Financial Performance - Chengdu Huamei reported a revenue of 355 million yuan for the first half of 2025, representing a year-on-year increase of 26.93% [1] - The net profit attributable to shareholders was 36 million yuan, a decline of 51.26% compared to the previous year [1] - In Q2 2025, the company achieved a revenue of 199 million yuan, up 41.87% year-on-year, while the net profit was 14 million yuan, down 5.58% [1] Cash Flow and Investment - The net cash outflow from operating activities in the first half of the year was 270 million yuan, compared to a net outflow of 14 million yuan in the same period last year, attributed to increased orders and higher cash payments for procurement and outsourcing [1] - The company invested 319 million yuan in chip R&D and industrialization projects, with a progress rate of 42.50%, expected to be operational by February 2027 [5] - For high-end integrated circuit R&D and industrial base projects, a total investment of 395 million yuan has been made, with a progress rate of 71.87%, also expected to be operational by February 2027 [5] R&D and Product Development - Chengdu Huamei's R&D expenditure totaled 100 million yuan, a year-on-year increase of 36.67%, accounting for 28.27% of revenue, an increase of 2.02 percentage points [3] - The company has nine ongoing R&D projects, including high-performance FPGA and ultra-high-speed ADC/DAC [3] - The product structure includes digital integrated circuits and analog integrated circuits, with digital circuit revenue at 178 million yuan (50.06% of total revenue) and analog circuit revenue at 153 million yuan (43.26% of total revenue) [4] Industry Context - The special integrated circuit industry is facing intense competition and significant demand fluctuations, with challenges such as rapid technological iteration and high R&D costs [5] - However, there are opportunities arising from accelerated domestic production and growing demand for high-precision products [5]