Core Viewpoint - Longxin Zhongke (688047) reported a revenue of 244 million yuan for the first half of 2025, marking a year-on-year increase of 10.90%, while the net profit attributable to shareholders was -294 million yuan, compared to -238 million yuan in the same period last year [1][2] Financial Performance - The company's revenue from industrial control chips increased by 61.09% year-on-year, driven by the recovery in the security application industrial control market and contributions from new products [1] - Revenue from information technology chips grew by 5.01% year-on-year, benefiting from the high cost-performance ratio of the 3A6000 chip and the recovery of the domestic e-government market [1] - Revenue from solution services decreased by 25.93% year-on-year as the company continued to adjust its product structure [1] - The gross profit margin for the first half of the year was 42.44%, an increase of 12.77 percentage points year-on-year, with industrial control chips achieving a gross profit margin of 65.45%, up 12.98 percentage points from the previous year [1] Operational Insights - The company is transitioning from a focus on product development to market sales, indicating a new growth cycle for revenue [3] - Longxin Zhongke is implementing a sales strategy that emphasizes market-oriented pricing and product structure optimization, while actively reducing the proportion of solution services [3] - Significant progress has been made in the development of new CPU products, including the "Three Swordsmen" and "Three Elite" series, with many chips entering the market [3][4] Product Development - The 3C6000 series server CPU is being commercialized, showcasing significant improvements in performance and cost-effectiveness compared to previous generations [4] - The new desktop CPU, 3B6600, is in the physical design phase after completing code development and basic freezing [4] - The embedded CPU, 2K3000, has successfully completed the tape-out process and is entering productization, offering strong general and AI computing performance [4] - The specialized CPU, 2P0300, has also completed tape-out and is undergoing productization, further enhancing its cost-performance ratio [4] Software Development - By June 2025, the company has achieved native support for its architecture in various open-source software communities, including Linux kernel and GCC toolchain [5] - The company holds a total of 820 authorized patents, including 643 invention patents, and has developed numerous software copyrights and integrated circuit layout design rights [5]