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].

Core Insights - The EDA (Electronic Design Automation) industry in China is experiencing a divergence in performance among its major listed companies, with Huada Jiutian showing significant revenue growth but a drastic decline in net profit, contrasting sharply with the high profit growth of competitors Gland and Gai Lun [1][3][4] Revenue and Profit Performance - Huada Jiutian achieved a revenue of 805 million yuan in the first three quarters of 2025, marking an 8.24% year-on-year increase, with Q3 revenue 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 [3][4] - Gland reported a revenue of 428 million yuan, a 48.86% increase year-on-year, and a net profit of 37.02 million yuan, up 380.14% [3][4] - Gai Lun's revenue reached 315 million yuan, a 12.71% increase, with a net profit of 41.99 million yuan, up 173.46% [4] Cost and Investment Trends - Huada Jiutian's expenses increased significantly, with sales expenses up 23.99%, management expenses up 8.69%, R&D expenses up 2.7%, and financial expenses up 25.23%. The company's stock incentive costs reached 104 million yuan in the first half of the year, contributing to profit pressure [3][4] - Gland's expenses were 289 million yuan, reflecting a year-on-year increase but a decrease in expense ratio by 10.91 percentage points to 67.54%, indicating initial scale effects [3][4] Technological Advancements - Huada Jiutian launched seven core EDA tools and made significant breakthroughs in digital signature tools and advanced process certification, aiming to cover nearly 80% of digital circuit design tools by the end of 2025 [5][6] - Gland focused on DFT (Design for Testability) product iterations, achieving key advancements in tool architecture and developing an AI-driven yield diagnosis platform [7] Market Dynamics and Competitive Landscape - The domestic EDA market remains dominated by international giants like Synopsys, Cadence, and Siemens EDA, which collectively hold 74% of the global market share. Despite this, there is a growing opportunity for domestic EDA companies due to increasing market demand and supportive policies [8][9] - The competitive landscape shows a trend of consolidation and resource integration among domestic companies, with Gai Lun planning acquisitions to transition into a one-stop chip design solution platform [8][9]

Group 1: Company Overview - Guangli Micro is a leading supplier of integrated circuit EDA software and wafer-level electrical testing equipment, focusing on improving chip yield and rapid monitoring technology [2] - The company has formed a comprehensive solution for yield enhancement, integrating design software, WAT testing equipment, and semiconductor data analysis tools [2] Group 2: Financial Performance - In the first half of 2025, the company achieved revenue of CNY 245.94 million, a year-on-year increase of 43.17% [2] - Software development and licensing revenue reached CNY 91.01 million, up 50.24% year-on-year; testing equipment and accessories revenue was CNY 15.35 million, increasing by 38.13% [2] - The net profit attributable to shareholders was CNY 15.68 million, a significant increase of 518.42% year-on-year [2] Group 3: Product Development - The company is upgrading its DFT product architecture and has developed a self-researched yield perception diagnostic analysis platform, YAD, which utilizes DFT diagnostic technology and AI for real-time data analysis [3] - Following the acquisition of LUCEDA NV, Guangli Micro aims to integrate both companies' technological advantages in the silicon photonics field, focusing on a comprehensive solution covering design, manufacturing, testing, and yield enhancement [3] Group 4: Future Strategy - The company plans to enhance its silicon photonics design automation toolchain and develop a collaborative design platform for optoelectronic devices [3] - It aims to improve yield enhancement solutions for silicon photonics manufacturing, leveraging its expertise in semiconductor manufacturing tools [3] - Guangli Micro will also expand its market presence in Europe and the United States while promoting product integration with domestic leading manufacturers [4]