Core Viewpoint - Anlu Technology (688107.SH) reported a strong recovery in its performance for the first half of 2025, with revenue reaching 223 million yuan and a quarter-on-quarter growth of 39.4% in Q2, indicating sustained core development momentum [1][2]. Group 1: Financial Performance - In the first half of 2025, Anlu Technology achieved revenue of 223 million yuan, with a significant quarter-on-quarter increase of 39.4% in Q2, reflecting a robust recovery trend [1][2]. - The company has seen a noticeable increase in new customer numbers and new product introduction projects, establishing a solid foundation for future growth [2]. Group 2: Market and Product Development - The global acceleration of smart technology demands higher efficiency, capability, and power consumption ratios from chips, with FPGA being a key component for smart upgrades, maintaining strong long-term market demand [2]. - Anlu Technology has established a diverse range of FPGA product models, which are widely applied across various sectors, continuously expanding its coverage of niche scenarios [2]. - In the power and new energy market, Anlu Technology's sales revenue grew by over 20% year-on-year, driven by the rise in demand for smart grid construction and new energy integration [2]. Group 3: Research and Development - Anlu Technology invested 174 million yuan in R&D, accounting for 77.84% of its revenue, an increase of 17.28 percentage points year-on-year [3]. - The company has applied for a total of 482 intellectual property rights, including 280 invention patents, with 47 new applications during the reporting period [3]. - Anlu Technology is advancing five major R&D directions, including next-generation FPGA, low-power and high-performance FPSoC, and automotive-grade chips, with several models of domestic 28nm FPGA chips already in mass production [3]. Group 4: Future Outlook - Short-term, Anlu Technology's sales revenue is expected to continue recovering due to the acceleration of upgrades in traditional markets and the recovery momentum observed in Q2 [4]. - Long-term, the rapid development of emerging markets such as robotics, edge computing, smart grids, and AI servers, along with the urgent need for localized secure supply chains, will provide significant growth opportunities for the company [4]. - Industry experts believe that as the inventory destocking cycle nears its end and new products are launched, Anlu Technology, as a leading domestic FPGA company, is poised for a new phase of rapid growth in emerging fields [4].

Core Viewpoint - The report indicates that despite signs of recovery in downstream application areas, the company's revenue has slightly declined compared to the same period last year due to fluctuations in demand from certain end-user industries. The company continues to invest heavily in R&D and team building to strengthen its core competitiveness, resulting in a negative net profit for the reporting period [1][3]. Financial Performance - The company reported a revenue of approximately 223.34 million yuan, a decrease of 29.64% year-on-year [3]. - The total profit for the period was -142.39 million yuan, with a net profit attributable to shareholders of -142.39 million yuan [3]. - The net cash flow from operating activities was -62.83 million yuan, indicating a decrease compared to the previous year [3]. - The company's net assets attributable to shareholders decreased by 11.69% to approximately 1.07 billion yuan [3]. Industry Overview - The integrated circuit industry, particularly the FPGA market, is experiencing dynamic adjustments due to emerging technology applications and economic uncertainties. However, the long-term demand for FPGA remains strong due to the increasing need for efficient data processing and computing capabilities [4][5]. - The global semiconductor market is projected to reach $728 billion in 2025, with a year-on-year growth of 15.4% [4]. Business Operations - The company specializes in the R&D, design, and sales of FPGA and FPSoC chips, positioning itself as a leading supplier in the domestic market. Its products are widely used across various sectors, including communication, industrial, medical, and consumer electronics [4][5]. - The company employs a Fabless business model, outsourcing manufacturing and testing to third-party firms while focusing on chip design and development [8]. Product Development - The company has launched over 200 application IPs and reference designs across 12 application categories, enhancing its product offerings and market competitiveness [7][11]. - The company continues to innovate with its FPGA and FPSoC product lines, including the SALPHOENIX, SALEAGLE, and SALSWIFT series, which cater to various market needs [6][7]. R&D Investment - R&D expenses reached approximately 17.38 million yuan, accounting for 77.84% of the company's revenue, reflecting a commitment to innovation and product development [9]. - The company has applied for 482 intellectual property rights, including 280 invention patents, demonstrating its focus on protecting its technological advancements [11][12]. Market Strategy - The company is actively expanding its market presence in emerging sectors such as smart grids, AI servers, and electric vehicles, aiming to capture new growth opportunities [9][10]. - The company has established strategic partnerships with key clients in various industries, enhancing its market penetration and brand recognition [11].