According to Securities Star News, on November 15, 2024, Guoxin Technology (688262) announced that China Universal Fund, Zhuque Fund, SPDB AXA Fund, Haifutong Fund, Changxin Fund, Bank of Communications Schroder Fund, Great Wall Fund, Chang'an Fund, Ping An Fund, Cinda Australasia Fund, China Post Securities, Harvest Fund, Kaiyuan Securities, Everbright Securities, Guosen Securities, Guolian Securities, Orient Securities (self-operated), Orient Securities Asset Management, Shanghai Zhongyi Technology Investment, Shanghai Danyi Investment Management, Shanghai Tongben Investment Management, Wudi Investment Management, Huabao Fund, Nanyin Wealth Management, Huatai Berry Fund, Guotai Fund, Wells Fargo Fund, Fuanda Fund, Hony Yuanfang Fund, and Xinhua Fund investigated our company on November 13, 2024.

The details are as follows:

Q: Is there any new progress in the company's AI MCU products?

Answer: In the third quarter of 2024, the company launched a new product CCR4001S for end-side I MCUs that support generative control, which is based on the company's independent RISC-V architecture C*Core CPU core research and development, with I NPU, supporting intelligent control algorithms and adaptive frequency conversion control algorithms, and is an intelligent control scenario MCU chip designed for smart home appliances, industrial control, new energy, robotics and other fields, designed and produced in accordance with industrial grades, with high reliability. The new product of I MCU is an important chip of the company's industrial control MCU, and it is also another important expansion of the company in addition to the information innovation and information security, and automotive-grade MCU product groups. At present, a number of customers are using the company's I MCUs for product development and market expansion. The company's sales team is deeply understanding the business needs of various customers, constantly exploring the application scenarios of products, and working with customers to develop solutions that meet market needs.

Q: What work has the company done in the ecological construction of embedded CPU technology and independent and controllable industrial chain?

Answer: Chips are not only related to industrial security, but also related to national security, and the independent controllability of CPU cores is an important foundation for independent and controllable chips. With the continuous upgrading of industrial innovation and application, products with different technical routes, as well as the resulting ecosystem, may be applied to different fields, which gives domestic companies with the ability to independently develop CPU cores the possibility of achieving long slopes and thick snow in the industrial chain.

The company has the ability to customize the design of embedded CPU IP core microarchitecture on demand, and can optimize the design of software and hardware architecture of SoC chips based on software and hardware co-design technology according to the characteristics and needs of the application system according to the performance, efficiency, cost and power consumption of SoC chips. After more than 20 years of independent development and innovation, based on the open source PowerPC, RISC-V and the company's M*Core instruction architecture authorized by the instruction architecture, more than 40 serialized C*Core CPU cores with independent intellectual property rights have been formed, such as C0, C200, C300, C300, C400, C2000, C3000, C8000, C9000, CRV0, CRV4, CRV7, etc., and the performance indicators can meet the needs of customer applications. Realize domestic substitution. In addition, based on the C*Core CPU core, it has launched a SoC chip design platform for information innovation and information security applications, automotive electronics and industrial control applications, which can effectively improve the chip design efficiency and design flexibility, shorten the design cycle, and greatly improve the first-time success rate of chip design.

The C2000 and C3000 series CPU cores of the company's PowerPC instruction architecture are used to CCFC20XX and CCFC30XX series of high-end automotive electronic MCU chip products to achieve mass production and installation.

In 2019, the company began to develop CPU microarchitecture technology based on the open standard instruction set architecture RISC-V, and has launched CRV0, CRV4, CRV4H, CRV4E, CRV4I, CRV7 and CRV7I series CPU IP cores. For SIL-D functional safety automotive MCU applications, the company has launched the CRV4H lockstep core IP, and continues to develop a new generation of RISC-V architecture CPU cores for higher performance applications.

The company has cooperated with industry chain partners such as basic software manufacturers, component manufacturers, system solution providers, algorithm manufacturers, and OEMs, and has established a relatively complete domestic and international ecosystem around the company's serialized chip product group.

In terms of compiler ecology, the company's PowerPC instruction architecture CPUs are supported by commercial versions of international mainstream companies such as GreenHills and Hightec, as well as free versions of GCC products. The company's RISC-V instruction architecture CPUs are supported by both GreenHills and IR commercial versions of products, as well as free versions of GCC and LLVM products.

In terms of debuggers, the tools that support the company's PowerPC instruction architecture CPU include Lauterbach, iSystem, PLS and PE Micro and other international mainstream companies; The tools that support the company's RISC-V instruction architecture CPUs include Lauterbach and IR.

In terms of basic software for automotive electronic chips, the company provides the SDK of the chip and the MCL in line with the UTOSR 4.4 standard for free, with the EB Tresos configuration tool; For chips with HSM modules and functional safety SIL-D, additional information safety and functional safety libraries are available. At present, the company has reached cooperation with well-known software vendors at home and abroad to jointly launch a complete Classic Platform (CP) UTOSR solution, accelerate the creation of "chip + software" automotive underlying solution ecology, international companies VECTOR, ETS and domestic companies Neusoft Reach, Puhua, Hengrun completed the company's PowerPC instruction architecture automotive electronic chip on the OS and protocol stack software adaptation, has been recognized by the market, industry applications are being rolled out.

