Core Viewpoint - The report highlights the financial performance and operational challenges faced by Shanghai Hollywave Electronic System Co., Ltd. in the first half of 2025, indicating a significant decline in revenue and profit due to project delivery delays and increased R&D expenses. Company Overview and Financial Indicators - Company Name: Shanghai Hollywave Electronic System Co., Ltd. [2] - Stock Code: 688682, listed on the Shanghai Stock Exchange [2] - Total Revenue for H1 2025: ¥102.15 million, a decrease of 17.68% compared to ¥124.09 million in H1 2024 [3] - Net Profit attributable to shareholders: ¥338,085.48, down 94.51% from ¥6.16 million in the same period last year [3] - Total Assets: ¥938.22 million, a decrease of 2.59% from ¥963.14 million at the end of the previous year [3] - R&D expenditure as a percentage of revenue: 22.48%, an increase of 5.52 percentage points from 16.96% [3] Business Segments - The company focuses on three main business segments: electromagnetic simulation and measurement technology, phased array products, and electromagnetic measurement systems [5][6] - The electromagnetic simulation analysis and verification business includes general CAE simulation software and application simulation verification software, primarily serving high-end manufacturing industries such as aerospace and automotive [5] - The electromagnetic measurement system business includes phased array calibration measurement systems and radar cross-section measurement systems, which are crucial for product development and performance validation [5][6] Industry Context - The company operates within the software and information technology services industry, specifically in industrial software and electronic measurement sectors [7] - The industrial software market in China is growing, with a projected increase in the importance of R&D design software as a foundation for industrial quality [7][8] - The CAE software market is currently dominated by international players, holding over 90% market share, indicating significant growth potential for domestic companies like Hollywave [8] Technological Advancements - The integration of AI with CAE (AI+CAE) is seen as a key development area, enhancing the capabilities of engineering simulations and enabling more efficient problem-solving [9][10] - The company is leveraging its expertise in electromagnetic simulation and measurement to develop advanced phased array technologies, which are essential for modern radar and communication systems [6][10] Market Demand - There is a growing demand for electronic measurement systems in sectors such as special equipment, satellites, and automotive, driven by the increasing complexity of products and the need for precise measurement solutions [11][12] - The phased array radar and stealth equipment markets are expected to maintain high demand, with calibration measurement systems becoming increasingly critical for performance validation [13][17]

Core Viewpoint - The company, Holiwo, has experienced a significant decline in both revenue and net profit in its latest quarterly report, indicating potential challenges in its business performance within the telecommunications services industry [1][2]. Company Overview - Holiwo's closing stock price is 32.53 yuan, down 3.47%, with a rolling price-to-earnings (PE) ratio of 163.75 times and a total market capitalization of 2.366 billion yuan [1]. - The company operates in four main business areas: electromagnetic measurement systems, electromagnetic field simulation and analysis, phased array products, and general testing services [1]. - Holiwo provides systems, software, and services for simulation and measurement in radar and wireless communication fields, with key products including calibration measurement systems, radar cross-section measurement systems, RF measurement systems, and 5G base station antenna OTA measurement systems [1]. Financial Performance - For the third quarter of 2024, Holiwo reported revenue of 188 million yuan, a year-on-year decrease of 16.54%, and a net profit of 10.35 million yuan, down 44.09% [2]. - The company's gross profit margin stands at 36.69% [2]. Industry Comparison - In the telecommunications services industry, Holiwo's PE ratio of 163.75 is significantly higher than the industry average of 24.88 and the median of 96.74, placing it at the 36th position among its peers [1][2]. - The industry average market capitalization is 81.86 billion yuan, with the median at 41.93 billion yuan, indicating that Holiwo operates in a highly competitive environment [2].