Core Insights - On November 14, Huali Technology's stock fell by 0.04%, with a trading volume of 45.47 million yuan [1] - The company reported a financing buy-in of 7.41 million yuan and a net financing buy of 1.47 million yuan on the same day [1] - As of November 14, the total financing and securities lending balance for Huali Technology was 95.80 million yuan, which is 2.47% of its market capitalization [1] Financing and Securities Lending - The financing balance of Huali Technology is currently at 95.80 million yuan, which is below the 30th percentile level over the past year, indicating a low position [1] - On November 14, there were no shares repaid or sold in the securities lending market, with a total securities lending balance of 0.00 yuan, indicating a high position compared to the 90th percentile level over the past year [1] Company Overview - Huali Technology, established on August 20, 2010, and listed on June 17, 2021, is located in Guangzhou, Guangdong Province [1] - The company's main business includes the design, research and development, production, sales, and operation of gaming and amusement equipment, with revenue composition as follows: 49.41% from gaming equipment sales, 34.44% from anime IP derivative products, 11.12% from amusement park operations, 3.51% from equipment cooperation operations, and 1.51% from other sources [1] Financial Performance - As of September 30, the number of shareholders for Huali Technology was 13,700, a decrease of 15.13% from the previous period [2] - For the period from January to September 2025, the company achieved a revenue of 742 million yuan, a year-on-year decrease of 1.33%, and a net profit attributable to the parent company of 66.88 million yuan, down 3.91% year-on-year [2] Dividend and Institutional Holdings - Huali Technology has distributed a total of 76.04 million yuan in dividends since its A-share listing, with 58.68 million yuan distributed over the past three years [3] - As of September 30, 2025, the top ten circulating shareholders included Huaxia CSI Animation Game ETF, which increased its holdings by 355,800 shares, and two new institutional shareholders, Bosera Tianyi Bond A and Guotai CSI Animation Game ETF [3]

Core Viewpoint - On October 9, Huali Technology experienced a decline of 1.43% with a trading volume of 118 million yuan, indicating a low financing balance compared to historical levels [1] Financing Summary - On October 9, Huali Technology had a financing purchase amount of 18.66 million yuan and a financing repayment of 14.53 million yuan, resulting in a net financing purchase of 4.12 million yuan [1] - As of October 9, the total financing and securities lending balance for Huali Technology was 98.76 million yuan, which accounts for 2.39% of its circulating market value, indicating a low financing balance at the 30th percentile over the past year [1] Securities Lending Summary - On October 9, there were no shares repaid or sold in securities lending, resulting in a selling amount of 0 yuan and a securities lending balance of 0 yuan, which is at the 80th percentile over the past year, indicating a high level [1] Company Overview - Huali Technology, established on August 20, 2010, and listed on June 17, 2021, is located in the Xingli Animation Industry Park, Panyu District, Guangzhou, Guangdong Province [1] - The company's main business includes the design, research and development, production, sales, and operation of gaming and amusement equipment, with revenue composition as follows: 49.41% from gaming equipment sales, 34.44% from anime IP derivative products, 11.12% from amusement park operations, 3.51% from equipment cooperation operations, and 1.51% from other sources [1] Financial Performance Summary - As of June 30, Huali Technology had 16,200 shareholders, a decrease of 4.91% from the previous period, with an average of 8,589 circulating shares per person, an increase of 5.16% [2] - For the first half of 2025, Huali Technology achieved an operating income of 481 million yuan, a year-on-year increase of 4.12%, while the net profit attributable to the parent company was 34.98 million yuan, a year-on-year decrease of 2.84% [2] Dividend Summary - Since its A-share listing, Huali Technology has distributed a total of 76.04 million yuan in dividends, with 58.68 million yuan distributed over the past three years [3] Institutional Holdings Summary - As of June 30, 2025, Huali Technology's sixth largest circulating shareholder is the Huaxia CSI Animation Game ETF (159869), holding 1.75 million shares, an increase of 331,900 shares from the previous period [3]

Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Viewpoints - The company has shown positive growth in overseas sales of gaming and amusement equipment, while domestic sales are undergoing an adjustment period. The release of new products has contributed to revenue growth [2][3]. - The company is actively exploring strategic expansion directions, including the launch of IP operation and music labels, which aim to enhance user engagement and diversify entertainment experiences [5][6]. Financial Overview - In the first half of 2025, the company achieved revenue of 481 million yuan, a year-on-year increase of 4.12%. The net profit attributable to the parent company was 34.98 million yuan, a decrease of 2.84% year-on-year [1]. - For Q2 2025, the company reported revenue of 296 million yuan, a year-on-year increase of 19.96% and a quarter-on-quarter increase of 60.00%. The net profit attributable to the parent company was 23.55 million yuan, a year-on-year increase of 46.94% and a quarter-on-quarter increase of 106.04% [1]. Segment Performance - Domestic sales of gaming and amusement equipment decreased by 2.81% year-on-year to 238 million yuan in H1 2025, while the gross margin improved by 3.36 percentage points to 29.22% [2]. - The company's anime IP derivative products generated sales of 166 million yuan in H1 2025, reflecting a year-on-year growth of 14.51%. The successful launch of the new product "Pokémon: Shining Star" in Q2 contributed to record sales in this segment [3]. - The amusement park operation business generated revenue of 53.49 million yuan in H1 2025, a year-on-year increase of 1.87%. The company is focusing on a differentiated "equipment + operation + service" ecosystem to maintain regional competitive advantages [4]. Future Outlook - The company is expected to achieve revenues of 1.1 billion yuan, 1.165 billion yuan, and 1.24 billion yuan in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 8.1%, 5.9%, and 6.4% [6][7]. - The net profit attributable to the parent company is projected to be 92 million yuan, 103 million yuan, and 116 million yuan for the same years, with growth rates of 8.5%, 12.4%, and 12.0% [6][7].

Core Viewpoint - The company reported a mixed financial performance for the first half of the year, with revenue growth but a decline in net profit, while showing significant recovery in the second quarter [1] Financial Performance - In the first half of the year, the company achieved revenue of 481 million yuan, a year-on-year increase of 4.12% [1] - The net profit attributable to the parent company was 34.98 million yuan, a year-on-year decrease of 2.84% [1] - In the second quarter, the company recorded revenue of 296 million yuan, a year-on-year growth of 19.96% [1] - The net profit attributable to the parent company in the second quarter was 23.55 million yuan, a year-on-year increase of 46.94% [1] Product Performance - Sales of anime IP derivative products steadily grew, achieving revenue of 166 million yuan, a year-on-year increase of 14.51% [1] - The core product "Pokémon" completed its iteration, and the new product "Pokémon: Shining Star" launched in mid-April received positive feedback from players, contributing to record sales in the second quarter [1] - The self-developed national trend card product "Three Kingdoms Fantasy Battle" performed well after its successful release in the Taiwan market [1] Market Dynamics - The rapid expansion of indoor amusement parks in the domestic market led to a slowdown in the number of new parks and some entering an adjustment period, putting pressure on the company's domestic game amusement equipment sales [1] - The company is actively enhancing its overseas presence, with positive trends in overseas sales [1] - The revenue from game amusement equipment sales was 238 million yuan, a slight year-on-year decline, but the gross margin increased by 3.36 percentage points [1]

Company Overview - The company is Guangzhou Wahlap Technology Co., Ltd., established on August 20, 2010, and listed on the Shenzhen Stock Exchange with stock code 301011 [11]. - The total share capital of the company is 146,692,000 shares, with Hong Kong Wahlap International Holdings Limited being the controlling shareholder, holding 44.03% of the shares [11]. Fundraising Details - The company plans to issue shares to specific investors at a price of 24.21 yuan per share, with a total of 6,137,959 shares to be issued, raising up to 300 million yuan [2][3]. - The funds raised will be used for specific projects, with the net amount after deducting issuance costs being allocated accordingly [4]. Industry Context - The company operates in the "C24 Cultural, Educational, Artistic, Sports and Entertainment Products Manufacturing" sector, specifically in "C2462 Manufacturing of Amusement Products and Indoor Amusement Equipment" [12]. - The industry is regulated by various government departments, including the Ministry of Culture and Tourism, which oversees the management policies for gaming and amusement equipment [12][13]. Regulatory Environment - The company adheres to multiple laws and regulations governing the production and sale of gaming and amusement equipment, including the "Regulations on the Management of Gaming and Amusement Equipment" [15]. - The company is involved in industry associations, such as the Guangdong Game Industry Association, which aims to promote healthy industry development [14]. Financial Performance - The company reported a net profit of 11.43 million yuan for the latest period, a decrease of 42.78% compared to the previous year [7]. - The company has established a rigorous management system for accounts receivable, which amounted to 280.02 million yuan at the end of the reporting period [5]. Risk Factors - The company faces various risks, including industry policy changes, exchange rate fluctuations, and macroeconomic volatility, which could impact its financial performance [5][6]. - The company has committed to measures to mitigate the impact of share dilution on immediate returns for investors [4].

