Core Viewpoint - The company, Heertai, has demonstrated strong performance in the first half of 2025, with revenue reaching 5.446 billion yuan, a year-on-year increase of 19.21%, and net profit growing significantly by 78.65% to 354 million yuan, reflecting successful expansion into high-value sectors such as automotive electronics and smart products [1][8][10]. Group 1: Financial Performance - In the first half of 2025, Heertai achieved a revenue of 54.46 billion yuan, marking a 19.21% increase compared to the previous year [9]. - The net profit for the same period was 3.54 billion yuan, representing a substantial growth of 78.65% year-on-year [13]. - The overall gross margin improved by 1.66 percentage points to 19.13%, driven by increased margins in key product lines [13]. Group 2: Business Segments - The smart control electronics segment accounted for 96.31% of total revenue, with a year-on-year growth of 16.64% [9]. - The household appliance smart controller business saw a revenue increase of 22.14%, while the automotive electronics segment grew by 5.2% [10][11]. - The microwave millimeter-wave T/R chip business experienced a remarkable growth of 180.16%, contributing to the overall revenue increase [11]. Group 3: Technological and Market Position - Heertai has established itself as a leading player in the smart controller industry, with over 20 years of experience and a strong patent portfolio [3][5]. - The company has developed a comprehensive vertical technology matrix covering various fields, enhancing its customized R&D capabilities [5]. - Heertai's global manufacturing and service network spans multiple countries, allowing for rapid response to customer needs and strengthening its competitive edge [6]. Group 4: Industry Outlook - The global smart controller market is projected to grow steadily, with an expected market size of approximately 19.77 billion USD in 2024, reflecting a growth rate of about 4.4% [17]. - The Chinese market for smart controllers is anticipated to reach 38.73 billion yuan in 2024, with a year-on-year growth of 12.10% [17]. - The demand for smart home appliances and electric tools is expected to drive further growth in the smart controller sector, supported by advancements in IoT and AI technologies [19][20].

Group 1 - The company is currently constructing a new production base in Shenzhen, which is expected to produce various intelligent control products [2] - The planned product range includes smart controllers for home appliances, power tools, automotive electronics, and other intelligent product controllers [2]