Core Insights - The company, Zhixing Technology, has received multiple designated development notifications from key clients, indicating a recognition of its R&D capabilities and enhancing its market competitiveness in the new energy vehicle sector [2][3] Group 1: Client Developments - Zhixing Technology has been selected as a supplier for a mainstream mass-production vehicle's combined advanced driver-assistance system (ADAS) solution by a leading domestic brand in South China, utilizing the Horizon Journey® 6B chip [2] - The company will provide combined ADAS solutions for three overseas models for a prominent new energy vehicle brand in Zhejiang, ensuring compliance with EU General Safety Regulations (GSR) and E-NCAP 2026 five-star safety standards, with the first model expected to enter mass production in the first half of next year [2] Group 2: Business Performance - In the first half of 2025, the company delivered over 116,000 sets of combined ADAS solutions and products, marking a 20.8% increase compared to the same period last year [3] - The company recorded revenue of approximately 366 million yuan, a year-on-year decrease of 42.47%, and a gross profit of 17.07 million yuan, down 61.93% year-on-year [3]

Core Viewpoint - The performance report for the first half of 2025 indicates a significant decline in revenue and profit for the company, with a notable increase in pre-tax losses compared to the same period in 2024 [2][3]. Financial Performance - Revenue for the first half of 2025 was 365.99 million RMB, a decrease of 42.47% compared to 636.16 million RMB in the same period of 2024 [2][3]. - Gross profit was 17.07 million RMB, down 61.93% from 44.85 million RMB in 2024, resulting in a gross margin of 4.67% compared to 7.05% in 2024 [2][3]. - Pre-tax losses increased by 80.39% to 177.86 million RMB, up from 98.60 million RMB in 2024 [2][3]. - The company's net loss attributable to equity holders rose by 80.38% to 177.88 million RMB from 98.61 million RMB in the previous year [2][3]. Inventory and Costs - The cost of sales for the first half of 2025 was approximately 348.92 million RMB, compared to 591.31 million RMB in 2024 [3]. - Inventory impairment provisions were approximately 4.05 million RMB for 2025, compared to 0.27 million RMB in 2024 [2][3]. Business Operations - The company delivered over 116,000 sets of integrated driving assistance solutions and products, representing a 20.8% increase year-on-year [4]. - The majority of revenue came from sales of integrated driving assistance solutions and products to OEMs, totaling approximately 327.5 million RMB, a decline of 46.6% from 613.26 million RMB in 2024 [4]. - Revenue from the sales of integrated driving assistance domain controllers was approximately 294.40 million RMB, down 50.76% from 597.94 million RMB in 2024, primarily due to a significant drop in Supervision orders from customers [4]. Growth in Self-Developed Products - Revenue from the self-developed iDC series integrated driving assistance domain controllers was approximately 74.38 million RMB, an increase of 115.66% from 34.49 million RMB in 2024 [5]. - Revenue from sales of intelligent front-view cameras was approximately 33.09 million RMB, up 115.99% from 15.32 million RMB in 2024, driven by new customer models entering mass production [5].