Core Insights - The stock price of Qimingxingchen (启明星辰) closed at 15.92 yuan on July 30, 2025, down by 1.79% with a turnover rate of 3.42% and a trading volume of 247,800 hands, amounting to 397 million yuan in transaction value [1] Financial Performance - For Q1 2025, the company reported total operating revenue of 641 million yuan, a year-on-year decrease of 30.54% - The net profit attributable to shareholders was 1.5971 million yuan, showing a year-on-year increase of 101.41% - The non-recurring net profit was 51.4711 million yuan, down by 7.47% year-on-year - The current ratio stood at 3.835, the quick ratio at 3.583, and the debt-to-asset ratio at 15.85% [1] Company Overview - Qimingxingchen Information Technology Group Co., Ltd. was established in 1996 and is located in Beijing, primarily engaged in software and information technology services - The registered capital is 12,114 million yuan, with paid-in capital of 56.9 million yuan - The legal representative of the company is Yuan Jie [1] Investment and Intellectual Property - The company has made investments in 10 enterprises and participated in 145 bidding projects - It holds 157 trademark registrations and 324 patent registrations, along with 9 administrative licenses [2]

Investment Rating - The industry investment rating is "Outperform the Market" (预计6个月内，行业指数表现强于沪深300指数5%以上) [23] Core Views - The report maintains a positive outlook on the global computing power industry, supported by strong capital expenditures from tech giants like Meta, which plans to invest hundreds of billions in AI [4][6] - The performance forecast for the first half of 2025 shows an improving trend among listed companies in the computing sector, with significant reductions in losses for software development and IT services compared to the previous year [9][10] Summary by Sections Industry News and Commentary - Nvidia will resume sales of H20 in China, and Meta is set to invest significantly in AI, indicating robust support for the global AI computing power industry [5][6] - As of July 20, 2025, 76 A-share listed companies in the computing sector have released performance forecasts, showing a collective reduction in losses compared to the previous year [9] Performance Forecasts - The computing sector's listed companies are expected to report a total net profit of -2.354 billion (取业绩预告上下限的中值), a significant improvement from -4.059 billion in the same period last year [9][10] - By segment, the computing equipment sector is expected to report a net profit of 248 million, down 74.22% year-on-year, while software development and IT services are expected to show substantial reductions in losses [10] Key Company Announcements - Notable companies such as Taiji Co., Qiming Information, and Hengsheng Electronics have announced their performance forecasts for the first half of 2025, with varying results in profitability and revenue [11][13] - For instance, Hengsheng Electronics expects a net profit of approximately 251 million, a year-on-year increase of about 740.95% [11] Market Performance Review - The computing industry index rose by 2.12% last week, outperforming the CSI 300 index by 1.03 percentage points [14][16] - As of the last trading day, the computing industry had a P/E ratio of 54.2, with 235 out of 359 A-share stocks in the sector experiencing price increases [16] Investment Recommendations - The report suggests focusing on several sectors within the computing industry, including the Xinchuang sector, Huawei supply chain, AI sector, financial IT sector, and low-altitude economy, with specific company recommendations for each [19]

Group 1 - The core viewpoint of the news is the application for a patent by Beijing Qimingxingchen Information Security Technology Co., Ltd. and China Mobile Communication Group Co., Ltd. for an automated security business chain system and method for cloud security resource pools [1] - The patent application, published as CN120342683A, was filed on April 2025 and relates to cloud computing technology [1] - The system includes a sensor module and a business chain controller, which enhances the utilization of security resources by dynamically adjusting the business chain composition based on real-time data [1] Group 2 - Beijing Qimingxingchen Information Security Technology Co., Ltd. was established in 2000 with a registered capital of 110 million RMB and has invested in 86 companies [2] - China Mobile Communication Group Co., Ltd. was founded in 1999 with a registered capital of 30 billion RMB and has invested in 54 companies [2] - China Mobile Communication Co., Ltd. was established in 2004 with a registered capital of approximately 5.32 billion RMB and has invested in 56 companies [2]

