Haiguang Information was investigated by six organizations： the company’s products include Haiguang General Processor (CPU) and Haiguang Co-processor (DCU). The CPU products have a high contribution t

　　Haiguang Information released the record form of investor relations activities on September 20th, and the company was investigated by six institutions on September 20th, 2023. The types of institutions are fund companies and securities companies. The main contents of investor relations activities are introduced:

　　Q: Please briefly introduce the basic situation of the company and its operation in the first half of the year.

　　A: As one of the few integrated circuit design enterprises in China with the R&D capability of high-end general-purpose processor (CPU) and coprocessor (DCU), the company has always focused on R&D, design and sales of high-end processors used in computing and storage devices such as servers and workstations, and established a perfect R&D environment and process for high-end processors. The product performance has been improved from generation to generation and its functions have been continuously enriched. In the first half of 2023, the company achieved steady development in performance level, R&D capability, ecological expansion and intellectual property accumulation. In the first half of the year, the company achieved revenue of 2.612 billion yuan, a year-on-year increase of 3.24%; The net profit of returning to the mother was 677 million yuan, a year-on-year increase of 42.35%.

　　Q: Recently, the tenders for servers of enterprises have been continuously opened. May I ask the company whether it has seen the recovery of the industry prosperity in the second half of the year?

　　A: In the long run, with the acceleration of digital transformation, the promotion of localization policy, the continuous innovation and upgrading of technology and the increase of market demand, the domestic server market has a good development trend. In the second half of the year, operators, finance, energy and other industries will issue purchasing demand one after another, and the overall demand of the industry will improve compared with the first half of the year.

　　Q: What is the shipping share of DCU and CPU products in the company’s products? Does the company clearly feel that the demand for AI chips has increased significantly?

　　A: The company’s products include Sea Light General Processor (CPU) and Sea Light Co-processor (DCU). The CPU products have a high contribution to the company’s operating income, and the operating income of DCU products is increasing. Under the background of the sustained and rapid development of AIGC, the artificial intelligence application scenarios closely integrated with business have gradually landed, and enterprises with advanced algorithms and powerful computing power have become the main promoters. Haiguang CPU is one of the chips with the best ecological compatibility at present, which can fully meet the needs of the commercial market; Haiguang DCU is compatible with "CUDA" ecology, and it is well adapted to most domestic and foreign mainstream large models, such as ERNIE Bot. Relying on DCU, the comprehensive application of large models such as LLaMa, GPT, Bloom, ChatGLM, Wudao and Zidong Taichu can be realized, and DCU has reached the leading level in China in terms of large model ecology.

　　Q: We see that Shenshu II has been released and Shenshu III is still under development. What is the progress of Shenshu II equivalent to Shenshu I?

　　A: The deep computing series of Haiguang DCU is a kind of GPGPU. It adopts a "CUDA-like" general parallel computing architecture, which can better adapt to the mainstream international commercial computing software and artificial intelligence software, and its product performance has reached the leading position in China. Shenshu No.2 has been released and commercialized. Shenshu No.2 has been commercialized in the fields of big data processing, artificial intelligence, commercial computing, etc. It has full-precision floating-point data and various common integer data computing capabilities, and its performance has doubled compared with Shenshu No.1.. The research and development of Shenshu No.3 is progressing smoothly.

　　Q: How is the DCU of the company different from other friends?

　　A: The company’s DCU products choose the technical route of GPGPU and the "CUDA-like" ecology, which is the best. It is a rare GPGPU product with full-precision floating-point data and various common integer data computing capabilities in China, which can support large-scale applications of scientific computing and artificial intelligence accelerated computing at the same time. At present, it is mainly deployed in server clusters or data centers, providing computing power with high performance and energy efficiency ratio for applications and supporting data processing tasks with high complexity and high throughput.

　　Q: Have Internet companies started purchasing the company’s DCU products?

　　A: In the Internet field, the company’s DCU products have been certified by Internet companies such as Baidu and Ali, and a joint plan has been launched to build a full-stack AI infrastructure integrating software and hardware in China. The company continues to be optimistic about the development prospects in this field, and will actively seize market opportunities, increase R&D investment in this field, make full use of the company’s R&D achievements in high-end processors, break through the key technologies of Haiguang R&D, improve the ecosystem, and strive to further expand the in-depth application of Haiguang processors in the Internet industry.

　　Q: According to the bid opening information of CITIC Bank’s server procurement, the share of domestic ARM chips is higher than that of domestic X86 chips. How does the company view the prospects of various technical routes?

　　A: CITIC Bank is a new breakthrough user of the company’s products, and the company’s share in this user has increased significantly year-on-year. With the rapid development of mobile internet and artificial intelligence, there is an increasing demand for chips with high versatility, low power consumption and high performance. Both domestic ARM route and domestic X86 route have their own technical advantages. Throughout the development history of integrated circuits, excellent product ecology and rich industrial ecology are particularly important. Haiguang CPU is compatible with X86 instruction set, and its processor performance parameters are excellent. It supports mainstream operating systems, databases, virtualization platforms or cloud computing platforms at home and abroad. It can effectively be compatible with millions of existing system software and application software based on X86 instruction set, and has excellent ecosystem advantages. At the same time, Haiguang CPU has a high-quality upstream and downstream industrial chain, and its products have been widely recognized by domestic industry users. It has reached strategic cooperation with many well-known domestic server manufacturers and developed a variety of servers based on Haiguang processors, which can provide customers with high-quality services and guarantees, effectively promoting the commercial development of Haiguang high-end processors.

　　Q: May I ask the company’s shareholding reduction since August 14th? How many shareholders who have lifted the ban have not sold?

　　A: Please pay attention to the relevant announcements of the company in time for the specific details of shareholder reduction. The company will actively expand its business, do a good job, improve its performance and give back to shareholders;

　　Details of participating institutions are as follows: