Core Viewpoint - The company reported strong revenue growth in the first half of 2025, with a significant increase in R&D expenses, indicating a commitment to high-end product development despite short-term profit pressures [1][2][4]. Revenue Performance - In H1 2025, the company achieved revenue of 1.94 billion yuan, a year-on-year increase of 26.6% [1]. - For Q2 2025, revenue was 940 million yuan, reflecting a year-on-year growth of 7.5% but a quarter-on-quarter decline of 5.1% [1]. - The decline in Q2 revenue is attributed to the significant pull-in effect from national subsidies in Q1 and supply chain adjustments causing shipment delays [1]. Profitability Analysis - The gross margin for Q2 2025 reached 40.1%, an increase of 6.7 percentage points year-on-year and 1.6 percentage points quarter-on-quarter [1]. - Net profit for Q2 2025 was 110 million yuan, down 4.8% year-on-year and down 40.0% quarter-on-quarter, indicating profit pressure despite improved gross margins [1][2]. - R&D expenses in Q2 2025 amounted to 230 million yuan, a year-on-year increase of 45.2% and a quarter-on-quarter increase of 36.5%, with an R&D expense ratio of 24.2% [2]. Product Development and Market Expansion - The new generation smart wearable chip, BES2800, is widely applied in TWS headphones, smartwatches, and smart glasses, enhancing the company's technological leadership [2]. - The company successfully onboarded new clients in the smartwatch market, with rapid growth in chip shipments for smartwatches in H1 2025 [3]. - The company is expanding its chip applications into low-power wireless scenarios, including smart glasses and wireless microphones, indicating a shift towards becoming a platform chip company [3]. Future Outlook and Investment Recommendations - Despite a slowdown in revenue growth and profit pressures due to high R&D investments, the company's high-end strategy is establishing a competitive advantage across multiple sectors [4]. - Revenue projections for 2025, 2026, and 2027 are estimated at 4.59 billion, 6.01 billion, and 7.50 billion yuan, with year-on-year growth rates of 40.5%, 31.1%, and 24.7% respectively [4]. - Net profit projections for the same years are 830 million, 1.22 billion, and 1.61 billion yuan, with year-on-year growth rates of 81.3%, 46.5%, and 31.7% respectively [4].

Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 1.938 billion yuan, a year-on-year growth of 26.58%, and a net profit of 305 million yuan, up 106.45% [1] - The company's gross margin improved to 39.27% in H1 2025, reflecting a year-on-year increase of 6.08 percentage points, driven by its focus on the smart wearable and smart home markets [1][2] - The company has successfully introduced its new generation smart wearable chip, BES2800, into various products, enhancing its profitability [1] Financial Performance - In Q2 2025, the company achieved revenue of 944 million yuan, a year-on-year increase of 7.48%, but a quarter-on-quarter decrease of 5.13% [1] - The net profit for Q2 2025 was 114 million yuan, showing a year-on-year decrease of 4.79% and a quarter-on-quarter decrease of 40.31% [1][2] - The gross margin for Q2 2025 reached 40.12%, marking a year-on-year increase of 6.73 percentage points and a quarter-on-quarter increase of 1.65 percentage points [2] Market Position and Strategy - The company is focusing on the smart wearable market, leveraging its advanced product definitions and rapid response capabilities to capture market opportunities [2] - It has successfully introduced its smart watch chip to new clients, including Xiaotianzi and Songtuo, and is expanding its applications into low-power wireless scenarios [3] - The company is evolving into a platform chip company in the low-power wireless computing SoC field, with a diverse range of applications [3] Research and Development - The company maintains a high level of R&D investment, with R&D expenses amounting to 395 million yuan in H1 2025, a year-on-year increase of 22.77% [3] - The R&D team consists of 621 personnel, accounting for 86.25% of the total workforce, indicating a strong commitment to innovation [3] - The company has made significant advancements in core technologies, including multi-core heterogeneous SoC technology and dual-band low-power Wi-Fi technology [3] Future Outlook - The company projects net profits of 798 million yuan, 1.189 billion yuan, and 1.494 billion yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 63, 42, and 33 [4] - The ongoing growth in AR/AI glasses and automotive electronics markets is expected to sustain future performance [4]