Last night, Haiguang Information released an announcement stating that in order to seize new development opportunities in the information technology industry and expand and strengthen its main business, Haiguang Information Technology Co., Ltd. (hereinafter referred to as "the Company" or "Haiguang Information") and Sugon Information Industry Co., Ltd. (hereinafter referred to as "Sugon") are planning to absorb and merge Sugon through the issuance of A-shares to all A-share exchange shareholders of Sugon (hereinafter referred to as "this merger") and issue A-shares to raise supporting funds (hereinafter referred to as "this reorganization").

According to the data, as a leading domestic high-end processor design company, Haiguang has developed a number of high-end processor products that meet the development of my country's informatization since its establishment, and has established a complete high-end processor R&D environment and process. The product performance has been improved from generation to generation, and the functions have been continuously enriched. The main products include high-end general-purpose processors (CPUs) and coprocessors (DCUs), and have successfully completed the independent R&D and commercialization of multiple generations of products. During the reporting period, the company continued to deepen its main business, and through high-intensity R&D investment, it improved its technological innovation capabilities and product quality, and was committed to providing customers with high-performance, high-reliability, low-power products and high-quality services. The company's series of high-end processor products have been widely used in data centers in multiple industries such as telecommunications, finance, and the Internet, as well as in big data processing, artificial intelligence, commercial computing and other fields, further enhancing its market position and competitive advantage.

Fiscal Year-2024

In fiscal year 2024, Haiguang achieved operating income of 916,214.81 million yuan, an increase of 52.40% over the same period last year; realized net profit attributable to the owners of the parent company of 193,099.05 million yuan, an increase of 52.87% over the same period last year; realized net profit attributable to the owners of the parent company after deducting non-recurring gains and losses of 181,577.76 million yuan, an increase of 59.79% over the same period last year; realized earnings per share of 0.83 yuan, an increase of 53.70% over the same period last year.

During this period, Haiguang's overall business continued to improve, the industrial ecological map of high-end processor products continued to expand, and the industry applications involved and the emerging artificial intelligence large model industry gradually increased. The company is also based on the general computing market, relying on its excellent high-end processor design capabilities, efficient product iteration capabilities and strong industry leadership capabilities to continuously improve market visibility and strengthen competitive advantages.

Specifically, Haiguang's main business is the research and development, design and sales of high-end processors used in computing and storage devices such as servers and workstations. The company's products include Haiguang general-purpose processors (CPUs) and Haiguang coprocessors (DCUs). Haiguang CPU series products are compatible with the x86 instruction set and the world's mainstream operating systems and application software. They have a rich software and hardware ecosystem, excellent performance, and are safe and reliable. They have been widely used in important industries or fields such as telecommunications, finance, the Internet, education, and transportation. Haiguang DCU series products are based on the GPGPU architecture and can be widely used in application fields such as big data processing, artificial intelligence, and commercial computing.

Haiguang product performance in the past few years

In the past few years, the performance of Haiguang products has continued to improve, R&D projects have progressed smoothly, and the R&D team has continuously achieved breakthroughs in key technical fields such as high-end processor design and verification. The company's high-end processor products have established a good reputation with their unique advantages in function, performance, ecology and security, further consolidated the leading position of the products in China, and expanded market competitiveness and brand influence.

As the core component of modern information system equipment, high-end processors play an irreplaceable role in large-scale data processing, complex task scheduling and logical operations. According to the application field, technical route and product characteristics, the company's high-end processors are divided into Haiguang CPU series products and Haiguang DCU series products.

Among them, Haiguang CPU is mainly aimed at the application scenarios of general processors such as complex logic calculations and multi-task scheduling. It is compatible with the international mainstream x86 processor architecture and technical route, and has the advantages of excellent system architecture, high reliability and high security, and rich software and hardware ecology. Haiguang CPUs are upgraded and iterated by generations. Each generation of products is subdivided into Haiguang 7000 series products, Haiguang 5000 series products, and Haiguang 3000 series products according to the requirements of different application scenarios for high-end processor computing performance, functions, power consumption and other technical indicators.

Technical advantages of Haiguang CPU

According to reports, Haiguang CPU has three major technical advantages: excellent product performance, good system compatibility, and high system security. It has a very wide range of versatility and industrial ecology among domestic processors, and has been widely used in industries and fields such as telecommunications, finance, Internet, education, transportation, industrial design, and graphics and image processing. Haiguang CPU supports both high-end servers for complex application scenarios such as data centers and cloud computing, as well as mid- and low-end servers, workstations, and edge computing servers in the information construction of government affairs, enterprises, and education scenarios.

Haiguang DCU is a type of GPGPU, which adopts a general parallel computing architecture and can better adapt to international mainstream commercial computing software and artificial intelligence software. Like the CPU, Haiguang DCU is upgraded and iterated according to generations, and each generation of products is subdivided into various models of the 8000 series. Haiguang DCU is based on the design concept of general-purpose graphics processors and has full-precision support capabilities, including double precision, single precision, half precision, integer, etc. It can fully tap the parallelism of applications, give full play to its large-scale parallel computing capabilities, and quickly develop energy-efficient applications. It provides computing power for scientific computing and artificial intelligence computing, and can fully support deep learning training, reasoning scenarios, and large model scenarios. Haiguang DCU has a self-developed DTK software stack, which is one of the most complete ecosystems in China, greatly reducing the difficulty of application migration.

Haiguang DCU is mainly deployed in server clusters or data centers to provide high-performance and high-energy-efficiency computing power for applications, supporting high-complexity and high-throughput data processing tasks. In the context of the continuous and rapid development of AIGC, Haiguang DCU has a complete unified underlying hardware driver platform, which can adapt to different API interfaces and compilers, and supports common function libraries, and completes comprehensive adaptation with many leading domestic Internet manufacturers.

Haiguang emphasized that the company actively cooperates with upstream and downstream enterprises in the domestic information technology industry, takes Haiguang's high-end processors as the cornerstone of computing power, and works with technology companies in the fields of cloud computing, big data and industry software to jointly create product solutions with open security features, green environmental protection concepts and sustainable expansion potential. With the deepening of the localization process, the company's development foundation has become more solid, injecting strong momentum into the improvement of the company's operating capabilities and pushing the company to a higher level of development.

As for Sugon, as one of Haiguang's major shareholders, it is a well-known server manufacturer. With the help of this merger, they have taken a step further in the era of artificial intelligence.

From the perspective of acquisition, this is a bit like AMD's acquisition of ZT system. When acquiring the latter, AMD said that with the rapid development of artificial intelligence innovation, shortening the end-to-end design and deployment time of cluster-level data center artificial intelligence systems will become a significant competitive advantage for our customers. The acquisition of ZT Systems is an important milestone in our artificial intelligence strategy, aiming to provide leadership training and reasoning solutions optimized for customers' unique environments. These solutions can be deployed at scale and are based on our open ecosystem approach, which combines open source software, industry-standard network technology, and ZT Systems' leadership system design and customer empowerment expertise.

Through this transaction, AMD plans to use the AMD hardware portfolio (from CPU and GPU to network chips) to provide end-to-end AI solutions. This is also believed to be the next step in the development of Hygon.

Source: Content comes from semiconductor industry observation

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