华大九天(301269) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents and Definitions This section provides essential disclaimers, a comprehensive report directory, and definitions of key terms to ensure clear understanding of the report's content Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, affirming the financial report's integrity and disclosing no plans for cash dividends or share transfers - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[3] - The company's head, chief accountant, and accounting department head declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This report's clear table of contents outlines eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports, providing comprehensive information navigation for investors - The report contains eight main chapters, covering company operations, finance, governance, and significant matters[7] Definitions This section defines common terms used in the report, including company name, reporting period, general meeting of shareholders, and Board of Directors, as well as specialized technical and industry terms like EDA, semiconductor, integrated circuit, wafer, process technology, Moore's Law, SoC, PDK, FPD, SPICE, AMOLED, EM/IR, PERC, IDM, OSAT, STA, ECO, P&R, and PPA, ensuring accurate comprehension of the report's content - The report defines basic concepts such as the company, reporting period, general meeting of shareholders, and Board of Directors[11] - Core industry terms like EDA, semiconductor, integrated circuit, wafer, process technology, and Moore's Law are explained in detail[11][12] - Professional technical acronyms including SoC, PDK, FPD, SPICE, AMOLED, EM/IR, PERC, IDM, OSAT, STA, ECO, P&R, and PPA are covered[11][12] Part II Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information, contact details, and a summary of its key accounting data and financial performance for the reporting period Company Profile Beijing Empyrean Technology Co., Ltd. (stock abbreviation: Empyrean Technology, stock code: 301269) is listed on the Shenzhen Stock Exchange, with Liu Weiping as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Empyrean Technology | | Stock Code | 301269 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 北京华大九天科技股份有限公司 | | English Name | Empyrean Technology Co., Ltd. | | Legal Representative | Liu Weiping | Contact Person and Contact Information The company's Board Secretary is Song Chulin, and the Securities Affairs Representative is Wu Xueli, both located at the Company's Board Office, 2nd Floor, Building A, No. 2 Lize Middle Road, Chaoyang District, Beijing, with contact numbers 010-84776988, fax 010-84776889, and email ir@empyrean.com.cn Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Song Chulin | Company's Board Office, 2nd Floor, Building A, No. 2 Lize Middle Road, Chaoyang District, Beijing | 010-84776988 | 010-84776889 | ir@empyrean.com.cn | | Securities Affairs Representative | Wu Xueli | Company's Board Office, 2nd Floor, Building A, No. 2 Lize Middle Road, Chaoyang District, Beijing | 010-84776988 | 010-84776889 | ir@empyrean.com.cn | Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, storage locations, or registration status, with specific details available in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - Information disclosure and storage locations remained unchanged during the reporting period[18] - The company's registration status remained unchanged during the reporting period[19] Key Accounting Data and Financial Indicators During this reporting period, the company's operating revenue increased by 13.01% to 501.54 million Yuan, but net profit attributable to shareholders of the listed company significantly decreased by 91.90% to 3.07 million Yuan, while net profit after deducting non-recurring gains and losses narrowed its deficit by 63.66%, and net cash flow from operating activities significantly improved from negative to positive, increasing by 4475.60% to 243.21 million Yuan, with total assets slightly down and net assets attributable to shareholders of the listed company marginally up by 0.55% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 501,536,958.62 | 443,788,033.21 | 13.01% | | Net Profit Attributable to Shareholders of Listed Company | 3,067,913.85 | 37,871,268.21 | -91.90% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -18,621,015.63 | -51,246,637.53 | 63.66% | | Net Cash Flow from Operating Activities | 243,213,935.75 | -5,558,413.42 | 4,475.60% | | Basic Earnings Per Share | 0.0057 | 0.0698 | -91.83% | | Diluted Earnings Per Share | 0.0056 | 0.0698 | -91.98% | | Weighted Average Return on Net Assets | 0.06% | 0.78% | -0.72% | | Total Assets (Period-end) | 5,475,878,917.74 | 5,628,841,870.04 | -2.72% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,031,821,441.49 | 5,004,226,114.18 | 0.55% | - Net profit after deducting share-based payment impact was 101.85 million Yuan[20] Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under International Accounting Standards or overseas accounting standards and those prepared under Chinese Accounting Standards - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[21][22] Non-Recurring Gains and Losses Items and Amounts The total non-recurring gains and losses for this reporting period amounted to 21.69 million Yuan, primarily comprising gains/losses from disposal of non-current assets, government grants, fair value changes, and other non-operating income/expenses, while VAT refunds, EDA project grants, and Chengdu Shuangliu District government subsidies, being closely related to normal operations and having a continuous impact on profit/loss, were classified as recurring gains and losses Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from disposal of non-current assets | 20,911.50 | | Government grants included in current profit/loss (excluding those with continuous impact) | 15,872,810.52 | | Gains/Losses from fair value changes and disposal of financial assets and liabilities | 6,676,726.89 | | Other non-operating income and expenses | 20,004.48 | | Less: Income tax impact | 901,523.91 | | Total | 21,688,929.48 | - The company classifies VAT immediate refund (34.48 million Yuan), EDA project grants - assets (25.11 million Yuan), and Chengdu Shuangliu District government input subsidies (0.31 million Yuan) as recurring gains and losses, as they