A：Hard Egg Innovation is a AI computing supply chain as the core supplier, for the chip upstream and downstream enterprises to provide solutions and products. Our customers include end-application companies, such as robotics and automotive companies, as well as large cloud service providers such as Aliyun and Meituan, and even most of the global companies involved in the chip industry, such as selling high-end chips such as Nvidia, Intel, Xilinsi and AMD products to meet their needs.

A：For the AI computing center, Hard Egg Innovation provides a complete set of solutions, from the GPU of the front-end core to the network card, optical module, etc., which can assist customers in centralized procurement and help them design and deploy the scheme.

A：We work closely with Nvidia to provide a variety of products for the giant deep robot, such as Nvidia Johnson system for the robot brain, joint processor, FPGA and motor control are also included in our product line. It is expected that the number of robot-related enterprises supported by the platform will increase from nearly 200 last year to 500 to 1000 this year.

A：Our target market is mainly the chip industry, especially in the context of the country's increasing emphasis on chips and the impact of the Sino-US trade war, investors have deepened their understanding of this new industry. According to data analysis, the scale of China's chip procurement industry is about 10 trillion levels each year, of which 21000 need to import high-end chips. With the development of domestic chips, this proportion has not declined, but the AI demand for chips is rising. We estimate that the annual demand may now exceed 1.4 trillion.

A：Our business model is similar to the Jingdong model of the chip industry. As the most complete distributor of high-end chips in the United States, we provide a free sales model. For large customers, we will provide a lot of early technical guidance and research and development support before sales to provide technical solutions. For small and medium-sized customers, we will modularize the sales of solutions to shorten the development time of new products and obtain higher profit margins.

A：We not only provide technical solutions, but also serve as domestic after-sales and technical support for upstream manufacturers such as Nvidia and Intel. For SME customers, we sell technical solutions and assume the role of after-sales service of the original factory, as well as sales.

A：For large customers, our average gross profit margin is about 5%, while for small and medium-sized customers, the gross profit margin is about 10%. We use a proprietary model in the AI sector, have our own inventory, and inventory management strategies effectively reduce inventory risk.

A：The company's current business is divided into three categories: the first category is the Jingdong model of chips, that is, the chip agent and distributor model; the second category is to provide module and terminal solution services as a solution provider; the third category is After accumulating a large amount of customer demand data and technical solutions, we began to develop self-developed products.

A：The company cooperated with AMD to develop a key chip product used in WeChat communication based on its core technology authorization, which has been gradually introduced to the market this year. In addition, the company has partnered with Intel to develop a proprietary product in the server storage category, which currently has a gross margin of between 30 and 70 percent, and is expected to be an important product portfolio that will boost margins and drive the company's growth in the future, although the current percentage is small.

A：The company's management team has a total of nearly 600 people, including 320 sales staff, and basically technical sales staff, responsible for providing technical solutions and even on-site services. The core R & D team is about 100 people, mainly responsible for the development of self-developed products and the maintenance of the background big data system.

A：The company sees the distribution business as an important entry point for accessing customers and upstream and downstream resources, and while gross margins may be low, it helps the company collect customer data and demand for cross-selling. Especially in the rapidly changing chip industry, the company continuously pushes new technologies and solutions to customers through the platform, and also helps the original factory to find potential customers and expand the market through big data push.

A：The company is confident that the distribution business will reach a scale of more than 100 billion yuan in the next three to five years, and has received orders from many major customers this year, and it is expected that the annual sales may reach more than 30 billion billion yuan.

A：Self-developed products currently account for a relatively small proportion and are expected to increase to single digit (the proportion of several points) this year. The future goal is to reach at least 20% of the products, so as to enhance the deep binding to customers and improve the overall profit margin.

A：The company's self-developed products in cooperation with AMD are mainly used for the blockchain certification needs of customs banks, and are developed with AMD's technical authorization. In addition, related products have been developed in the field of wireless communication and satellite communication.

A：The company's significant growth in performance this year is due to the expanding demand for AI computing power in the overall market, the significant gap between China and the United States in AI infrastructure construction, and the rapid growth of China's demand on the reasoning side. It is expected that the entire AI investment will continue to increase in the future. This year, the investment ratio of training and reasoning is about 1:8, and it is expected to become 1:14 next year.

A：We expect the compound growth rate of AI computing demand to double in the next few years, especially in the early stages of development, which is a stage of large-scale investment and rapid growth. As the core entrance under the wave of AI computing development, Corden has rich supplier resources and downstream customer network, which can better serve customers and promote our technology and self-operated products.

