Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Views - The company is firmly investing in GPU research and development, aiming to enter the edge AI chip market. The growth of the domestic ecosystem and the increasing demand for computing power driven by AI technology are expected to accelerate the company's chip business growth [6][10]. - The company reported a significant decline in revenue and net profit for the first half of 2025, with revenue of 193 million yuan, down 44.78% year-on-year, and a net loss of 88 million yuan, down 356.51% year-on-year. The gross margin was 45.03%, a decrease of 7.9 percentage points [2][4]. Financial Performance Summary - In 2025H1, the company achieved revenue of 193 million yuan, a year-on-year decrease of 44.78%. The net profit attributable to the parent company was -88 million yuan, a decrease of 356.51%. The net profit after deducting non-recurring items was -96 million yuan, down 550.44%. The gross margin was 45.03%, down 7.9 percentage points [2][4]. - In Q2 2025, the company reported revenue of 91 million yuan, a year-on-year decrease of 62.42%, with a net profit of -33 million yuan, down 171.70%. The gross margin increased to 59.31%, up 10.8 percentage points [2][4]. Business Development Insights - The company's core business in graphics control is developing steadily, with a solid competitive landscape. The introduction of high-performance intelligent computing modules and products targeting AI training and inference is expected to drive growth in the chip business [6][10]. - The company is making a strategic investment of 220 million yuan in Chengheng Microelectronics to gain control over the company, which specializes in edge AI chip design and development [6][10].