are closely related to normal operating activities and have a continuous impact[25][581] Part III Management Discussion and Analysis This section provides a comprehensive overview of the company's main business activities, industry landscape, product and service advancements, operational models, market position, key performance drivers, core competitiveness, and financial performance analysis, along with an assessment of assets, liabilities, investments, and risks Company's Main Business Activities During the Reporting Period The company primarily engages in the development, sales, and related services of integrated circuit EDA tool software, establishing itself as a leading enterprise in the domestic EDA industry, with continuous R&D investment leading to multiple product and technology breakthroughs across digital, analog, memory, RF, flat panel display, wafer manufacturing, advanced packaging, and 3DIC design fields, successfully launching 7 core tools and 9 major solutions, maintaining its top market share among local EDA companies, and achieving performance growth driven by technological innovation, product quality enhancement, regional strategic synergy, and team building Industry Overview During the Reporting Period Integrated circuit EDA tools are critical foundational pillars supporting chip design, manufacturing, and packaging, with the global EDA market highly concentrated and dominated by three major players, while Empyrean Technology ranks in the second tier, and the current EDA industry exhibits trends such as post-Moore's Law technological evolution, design methodology innovation to mitigate costs, deep integration of AI technology, increasing adoption of cloud technology, and chip-system design integration - EDA tools are essential for integrated circuit design, manufacturing, packaging, and testing, serving as one of the industry's three strategic foundational pillars[27] - The global EDA market is monopolized by Cadence, Synopsys, and Siemens EDA, with Empyrean Technology ranking in the second tier of the global EDA industry[28] - Key trends in the EDA industry include post-Moore's Law technological evolution, design methodology innovation to mitigate costs, AI technology playing a more significant role, increasing adoption of cloud technology, and chip-system design integration driving the convergence of EDA and CAE[28][29][30][32] Company's Main Business Activities During the Reporting Period The company primarily focuses on the development, sales, and related services of EDA tool software essential for integrated circuit design, manufacturing, and packaging, with EDA tools playing a crucial role across the entire chip industry chain, and as of the end of the reporting period, the company held 355 authorized patents and 181 software copyrights, with R&D investment reaching 365.31 million Yuan and R&D personnel accounting for 73% of its total workforce - The company's main business involves the development, sales, and related services of EDA tool software for integrated circuit design, manufacturing, and packaging[33] - As of June 30, 2025, the company held 355 authorized patents and 181 software copyrights[33] R&D Investment and Personnel Structure | Indicator | Amount/Number | | :--- | :--- | | R&D Investment Amount | 365.31 million Yuan | | R&D Technical Personnel | 949 people | | R&D Personnel Ratio | 73% | | R&D Personnel with Master's Degree or Above | 682 people | | R&D Personnel with Master's Degree or Above Ratio | 72% | Progress of Company's Products and Services During the Reporting Period During the reporting period, the company significantly increased R&D investment, successfully launched 7 new core EDA tools and 9 major key solutions, achieving significant breakthroughs in digital, analog, memory, RF, flat panel display, wafer manufacturing, advanced packaging, and 3DIC design, with multiple EDA tools receiving wafer manufacturer certification and international safety standard certification, and the company has become a leading domestic wafer manufacturing engineering service provider and foundational IP supplier in technical services - During the reporting period, the company successfully launched 7 new core EDA tools and innovatively built 9 major key core solutions[36] - In the digital circuit design EDA field, four new core products were launched: Hima Sim, Hima Time, Hima EMIR, and Argus SoC, covering nearly 80% of the main tools for digital circuit design[36] - Analog circuit design EDA tools ALPS received 8nm/5nm/4nm certification, Patron received 14nm certification, and Argus DRC/LVS received 28nm certification[41] - The company has become a leading domestic wafer manufacturing engineering service provider and foundational IP supplier, offering services such as IP core development, test chip design, SPICE model extraction, and PDK development[42] Main Products and Services The company's products encompass full-custom design platform EDA tool systems (including analog, memory, RF, and flat panel display circuit design), digital circuit design EDA tool systems, wafer manufacturing EDA tools, advanced packaging design EDA tools, and 3DIC design EDA tools, along with technical services such as foundational IP and wafer manufacturing engineering services, demonstrating significant progress across all areas during the reporting period, including the launch of Andes AMS for mixed-signal design automation, AndesFPD for flat panel display circuit design automation, Hima Sim for digital simulation verification, and Argus 3DIC for 3DIC physical verification - The company's products include full-custom design platform, digital circuit design, wafer manufacturing, advanced packaging design, and 3DIC design EDA tool systems, as well as related technical services[43] - The full-custom design platform added the PyAether ecosystem, utilizing AI and data mining technologies to enhance design efficiency[47] - The analog circuit design full-flow EDA tool system introduced Andes AMS, an intelligent and automated tool for mixed-signal design, and ALPS launched "pre- and post-simulation node matching" technology[53] - The flat panel display circuit design automation platform AndesFPD launched the world's first intelligent and automated layout design tool for irregular OLED panels, AndesFPD OPanel, reducing design cycle by 50%[67] - The