A：In terms of agency product lines, our company is in a leading position in the richness and amount of the Chinese market, but if the other party only represents part of the product line or provides specific solutions, we cannot fully conduct a comparable analysis with it.

A：Research and development costs mainly come from personnel input, including more than 100 research and development teams and more than 300 technical sales teams. Self-research products are currently produced through foundry methods, and capital investment may be increased in the future as self-research products are upgraded.

A：On the one hand, we develop our own research products through personnel input, and on the other hand, we establish an internal system to efficiently push product information and data to clients, and on-site technicians provide support services.

A：We strictly abide by the agreement between China and the United States, and will resolutely implement the compliance requirements of the United States for the chip business that is completely banned.

A：This year, as the proportion of self-research is not very high, the profit margin may not be very high, and may even decline. This is because this year we have made many orders from major customers, such as Tencent. Although the purchase volume is large, the profit margin will not be very high. It is estimated that the operating profit will be about 5 to 0.6 billion.

A：In addition to selling products, we also provide overall solutions for major customers, including data center construction, module selection, network configuration, etc., and provide free technical consultation and support services in the early stage. Although most customers may still retain direct mining, some orders will be processed by platforms like ours.

A：While our company is also affected by the cyclical nature of the storage industry, our business model is not stockpiling. Even if the market price fluctuates, we will not increase the price on a large scale, but insist on technical service customers, so we can maintain a stable operating state in the storage industry in good or bad years. At present, more than 90% of the company's inventory is in hand orders, to ensure that there will be no market price fluctuations and speculation operations.

A：The company is not divided according to a single product line such as GPU, but according to the supplier. Nvidia's product line includes GPU, network, optical module and robot processing, so we will make procurement allocation internally according to suppliers. It is expected that the proportion of NVIDIA in our procurement may increase relatively more this year.

A：The company's platform is characterized by a fragmented customer and supplier base, with the top few customers and suppliers changing from year to year. For example, last year, storage customers accounted for more than 5% of purchases, but no one customer accounted for more than 5%. We use platform data to serve more than tens of thousands of customers.

A：In the United States, high-end chip companies, including Nvidia, usually have only 2-4 first-line agents in China. Avida started with multiple agents and partners, but last year began to focus on supporting platforms like ours that provide quality services. Nvidia wants us to scale up their business to billions of dollars, which is why we started to approach big customers like Tencent this year.

A：The main reason is that China and the United States have different formats. China has abundant manufacturing resources, while the United States has relatively few manufacturing industries. In China, many manufacturers may not be well-known in the market, but through our platform can access the latest technology and product solutions.

A：The role of our platform is to act as an entrance for various products and technical solutions in China's electronics manufacturing industry. No matter which product is leading, we are the channel for many electronics manufacturers to enter the Chinese market. We help our customers understand the latest technology and product solutions, so our platform has lasting value in the context of China's huge electronics manufacturing industry.

A：At present, we have no specific plans for a general mandate. The authorization has been used for the-share listing plan before, and additional issuance has been carried out, mainly to solve the problems of the parent company's asset split and investor exit. We have no particularly large plans in the short term, unless there are large capital expenditure needs.

A：Yes, we are in talks with companies like Tencent about the possibility of building data and AI computing centers overseas, which will help circumvent Nvidia's construction restrictions in China and meet the needs of our own product and platform companies for strong computing power overseas.

A：This year, we expect to achieve sales of about 30 million yuan through the SON self-research product line under Jason's responsibility, with a long-term goal of 10 to 2 billion yuan. Considering that the company is currently in a stage of rapid development and has limited funds, it focuses more on customer acquisition and business with greater demand in terms of resource investment. Therefore, Self-Research adopts an asset-light approach to operation, and this year's goal is to achieve a sales scale of several hundred million to 1 billion billion yuan.

A：Our program covers a comprehensive, with industry-leading product lines. Although it may not be the only first in some single areas, we are in a relatively leading position in terms of overall solution delivery capabilities and comprehensive scale.

A：Our business model and product lines cover a wide range and are unique, making it difficult to fully align directly with a single A- share listed company. For example, in the distribution business, although there are companies similar to the storage distribution business, we are different in terms of B2B model, business share, etc. We adopt a non-stocking model, which is based on customer orders and supplier purchases. The price remains stable at the time of delivery and will not be adjusted due to market price fluctuations. This model ensures that customers can obtain products stably, and when the chip supply is tight, customers can continue to obtain the products they need from us, which is one of the reasons why the original factory is willing to support us.