Core Viewpoint - The report outlines the continuous supervision and performance of Shaanxi Huaqin Technology Industrial Co., Ltd. by CITIC JianTou Securities, highlighting the company's financial performance, operational risks, and ongoing projects in the special functional materials sector. Continuous Supervision - CITIC JianTou Securities has established and effectively implemented a continuous supervision system for Huaqin Technology, including a work plan and a supervision agreement filed with the Shanghai Stock Exchange [1][2] - The supervision includes regular communication, site inspections, and due diligence to understand the operational status of Huaqin Technology [1][3] Financial Performance - In the first half of 2025, the company reported operating revenue of 516.41 million yuan, a year-on-year increase of 6.44% [16] - The total profit for the same period was 142.55 million yuan, reflecting a decrease of 38.78% compared to the previous year [16] - The net profit attributable to shareholders decreased by 36.97% to 130.22 million yuan [16] Operational Risks - The company faces core competitiveness risks due to rapid advancements in optical detection technologies and materials science, which may affect its long-term development if it fails to adapt [6] - There is a risk of losing key technical personnel, which could negatively impact the company's competitive edge [6][7] - The pricing approval cycle for special functional materials is lengthy, leading to potential revenue fluctuations if there are significant differences between provisional and final prices [7][8] Industry Position and Development - Huaqin Technology has established joint ventures and invested in companies to enhance its competitiveness in the aerospace sector, including Huaqin Aviation and Huaqin Acoustic Technology [10][21] - The company is actively expanding its product applications in various high-end industries, including aerospace, metallurgy, and petrochemicals, but faces challenges in market development [9][10] Research and Development - The company increased its R&D investment significantly, with a total of 70.30 million yuan in the first half of 2025, representing a 112.89% increase from the previous year [17][20] - Huaqin Technology has developed several core technologies in the field of special functional materials, maintaining a competitive advantage in the industry [18][19] Compliance and Governance - The company has complied with regulations regarding the use of raised funds, ensuring that funds are stored in dedicated accounts and used for specified purposes [24] - There were no significant violations reported during the continuous supervision period, indicating a stable governance structure [15]