The company has established close cooperation with many international and domestic body and domain control module manufacturers such as Airtek, Jingwei Hengrun, Keshida (Shanghai), Changjiang Automotive Electronics, O-film, Yi Dingfeng, Yingchuang Huizhi, Aptiv, etc.; It has maintained business collaborative innovation and cooperation with many power module manufacturers such as Weichai Power, Aoyix, Wuhan Lingdian, Changzhou Yikong, etc., and promoted the application of localized solutions in the field of automotive controllers. For example, it has cooperated with Tianjin Yidingfeng to produce VCU controllers based on CCFC3008PT, cooperated with Zhixin Control to promote the localization of applications in the field of automotive controllers, cooperated with Aoyix to develop powertrain projects, accelerated the development of its One-Box solution with Yingchuang Huizhi, and developed DSP noise reduction algorithms and sound processing solutions with many industry leading enterprises such as Huayan Huisheng, Goertek, DSPC, SK, RMYS and Ceran Acoustics.

Under the guidance of Suzhou Science and Technology Bureau and the government of the High-tech Zone, led by the company, Suzhou Automotive Research Institute of Tsinghua University, School of Integrated Circuits of Southeast University and other scientific research institutes, as well as SAIC, Chery Automobile, Geely, Shanghai Keshida, Changzhou Yikong, OFILM, Aoyix, Huayan Huisheng and other leading enterprises in the upstream and downstream of the Yangtze River Delta industrial chain, around the application ecological construction of domestic independent controllable automotive electronic chips, Suzhou independent controllable automotive electronic chip innovation consortium has been established, and the innovation consortium has given full play to their respective advantages. Concentrate regional advantageous resources, avoid going it alone, develop the technological innovation and application ecology of domestic automotive electronics MCU chips through industrial linkage, break through the key core links of chips and control modules in the automotive industry chain, break the foreign monopoly situation, and realize independent controllability and localized substitution.

The company will take independent and controllable as the starting point, adhere to the development and industrialization of open source instruction architecture CPU technology and chips, master key core technologies, promote "core and software integration", promote the high integration and high performance of independent controllable chips, expand the MCU+ application of intelligent perception and execution, actively layout I and quantum applications, promote technological innovation, and realize the extension of the industrial chain through cooperation with industrial chain manufacturers.

Q: What is the company's outlook for demand in each application area?

The company will make every effort to consolidate its leading position in server security and cloud security segments, and expand new application fields through new product research and development such as quantum security product series, high-performance security chip CCP917T for server and cloud applications, and updates and iterations of existing product series. The demand in the field of industrial control is stable, and the company will devote itself to the market introduction of I MCU and seek new growth points. In the first three quarters of 2024, the company's cumulative shipments of automotive electronic chips have approached the level of last year. The company has increased market promotion, in addition to the traditional body control and powertrain applications, and actively expanded the domain control, wire-controlled chassis, airbags and Internet of Vehicles information security and other important customers, and has made a number of project fixed-point development, mass production progress. With the expansion of product lines and the increase in mass production projects, the company's shipments of automotive electronic chips are expected to increase steadily.

For more information about the company, please refer to the company's periodic reports and interim reports disclosed on the websites of China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily and Shanghai Stock Exchange, as well as the company's "Investor Relations Activity Record Form" published in the "Listed Company Release" column on the SSE interactive platform.

The main business of Guoxin Technology (688262) focuses on the R&D and industrial application of domestic independent controllable embedded CPU technology.

According to the third quarter report of Guoxin Technology in 2024, the company's main revenue was 470 million yuan, an increase of 16.58% year-on-year; net profit attributable to the parent company -127 million yuan, a year-on-year decrease of 122.23%; deducted non-net profit of -149 million yuan, a year-on-year decrease of 39.89%; In the third quarter of 2024, the company's single-quarter main revenue was 208 million yuan, a year-on-year increase of 34.61%; The net profit attributable to the parent company in a single quarter was -44.7465 million yuan, a year-on-year decrease of 104.58%; The non-net profit deducted in a single quarter was -53.3793 million yuan, a year-on-year decrease of 35.74%; The debt ratio was 29.38%, the investment income was 8.1995 million yuan, the financial expenses were -1.9476 million yuan, and the gross profit margin was 18.51%.

A total of 2 institutions have rated the stock in the last 90 days, 1 have given a buy rating and 1 have an overweight rating.

Here's the detailed earnings forecast information:

Margin data shows that the stock has a net financing inflow of 102 million in the past three months, with an increase in the financing balance, and a net outflow of 918,900 with a decrease in the balance of securities borrowing and lending.

The above content is compiled by Securities Star based on public information, generated by intelligent algorithms, and does not constitute investment advice.