Core Viewpoint - The company, Qimingxingchen, is experiencing a decline in revenue and net profit for the first half of 2025, attributed to external market challenges and strategic shifts in business focus [1][2]. Group 1: Financial Performance - The company expects revenue for the first half of 2025 to be between 1.115 billion and 1.175 billion yuan, a decrease from 1.574 billion yuan in the same period last year [1]. - The anticipated net loss for the parent company is between 103 million and 73 million yuan, an improvement from a loss of 182 million yuan in the previous year [1]. - The net profit excluding non-recurring gains and losses is expected to be a loss between 183 million and 153 million yuan [1]. Group 2: Market and Strategic Factors - The decline in revenue is primarily due to external environmental challenges and adjustments in market demand, with tightened customer budgets leading to structural changes in the cybersecurity market [2]. - The company is focusing on improving the quality of collaborative business with China Mobile, resulting in a reduction of low-margin integration projects, which has led to a decline in related transaction income [2]. - Despite the overall revenue decline, income from self-sourced security products and services from China Mobile has seen significant growth [2]. Group 3: Historical Context and Future Outlook - In 2024, the company reported a revenue of 3.32 billion yuan, a year-on-year decrease of 26.4%, and a net loss of 226 million yuan, a decline of 130.5% [3]. - The company has made significant progress in the research and development of AI security models and plans to apply these technologies more broadly in future products and services [3]. - The first quarter of 2025 showed a revenue of 641 million yuan, a decrease of 30.5%, but the company managed to turn a profit with a net income of 1.6 million yuan, compared to a loss of 113 million yuan in the same period last year [4].

Summary of Key Points from the Conference Call of Qimingxingchen (启明星辰) Company Overview - **Company**: Qimingxingchen (启明星辰) - **Period**: First half of 2025 Financial Performance - **Revenue**: Achieved between 1.115 billion to 1.175 billion RMB, a year-on-year decline due to external environment challenges and market demand adjustments [3] - **Net Profit**: Reported a net loss of between 103 million to 73 million RMB, with a non-recurring net profit loss of between 183 million to 153 million RMB [3] - **Gross Margin**: Increased by over 2 percentage points year-on-year due to strategic focus on high-quality projects and reduction of low-margin integrated projects [2][3] - **Operating Cash Flow**: Significant improvement with positive operating cash flow in Q2, marking the first time since listing that this was achieved in the second quarter [4][22] Strategic Focus and Innovations - **Partnership with China Mobile**: Deep resource integration and strategic collaboration to enhance cloud security and DICT business performance, aiming for improved operational efficiency [2][5] - **R&D Investment**: High-intensity investment in strategic innovation, particularly in AI security and data security, with AI coding improving overall R&D efficiency by over 30% [2][12] - **Product Development**: Launched several new products in AI application security, including a suite of large model application security products, which have already generated significant revenue [10][27] Market Trends and Opportunities - **AI Empowerment**: Future market opportunities are concentrated on AI-enabled customer solutions, focusing on large-scale B2B scenarios while also addressing B2C and B2H markets [3][15] - **Digital China Initiative**: Qimingxingchen plays a crucial role in enhancing network security capabilities in collaboration with China Mobile, addressing new technology challenges [8] - **Data Element Transformation**: Continuous growth in demand for data digitization and elementization, with significant progress in technology innovation and operational quality [17] Challenges and Responses - **External Market Conditions**: The company faces challenges from a downtrend in global cybersecurity spending and adjustments in market demand, as indicated by IDC's revised growth forecasts [3] - **Government Sector Budget Cuts**: The reduction in budgets for government and law enforcement sectors has impacted revenue, but the company is taking measures to strengthen internal sales management and expand collaboration with China Mobile [19][30] Future Outlook - **Market Recovery**: Despite current challenges, there is optimism for recovery in the cybersecurity sector, with expectations for improved performance in the second half of 2025 [24] - **Focus on High-Margin Products**: The strategy includes increasing the proportion of self-developed products and services to enhance overall profitability [21][20] - **Sector-Specific Growth**: Notable growth in the financial and healthcare sectors, with expectations for continued demand in these areas [18][30] Conclusion - **Overall Sentiment**: Qimingxingchen expresses confidence in its future market opportunities and aims to maintain a stable growth trajectory while enhancing its strategic partnerships and product offerings [13][31]

