Core Viewpoint - Tianyi Co., Ltd. reported significant losses in its latest financial results, leading to a sharp decline in stock price, primarily due to a 36.45% year-on-year drop in revenue and a net profit loss of 41.71 million yuan, marking a 224.95% decline compared to the previous year [2][3][7]. Financial Performance - In the first half of 2023, Tianyi Co., Ltd. achieved revenue of 669 million yuan, a decrease of 36.45% year-on-year [2][7]. - The net profit attributable to shareholders was -41.71 million yuan, down 224.95% year-on-year, while the non-recurring net profit was -47.63 million yuan, a decline of 231.38% [2][7]. - The company's revenue for 2023, 2024, and the first half of 2025 was 2.55 billion yuan, 1.77 billion yuan, and 670 million yuan, respectively, reflecting year-on-year changes of -14.64%, -30.81%, and -36.45% [7]. Product Performance - The main product, broadband network terminal equipment, saw a drastic decline in production and sales, with production at 4.47 million units and sales at 5.41 million units in the first half of 2025, generating revenue of 580 million yuan and a gross margin of only 9.54% [5][6]. - The overall production capacity utilization rate for broadband network terminal equipment was only 44.75% in the first half of 2025 [6]. Industry Context - The telecommunications industry showed steady growth, with total telecom business revenue reaching 905.5 billion yuan in the first half of 2023, a year-on-year increase of 1% [4]. - Despite industry growth, competition has intensified, leading to price and sales declines for Tianyi Co., Ltd.'s products [4][5]. Research and Development - The company has reduced its R&D investment, with expenditures dropping to 41.55 million yuan in the first half of 2025, a decrease of 11.34% year-on-year [8]. - The number of R&D personnel has also decreased significantly, from 462 in 2021 to 296 in 2024 [8]. - As of June 30, 2025, the company reported 356 valid patents, including 267 invention patents, indicating some progress in core R&D despite reduced investment [9]. Patent Discrepancies - There is a notable inconsistency in patent data reported by the company, with a claim of 372 valid patents at the end of 2024, which contradicts the 356 reported in mid-2025 [11][12]. - The company has not disclosed any information regarding potential patent expirations or losses, raising concerns about transparency [13].

Company Performance - Tianyi Co., Ltd. reported its first loss after seven years of being listed, with a revenue of 1.767 billion yuan in 2024, a decrease of 30.81% year-on-year [2] - The net profit attributable to shareholders was -26.43 million yuan, a decline of 126.24% compared to the previous year [2] - In Q1 2024, the company achieved a revenue of 331 million yuan, with a net profit of -23.27 million yuan, representing a year-on-year decline of 38.55% and 226.79% respectively [2] Product and Market Analysis - The company focuses on the optical and mobile communication industries, providing products and services to domestic telecom operators [3] - Despite a generally high industry outlook, Tianyi Co., Ltd. faced intense competition, leading to a decline in product prices and overall gross margins [4] - The production and sales of broadband network terminal devices fell to 10.82 million and 12.58 million units respectively, down 29.45% and 28.79% year-on-year, with revenue from this segment dropping by 31.70% to 1.627 billion yuan [4] Research and Development - R&D investment decreased by 21.49% to 101 million yuan in 2024, accounting for 5.74% of revenue [7] - The number of R&D personnel reduced by 25.44% to 296, representing 15.67% of total employees [7] - Overall employee count decreased from 2,185 in 2023 to 1,889 in 2024 [7] Compensation and Shareholding - Executive compensation saw significant reductions, with the chairman's salary dropping from 707,000 yuan in 2023 to 432,000 yuan in 2024 [8] - Independent directors' compensation was also halved from 100,000 yuan to 47,800 yuan [8] - Executives and major shareholders engaged in share sell-offs, with several completing a round of share reductions in early 2024 [9]