Core Viewpoint - Hengwei Technology (603496.SH) reported a significant decline in both revenue and profit for the first half of 2025, with a notable increase in accounts payable and losses in several subsidiaries [1][3]. Financial Performance - The company achieved a revenue of 488 million yuan, a year-on-year decrease of 23.19% [1]. - The net profit attributable to shareholders was 17.82 million yuan, down 75.16% year-on-year [1]. - The decline in revenue and profit was attributed to a decrease in orders for intelligent computing business, while the network visualization business saw revenue growth [2]. Business Segmentation - The intelligent system platform business revenue fell to 226 million yuan, a decrease of 49.95% year-on-year, primarily due to reduced orders in the intelligent computing sector [2]. - The network visualization business reported revenue of 262 million yuan, an increase of 43.48% year-on-year, driven by the successful implementation of operator market projects [2]. - The overall gross margin declined due to a decrease in the proportion of customized product revenue [2]. Asset Quality - Accounts receivable increased significantly, while the net cash flow from operating activities was approximately 72.64 million yuan, a substantial improvement from the negative value in the previous year [2]. - Accounts payable surged by 229.86% year-on-year, mainly due to an increase in payments settled via bills [2]. Subsidiary Performance - Nine subsidiaries reported negative net profits, significantly impacting the company's overall profitability [3]. - Key subsidiaries with losses include Shanghai Hengwei Intelligent Technology Co., Ltd. and Zhejiang Hengwei Electronic Technology Co., Ltd. [3]. Future Outlook - The company plans to focus on the domestic production of network visualization products and enhance its product solutions in mobile networks, satellite communications, and IoT [3]. - Hengwei Technology aims to upgrade its intelligent computing strategy, increasing investment in the development of domestic computing integrated machines and expanding into industry scenarios [3].