Company Overview - Guangzhou Huali Technology Co., Ltd. was approved for public issuance of RMB ordinary shares (A shares) on May 10, 2021, becoming a listed company on the Growth Enterprise Market [1] - The company is a comprehensive service provider for the distribution and operation of commercial gaming and amusement equipment in China, covering design, research and development, production, sales, and operation [1] - As of December 31, 2024, the registered capital of the company is RMB 146,692,000 [1] Financial Reporting Basis - The financial statements are prepared based on the going concern assumption and in accordance with the relevant accounting standards and guidelines [2] - The accounting year runs from January 1 to December 31, and the company uses RMB as the functional currency for its domestic subsidiaries [2] Accounting Policies and Estimates - The financial statements reflect the company's financial position, operating results, changes in owners' equity, and cash flows accurately and completely [2] - The company has established significance criteria for various financial items, such as accounts receivable and payable, which exceed 1% of total assets or RMB 10 million [3] Business Combinations - The company follows specific accounting treatments for business combinations, distinguishing between combinations under common control and those not under common control [5][6] - Costs directly related to business combinations, such as audit and legal fees, are recognized in the current period's profit and loss [4][7] Financial Instruments - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss [15][16] - Financial liabilities are classified similarly, with initial recognition at fair value and subsequent measurement based on their classification [18][19] Credit Risk and Impairment - The company assesses credit risk and expected credit losses for financial assets, applying a three-stage model based on changes in credit risk since initial recognition [24][25] - Impairment losses are recognized in profit or loss, and the company evaluates financial assets for significant increases in credit risk at each reporting date [27][28]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10]. Core Insights - The company's core business is experiencing strong growth, with significant performance improvements and a three-year dividend plan reflecting confidence in long-term development [2][3]. - The company reported a revenue of 1.017 billion yuan in 2024, representing a year-over-year increase of 24.65%, and a net profit attributable to shareholders of 84.65 million yuan, up 62.93% year-over-year [6]. - The company is expanding its overseas market presence, with overseas revenue reaching 134 million yuan in 2024, a year-over-year increase of 30.39% [6]. Financial Performance - The company expects revenues of 1.163 billion yuan in 2025, 1.256 billion yuan in 2026, and 1.320 billion yuan in 2027, with corresponding net profits of 110 million yuan, 133 million yuan, and 148 million yuan respectively [9][10]. - The gross profit margin for 2024 is projected at 29.97%, with a net profit margin of 8.32% [6]. - The company plans to distribute a cash dividend of 2 yuan for every 10 shares, totaling 29.34 million yuan, which is 34.66% of the net profit attributable to shareholders [6]. Business Segments - Revenue from gaming and amusement equipment sales is expected to reach 549 million yuan in 2024, with a gross margin of 27.44% [6]. - Revenue from anime IP derivative products is projected at 327 million yuan, with a gross margin of 42.75% [6]. - The amusement park operation segment is expected to generate 106 million yuan in revenue, although it shows a slight decline of 1.70% year-over-year [6][7].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 1.017 billion yuan in 2024, representing a year-on-year growth of 24.65%, and a net profit attributable to shareholders of 84.65 million yuan, up 62.93% year-on-year [1] - The sales revenue from amusement equipment increased by 37.85% year-on-year to 549 million yuan, accounting for 53.95% of total revenue, with a gross margin of 27.44% [2] - The anime IP derivative products business generated revenue of 327 million yuan, growing 26.14% year-on-year, with a gross margin of 42.75% [3] - The amusement park operation business reported revenue of 106 million yuan, a slight decline of 1.70% year-on-year, but with an improved gross margin of 2.77% [4] Revenue Breakdown - Amusement equipment sales contributed 549 million yuan, 53.95% of total revenue, with a gross margin increase of 0.62 percentage points [2] - Anime IP derivative products generated 327 million yuan, 32.09% of total revenue, with a gross margin increase of 1.60 percentage points [3] - Amusement park operations accounted for 106 million yuan, 10.39% of total revenue, with a gross margin increase of 1.71 percentage points [4] Financial Forecast - The company is projected to achieve revenues of 1.14 billion yuan, 1.225 billion yuan, and 1.3 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 12.0%, 7.5%, and 6.1% [4] - Net profit attributable to shareholders is expected to reach 970 million yuan, 1.1 billion yuan, and 1.23 billion yuan for the same years, with growth rates of 14.4%, 13.8%, and 11.3% respectively [4]