digital circuit design EDA tool system introduced Hima Sim, Hima Time, Hima EMIR, and Argus SoC, covering nearly 80% of the main digital circuit design tools[71] - In the 3DIC design EDA tool field, the new Argus 3DIC physical verification platform supports 2.5D/3D heterogeneous integration packaging design, improving verification efficiency by over 50%[88][89] - The company has become a leading domestic foundational IP core supplier, providing cell libraries, SRAM compilers, IO libraries, and other foundational IP cores, which have been verified with actual silicon data from 0.18um to the most advanced process nodes[94] Company's EDA Tool Software Products The company's EDA tool software products span multiple domains, including full-custom design platforms (analog, memory, RF, flat panel display), digital circuit design, wafer manufacturing, advanced packaging design, and 3DIC design, with significant progress in each area during the reporting period, such as launching intelligent automation design platforms, improving simulation efficiency, achieving tool integration with partners, developing million-pixel layout sign-off technology, building a full-flow technical support system, and addressing bottlenecks in large-scale layout design and physical verification - The full-custom design platform EDA tool system added the PyAether ecosystem, utilizing AI, data mining, and other technologies to provide 12,000 interface functions, significantly improving design efficiency[47] - The analog circuit design full-flow EDA tool system introduced Andes AMS, an intelligent and automated tool for mixed-signal design, offering intelligent and automated solutions for large analog and small digital scenarios[53] - The memory circuit fast simulation tool ALPS FS innovatively uses an AI+EDA method based on machine learning to achieve high-yield, high-sigma (6sigma+) accurate prediction for memory cells and other array circuits, significantly improving work efficiency[58] - The RF circuit simulation tool ALPS RF supports GPU architecture, reducing post-simulation time to within 8 hours, greatly enhancing design efficiency[62] - The flat panel display circuit design automation platform AndesFPD launched the world's first intelligent and automated layout design tool for irregular OLED panels, AndesFPD OPanel, shortening the traditional manual design cycle to within 1 week[67] - The digital circuit design EDA tool system introduced Hima Sim, Hima Time, Hima EMIR, and Argus SoC, covering nearly 80% of the main tools for digital circuit design[71] - Wafer manufacturing EDA tools have built a full-flow technical support system covering design support, tape-out/mask generation, yield analysis, and design-technology co-optimization (DTCO)[39][75] - The advanced packaging design EDA platform is capable of supporting Chiplet design for high-end AI chips, GPUs, and high-performance processor chips, reducing manual design cycle by over 60%[40] - 3DIC design EDA tools have built a full-flow solution covering heterogeneous integration 3D chip co-design to verification, with the new Argus 3DIC physical verification platform supporting 2.5D/3D heterogeneous integration packaging design[40][87][88] Company's Technical Services The company's technical service team, leveraging years of accumulated expertise, provides integrated circuit design and manufacturing clients with services such as test chip design, wafer and IP core testing, SPICE model extraction, PDK development, and foundational IP core development, establishing itself as a leading domestic foundational IP core supplier and wafer manufacturing engineering service provider, whose products and services effectively address client tape-out challenges and accelerate the design adoption and yield improvement of domestic advanced process platforms - The company's technical services cover silicon-based semiconductors, compound semiconductors, discrete devices, and packaging, offering services such as test chip design, wafer and IP core testing, SPICE model extraction, PDK development, and foundational IP core development[92] - The company has become a leading domestic foundational IP core supplier, capable of providing cell libraries, SRAM compilers, IO libraries, one-time programmable memory, and process test verification chips as foundational IP cores[94] - Technical services and EDA software products complement each other, forming efficient solutions that accelerate the design adoption, process development, and yield improvement of domestic advanced process platforms[95] Company's Main Business Model The company primarily generates profit through authorized sales of EDA tool software and fees from technical service projects, with procurement modes including single-source, inquiry, and bidding for software/hardware equipment, outsourced development, and technical services, while its R&D model follows project initiation, development, testing, and release processes, and its sales model is direct, utilizing a marketing center for market promotion and customer expansion - The company's profit model primarily consists of authorized sales of EDA tool software (charging licensing fees) and technical services (charging based on project workload and technical difficulty)[96] - Procurement modes are divided into single-source procurement, inquiry procurement, and bidding, primarily for software and hardware equipment, outsourced development, testing services, and technical services[97][98] - The R&D model follows the sequence of project initiation, project development and testing, and project release[99] - The sales model is direct sales, with the marketing center responsible for market promotion and marketing activities, primarily applied in the integrated circuit design, manufacturing, and packaging fields[101] Market Position Empyrean Technology holds the top market share among local EDA enterprises, serving over 700 renowned domestic and international clients, with its product strength widely recognized in the industry, serving as the supporting entity for the "National Engineering Research Center for EDA" and receiving multiple industry technology awards, and through its leading scientific research capabilities, the company has undertaken several major national-level scientific research projects, solidifying its leading position in the EDA