Summary of China Software 2Q25 Conference Call Industry Overview - The conference call focused on the **China Software** industry, particularly the performance of various software companies in the second quarter of 2025 (2Q25) and the first half of 2025 (1H25) - Average revenue growth for the covered companies was **9% YoY** in 1H25, with an average net margin of **-3%** due to weak seasonality in the first half [1][2] Key Company Performances - **Kingsoft Office, Thundersoft, and Sensetime** reported revenues in 2Q25 that exceeded expectations due to increased AI spending - **Glodon and Sangfor** showed better-than-expected net income in 2Q25, attributed to improved employee productivity [1] - **Yonyou** reported a revenue growth of **7% YoY** in 2Q25, recovering from a **-21% YoY** decline in 1Q25, supported by small and medium business (SMB) growth [9] - **Thundersoft** experienced a **50% YoY** revenue increase, driven by strong growth in its AIoT business [26] - **Glodon** faced a **-5% YoY** revenue decline, but net margin improved to **13%** due to product mix upgrades and cost management [17] Core Insights and Trends - Companies are focusing on: 1. **Monetization of AI tools** to provide value-added features [2] 2. **Diversification** into overseas markets or new categories to counteract slower IT spending in certain segments [2] 3. **Integration of AI** with core software products to capture a larger share of clients' budgets [2] - The average **P/E ratio** for China software companies increased to **55x-60x**, indicating early signs of AI monetization, while the average **EV/Sales** ratio rose to **8x-9x** [2] Company Ratings and Recommendations - **Buy** ratings maintained for **Empyrean** and **Kingdee** - **Neutral** rating for **Yonyou** - **Sell** ratings for **ZWSOFT, Thundersoft, Glodon, and Sangfor** [3] Earnings Revisions - **Yonyou**: Revised down 2025 net loss to **Rmb594m** from **Rmb517m** due to lower revenues during transformation [12] - **Glodon**: Revenue estimates revised down by **1%-3%** for 2025-28E, but earnings revised up by **18%/12%/2%/1%** due to improved productivity [20] - **Thundersoft**: Revenue estimates revised up by **8%/5%/4%** for 2025-27E, reflecting higher revenues from the IoT business [30] - **Sangfor**: Revenue estimates revised down by **9%/2%/1%** for 2025-27E due to lower security software revenues [46] Other Important Insights - **ZWSOFT** launched new products with enhanced 3D CAD features, which are expected to support long-term growth despite current muted growth in 3D CAD software [39] - **Sangfor** is expanding its cloud computing product offerings, which is expected to contribute to revenue growth [45] - The overall sentiment in the industry is cautiously optimistic, with expectations of improved productivity and revenue growth driven by AI integration and new product offerings [1][2][3]

Core Viewpoint - 华大九天's stock experienced a decline of 4.10% on August 29, with a trading volume of 1.22 billion yuan, indicating potential volatility in the market and investor sentiment towards the company [1]. Financing and Margin Trading - On August 29, 华大九天 had a financing buy-in amount of 131 million yuan and a financing repayment of 137 million yuan, resulting in a net financing outflow of 6.13 million yuan [1]. - The total margin trading balance for 华大九天 as of August 29 was 746 million yuan, with the financing balance accounting for 1.11% of the circulating market value, indicating a high level of leverage compared to the past year [1]. - In terms of securities lending, 华大九天 repaid 2,000 shares and sold 1,000 shares on August 29, with a selling amount of 123,000 yuan, and the remaining securities lending balance was 24.72 million yuan, also at a high level [1]. Financial Performance - For the first half of 2025, 华大九天 reported a revenue of 502 million yuan, reflecting a year-on-year growth of 13.01%, while the net profit attributable to shareholders decreased by 91.90% to 3.07 million yuan [2]. - Cumulative cash dividends paid by 华大九天 since its A-share listing amounted to 244 million yuan [3]. Shareholder Structure - As of June 30, 2025, 华大九天 had 37,700 shareholders, a decrease of 8.11% from the previous period, with an average of 6,948 circulating shares per shareholder, which increased by 8.82% [2]. - The top ten circulating shareholders include notable funds such as 诺安成长混合A and 银河创新混合A, with varying changes in their holdings compared to the previous period [3].