Financial Performance Overview - The company expects to achieve revenue between CNY 1.115 billion and CNY 1.175 billion for the first half of 2025, with a projected net profit attributable to shareholders ranging from -CNY 1.03 billion to -CNY 0.73 billion, and a non-recurring net profit between -CNY 1.83 billion and -CNY 1.53 billion [2][3]. Revenue Decline Factors - Revenue decline is attributed to external environmental challenges and market demand adjustments, with a structural adjustment in the cybersecurity market due to tightened customer budgets [2][3]. - Strategic focus on quality and revenue structure changes led to a reduction in low-margin integration projects, resulting in a decline in related transaction revenue from major clients [3]. Response Measures - The company has accelerated the commercialization of innovative businesses, achieving breakthroughs in AI security and data security, maintaining a leading market share in 30 core products and services [3][4]. - Improved operational quality through strict project order management and enhanced cash flow management, with a projected increase in overall gross margin by over 2 percentage points compared to the previous year [4][19]. Profitability Insights - The net profit attributable to shareholders is expected to grow by 43% to 60% year-on-year, driven by stock price fluctuations of associated listed companies and increased investment income [6]. - Non-recurring net profit has declined due to reduced revenue and gross profit scale, but cost control measures are in place to enhance long-term competitiveness [7]. Strategic Collaboration and Market Expansion - The company aims to deepen strategic collaboration with China Mobile, enhancing the competitiveness of security products and services in the enterprise market [4][8]. - The new chairman emphasizes the mission to build a world-class cybersecurity company and strengthen R&D efforts to support China Mobile's business [8]. Market Trends and Opportunities - The cybersecurity industry is facing pressure, but there are emerging opportunities in AI application security and data security, with significant growth potential in these areas [20][21]. - The company is focusing on high-margin orders and expanding its market reach in sectors like finance and healthcare, while managing low-margin projects [15][16]. Future Outlook - The company anticipates a gradual recovery in market demand, particularly in AI and data sectors, with a focus on enhancing internal procurement from China Mobile [16][18]. - Continued emphasis on cash flow improvement and operational efficiency is expected to support sustainable growth in the second half of 2025 [19].

Investment Rating - The report maintains a positive outlook on the computer industry for Q2 2025, indicating an expected improvement in performance [2][4]. Core Insights - The report predicts a gradual recovery in industry profits starting from Q2 2025, with revenue growth rates of 5% and 21% for Q4 2024 and Q1 2025 respectively, and net profit growth rates of -68% and 82% [4][5]. - A total of 55 tracked A-share and Hong Kong-listed computer companies are analyzed, with 13 companies expected to achieve over 50% net profit growth, representing 23.6% of the sample [4][5]. - The report identifies key investment targets across various segments, including AIGC, digital economy leaders, and data innovation [4][5]. Summary by Category Company Performance Predictions - Companies with over 50% net profit growth include: - Jinzheng Co. (4493%) - Zhongke Chuangda (333%) - Zhina Zhen (313%) - Kalait (265%) - Hengsheng Electronics (233%) [4][5][6]. - Companies with 30%-50% net profit growth include: - Dameng Data (48%) - Fanwei Network (39%) - New Point Software (38%) [4][5][6]. - Companies with 0%-30% net profit growth include: - Dongfang Caifu (27%) - Haiguang Information (27%) - Desai Xiwai (27%) [4][5][6]. - Companies with -30% to 0% net profit growth include: - Weining Health (-4%) - Nova Star Cloud (-11%) [4][5][6]. - Companies with less than -30% net profit growth include: - Qiming Star (-30%) - Top Point Software (-36%) [4][5][6]. Key Investment Targets - AIGC Segment: Jinshan Office, Wanxing Technology, Daotong Technology, Hongsoft Technology, and others [4]. - Digital Economy Leaders: Hikvision, Jinshan Office, Hengsheng Electronics, and others [4]. - Data Innovation: Haiguang Information, Ruantong Power, Suocheng Technology, and others [4]. - AIGC Computing Power: Langchao Information, Haiguang Information, and others [4].

