Financial Performance - Company reported total revenue of 171 million yuan for the first half of 2025, a year-on-year decrease of 34.74% [1] - Net profit attributable to shareholders was -86.41 million yuan, down 4.66% year-on-year [1] - Gross margin improved to 36.82%, an increase of 82.19% compared to the previous year [1] - Net margin was -50.66%, a decline of 60.39% year-on-year [1] - Total expenses (selling, administrative, and financial) accounted for 29.13% of revenue, up 76.72% year-on-year [1] Cash Flow and Financial Health - Cash and cash equivalents decreased to 140 million yuan, down 28.38% year-on-year [1] - Operating cash flow per share was 0.16 yuan, a significant increase of 366.1% year-on-year [1] - The ratio of cash to current liabilities was 65.53%, indicating potential liquidity concerns [4] Investment Returns - Historical return on invested capital (ROIC) has been low, with a median of 1.49% since the company went public [3] - The worst year for ROIC was 2024, at -7.64%, indicating poor investment returns [3] Research and Development - Company is actively developing quantum-resistant cryptography technologies, focusing on five algorithms based on NIST standards [5][6] - Three hardware design modules for quantum-resistant algorithms have been completed, with patents submitted for related technologies [6] - The company has launched a quantum-resistant chip, HC001, which features low power consumption and high security [7] Product Development - A new quantum-resistant security card, CCUPHPQ01, has been developed, integrating both quantum-resistant and traditional cryptographic algorithms [8] - The card supports various national cryptographic standards and is designed for high-performance security applications [8][9] - The product is adaptable to major platforms and operating systems, making it suitable for various high-security applications in finance, communication, and IoT [9]

Core Viewpoint - Guoxin Technology (688262) reported disappointing financial results for the first half of 2025, with significant declines in revenue and net profit, while showing improvements in gross margin and operating cash flow [1][3]. Financial Performance - Total revenue for the first half of 2025 was 171 million yuan, a decrease of 34.74% year-on-year [1]. - Net profit attributable to shareholders was -86.41 million yuan, down 4.66% year-on-year [1]. - In Q2 2025, total revenue was 83.31 million yuan, a slight increase of 0.57% year-on-year, while net profit was -51.66 million yuan, a decline of 42.66% year-on-year [1]. - Gross margin improved to 36.82%, an increase of 82.19% year-on-year, while net margin was -50.66%, a decrease of 60.39% year-on-year [1]. - Total expenses (selling, administrative, and financial) accounted for 29.13% of revenue, up 76.72% year-on-year [1]. - Cash flow per share was 0.16 yuan, a significant increase of 366.1% year-on-year [1]. Investment Returns - The company's historical median Return on Invested Capital (ROIC) is 1.49%, indicating average investment returns, with the worst year being 2024 at -7.64% [3]. - The company has reported losses in three out of its six years since going public, suggesting a fragile business model [3]. Cash Flow and Financial Health - The cash flow situation is concerning, with cash and cash equivalents covering only 65.53% of current liabilities [3]. - The average net cash flow from operating activities over the past three years has been negative [3]. Research and Development - Guoxin Technology is actively engaged in the development of quantum-resistant cryptography technologies, focusing on five algorithms based on lattice, hash, and coding principles [4][5]. - The company has completed hardware designs for three quantum-resistant algorithm modules and has filed patents related to these designs [5]. - The HC001 chip, developed in collaboration with Xinda Yi, is a low-power quantum-resistant cryptography chip based on a domestic 28nm process [6]. - The company has also developed the CCUPHPQ01 quantum-resistant cryptography card, which integrates both quantum-resistant and traditional cryptographic algorithms [7][8]. Market Position - The largest fund holding Guoxin Technology shares is the China Merchants CSI 1000 Index Enhanced A, which has seen a significant increase in value over the past year [4].

Group 1 - Dapu Asset recently conducted research on two listed companies, Guoxin Technology and Nasda [1][2] - Guoxin Technology has launched the anti-quantum password chip HC001 in collaboration with Xinda Yimi, which is suitable for high-security requirements in sectors such as finance, communication, electricity, and IoT [1] - The HC001 chip supports both traditional and anti-quantum password algorithms, addressing the security challenges posed by the development of quantum computing [1] Group 2 - Nasda achieved a total operating revenue of 26.415 billion yuan in 2024, a year-on-year increase of 9.78%, with a net profit attributable to shareholders of 749 million yuan, up 112.11% [2] - In the first quarter of 2025, Nasda's revenue was 5.927 billion yuan, a year-on-year decrease of 5.79%, and the net profit attributable to shareholders was 84 million yuan, down 69.64% [2] - The company is actively promoting its industry-specific innovation market, particularly in the financial and energy sectors, as well as normalizing government market trends [2]