Core Viewpoint - The company is actively engaging in the development and application of Beidou technology in the Hainan Free Trade Zone, focusing on various sectors including intelligent vehicle terminals, integrated vehicle-road-cloud platforms, insurance technology, and smart traffic management [1] Group 1 - The company has established a leading position in the large-scale application of Beidou technology within the Hainan Free Trade Zone [1] - The business scope includes vehicle-mounted intelligent terminal installation, integrated vehicle-road-cloud platform construction, insurance technology risk reduction, and smart traffic management [1] - The company is participating in legislative and demonstration work related to Beidou free flow, promoting the implementation of free flow charging and smart governance applications [1] Group 2 - The company is leveraging the policy advantages of the Hainan Free Trade Zone to explore compliant circulation and value transformation of data elements [1] - The initiatives contribute to the construction of a strong transportation nation and digital China [1]

Financial Performance - The company reported a total revenue of 102 million yuan for the first half of 2025, representing a year-on-year increase of 38.29% [1] - The net profit attributable to shareholders was -49.95 million yuan, a decline of 29.84% compared to the previous year [1] - In Q2 2025, the revenue was 45.03 million yuan, showing a decrease of 10.45% year-on-year, while the net profit was -30.11 million yuan, down 103.63% [1] - The gross margin was 19.34%, a decrease of 29.08% year-on-year, and the net margin was -67.19%, an increase of 13.92% [1] - Total expenses (selling, administrative, and financial) amounted to 71.75 million yuan, accounting for 70.27% of revenue, a decrease of 25.7% year-on-year [1] Financial Ratios - The company's return on invested capital (ROIC) has been historically low, with a median of 6.76% since its listing, and a worst year ROIC of -29.65% in 2022 [3] - The cash flow situation is concerning, with cash and cash equivalents covering only 48.5% of current liabilities, and the average operating cash flow over the past three years being -13.06% of current liabilities [3] - The interest-bearing debt ratio has reached 20.99%, indicating a significant level of debt relative to assets [3] Business Strategy - The company aims to integrate deeply with the BeiDou service providers rather than compete with them, focusing on a win-win relationship to promote digital transformation in the industry [4] - The business model emphasizes risk reduction and insurance services to enhance safety levels in the industry without increasing the burden on enterprises [3][4]

Group 1: Company Overview and Business Model - The company focuses on the integration of the Beidou system with a business model aimed at enhancing industry safety through risk reduction and insurance services [2] - The company positions itself not as a competitor to Beidou service providers but as a partner, promoting a win-win relationship to share the benefits of digital transformation in the industry [2] Group 2: Market Presence and Projections - The Beidou market for industrial-scale promotion is becoming clearer, with the company having a significant presence across over 20 provinces, including Tianjin, Hunan, Jiangsu, Shandong, Hebei, and Inner Mongolia [3] - The company anticipates a substantial increase in its GBCM system connections, projecting over 200,000 units by 2024, with continuous growth expected in 2025 [6] Group 3: Sales and Performance Metrics - The company has achieved cumulative shipments exceeding 400,000 units in 2025, with ongoing improvements in performance expected throughout the year [7] - The number of signed contracts for user terminals is projected to exceed one million, with a focus on high-quality agreements [8] Group 4: Financial Aspects and Insurance Partnerships - The commission for insurance reduction per vehicle is estimated to be between 50% and 80%, varying by region and insurance company [9] - The company has signed strategic framework contracts with insurance company headquarters, while project implementations are conducted with regional branches [9] Group 5: Future Outlook and Market Confidence - The company believes that its focus on Beidou scale promotion will lead to improved performance and market recovery, with expectations for better stock performance in the second half of the year [10]