Financial Performance - For the first half of 2025, the company's operating revenue was approximately 333.60 million, an increase from 308.20 million in the same period last year, reflecting a growth of about 8.4% [1] - The total profit for the same period was a loss of approximately 64.08 million, compared to a loss of 13.31 million in the previous year [1] - The net profit attributable to shareholders was a loss of approximately 52.41 million, down from a profit of 5.98 million in the previous year [1] - The net profit after deducting non-recurring gains and losses was a loss of approximately 114.86 million, compared to a loss of 83.97 million in the same period last year [1] - The net cash flow from operating activities was a loss of approximately 85.66 million, an improvement from a loss of 149.70 million in the previous year [1] Asset and Liability Changes - As of the end of the first half of 2025, the company's net assets attributable to shareholders were approximately 2.56 billion, down from 2.68 billion at the end of the previous year [1] - The company's construction in progress increased by 28.62% compared to the end of the previous year, while cash and cash equivalents decreased by 18.42% [37] - Short-term borrowings accounted for 4.99% of total assets, which was an increase from 0% at the end of the previous year [40] Shareholder Information - The largest shareholder, Du Yulin, held 35.84% of the shares, with other shareholders also showing varying changes in their holdings [50][51] - The shareholding of Wan Jia Industry Preferred Mixed Securities Investment Fund (LOF) decreased by 0.114 percentage points [51] Valuation Metrics - As of August 29, the company's price-to-earnings (P/E) ratio was approximately 2352.01, the price-to-book (P/B) ratio was about 5.12, and the price-to-sales (P/S) ratio was approximately 14.37 [1]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 99.26 [1][5]. Core Views - The company reported a revenue of RMB 334 million for the first half of 2025, representing a year-over-year increase of 8.24%. However, the net profit attributable to the parent company was a loss of RMB 52.41 million, compared to a profit of RMB 5.98 million in the same period last year [1]. - The growth in revenue is attributed to ongoing investment in technology research and market expansion, particularly in overseas markets, while the decline in profit is due to adjustments in performance assessment cycles, increased equity incentive costs, and reduced government subsidies [1]. - The report highlights the company's strong performance in the overseas market, with a revenue increase of 42.21% year-over-year, particularly in countries like Japan, Thailand, Italy, Spain, Turkey, and the UAE, where business growth exceeded 50% [3]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of RMB 208 million, a year-over-year increase of 10.59% and a quarter-over-quarter increase of 65.78%. The net profit for Q2 was a loss of RMB 444,000, compared to a profit of RMB 3.16 million in the same period last year [1]. - The company’s revenue from standard general software, purchased hardware and software, customized services, and technical services for the first half of 2025 was RMB 318 million, RMB 200,000, RMB 400,000, and RMB 800,000 respectively, with year-over-year changes of +10.47%, -14.75%, +7.81%, and -36.86% [2]. Product Development - The company invested RMB 223 million in research and development during the reporting period, an increase of 11.84% year-over-year. The focus is on integrating products like ZWCAD and ZW3D with other solutions to create a comprehensive CAx integrated solution [4]. - The report emphasizes the strong growth of core industrial software, particularly in 2D CAD products, which generated RMB 215 million in revenue, a year-over-year increase of 11.82% [2]. Market Strategy - The company is enhancing its overseas channel empowerment system and global marketing network, which is expected to drive revenue growth. The establishment of a core team in its Japanese subsidiary is part of this strategy [3]. - The report expresses optimism regarding the company's continued penetration in the CAD/CAE product market, particularly in the context of domestic substitution trends [2][4]. Earnings Forecast - The revenue forecast for the company for 2025-2027 is RMB 1.01 billion, RMB 1.23 billion, and RMB 1.51 billion respectively, with net profit forecasts of RMB 106 million, RMB 140 million, and RMB 178 million for the same periods [5][11]. - The report maintains a price-to-sales (PS) ratio of 16.7x for 2025, corresponding to the target price of RMB 99.26 [5].