industry - As of June 30, 2025, the company had over 700 renowned domestic and international clients, maintaining the top market share among local EDA enterprises[102] - The company is the largest EDA enterprise in China with the most complete product line and strongest comprehensive technical capabilities, serving as the supporting entity for the "National Engineering Research Center for EDA"[103] - The company has received numerous honors, including the "First Prize for Technological Invention" in the China Institute of Electronics Science and Technology Award and the "China New Display Industry Chain Contribution Award - Innovation Breakthrough Award"[103] - The company has undertaken multiple major national-level scientific research projects, such as the "Advanced EDA Tool Platform Development" within the national "Core Electronic Devices, High-End General-Purpose Chips, and Basic Software Products" major science and technology project[104] Key Performance Drivers During the reporting period, the company's operating revenue increased by 13.01%, primarily driven by continuous technological product innovation, consistently improving product release quality standards, strengthening regional strategic collaboration to expand new customers, and enhancing employee team building, all of which collectively ensured the company's competitive advantage and stable development in the EDA field - The company's operating revenue increased by 13.01% year-on-year, with key drivers including technological product innovation, product quality improvement, regional strategic collaboration, and team building[105] - As of June 30, 2025, the company held 355 authorized patents and 181 software copyrights, continuously expanding its patent portfolio for innovative technologies[105] - The company expands its customer base by establishing domestic and international subsidiaries, strengthening interaction with local clients, and improving service timeliness and customer satisfaction[108] - The company builds its EDA talent team through enhanced professional technical training and industry-academia collaboration, ensuring long-term, continuous, and healthy development[109] Core Competitiveness Analysis Empyrean Technology's core competitiveness is reflected in its strategic focus and historical accumulation, leading core technologies and sustainable R&D system, comprehensive tool coverage, high-quality customer base, and prominent brand advantages, with the company's long-term dedication to the EDA field, numerous core technologies and patents, extensive product lines, strong partnerships with major chip design, manufacturing, and packaging enterprises, and support from national-level honors and projects Strategic Focus and Historical Accumulation Advantages Since its establishment, the company has consistently focused on the EDA field, accumulating rich product and technical experience, and establishing a strong market image and customer reputation, with its initial team having participated in the design of China's first independently developed EDA tool, the "Panda ICCAD System," demonstrating significant historical accumulation advantages in technology development and business expansion - Since its establishment, the company has consistently focused on the EDA field, accumulating rich product and technical experience, and establishing a strong market image and customer reputation[110] - Some members of the company's initial team participated in the design of China's first independently developed EDA tool, the "Panda ICCAD System," demonstrating significant historical accumulation advantages[110] Leading Core Technology and Sustainable R&D System Advantages The company possesses advanced, critical, and foundational EDA tool software technologies, holding 355 authorized invention patents and 181 software copyrights through independent R&D, with products covering analog, memory, RF, digital, flat panel display, wafer manufacturing, advanced packaging, and 3DIC design, many of which have reached international leading levels, and R&D expenses for the reporting period amounted to 365.31 million Yuan, accounting for 72.84% of operating revenue, establishing a comprehensive and continuous innovation mechanism - As of June 30, 2025, the company held 355 authorized invention patents and 181 software copyrights[111] - The company's EDA tool software products and services cover analog, memory, RF, digital, flat panel display, wafer manufacturing, advanced packaging, and 3DIC design, with many technologies reaching international leading levels[112] R&D Investment | Indicator | Amount | | :--- | :--- | | R&D Expenses for the Reporting Period | 365.31 million Yuan | | Percentage of Operating Revenue | 72.84% | Full-Process Tool Coverage Advantages The company has achieved full-process tool coverage in analog, memory, RF, and flat panel display design, and is continuously increasing coverage in other EDA areas such as digital circuit design, with full-process tool coverage being crucial for the development of China's integrated circuit industry, enhancing the company's market competitiveness, providing better data compatibility and accuracy consistency, reducing customer usage costs, and promoting the construction of the domestic ecosystem and technological advancement - The company has achieved full-process tool coverage in analog, memory, RF, and flat panel display design, and is continuously increasing coverage in other EDA areas such as digital circuit design[114] - Full-process tool coverage enhances the company's market competitiveness, provides better data compatibility and accuracy consistency, and significantly reduces usage costs and improves efficiency[114] - A full-process EDA tool system helps promote the construction of an independent ecosystem for China's integrated circuit industry and can provide customized services for new materials, processes, and technologies across the entire system[115] High-Quality Customer Base Advantages As a leading enterprise in the domestic EDA industry, Empyrean Technology has established long-term and strong cooperative relationships with major integrated circuit design companies, wafer manufacturing companies, packaging companies, and flat panel display manufacturers both domestically and internationally, serving over 700 global clients, and