Core Insights - The EDA (Electronic Design Automation) industry in China is experiencing a divergence in performance among its major listed companies, with Huada Jiutian showing significant revenue growth but a drastic decline in net profit, contrasting sharply with the high profit growth of competitors Gland and Gai Lun [1][3][4] Revenue and Profit Performance - Huada Jiutian achieved a revenue of 805 million yuan in the first three quarters of 2025, marking an 8.24% year-on-year increase, with Q3 revenue reaching 286 million yuan, up 12.3% quarter-on-quarter. However, its net profit plummeted by 84.52% to 9.06 million yuan, with a non-recurring net profit loss of 22.16 million yuan [3][4] - Gland reported a revenue of 428 million yuan, a 48.86% increase year-on-year, and a net profit of 37.02 million yuan, up 380.14% [3][4] - Gai Lun's revenue reached 315 million yuan, a 12.71% increase, with a net profit of 41.99 million yuan, up 173.46% [4] Cost and Investment Trends - Huada Jiutian's expenses increased significantly, with sales expenses up 23.99%, management expenses up 8.69%, R&D expenses up 2.7%, and financial expenses up 25.23%. The company's stock incentive costs reached 104 million yuan in the first half of the year, contributing to profit pressure [3][4] - Gland's expenses were 289 million yuan, reflecting a year-on-year increase but a decrease in expense ratio by 10.91 percentage points to 67.54%, indicating initial scale effects [3][4] Technological Advancements - Huada Jiutian launched seven core EDA tools and made significant breakthroughs in digital signature tools and advanced process certification, aiming to cover nearly 80% of digital circuit design tools by the end of 2025 [5][6] - Gland focused on DFT (Design for Testability) product iterations, achieving key advancements in tool architecture and developing an AI-driven yield diagnosis platform [7] Market Dynamics and Competitive Landscape - The domestic EDA market remains dominated by international giants like Synopsys, Cadence, and Siemens EDA, which collectively hold 74% of the global market share. Despite this, there is a growing opportunity for domestic EDA companies due to increasing market demand and supportive policies [8][9] - The competitive landscape shows a trend of consolidation and resource integration among domestic companies, with Gai Lun planning acquisitions to transition into a one-stop chip design solution platform [8][9]