuan, respectively, reflecting a cautious but optimistic long-term growth potential [12][13]. - The current stock price corresponds to a price-to-sales (PS) ratio of 105, 80, and 58 for 2024-2026, indicating a premium valuation relative to expected earnings [12][13].

Revenue Projections - The company expects to achieve an annual revenue of approximately 506 million yuan in 2024, which is roughly flat compared to the previous year[3]. - In 2023, the company reported an annual revenue of 505.69 million yuan and a net profit attributable to the parent company of -329.44 million yuan[4]. Profit Forecasts - The projected net profit attributable to the parent company for 2024 is around -619 million yuan, a decrease of approximately 28.96 million yuan or 87.89% year-over-year[3]. - The net profit attributable to the parent company after deducting non-recurring gains and losses is expected to be about -655 million yuan, reflecting a year-over-year decline of approximately 21.31 million yuan or 48.24%[3]. Revenue Composition - The company has seen a significant increase in revenue from chip products, while revenue from solution-based services has declined substantially due to a strategic shift[5]. Cost and Margin Analysis - The gross profit margin has slightly decreased due to high costs associated with early shipments of bridge chips and the impact of fixed cost allocation[6]. Asset Impairment and Market Conditions - The company has experienced a significant increase in asset impairment losses, expected to exceed 200 million yuan, primarily due to macroeconomic pressures[6]. - The company anticipates that previously recognized inventory impairments may not have a substantial impact on operations as the traditional industrial control market gradually recovers[6]. Financial Reporting and Investor Advisory - The financial data presented is preliminary and has not been audited by registered accountants, with the final figures to be disclosed in the audited annual report[8]. - Investors are advised to be cautious regarding investment risks as the forecast data is based on preliminary calculations[8].

Summary of Longxin Zhongke Conference Call Company Overview - **Company Name**: Longxin Zhongke - **Industry**: Semiconductor and CPU design - **Listing**: Listed on the Shangjiaoshuo Science and Technology Edition in 2022 - **Core Business**: Development of independent CPU technology and information technology systems, focusing on self-reliance from foreign technologies like Windows and Intel [2][3][4] Key Points and Arguments - **Independent Technology Development**: Longxin Zhongke is the only CPU company in China that builds an independent information technology system, aiming to control core technologies domestically [2][3][4] - **Product Applications**: Longxin chips are utilized in various sectors including electronics, energy, transportation, finance, telecommunications, and education [2][3] - **Product Range**: The company offers several product lines including Longxin No.1 MCU series, Longxin No.2 SoC series, and Longxin No.3 CPU series [3][4] - **Performance Comparison**: Longxin CPUs have reached performance levels comparable to Intel's Core i10, with aspirations to replace foreign products in desktop and laptop markets [4][5] - **Self-Sufficiency**: The company emphasizes that its products do not require foreign authorization, allowing for complete self-control from design to production [4][5][9] Market Position and Strategy - **Market Goals**: Longxin aims to establish a self-controlled information technology base and industrial ecology independent of X86 and ARM architectures [3][4] - **Ecosystem Development**: The company is focused on building a comprehensive ecosystem that integrates software and hardware, eliminating authorization fees and enhancing cost efficiency [8][9] - **Industrial Applications**: Longxin's CPUs are applied in critical infrastructure such as nuclear power plants and thermal power plants, showcasing their reliability and performance in extreme conditions [8][9] Future Outlook - **Growth Potential**: Longxin is positioned to capture a significant share of the domestic computing market, with increasing investment and market space in large-scale computing industries [9][10] - **Testing and Quality Assurance**: The company has established a testing base to ensure the performance and reliability of its chips, which are tested under extreme conditions [10][11] - **Product Development Timeline**: Longxin plans to mass-produce and release new products in the coming year, indicating a robust pipeline for future growth [9][10] Additional Insights - **Cross-Platform Compatibility**: Longxin is working on ensuring compatibility with existing Windows devices and software, addressing concerns about usability in the market [6][7] - **Focus on Domestic Needs**: The company aims to develop products that meet the needs and habits of domestic consumers, collaborating with local manufacturers [5][10] - **Investment in R&D**: Longxin has committed to continuous research and development, launching new products and enhancing existing technologies to maintain competitive advantage [11] This summary encapsulates the key aspects of Longxin Zhongke's conference call, highlighting its strategic focus on independence, product development, and market positioning within the semiconductor industry.

Group 1: Market Performance and Product Development - Longxin's product competitiveness has improved, leading to a recovery in market demand and expansion in market presence [1] - The 3A6000 desktop CPU launched last year has significantly enhanced cost-performance ratio, resulting in a notable increase in information chip revenue year-on-year [1] - The server business is gaining traction in policy-driven markets, with expectations for further growth following the release of the 3C6000 series server chips [1] Group 2: Industrial Control and AI Integration - The industrial control sector is in its early stages of domestic replacement, with a high market ceiling due to its broad industry applications [1] - Longxin is enhancing product competitiveness by continuously launching relevant chip products, such as the 2K0300 aimed at the open market [1] - The company is focusing on integrating AI frameworks to run efficiently on its CPUs, with some mainstream open-source AI frameworks already operational on Longxin architecture [5] Group 3: Technological Advancements - Longxin's Dragon Link technology facilitates high-efficiency interconnection between chips, supporting larger-scale computing scenarios [5] - This technology is currently utilized for interconnections between server chips and may extend to connections between Longxin CPUs and self-developed high-end GPGPUs in the future [5]

