At the end of the first half of 2023, on-hand orders exceeded 300 million yuan, an increase of 63.81% over the same period last year. The substantial increase in on-hand orders ensured high growth in the second half of the year. The income in the first half of 2023 was 253 million yuan, an increase of 13.39 percent, and the net profit returned to the mother was 5060 yuan, an increase of 59.42 percent over the same period last year. As of June 30, 2023, the company's on-hand orders totaled 307 million yuan, an increase of 63.81 percent over the same period last year.

The PLC photovoltaic chip independently developed by the company was awarded the SunSpec communication specification test certification certificate. Based on the company's independent research and development of PLC photovoltaic chip photovoltaic module fast turn-off module recently passed the international CSA testing and certification body certification. The certification shows that the company's photovoltaic chip products have reached the international advanced level in various indicators, can achieve import substitution, and further consolidate the company's leading position in the field of photovoltaic chips.

The new products of power grid are shipped on a large scale to speed up the development of non-grid market products. The new generation of HPLC+HRF dual-mode communication chips in the power grid field has been supplied in batches, and the Internet of things PLC SoC chips for the consumer IOT market have been successfully taped out. The "Internet of things Application Development Project based on Independent chips" has developed various Internet of things application solutions for six major fields around the relevant independent chips, which is in the market promotion stage; for photovoltaic new energy applications, launched SUNSPEC PLC SOC chips that meet the requirements of North American NEC2017 (690.12) for photovoltaic power generation system to achieve "component-level control" and bi-directional communication PLC SOC chips that can support photovoltaic module power generation information collection.

The company actively develops the key areas of the market, accurate layout of business areas. Lihe Micro focuses on PLC chips such as photovoltaic module-level turn-off, component-level power generation monitoring and micro-inversion, as well as the development and promotion of intelligent application solutions, continuously promoting the application of related technologies in the fields of new energy intelligent management, smart home appliances, smart lighting, and smart power digitization, and actively expanding the product line in the new energy field, which is expected to achieve several times the revenue volume in the off-grid field.

Convertible bonds have been continuously promoted and have been approved by the Shanghai Stock Exchange. On June 28, the company issued 380 million yuan of convertible bonds to unspecified objects, focusing on the development of the non-electric Internet of things. The smooth issuance of convertible bond projects will promote the development of the company in the field of non-electric Internet of things. Among them, 153 million yuan is used for smart photovoltaic and battery smart management PLC chip research and development and industrialization project, and 137 million yuan is used for smart home multimode communication gateway and smart device PLC chip research and development and industrialization project.

Investment advice: from 2023 to 2025, the income was 7.51 pesos, 11.182 pesos, 1.944 million yuan, an increase of 49.1 percent, 57.4 percent, and 64.4 percent, respectively, and the net profit was 1.26 pacemakers, respectively. 309 million yuan, maintaining the "buy" rating.

Risk hint: the progress of State Grid bidding is slow, and the expansion of photovoltaic and smart home appliances is slow.