Core Viewpoint - The 25th China International Industry Fair features the New Generation Information Technology and Application Exhibition, showcasing over 200 global high-end integrated circuit and industrial software companies, emphasizing the theme "Digital Transformation, Intelligent Manufacturing" [3][4]. Group 1: Exhibition Highlights - The exhibition includes a newly established "Integrated Circuit Exhibition Area" with over 40 leading enterprises and more than 60 specialized companies, demonstrating China's independent breakthroughs and collaborative innovations in the semiconductor industry [4][5]. - The event features three major highlight exhibition areas: Integrated Circuit Exhibition Area, Industrial Intelligence/Software Exhibition Area, and numerous cutting-edge technologies [6]. Group 2: Featured Exhibits - Dework's OBF Smart Factory utilizes innovative technology for dynamic control of production processes, integrating software and hardware to achieve flexible and intelligent production across various application scenarios [9]. - Huada Empyrean has developed a comprehensive EDA tool system covering multiple domains, supporting domestic leading chip design and manufacturing enterprises [11][12]. - Tridium's Niagara Framework provides a unified open platform for developing, integrating, and managing various devices and systems, facilitating interoperability [16]. - Toshiba's VenetDCP supports collaborative simulation environments for complex systems, improving product quality and speeding up development cycles [19]. - Synopsys has launched the first AI-enabled EDA solution, enhancing chip design efficiency across the entire design process [24]. - Unisoc's T9100 chip, built on advanced 6nm technology, offers enhanced performance for 5G applications, supporting high-resolution video recording and photography [26]. - Realtek's Ethernet solution alleviates CPU load, improving the efficiency and stability of robotic systems [29]. - Rockchip's RK182X co-processor is designed for high-performance applications, supporting various AI-driven scenarios [32].

Group 1 - The company reported a total revenue of 502 million yuan for the first half of 2025, representing a year-on-year increase of 13.01% [1] - The net profit attributable to shareholders was 3.0679 million yuan, a significant year-on-year decrease of 91.90%, primarily due to stock payment expenses of 104 million yuan [1] - After adjustments, the net profit was 102 million yuan, with a year-on-year increase of 28.63% when excluding government subsidies [1] Group 2 - The proportion of revenue from technical services increased, while the gross margin slightly declined to 89.12%, down 2.27 percentage points year-on-year due to increased costs associated with the higher share of technical service revenue [1] - Research and development expenses rose to 365 million yuan, an increase of 4.58% year-on-year, indicating a continued commitment to R&D with a workforce of 949 R&D personnel [1] Group 3 - The company upgraded its traditional advantages in AI and launched new products, including the PyAether design platform and AndesAMS tool for mixed-signal design automation [2] - The company introduced four new tools for digital circuit design, increasing coverage to approximately 80% of the market [2] - In the wafer manufacturing sector, the company enhanced its solutions with a complete lifecycle management system and collaborative optimization solutions [2] Group 4 - The company launched the Argus 3DIC physical verification platform, supporting 2.5D/3D heterogeneous integration packaging design [3] - The company maintains a "buy" rating, projecting revenues of 1.62 billion, 2.06 billion, and 2.65 billion yuan for 2025-2027, with net profits of 250 million, 410 million, and 600 million yuan respectively [3]

Investment Rating - The report maintains an "Outperform" rating for the company [2][7]. Core Insights - The company reported a total revenue of 502 million yuan for H1 2025, reflecting a year-on-year growth of 13.01%. However, the net profit attributable to the parent company was only 3 million yuan, down 91.90% year-on-year due to increased stock payment expenses and reduced government subsidies [7]. - The company has enhanced its digital circuit design capabilities, achieving an approximately 80% coverage with the introduction of four new core EDA products for digital chip simulation and verification [7]. - The company continues to increase its R&D investment, with R&D expenses reaching 365 million yuan in H1 2025, a 4.58% increase year-on-year, indicating a commitment to product expansion and capability enhancement [7]. - The semiconductor industry is expected to undergo domestic production trends, and the company aims to achieve sustained growth through both organic growth and external acquisitions [7]. Financial Data and Profit Forecast - The company forecasts total revenue of 1,621 million yuan for 2025, with a year-on-year growth rate of 32.6%. The net profit attributable to the parent company is expected to reach 245 million yuan, representing a significant recovery from the previous year [6][9]. - The gross profit margin is projected to remain high, with estimates of 93.3% for 2025, indicating strong profitability [6]. - The return on equity (ROE) is expected to improve from 0.1% in H1 2025 to 4.7% by the end of 2025, reflecting better utilization of equity capital [6].