Core Insights - The semiconductor industry is experiencing a surge in mergers and acquisitions (M&A), driven by policy incentives and technological integration needs, with 139 M&A events reported by August 28, 2025, compared to 115 in the same period of 2024, marking a growth of 24 events [3][4] - The M&A activities are characterized by "strong alliances" and "curved listings," focusing on equipment, materials, and design sectors, particularly in etching equipment, photoresists, and silicon carbide [3][4] Policy Empowerment - Policies such as the "315 New Policy," "National Nine Articles," and "M&A Six Articles" have significantly lowered barriers for M&A, providing strong support for equity investment and restructuring in the semiconductor sector [4][5] - Local governments, like Shanghai, have established funds and action plans to support M&A, enhancing capital market attention towards the semiconductor sector [5][6] Market Dynamics - The active M&A market is expected to lead to larger-scale transactions, with significant capital flow enhancing market vibrancy [5] - The integration of various financing tools and support from financial institutions is facilitating M&A activities, allowing for resource optimization and enhanced core competitiveness [6][10] Challenges and Risks - There have been 7 failed M&A cases in the semiconductor sector this year, primarily due to valuation bubbles, insufficient synergy, and high technical integration difficulties [7][8] - The performance pressure on both acquirers and targets is evident, with many companies facing declining profits amid high inventory levels in the global semiconductor market [8][9] Future Trends - Future M&A activities in the semiconductor industry are expected to shift from horizontal integration to ecosystem mergers, with a focus on cross-border acquisitions and value creation rather than mere scale expansion [13][14] - The emphasis will be on deep integration around strategic emerging technologies and building a complete industrial ecosystem, moving beyond simple chip design or manufacturing [14]

Core Viewpoint - The semiconductor industry, particularly the Electronic Design Automation (EDA) sector, is experiencing significant attention and development, with Huada Jiutian emerging as a leading player in the domestic EDA market, showcasing both challenges and advancements in its recent half-year report [2][3]. Financial Performance - In the first half of 2025, Huada Jiutian achieved a revenue of 502 million yuan, representing a year-on-year growth of 13.01%, despite a slowdown compared to the industry's high growth period [5]. - The core EDA software sales contributed 414 million yuan, up 7.41%, accounting for 82.6% of total revenue, while the technical services segment saw a significant increase of 28.37%, reaching 67.24 million yuan, making it a key growth driver [5]. - The domestic market remains the primary revenue source, generating 447 million yuan, a 7.68% increase, while the overseas market experienced a remarkable growth of 90.39%, reaching 54.52 million yuan [5]. - The net profit attributable to shareholders was only 3.07 million yuan, down 91.9% year-on-year, with a net loss of 18.62 million yuan after excluding non-recurring losses, although this was an improvement of 63.66% from the previous year [6]. - The company reported a significant increase in cash flow from operating activities, amounting to 243 million yuan, a 4475.60% increase, indicating strong revenue quality and improved customer payment conditions [6]. Product Development and Technological Advancements - Huada Jiutian launched seven core EDA tools during the reporting period, covering the entire integrated circuit design, manufacturing, and packaging chain [8]. - In digital circuit design, new tools such as HimaSim and HimaTime were introduced, covering nearly 80% of the main tools in this area, with HimaTime achieving a 30% performance improvement [8]. - The company also introduced an intelligent platform, AndesAMS, in the analog and storage circuit domain, expected to enhance design efficiency by over 50% [8]. - In advanced packaging and 3DIC fields, the new Argus3DIC platform fills a gap in high-end 3DIC design tools, supporting comprehensive verification for heterogeneous integration packaging [8][9]. - The company’s R&D investment reached 365 million yuan, accounting for 72.84% of revenue, reflecting a commitment to innovation and product development [10]. Market Environment and Policy Support - The EDA industry is characterized by high market concentration, dominated by major players like Cadence, Synopsys, and Siemens EDA, but there is a growing opportunity for domestic companies like Huada Jiutian due to supportive policies and market demand [11]. - Recent government policies have emphasized the importance of EDA tools, categorizing them as critical technologies for national strategic support, which has created a favorable environment for domestic EDA development [11][12]. - The market for EDA in China is projected to grow at a compound annual growth rate of 15.64% from 2021 to 2025, potentially reaching 18.1% of the global EDA market by 2025 [12]. - The increasing awareness of "self-control" among domestic chip design companies has shifted the adoption of domestic EDA tools from optional to essential [12][13].