the selection of its key clients has a demonstrative effect, laying a strong foundation for the company to explore new markets and achieve new collaborations - The company has established strong business cooperative relationships with major integrated circuit design companies, wafer manufacturing companies, packaging companies, and flat panel display manufacturers both domestically and internationally[116] - The company serves over 700 global clients, and the demonstrative effect of its key clients helps the company explore new markets[116] Prominent Brand Advantages Empyrean Technology, leveraging its strong technical capabilities and long-term accumulation, has become the largest EDA enterprise in China with the most complete product line and strongest comprehensive technical capabilities, holding qualifications such as the "National Engineering Research Center for EDA" and "National Enterprise Technology Center," and has received numerous industry awards, including the First Prize for "China Institute of Electronics Science and Technology Award" and "China IC Design Achievement Award for Annual Industry Outstanding Contribution EDA Company," demonstrating significant brand influence - The company is the largest EDA enterprise in China with the most complete product line and strongest comprehensive technical capabilities, holding national-level qualifications such as the "National Engineering Research Center for EDA"[117] - The company has received numerous honors, including the First Prize for "China Institute of Electronics Science and Technology Award" (Technological Invention) and "China IC Design Achievement Award for Annual Industry Outstanding Contribution EDA Company"[118] Main Business Analysis During the reporting period, the company's main business revenue increased by 13.01% to 501.54 million Yuan, but operating costs significantly rose by 42.83%, primarily due to the recognition of costs associated with increased technical service revenue, with EDA software sales maintaining a 100% gross profit margin and technical services achieving a 39.94% gross profit margin, while net cash flow from operating activities significantly improved from negative to positive, and the company's main income is derived from the integrated circuit industry, with domestic revenue accounting for 88.82% and overseas revenue increasing by 90.39% Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 501,536,958.62 | 443,788,033.21 | 13.01% | | | Operating Cost | 54,558,350.71 | 38,198,617.77 | 42.83% | Primarily due to cost recognition corresponding to increased technical service revenue | | Selling Expenses | 114,004,080.86 | 90,397,063.48 | 26.11% | | | Financial Expenses | -22,250,687.67 | -31,862,287.35 | 30.17% | Primarily due to decreased interest income from lower deposit rates | | Income Tax Expense | -2,831,541.74 | 6,977,305.57 | -140.58% | Primarily due to decreased current income tax expense | | R&D Investment | 365,313,772.87 | 349,240,450.08 | 4.60% | | | Net Cash Flow from Operating Activities | 243,213,935.75 | -5,558,413.42 | 4,475.60% | Primarily due to a significant increase in cash received from sales of goods and provision of services compared to the prior year period | Products or Services Accounting for Over 10% | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EDA Software Sales | 414,134,218.98 | - | 100.00% | 7.41% | 0.00% | 0.00% | | Technical Services | 67,239,359.36 | 40,383,301.00 | 39.94% | 28.37% | 20.58% | 3.87% | Customer Industry and Regional Breakdown | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Integrated Circuit Industry | 501,536,958.62 | 54,558,350.71 | 89.12% | 13.01% | 42.83% | -2.27% | | Domestic | 447,021,610.72 | 49,955,363.24 | 88.82% | 7.68% | 43.87% | -2.82% | | Overseas | 54,515,347.90 | 4,602,987.47 | 91.56% | 90.39% | 32.44% | 3.70% | - Among main business costs, outsourced expenses significantly increased from 22.20% in the prior year period to 51.64%, a year-on-year increase of 232.23%, primarily due to a higher proportion of projects recognized as revenue in the current period involving outsourced development[126] Non-Core Business Analysis During the reporting period, the company's non-core businesses negatively impacted total profit, with investment income at -11.12 million Yuan, fair value change gains/losses at 1.08 million Yuan, asset impairment at -1.39 million Yuan, and non-operating income at 0.02 million Yuan, none of which are sustainable Non-Core Business Analysis | Item | Amount (Yuan) | Percentage of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -11,117,035.37 | -4,703.19% | Investment income from continuous measurement of long-term equity investments and disposal of bank wealth management products | No | | Fair Value Change Gains/Losses | 1,080,887.67 | 457.28% | Primarily fair value changes from held wealth management products | No | | Asset Impairment | -1,392,131.42 | -588.96% | Normal provision for inventory depreciation and bad debt provision for contract assets | No | | Non-Operating Income | 20,004.48 | 8.46% | Other income | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets were 5.48 billion Yuan, a 2.72% decrease from the end of the previous year, with cash and cash equivalents and accounts receivable decreasing, while non-current assets such as long-term equity investments, fixed assets, and right-of-use assets remained stable or slightly increased, and total current liabilities decreased by 39.90%, with total non-current liabilities slightly decreasing, and financial assets measured at fair value amounted to 1.05 billion Yuan, primarily comprising trading financial assets and other equity instrument investments Significant Changes in Asset Composition (Period-end vs. Period-beginning) | Item | Current Reporting Period End (Yuan) | Percentage of Total Assets | Prior Year End (Yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 744,387,753.17 | 13.59% | 1,067,005,517.09 | 18.96% | -5.37% | | Accounts Receivable | 456,238,276.69 | 8.33% | 684,542,348.46 | 12.16% | -3.83% | | Total Assets | 5,475,878,917.74 | 100.00% | 5,628,841,870.04 | 100.00% | -2.72% | | Total Current Liabilities | 267,258,025.66 | 4.88% | 446,227,417.63 | 7.93% | -3.05% | | Total Non-Current Liabilities | 176,799,450.59 | 3.23% | 178,388,338.23 | 3.17% | 0.06% | Financial Assets Measured at Fair