Core Insights - The company reported a total revenue of 733 million yuan for the first half of 2025, representing a year-on-year increase of 5.05% [1] - The net profit attributable to shareholders was -194 million yuan, showing a year-on-year improvement of 29.57% [1] - The gross margin increased by 1.17% to 55.79%, while the net margin improved by 32.12% to -27.04% [1] Financial Performance - Total revenue for Q2 2025 was 422 million yuan, up 1.18% year-on-year [1] - The company’s operating costs rose by 3.54%, attributed to the increase in revenue [4] - Sales expenses decreased by 3.56%, due to reduced salaries and share-based payments for sales personnel [4] - Management expenses fell by 5.88%, driven by lower salaries and share-based payments for management staff [5] - R&D expenses decreased by 15.84%, reflecting a reduction in salaries and share-based payments for R&D personnel [5] Cash Flow and Debt - The net cash flow from operating activities increased by 25.02%, due to higher cash receipts from sales and reduced salary payments [5] - The company’s cash flow from investing activities saw a significant decline of 187.78%, due to increased purchases of financial products [6] - Cash flow from financing activities decreased by 155.46%, as cash received from borrowings reduced [7] Business Strategy and Market Position - The company continues to focus on its core business, leveraging AI strategies to drive growth in data security and core product lines [3] - The company’s historical return on invested capital (ROIC) has been low, with a median ROIC of 0.29% since its listing [8] - The company has experienced four years of losses since its IPO, indicating challenges in achieving sustainable profitability [8] Shareholder Information - The largest fund holding the company’s shares is the Xin'ao Core Technology Mixed Fund, with a current scale of 626 million yuan [10] - The fund has shown a significant increase of 109.53% over the past year [10]