Core Viewpoint - The semiconductor industry, particularly the electronic design automation (EDA) sector, is experiencing significant attention and development, with Huada Jiutian emerging as a leading domestic player in this field, showcasing both challenges and advancements in its recent half-year report for 2025 [1][3]. Financial Performance - In the first half of 2025, Huada Jiutian achieved revenue of 502 million yuan, representing a year-on-year growth of 13.01%, despite a slowdown compared to the industry's high growth period [3]. - The core EDA software sales contributed 414 million yuan, up 7.41%, accounting for 82.6% of total revenue, while the technical services segment saw a significant increase of 28.37%, reaching 67.24 million yuan, making it a key growth driver [3]. - The domestic market remains the primary revenue source, generating 447 million yuan, a 7.68% increase, while the overseas market experienced a remarkable growth of 90.39%, reaching 54.52 million yuan [3]. Profitability Challenges - The net profit attributable to shareholders was only 3.07 million yuan, a substantial decline of 91.9% year-on-year, with a net loss of 18.62 million yuan after excluding non-recurring items, although this was an improvement of 63.66% from the previous year [4]. - The company's stock incentive expenses amounted to 104 million yuan, significantly impacting reported profits, but the underlying business potential remains strong with a net profit of 102 million yuan when excluding these costs [4]. - The net cash flow from operating activities surged by 4475.60% to 243 million yuan, indicating improved cash collection and revenue quality [4]. Technological Advancements - Huada Jiutian launched seven core EDA tools during the reporting period, enhancing its product offerings across the integrated circuit design, manufacturing, and packaging sectors [5][6]. - The company introduced new digital circuit design tools, achieving nearly 80% coverage of essential tools in this area, and launched a smart platform that improves design efficiency by over 50% in the analog circuit domain [6]. - The company’s advanced packaging EDA platform supports high-end AI chip designs, significantly reducing design cycles, and its new 3DIC verification platform fills a gap in the domestic market [6]. Market Dynamics - The EDA industry is characterized by high market concentration, dominated by major players like Cadence, Synopsys, and Siemens, but domestic alternatives are gaining traction due to supportive policies and increasing market demand [8][10]. - The Chinese semiconductor industry is projected to grow at a compound annual growth rate of 15.64% from 2021 to 2025, with the EDA market expected to reach 18.1% of the global market by 2025 [11]. - The shift in domestic chip design companies towards "self-control" has made the adoption of domestic EDA tools a necessity rather than an option, creating a favorable environment for local EDA firms [11].

Group 1 - The report aims to summarize important in-depth reports, significant commentary, and marginal changes within the macro strategy team of large manufacturing [1] - Key companies highlighted include Shanghai Yanpu, Honghe Precision, Zhenlan Instrument, Zhejiang Rongtai, Sany Heavy Industry, China Shipbuilding, Huace Testing, Xugong Machinery, Hangcha Group, Yaxing Anchor Chain, Robotech, Juxing Technology, Yadea Holdings, Aima Technology, Hongdu Aviation, Zhongji United, and BGI [2][3] Group 2 - The mechanical equipment sector emphasizes investment opportunities in leading engineering machinery companies, with a continuous push for humanoid robots and overseas expansion [4] - As of August 22, 2025, the best-performing indices in the large manufacturing sector included the Sci-Tech Innovation 50 (+13%), the Semiconductor Index (+12%), and the ChiNext Index (+6%) [5][21] Group 3 - Zhongji United's mid-year report met expectations, with a 87% year-on-year increase in net profit attributable to shareholders for the first half of 2025 [8] - The company has significantly improved its profitability, with a sales net profit margin increasing by 8 percentage points year-on-year in Q2 2025 [8] - The wind power sector is experiencing high demand, with domestic wind power installations expected to reach approximately 105-115 GW in 2025, indicating a strong growth trajectory [9] Group 4 - Jinwo Co. reported a 94% year-on-year increase in net profit for the first half of 2025, driven by growth in its screw and insulation shaft sleeve segments [9] - The company is focusing on upgrading production capacity and enhancing its international layout through a planned fundraising of up to 950 million yuan [9] - The humanoid robot industry is anticipated to explode, with the market expected to grow significantly, driving demand for high-precision CNC machine tools [11]

证券代码：301269 证券简称：华大九天 公告编号：2025-052 北京华大九天科技股份有限公司 关于持股 5%以上股东权益变动触及 1%整数倍的公告 本次权益变动方式（可 多选） 通过证券交易所的集中交易 √ 通过证券交易所的大宗交易 □ 其他 □（请注明） 本次增持股份的资金来 源（可多选） 自有资金 □ 银行贷款 □ 其他金融机构借款 □ 股东投资款 □ 其他 □（请注明） 不涉及资金来源 √ 3.本次变动前后，投资者及其一致行动人拥有上市公司权益的股份情况 股份性质 本次变动前持有股份 本次变动后持有股份 股数(万股) 占总股本比例(%) 股数(万股) 占总股本比例(%) 合计持有股份 4,113.5842 7.58 3,800.6342 7.00 其中：无限售条件股份 4,113.5842 7.58 3,800.6342 7.00 有限售条件股份 0 0 0 0 4.承诺、计划等履行情况 本次变动是否为履行已作 出的承诺、意向、计划 是√ 否□ 公司于 2025 年 7 月 18 日披露了《关于持股 5%以上股东减持股 份预披露公告》。本次权益变动不存在违反已披露的承诺、意 向、计划的情形。截至 ...