Group 1: Investor Relations Activities - The investor relations activity included a site visit on December 12, 2024, at the Longxin Industrial Park in Beijing [2] - Participating units included various funds and securities companies [2] Group 2: Technology Licensing and IP - Longxin has developed its own instruction architecture and IP, focusing on external technology licensing to meet ecosystem demands [2] - As of November 2023, multiple companies signed cooperation agreements to use Longxin's architecture for chip design, with two companies already selling chips based on this architecture [2] - The revenue from IP licensing is currently small and will require time for scalable development [2] Group 3: Product Development Progress - The next-generation desktop CPU, 3B6600, is in the design phase and is expected to be delivered in the first half of next year [5] - The server CPU, 3C6000, is in the sample stage, with productization expected by Q2 2025, showing performance benchmarks against Intel's Xeon series [5] - The GPGPU chip, 9A1000, is being developed for entry-level graphics and AI inference acceleration, with performance targeting AMD RX550 [5] Group 4: Cost-Performance Advantages - Longxin's fourth-generation products, represented by the "Three Musketeers" and "Three Sharp Soldiers," focus on improving cost-performance ratio and software ecosystem [5] - The 3A6000 desktop chip has a 20% smaller silicon area, 60% single-core performance improvement, and 100% multi-core performance improvement compared to its predecessor [5] - The 3C6000 server chip shows a performance doubling and cost halving compared to the 3C5000, currently in the sample stage [5] - Longxin's self-developed core IP and components contribute to long-term cost advantages and rapid technological iteration [5]

Group 1: Product Development - The next-generation desktop CPU, 3B6600, is under development, with a performance improvement of approximately 30% compared to the previous model, 3A6000, using advanced manufacturing processes [2] - The server CPU, 3C6000, is in the sample stage, with plans for mass production and official release by Q2 2025, featuring 16 cores and 32 threads [2] - The GPU chip, 9A1000, is positioned as an entry-level graphics card, with performance comparable to AMD RX550, expected to freeze code by the end of 2024 [4] Group 2: Industrial Applications - The industrial control business primarily targets sectors such as energy, transportation, and smart manufacturing, with a high potential market ceiling [4] - The adoption of domestic chips like the 3A5000 is driven by performance parity and system integration capabilities, reducing overall system costs [4] Group 3: Supply Chain and Independence - The company has maintained a stable supply chain without any disruptions, emphasizing independence from foreign supply chains [4][6] - The strategy includes developing a self-controlled information technology ecosystem, relying on domestic technology and avoiding foreign technology licenses [4][6] - The production and supply chain risks have been minimized, ensuring supply security [6]

Group 1: Company Overview and Technology - Longxin Technology has developed its own instruction set architecture, LoongArch, to build a software ecosystem that emphasizes "solid foundation, broad compatibility, and independent applications" [5] - The company has achieved performance levels comparable to mainstream products through continuous optimization of design, despite manufacturing process gaps [2] - Longxin's core IPs are self-developed, allowing for a comprehensive system approach to performance issues [2] Group 2: Software Ecosystem Development - The basic software ecosystem based on LoongArch has been established, with significant support from international open-source communities like Debian and Alpine [5] - Domestic operating system vendors such as Tongxin, Kylin, and others have released versions supporting LoongArch, indicating a healthy development phase for the ecosystem [5] - Longxin aims to develop a fully autonomous application ecosystem, similar to the app ecosystems on mobile platforms [10] Group 3: Product Development and Market Strategy - Longxin is developing the GPGPU chip 9A1000, which aims to provide competitive performance in 3D graphics and general computing power [7] - The company anticipates growth in its PC business, particularly with the 3A6000 desktop CPU, which has received positive market feedback [7] - In the server business, the upcoming 3C6000 series is expected to enhance revenue, with a projected product launch in Q2 2025 [12] Group 4: Talent and Corporate Culture - Longxin adheres to a talent selection standard of "red and specialized," emphasizing a strong work ethic and commitment to national interests [12] - The company has built a capable team with deep technical expertise in processor design and software development [12] Group 5: Financial Performance and Future Outlook - Longxin's revenue from information technology chips has increased by over 100% year-on-year [12] - The company is focusing on niche markets for targeted breakthroughs, particularly in industrial control and cloud terminal sectors [7]

证券代码：688047 证券简称：龙芯中科 公告编号：2024-046 龙芯中科技术股份有限公司 股东减持股份结果公告 一、减持主体减持前基本情况 减持计划的实施结果情况 2024 年 10 月 1 日，公司于上海证券交易所网站（www.sse.com.cn）披露了 《龙芯中科股东减持股份计划公告》（2024-041），横琴利禾博计划通过集中竞价 交易和/或大宗交易的方式减持其持有的公司部分股份，减持不超过 2,005,000 股，分别占公司总股本的比例为 0.5%。 近日，公司收到了横琴利禾博出具的告知函，横琴利禾博通过集中竞价交易 的方式减持 2,005,000 股，占公司总股本的比例 0.5%。具体情况如下： 1 本公司董事会、全体董事及相关股东保证本公告内容不存在任何虚假记载、 误导性陈述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律 责任。 重要内容提示： 股东持股的基本情况 本次减持计划实施前，龙芯中科技术股份有限公司（以下简称"公司"）股 东利河伯资本管理（横琴）有限公司－横琴利禾博股权投资基金（有限合伙）（以 下简称"横琴利禾博"）持有公司股份 20,049,900 股，占公司总 ...

Group 1 - Longxin Zhongke and Antiy have completed the adaptation certification work for the Antiy WEB application protection system V3.0 [1] - The collaboration between Antiy's security protection technology and Longxin hardware provides customers with a stable, reliable, and secure domestic security protection solution [2] - The adapted environment utilizes the Longxin 3C5000 dual-server, paired with the Longxin operating system (Anolis0S-8.9-loongarch64-dvd), supporting up to 8 million concurrent sessions and achieving an application layer throughput of 5 Gbps with a connection rate of 60,000 connections per second [2]