Core Viewpoint - The EDA (Electronic Design Automation) industry in China is experiencing a significant divergence in performance among its major listed companies, with Huada Jiutian showing revenue growth but a drastic decline in profit, contrasting sharply with the high profit growth of competitors Gland and Gai Lun Electronics [2][4]. Revenue and Profit Performance - Huada Jiutian achieved a revenue of 805 million yuan in the first three quarters of 2025, a year-on-year increase of 8.24%, but its net profit plummeted by 84.52% to 9.06 million yuan [4]. - Gland reported a revenue of 428 million yuan, up 48.86%, with a net profit of 37.02 million yuan, reflecting a substantial increase of 380.14% [4]. - Gai Lun Electronics posted a revenue of 315 million yuan, a 12.71% increase, and a net profit of 41.99 million yuan, up 173.46% [5]. Investment and Cost Structure - Huada Jiutian's profit decline is attributed to high stock incentive costs of 104 million yuan and rising operational expenses, including a 23.99% increase in sales expenses and a 25.23% increase in financial expenses [4]. - Gland's operational expenses were 289 million yuan, showing a year-on-year increase but a decrease in expense ratio by 10.91 percentage points to 67.54% [4]. Technological Advancements - Domestic EDA companies are focusing on high-end digital chip design tools, with Huada Jiutian launching seven core EDA tools and achieving significant breakthroughs in advanced process certification [7][8]. - Huada Jiutian's new digital simulation verification tool HimaSim and static timing analysis tool HimaTime have filled gaps in domestic digital verification tools, with HimaTime achieving a 30% performance improvement [8]. Market Dynamics - The domestic EDA market remains dominated by international giants like Synopsys and Cadence, which hold 74% of the global market share, while domestic companies face challenges in gaining traction among both large and small chip design firms [13][14]. - Despite the competitive pressure, domestic EDA companies are expected to benefit from supportive policies and growing market demand, presenting opportunities for market share expansion [14].

Core Viewpoint - The semiconductor industry, particularly the Electronic Design Automation (EDA) sector, is experiencing significant attention and development, with Huada Jiutian emerging as a leading player in the domestic EDA market, showcasing both challenges and advancements in its recent half-year report [2][3]. Financial Performance - In the first half of 2025, Huada Jiutian achieved a revenue of 502 million yuan, representing a year-on-year growth of 13.01%, despite a slowdown compared to the industry's high growth period [5]. - The core EDA software sales contributed 414 million yuan, up 7.41%, accounting for 82.6% of total revenue, while the technical services segment saw a significant increase of 28.37%, reaching 67.24 million yuan, making it a key growth driver [5]. - The domestic market remains the primary revenue source, generating 447 million yuan, a 7.68% increase, while the overseas market experienced a remarkable growth of 90.39%, reaching 54.52 million yuan [5]. - The net profit attributable to shareholders was only 3.07 million yuan, down 91.9% year-on-year, with a net loss of 18.62 million yuan after excluding non-recurring losses, although this was an improvement of 63.66% from the previous year [6]. - The company reported a significant increase in cash flow from operating activities, amounting to 243 million yuan, a 4475.60% increase, indicating strong revenue quality and improved customer payment conditions [6]. Product Development and Technological Advancements - Huada Jiutian launched seven core EDA tools during the reporting period, covering the entire integrated circuit design, manufacturing, and packaging chain [8]. - In digital circuit design, new tools such as HimaSim and HimaTime were introduced, covering nearly 80% of the main tools in this area, with HimaTime achieving a 30% performance improvement [8]. - The company also introduced an intelligent platform, AndesAMS, in the analog and storage circuit domain, expected to enhance design efficiency by over 50% [8]. - In advanced packaging and 3DIC fields, the new Argus3DIC platform fills a gap in high-end 3DIC design tools, supporting comprehensive verification for heterogeneous integration packaging [8][9]. - The company’s R&D investment reached 365 million yuan, accounting for 72.84% of revenue, reflecting a commitment to innovation and product development [10]. Market Environment and Policy Support - The EDA industry is characterized by high market concentration, dominated by major players like Cadence, Synopsys, and Siemens EDA, but there is a growing opportunity for domestic companies like Huada Jiutian due to supportive policies and market demand [11]. - Recent government policies have emphasized the importance of EDA tools, categorizing them as critical technologies for national strategic support, which has created a favorable environment for domestic EDA development [11][12]. - The market for EDA in China is projected to grow at a compound annual growth rate of 15.64% from 2021 to 2025, potentially reaching 18.1% of the global EDA market by 2025 [12]. - The increasing awareness of "self-control" among domestic chip design companies has shifted the adoption of domestic EDA tools from optional to essential [12][13].

Core Viewpoint - The semiconductor industry, particularly the electronic design automation (EDA) sector, is experiencing significant attention and development, with Huada Jiutian emerging as a leading domestic player in this field, showcasing both challenges and advancements in its recent half-year report for 2025 [1][3]. Financial Performance - In the first half of 2025, Huada Jiutian achieved revenue of 502 million yuan, representing a year-on-year growth of 13.01%, despite a slowdown compared to the industry's high growth period [3]. - The core EDA software sales contributed 414 million yuan, up 7.41%, accounting for 82.6% of total revenue, while the technical services segment saw a significant increase of 28.37%, reaching 67.24 million yuan, making it a key growth driver [3]. - The domestic market remains the primary revenue source, generating 447 million yuan, a 7.68% increase, while the overseas market experienced a remarkable growth of 90.39%, reaching 54.52 million yuan [3]. Profitability Challenges - The net profit attributable to shareholders was only 3.07 million yuan, a substantial decline of 91.9% year-on-year, with a net loss of 18.62 million yuan after excluding non-recurring items, although this was an improvement of 63.66% from the previous year [4]. - The company's stock incentive expenses amounted to 104 million yuan, significantly impacting reported profits, but the underlying business potential remains strong with a net profit of 102 million yuan when excluding these costs [4]. - The net cash flow from operating activities surged by 4475.60% to 243 million yuan, indicating improved cash collection and revenue quality [4]. Technological Advancements - Huada Jiutian launched seven core EDA tools during the reporting period, enhancing its product offerings across the integrated circuit design, manufacturing, and packaging sectors [5][6]. - The company introduced new digital circuit design tools, achieving nearly 80% coverage of essential tools in this area, and launched a smart platform that improves design efficiency by over 50% in the analog circuit domain [6]. - The company’s advanced packaging EDA platform supports high-end AI chip designs, significantly reducing design cycles, and its new 3DIC verification platform fills a gap in the domestic market [6]. Market Dynamics - The EDA industry is characterized by high market concentration, dominated by major players like Cadence, Synopsys, and Siemens, but domestic alternatives are gaining traction due to supportive policies and increasing market demand [8][10]. - The Chinese semiconductor industry is projected to grow at a compound annual growth rate of 15.64% from 2021 to 2025, with the EDA market expected to reach 18.1% of the global market by 2025 [11]. - The shift in domestic chip design companies towards "self-control" has made the adoption of domestic EDA tools a necessity rather than an option, creating a favorable environment for local EDA firms [11].