Report Summary 1. Report Industry and Investment Rating - The report focuses on the Internet services industry, but no investment rating is provided [2] 2. Core Viewpoints of the Report - Despite facing some operating pressure in the first three quarters of 2025, the company's new orders have increased significantly year - on - year, laying a good foundation for next year's performance. With continuous business expansion, new product promotion, and emerging field layout, the company can achieve performance improvement [28] - The company integrates and applies self - developed technologies such as DPI, AI large models, data elements, and pan - security, establishing a competitive advantage and making breakthroughs in both traditional and emerging markets [29] 3. Summary by Directory 3.1 Research Basic Situation - The research object is Haohan Shendu, belonging to the Internet services industry. The reception time was on November 5, 2025. The company's reception staff included the vice - chairman and general manager Wei Qiang, the deputy general manager, board secretary, and financial controller Feng Yanjun, and the independent director Zhang Lianqi [16] 3.2 Detailed Research Institutions - The research institutions are investors who participated in the company's Q3 2025 earnings conference [19] 3.3 Research Institution Proportion - No relevant content provided 3.4 Main Content Data - **Incentive Draft Performance Indicators**: The company selects new contract growth rate, net profit growth rate attributable to shareholders of listed companies, and new business expansion revenue as company - level performance assessment indicators. It also has a personal performance assessment system. The assessment system is comprehensive, scientific, and reasonable [23] - **Vehicle Networking Security Business**: It maintains a good development trend, with a "standard - leading - market breakthrough - governance deepening" development pattern. Specific progress includes standard setting, market expansion, digital governance, ecological construction, and industry leadership [25] - **Visualization Business**: DPI business is a core advantage. The network visualization is in a generational transition period. The company has a large stock advantage in the operator backbone network DPI and is leading in 400GE technology, expected to benefit from the new round of construction. The diversion products also have a broad market space [26] - **Profit Decline Reasons**: In 2025, the company's net profit declined significantly due to factors such as a decrease in operating income, an increase in interest expenses, an increase in various costs, an increase in inventory impairment provisions, and losses of new subsidiaries. However, new orders have increased significantly, which is conducive to future performance improvement [28] - **Technology Advantages and Market Performance**: The company integrates self - developed technologies and has built a competitive barrier in emerging fields. In terms of market performance, it is in the stage of transforming technology leadership into business success, with good growth in multiple markets [29][31] - **AI Intelligent Business Progress**: It focuses on the financial industry and will provide intelligent solutions for various industries in the future. It has achieved cooperation and project wins in the financial field, and is actively involved in special projects [32][33] - **EDA Software**: The company does not involve EDA software development and application [34] - **Dividend Plan**: The company will formulate dividend plans according to relevant regulations, actual operations, and development plans, and the specific plan will be subject to subsequent announcements [35]

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 28.03 CNY, compared to the current stock price of 24.39 CNY [5]. Core Views - The company is facing short-term performance pressure due to delayed orders and seasonal revenue recognition, but long-term growth is expected driven by AI-powered data services [2][10]. - The company has signed a strategic cooperation agreement with Ningbo Bank to explore AI technology applications in the financial sector, indicating a focus on innovation and collaboration [1][10]. - The company has achieved a significant increase in new orders, which grew by 39.69% year-on-year, laying a foundation for future revenue growth [3]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenue of 154 million CNY, a year-on-year decline of 34.95%, and a net profit of 25 million CNY, down 92.58% [1]. - The decline in revenue was primarily due to the delayed signing of contracts and seasonal revenue patterns from its subsidiary [2]. - Despite the revenue drop, the overall gross margin increased by 11.75 percentage points, attributed to higher contributions from self-developed products and solutions [3]. Business Development - The company is actively expanding its safety business, including areas such as large network security and vehicle networking security, with positive progress in international business development [4]. - The company is leveraging its proprietary AI models in high-value scenarios within the financial industry, enhancing customer service and operational efficiency [10]. Future Projections - Revenue projections for 2025-2027 are estimated at 492 million CNY, 579 million CNY, and 751 million CNY, respectively, with net profits expected to be 37 million CNY, 55 million CNY, and 75 million CNY [11]. - The company is expected to continue its investment in AI and information security, which are still in the investment phase, justifying the use of price-to-sales (PS) valuation [11].