Core Viewpoint - The company has decided to terminate the acquisition of a 94.366% stake in Zhongxin Integrated Circuit (Ningbo) Co., Ltd. due to the inability to reach an agreement on transaction-related matters within the expected timeframe. This decision is not expected to have a significant adverse impact on the company's operations and financial status [1][4]. Group 1: Acquisition Termination - The termination of the acquisition will not significantly affect the company's production operations and financial condition, as stated by the company [1]. - The company plans to continue focusing on its core business while actively seeking external acquisition opportunities that align with policy encouragement and have reasonable valuations [1][2]. - The company had previously announced plans to acquire Zhongxin Ningbo, which primarily engages in wafer foundry and packaging testing services in the RF front-end, MEMS, and high-voltage analog device sectors [4]. Group 2: Future Strategy - The company is committed to its "ALL IN AI" strategy, focusing on the development of AI edge computing AISoC products, including low-power AIoT terminal chips and edge computing chips [2]. - The company aims to leverage policy opportunities and explore integration opportunities within the industry that align with its strategic goals, while also solidifying its core business [2]. - The company intends to expand into emerging sectors such as automotive electronics, wireless LAN, and artificial intelligence products, developing various products to meet market demands [1][2].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Viewpoints - The company achieved rapid revenue growth in the first half of 2025, with revenue reaching 917 million RMB, a year-on-year increase of 189%, and adjusted net profit of 152 million RMB, up 179% [1][9]. - The company's comprehensive literacy business saw significant growth, with revenue of 723 million RMB, a staggering increase of 513% [10]. - The company is actively implementing its "ALL IN AI" strategy, enhancing its educational offerings and operational efficiency through AI technology [21][3]. - The company declared an interim dividend of 10.7 cents per share, with a payout ratio of approximately 60%, indicating a commitment to shareholder returns [23][3]. Financial Performance - The gross profit margin for the first half of 2025 was 45.0%, remaining stable year-on-year, while the net profit margin slightly decreased to 16.5% due to increased operating expenses [2][16]. - Contract liabilities increased by 28% year-on-year, indicating strong future revenue potential, with total liabilities reaching 587 million RMB [20]. - The company expects continued growth in net profit, projecting 339 million RMB for 2025, with a year-on-year growth rate of 76% [24][5]. Business Segmentation - The tutoring projects generated revenue of 89 million RMB, an 18% increase, while full-time review projects saw a decline of 18% in revenue to 101 million RMB due to increased competition and changes in demand [10][1]. - The company has expanded its workforce from 3,072 to 3,592 employees, supporting its growth strategy [20][2]. Valuation Metrics - The projected earnings per share (EPS) for 2025 is 0.40 RMB, with a price-to-earnings (PE) ratio of 12x, indicating a favorable valuation compared to peers [5][25]. - The company is expected to maintain a strong return on equity (ROE) of 43% in 2025, reflecting its efficient use of equity capital [5][26].