Value (Period-end) | Item | Period-end Amount (Yuan) | | :--- | :--- | | Trading Financial Assets | 934,080,887.67 | | Other Equity Instrument Investments | 114,000,000.00 | | Total | 1,048,080,887.67 | - As of the end of the reporting period, the company had no restricted asset rights[134] Investment Analysis During the reporting period, the company's total investment amounted to 3.71 billion Yuan, a significant increase of 736.19% compared to the prior year period, with the overall utilization rate of raised funds at 71.32% and committed investment projects progressing normally, though some projects were delayed due to market demand and process iteration, and the company's entrusted wealth management balance was 843 million Yuan, primarily in bank wealth management products, with no overdue unrecovered amounts, and no significant equity investments, non-equity investments, derivative investments, or entrusted loans during the reporting period Investment Amount for the Reporting Period | Indicator | Amount (Yuan) | | :--- | :--- | | Investment Amount for the Reporting Period | 3,712,854,464.49 | | Investment Amount for the Prior Year Period | 444,022,380.21 | | Change Percentage | 736.19% | Overall Utilization of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds (10,000 Yuan) | Total Raised Funds Used in Current Period (10,000 Yuan) | Total Raised Funds Used Cumulatively (10,000 Yuan) | Percentage of Raised Funds Used at Period-end | | :--- | :--- | :--- | :--- | :--- | | 354,975.33 | 346,602.55 | 39,979.34 | 247,190.36 | 71.32% | - The scheduled completion dates for some raised fund investment projects (such as "Circuit Simulation and Digital Analysis Optimization EDA Tool Upgrade Project" and "Analog Design and Verification EDA Tool Upgrade Project") have been adjusted to December 2024 to December 2025, primarily due to market demand, product refinement cycles, and advanced process maturity iterations[142] Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 97,000 | 84,300 | Significant Asset and Equity Disposals During the reporting period, the company did not engage in any significant asset or equity disposals - The company did not dispose of significant assets during the reporting period[147] - The company did not dispose of significant equity during the reporting period[148] Analysis of Major Holding and Associate Companies The company's major subsidiaries, including Shanghai Empyrean Technology Co., Ltd. and Shenzhen Empyrean Technology Co., Ltd., significantly contributed to operating revenue and net profit through software R&D and sales, while associate companies such as Wuxi Yake Hongyu Electronics Co., Ltd. and Hangzhou Jiuzhixing Software Co., Ltd. also impacted the company's profit, and there were no acquisitions or disposals of subsidiaries during the reporting period Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Empyrean Technology Co., Ltd. | Subsidiary | Software R&D/Sales | 200,005.62 | 140,157.10 | 102,672.62 | 20,643.45 | -7,868.53 | -7,867.53 | | Shenzhen Empyrean Technology Co., Ltd. | Subsidiary | Software R&D/Sales | 49,365.46 | 120,581.09 | 109,651.69 | 6,691.64 | 3,773.22 | 3,796.70 | | DaVinchi,Ltd. | Subsidiary | Investment | 3500 (USD) | 11,746.25 | 8,807.79 | 1,361.67 | -1,077.72 | -1,099.43 | | Beijing Empyrean Industrial Software Research Institute Co., Ltd. | Subsidiary | Software R&D/Sales | 15,000.00 | 3,027.93 | 91.45 | 746.36 | -1,763.43 | -1,763.43 | | Wuxi Yake Hongyu Electronics Co., Ltd. | Associate Company | Software R&D/Sales | 2,958.48 | 12,807.53 | 2,584.89 | 1,046.51 | -4,159.58 | -4,159.24 | | Hangzhou Jiuzhixing Software Co., Ltd. | Associate Company | Software R&D/Sales | 2,123.08 | 12,798.69 | 11,712.83 | 14.90 | -1,667.17 | -1,667.17 | - The company did not acquire or dispose of any subsidiaries during the reporting period[149] Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[150] Risks Faced by the Company and Countermeasures The company faces multiple risks, including technological innovation and product upgrades, loss or shortage of technical personnel, changes in industrial policies, market competition, international trade frictions, and overseas operations, and to address these challenges, the company plans to increase R&D investment, optimize its compensation system, strengthen policy research, enhance product competitiveness, actively expand markets, and reinforce overseas risk control - The company faces risks of technological innovation and product upgrades, which could lead to extended R&D cycles or failure to achieve desired functionalities, as well as loss of market share[150] - The company faces risks of technical personnel loss or shortage, due to the high dependence on specialized talent in the EDA industry and intense competition[153] - The company faces risks from changes in industrial policies; if national support policies for the integrated circuit and software industries cannot be guaranteed, it may affect the company's operations[154] - The company faces market competition risks, as the domestic market is still dominated by international giants, and the increasing number of other domestic EDA enterprises also adds competitive pressure[155] - The company faces risks from international trade frictions, with overseas operating revenue accounting for 10.87%, and trade protectionism could lead to business restrictions, increased costs, etc[156] - The company faces overseas operational risks, as differences in market environments, policies, regulations, and social cultures in various countries or regions may adversely affect its business[157] Registration Form for Research, Communication, Interview and Other Activities During the Reporting Period During the reporting period, the company engaged with institutional and all investors through phone calls and online platforms, discussing topics such as R&D expenses, customer structure, domestic ecosystem layout, future strategic planning, share-based payment expenses, university collaborations, and market value management, and disclosed relevant investor relations activity records - On April 29, 2025, the company held phone discussions with institutional investors, covering R&D expenses, customer structure, and domestic ecosystem layout[158] - On May 20, 2025, the company conducted online exchanges with all investors via a network