Group 1 - The company expects to achieve operating revenue between 1.115 billion and 1.175 billion yuan for the first half of 2025, with a projected net profit growth of 43% to 60% compared to the same period last year [1] - The company has improved its operational quality, with a significant increase in the proportion of high-margin products, leading to a more than 2 percentage point increase in overall gross margin compared to the same period last year [1] - The company has strengthened accounts receivable and cash flow management, resulting in a noticeable increase in operating cash flow and a reduction in accounts receivable at the end of the reporting period [1] Group 2 - The company is focusing on AI security, launching a series of products related to large model application safety, and has seen a doubling in order amounts in the second quarter [2] - The company has successfully implemented several multi-million yuan projects in data security, providing comprehensive lifecycle security protection for clients and enhancing data value through trusted data development [2] - The company is deepening its collaboration with China Mobile, aiming to enhance the quality and efficiency of cooperation, and plans to optimize resource allocation to boost cloud security and DICT collaborative revenue [3] Group 3 - The company is committed to the "Overall National Security Concept" and plays a crucial role in supporting China Mobile's "BASIC6" innovation plan, focusing on integrating cloud, network, and intelligent security capabilities [3] - The company aims to maintain confidence in development and continue to deepen business collaboration with China Mobile, expecting to consolidate competitive advantages and move towards a new stage of high-quality development [3]

Core Viewpoint - The company expects to achieve operating revenue between 1.115 billion and 1.175 billion yuan for the first half of 2025, focusing on improving operational quality and accelerating the commercialization of innovative technologies [1] Group 1: Company Performance - The company is enhancing operational quality and accelerating innovation, with key indicators such as gross margin and accounts receivable showing continuous improvement [1][4] - The company reported a strong performance in the second quarter, achieving positive operating cash flow, which lays a solid foundation for stable development throughout the year [1][4] - The comprehensive gross margin improved by over 2 percentage points compared to the same period last year, driven by an increase in the proportion of high-margin products [4] Group 2: Innovation and Product Development - The company is rapidly advancing its innovative business, particularly in AI security, launching a series of products and services related to large model applications [2] - The company has established benchmark cases for its large model application security products and has seen a significant increase in order amounts in the second quarter [2] - The company is implementing a data security strategy that includes lifecycle protection and cross-entity data circulation, successfully replicating projects across more than 20 locations [2] Group 3: Industry Outlook - The network security industry faces short-term growth pressures but has strong long-term development momentum, driven by increasing compliance pressures and the evolution of attack methods [3] - The company is expected to benefit from the strengthening of compliance and technological advancements, positioning itself as a leader in the industry [3] - The company aims to enhance collaboration with China Mobile, focusing on improving the quality and scale of cloud security and DICT collaborative revenues [3]