Core Insights - The meeting between Chongqing's Mayor Hu Henghua and leaders from the Ministry of Industry and Information Technology and Huada Jiutian highlights the rapid development of Chongqing's smart connected vehicles and integrated circuit industries [1][2] - The collaboration aims to enhance cooperation in automotive chip testing and certification, automotive software, and EDA innovation services, contributing to the improvement of Chongqing's automotive chip industry ecosystem [1] - Both parties expressed commitment to accelerating the implementation of cooperation projects to attract more upstream and downstream enterprises to develop in Chongqing [1] Group 1 - The meeting took place on August 27, with key figures including Hu Henghua, Yang Jianjun, and Liu Weiping [1] - Hu Henghua emphasized the importance of leveraging respective advantages to strengthen collaboration [1] - The city of Chongqing will provide rich application scenarios to support the automotive chip industry [1] Group 2 - Prior to the meeting, electronic five institutes and Huada Jiutian signed cooperation agreements with Chongqing [2]

Core Viewpoint - The autonomy of EDA tools is crucial for the development of the integrated circuit industry and the security of the industrial chain, as stated by Liu Weiping, Chairman of Huada Jiutian [1][4]. Group 1: EDA Industry Development - The autonomy of the EDA industry is a prerequisite for a self-controlled industrial chain, with Huada Jiutian committed to providing comprehensive tool support for the development of China's chip industry [4]. - Huada Jiutian has achieved breakthroughs in multiple fields, including analog, digital, storage, and advanced packaging, contributing to strengthening the integrated circuit industry chain [4][5]. Group 2: Technological Advancements - Huada Jiutian has developed 48 key core EDA tools, achieving a product coverage rate of approximately 80% [5]. - The company has established a complete EDA tool system for analog circuit design, which has been deeply integrated into the core processes of leading domestic design companies [5]. - In the storage chip design sector, Huada Jiutian's solutions have improved design efficiency by over 50% through technological innovation [5]. - For digital circuit design, the performance of tools has been enhanced by over 30% through algorithm optimization and architectural innovation [6]. Group 3: Manufacturing Integration - Huada Jiutian has built a comprehensive support system for the manufacturing process, covering everything from PDK development to yield analysis [7]. - The Vision process diagnosis and analysis platform developed by the company has improved yield analysis accuracy to 99%, aiding wafer fabs in quickly identifying issues [7]. - The time required for generating TB-level mask data has been reduced to an industry-leading level, significantly enhancing the R&D efficiency of advanced processes [7]. Group 4: Future Layout and Collaboration - Huada Jiutian is proactively laying out advanced packaging and 3D IC technologies, which are essential for continuing Moore's Law [9]. - The company has established competitive solutions for Chiplet technology, reducing the design cycle by over 60% [9]. - Collaboration with wafer fabs, design companies, and educational institutions is key to building a self-sustaining EDA ecosystem [9]. - The company's R&D investment reached 365 million yuan in the first half of 2025, accounting for 72.84% of its revenue [9].

Core Viewpoint - The self-sufficiency of EDA (Electronic Design Automation) technology is crucial for the security of the semiconductor industry chain, as emphasized by the chairman of Huada Jiutian, Liu Weiping [3][4]. Group 1: EDA Industry Development - Huada Jiutian aims to build a comprehensive, self-sufficient EDA solution to break through technological bottlenecks, with 48 key EDA tools covering approximately 80% of the product range [4][8]. - The company has made significant advancements in various fields, including analog circuit design, storage chip design, and digital circuit design, enhancing design efficiency by over 50% and performance by over 30% [4][5]. Group 2: Manufacturing Integration - Huada Jiutian has developed a complete support system for the manufacturing process, including PDK development, wafer services, and yield analysis, achieving a yield analysis accuracy of 99% through AI technology [6][7]. - The company has optimized the time required for generating TB-level mask data from over 8 hours to an industry-leading level, significantly improving R&D efficiency for advanced processes [7]. Group 3: Future Layout and Innovation - The company is proactively positioning itself in advanced packaging and 3D IC technologies, which are essential for continuing Moore's Law, with a solution that reduces design cycles by over 60% [8]. - Huada Jiutian is collaborating with wafer manufacturers, design companies, and educational institutions to build a self-sufficient EDA ecosystem, with R&D investment reaching 365 million yuan, accounting for 72.84% of revenue by mid-2025 [8].