Core Viewpoint - The EDA (Electronic Design Automation) industry in China is experiencing a significant divergence in performance among its major listed companies, with Huada Jiutian showing revenue growth but a drastic decline in profit, contrasting sharply with the high profit growth of competitors Gland and Gai Lun Electronics [2][4]. Revenue and Profit Performance - Huada Jiutian achieved a revenue of 805 million yuan in the first three quarters of 2025, a year-on-year increase of 8.24%, but its net profit plummeted by 84.52% to 9.06 million yuan [4]. - Gland reported a revenue of 428 million yuan, up 48.86%, with a net profit of 37.02 million yuan, reflecting a substantial increase of 380.14% [4]. - Gai Lun Electronics posted a revenue of 315 million yuan, a 12.71% increase, and a net profit of 41.99 million yuan, up 173.46% [5]. Investment and Cost Structure - Huada Jiutian's profit decline is attributed to high stock incentive costs of 104 million yuan and rising operational expenses, including a 23.99% increase in sales expenses and a 25.23% increase in financial expenses [4]. - Gland's operational expenses were 289 million yuan, showing a year-on-year increase but a decrease in expense ratio by 10.91 percentage points to 67.54% [4]. Technological Advancements - Domestic EDA companies are focusing on high-end digital chip design tools, with Huada Jiutian launching seven core EDA tools and achieving significant breakthroughs in advanced process certification [7][8]. - Huada Jiutian's new digital simulation verification tool HimaSim and static timing analysis tool HimaTime have filled gaps in domestic digital verification tools, with HimaTime achieving a 30% performance improvement [8]. Market Dynamics - The domestic EDA market remains dominated by international giants like Synopsys and Cadence, which hold 74% of the global market share, while domestic companies face challenges in gaining traction among both large and small chip design firms [13][14]. - Despite the competitive pressure, domestic EDA companies are expected to benefit from supportive policies and growing market demand, presenting opportunities for market share expansion [14].

Core Viewpoint - The EDA (Electronic Design Automation) industry in China is experiencing a significant divergence in performance among its leading companies, with Huada Jiutian showing revenue growth but a drastic decline in profit, contrasting sharply with the high profit growth of competitors GuaLi Micro and GaiLun Electronics [1][2]. Revenue and Profit Analysis - In Q3 2025, Huada Jiutian achieved a revenue of 805 million yuan, a year-on-year increase of 8.24%, with Q3 revenue alone reaching 286 million yuan, up 12.3% quarter-on-quarter. However, its net profit plummeted by 84.52% to 9.06 million yuan, with a non-recurring net profit loss of 22.16 million yuan [4]. - GuaLi Micro reported a revenue of 428 million yuan for the first three quarters, a year-on-year increase of 48.86%, and a net profit of 37.02 million yuan, up 380.14% [4]. - GaiLun Electronics recorded a revenue of 315 million yuan, a year-on-year increase of 12.71%, and a net profit of 41.99 million yuan, up 173.46% [5]. Cost and Investment Trends - Huada Jiutian's stock incentive expenses reached 104 million yuan in the first half of the year, significantly impacting its apparent profit. Other expenses also increased, with sales expenses up 23.99%, management expenses up 8.69%, R&D expenses up 2.7%, and financial expenses up 25.23% [4]. - GuaLi Micro's expenses increased by approximately 63.46 million yuan, but its expense ratio decreased by 10.91 percentage points to 67.54%, indicating initial scale effects [4]. Technological Advancements - Domestic EDA companies are focusing on high-end digital chip design tools, with the localization rate for analog chip EDA tools exceeding 30%, while digital chip EDA tools remain below 15% [7]. - Huada Jiutian launched seven core EDA tools and nine key solutions, achieving significant milestones in advanced process certification and digital circuit design tools [7][8]. - GuaLi Micro made key advancements in DFT (Design for Testability) products, enhancing product adaptability and competitiveness [9]. Market Dynamics - The domestic EDA market is characterized by a competitive landscape where major design firms still prefer international tools for stability, while smaller firms are more cost-sensitive [12]. - The three international giants—Synopsys, Cadence, and Siemens EDA—hold a combined 74% market share, with Synopsys at 31%, Cadence at 30%, and Siemens at 13% [13]. - Despite the dominance of international players, domestic EDA companies are expected to benefit from supportive policies and growing market demand, presenting opportunities for market share expansion [13].