platform, discussing future strategic planning, share-based payment expenses, university collaborations, and market value management[158] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan On February 14, 2025, the company approved the "Proposal on Formulating the Market Value Management System" to strengthen market value management, standardize related activities, and protect investors' legitimate rights and interests, but did not disclose a valuation enhancement plan - On February 14, 2025, the company approved the "Proposal on Formulating the Market Value Management System" to strengthen market value management[159] - The company did not disclose a valuation enhancement plan[159] Implementation of "Quality and Return Dual Improvement" Action Plan The company actively implemented the "Quality and Return Dual Improvement" action plan, continuously increasing R&D investment, with R&D expenses reaching 365.31 million Yuan in the first half of 2025, accounting for 72.84% of operating revenue, and holding 355 authorized patents and 181 software copyrights, with R&D personnel comprising 73% of its workforce, and also launched a restricted stock incentive plan, continuously improved corporate governance, strengthened investor communication, and distributed cash dividends for three consecutive years, actively rewarding investors - In the first half of 2025, the company's R&D expenses amounted to 365.31 million Yuan, accounting for 72.84% of operating revenue, maintaining a high proportion of R&D investment[160] - As of June 30, 2025, the company held 355 authorized patents and 181 software copyrights, with 949 R&D technical personnel, accounting for 73% of the total workforce[160] - The company launched a restricted stock incentive plan in November 2023 and formulated the "Market Value Management System" in February 2025 to strengthen corporate governance[160][161] - The company distributed cash dividends of 81.44 million Yuan in 2022, 2023, and 2024, accounting for 43.90%, 40.57%, and 74.39% of net profit attributable to shareholders of the listed company, respectively[162] Part IV Corporate Governance, Environment and Society This section details the company's corporate governance structure, including changes in directors, supervisors, and senior management, profit distribution plans, implementation of equity incentive plans, environmental information disclosure, and social responsibility initiatives Changes in Directors, Supervisors and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management, with specific details available in the 2024 annual report - The company's directors, supervisors, and senior management experienced no changes during the reporting period[164] Profit Distribution and Capital Reserve to Share Capital Increase During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[165] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive Measures In November 2023, the company launched its 2023 Restricted Stock Incentive Plan, initially granting 8.69 million Class II restricted shares to 408 incentive recipients, followed by a grant of 2.17 million reserved shares in November 2024, and in July 2025, the Board of Directors approved the vesting conditions for the first vesting period of the initial grant, agreeing to vest 2.49584 million shares to 386 incentive recipients, with no employee stock ownership plans or other employee incentive measures during the reporting period - The company approved the "2023 Restricted Stock Incentive Plan (Draft)" on November 3, 2023[166] - On December 18, 2023, the company initially granted 8.69 million Class II restricted shares to 408 incentive recipients at a grant price of 51.22 Yuan/share[168] - On November 4, 2024, the company granted 2.17 million reserved Class II restricted shares to 186 incentive recipients, with the grant price adjusted to 51.07 Yuan/share[169] - On July 11, 2025, the Board of Directors approved the fulfillment of vesting conditions for the first vesting period of the initial grant, agreeing to vest 2.49584 million restricted shares to 386 incentive recipients[170] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[172] Social Responsibility The company is committed to improving its corporate governance structure, prioritizing employee rights protection by legally contributing to social insurance and housing provident funds and providing a healthy and safe working environment, upholding integrity to protect the rights of suppliers and customers by offering high-quality products and services, and valuing investor relations management through multi-channel communication to promptly address investor concerns, striving for coordinated economic, social, and environmental development - The company improves its governance structure, comprising the general meeting of shareholders, Board of Directors, Supervisory Board, and management, ensuring clear division of labor, distinct responsibilities, and effective checks and balances[172] - The company strictly adheres to the "Labor Law," legally handles social insurance and housing provident funds for employees, provides regular health check-ups, and conducts employee satisfaction surveys[172] - The company upholds principles of honesty, trustworthiness, fairness, and justice, establishing long-term strong cooperative relationships with suppliers and customers to protect their legitimate rights and interests[173] - The company values investor relations management, engaging with investors through various channels such as investor hotlines and email to enhance recognition[174] Part V Significant Matters This section covers significant matters including commitments, non-operating fund occupation, external guarantees, auditor appointments, non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, related-party transactions, major contracts, and other important events Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers and the Company During and as of the End of the Reporting Period During the reporting period, the company reported no commitments by the actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period - The company reported no commitments by related parties that were fulfilled or overdue and unfulfilled during the reporting period[177] Non-Operating Occupation of Funds by Controlling Shareholders and Other Related Parties