[Performance Forecast Overview](index=1&type=section&id=Item%20I.%20Current%20Period%20Performance%20Forecast) [Core Financial Indicators Forecast](index=1&type=section&id=(II)%20Performance%20Forecast%20Overview) The company forecasts a year-on-year decline in H1 2025 operating revenue, a significant narrowing of net loss attributable to shareholders, and an improved basic earnings per share, despite an expected expansion of non-recurring net loss H1 2025 Performance Forecast | Item | Current Period (Jan 1 - Jun 30, 2025) (million yuan) | Prior Period (million yuan) | | :--- | :--- | :--- | | **Operating Revenue** | 1,115 ~ 1,175 | 1,573.70 | | **Net Profit Attributable to Shareholders of Listed Company** | -103 ~ -73 | -182.25 | | **Net Profit After Non-Recurring Items** | -183 ~ -153 | -100.33 | | **Basic Earnings Per Share (yuan/share)** | -0.085 ~ -0.060 | -0.15 | [Analysis of Performance Changes](index=1&type=section&id=Item%20III.%20Explanation%20of%20Performance%20Changes) The company's performance changes are primarily influenced by external market conditions and internal strategic adjustments, with revenue declining due to industry pressure while profit improved through investment management and operational optimization [Revenue Change Analysis](index=2&type=section&id=(I)%20Primary%20Reasons%20for%20Revenue%20Changes) Revenue decline is attributed to short-term cybersecurity industry pressure and ongoing China Mobile collaboration, though the company anticipates long-term growth and improved synergy quality - In the short term, the company's revenue experienced a year-on-year decline due to external environmental factors and professional institutions (such as IDC) lowering market growth expectations[7](index=7&type=chunk) - In the long term, factors such as new technology drivers, compliance pressure, and data element marketization will promote industrial technology upgrades, positioning the company as a technology leader to benefit preferentially[7](index=7&type=chunk) - While related party transactions with China Mobile saw a year-on-year decline, self-procurement business revenue from China Mobile increased year-on-year, indicating potential for improved synergy quality[8](index=8&type=chunk) [Profit Change Analysis](index=2&type=section&id=(II)%20Primary%20Reasons%20for%20Profit%20Changes) Net profit attributable to shareholders is projected to grow **43% to 60%** due to increased investment income, despite an anticipated year-on-year decline in non-recurring net profit from lower revenue and gross margin - Net profit attributable to shareholders is expected to increase by **43% to 60%** year-on-year, primarily due to increased investment income and fair value change gains recognized during the reporting period, stemming from managing share price fluctuations of investee listed companies[9](index=9&type=chunk) - Despite the company's continuous efforts in cost reduction and efficiency improvement, non-recurring net profit is expected to decline year-on-year due to decreased revenue and gross margin[9](index=9&type=chunk) [Progress in Technological Innovation and Operational Optimization](index=2&type=section&id=(III)%20Accelerated%20Technological%20Innovation%20and%20Continuous%20Operational%20Optimization) The company achieved significant progress in technological innovation and operational optimization, with rapid commercialization of AI security products, multiple multi-million yuan data security projects, and improved operational quality including a **2 percentage point** gross margin increase and positive Q2 operating cash flow - The company is targeting the new AI security track, with its large model security product matrix rapidly commercialized, achieving **doubled contract value** in Q2[10](index=10&type=chunk) - Leveraging the 'Data Oasis' strategy, the company has implemented several **tens of millions of yuan** projects in data security, covering full data lifecycle protection and cross-entity circulation scenarios[11](index=11&type=chunk) - Operational quality continues to optimize: overall gross margin increased by over **2 percentage points** year-on-year, accounts receivable book value decreased from the beginning of the period, and Q2 single-quarter operating cash flow achieved net inflow[11](index=11&type=chunk) [Other Notes and Risk Warnings](index=1&type=section&id=Other%20Notes) [Audit Status and Risk Warning](index=1&type=section&id=Item%20II.%20Communication%20with%20Accounting%20Firm) The company explicitly states that the financial data in this performance forecast is unaudited, with final figures subject to the H1 2025 report, and advises investors to be aware of investment risks - The financial data related to this performance forecast has not been audited by a certified public accountant[4](index=4&type=chunk) - The company advises that this performance forecast is a preliminary result, urging investors to make prudent decisions and be aware of investment risks[12](index=12&type=chunk)