from Listed Company During the reporting period, the company reported no non-operating occupation of funds by controlling shareholders or other related parties from the listed company - The company reported no non-operating occupation of funds by controlling shareholders or other related parties during the reporting period[178] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[179] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[180] Explanation by Board of Directors, Board of Supervisors, and Audit Committee on "Non-Standard Audit Report" for the Current Reporting Period During the reporting period, the company reported no explanations by the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" for the current period - The company reported no non-standard audit report during the reporting period[181] Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year During the reporting period, the company reported no explanations by the Board of Directors regarding a "non-standard audit report" for the previous year - The company reported no explanation regarding a non-standard audit report for the previous year during the reporting period[181] Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - The company did not experience any bankruptcy or reorganization matters during the reporting period[181] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, and one lawsuit involving 98,000 Yuan was settled through mediation, with the related obligations borne by other defendants and unrelated to the company - The company had no significant litigation or arbitration matters during this reporting period[182] - A lawsuit involving 98,000 Yuan was settled through mediation, with the obligations borne by other relevant defendants and unrelated to the company[183] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[184] Integrity Status of the Company, its Controlling Shareholder and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts - The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[185] Significant Related-Party Transactions During the reporting period, the company had no significant related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related-party creditor/debtor relationships, but maintained deposit business with China Electronics Finance Co., Ltd., with a period-end deposit balance of 403.39 million Yuan and interest income of 2.77 million Yuan for the current period - The company reported no significant related-party transactions related to daily operations, asset or equity acquisition/disposal related-party transactions, joint external investment related-party transactions, or related-party creditor/debtor relationships during the reporting period[185][186][187][188] Deposit Business with Related Financial Company | Related Party | Related Relationship | Maximum Daily Deposit Limit (10,000 Yuan) | Deposit Interest Rate Range | Beginning Balance (10,000 Yuan) | Period-end Balance (10,000 Yuan) | Total Deposits in Current Period (10,000 Yuan) | Total Withdrawals in Current Period (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Electronics Finance Co., Ltd. | Other enterprise controlled by actual controller | 100,000 | 0.10%-1.75% | 64,956.39 | 40,338.74 | 71,433.98 | 96,051.63 | - The company has a credit line of 1 billion Yuan with China Electronics Finance Co., Ltd., with no actual transactions occurring in the current period[190] Significant Contracts and Their Performance During the reporting period, the company had no significant entrustment, contracting, major guarantees, or major daily operating contracts, but leased multiple office buildings, including those in Beijing Wangjing Science Park and Shanghai Pudong New Area Zhongke Road, with lease income impacting the company's costs and expenses, and no other significant contracts were reported - The company reported no entrustment or contracting situations during the reporting period[192][193] Major Lease Information | Lessor Name | Leased Asset Description | Amount Involved in Leased Asset (10,000 Yuan) | Lease Start Date | Lease End Date | Lease Income (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Wangjing Emerging Industrial Zone Comprehensive Development Co., Ltd. | Office building at Wangjing Science Park, No. 2 Lize Middle Road, Chaoyang District, Beijing | 1,055.05 | September 1, 2023 | August 31, 2026 | -175.84 | | Beijing Wangjing Emerging Industrial Zone Comprehensive Development Co., Ltd. | Office building at Wangjing Science Park, No. 2 Lize Middle Road, Chaoyang District, Beijing | 1,143.18 | March 1, 2024 | February 28, 2027 | -190.53 | | China Greatwall Semiconductor Co., Ltd. | Office building at No. 1867 Zhongke Road, Pudong New Area, Shanghai | 924.3 | October 1, 2024 | February 28, 2027 | -188.2 | - The company reported no significant guarantee situations during the reporting period[196] - The company reported no significant daily operating contracts or other significant contracts during the reporting period[197][198] Explanation of Other Significant Matters The company formulated its "Market Value Management System" in February 2025, and while it initiated a major asset restructuring in March 2025 to acquire 100% of Xinhu Semiconductor Technology (Shanghai) Co., Ltd. through share issuance and cash payment, this restructuring was terminated in July 2025, and additionally, the "Digital Design Comprehensive and Verification EDA Tool Development Project" and "EDA Tool Development Project for Specific Chip Types" from the company's initial public offering raised funds investment projects have been completed and their dedicated accounts closed - The company formulated and approved the "Market Value Management System" on February 14, 2025[199] - The company initiated a major asset restructuring in March 2025, intending to acquire 100% of Xinhu Semiconductor Technology (Shanghai) Co., Ltd., but this matter was terminated on July 9, 2025[199][200] - The "Digital Design Comprehensive and Verification EDA Tool Development Project" and "EDA Tool Development Project for Specific Chip Types" from the company's initial public offering raised funds investment projects have been completed and their dedicated accounts closed[200][201] Significant Matters of Company's Subsidiaries During the reporting period, there were no other significant matters of the company's su