What happened: the company released its "2023 semi-annual report" on the evening of August 25, and the company realized operating income of 199 million yuan, up 52.2% from the same period last year. The net profit belonging to shareholders of listed companies was 40 million yuan, up 33.3% from the same period last year. Net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 34 million yuan, up 53.3% from the same period last year.

The company realizes EPS (basic) 0.53 yuan.

1. Revenue and net profit has achieved double-digit growth, and the market demand for downstream terminal applications is strong in the first half of 2023. Excluding the influence of share payment fees, the company's net profit is 44.9603 million yuan, an increase of 50.13% over the same period last year; deducting non-parent net profit is 39.1524 million yuan, an increase of 75.84% over the same period last year. 2023Q2, the company realized operating income of 127 million yuan, up 67.0% from the same period last year and 77.5% from the previous quarter. The net profit from home was 28 million yuan, up 32.3% from the same period last year and 143.4% from the previous year; the net profit from non-return to home was 26 million yuan, up 58.0% from the same period last year and 202.4% from the previous month. The market demand for terminal applications downstream of the company was strong, and orders were sufficient and continued to increase.

2023H1, the company has initially developed from a product-oriented enterprise to an end-to-end full-stack solution enterprise, from a single communications product provider to a scene-based software and hardware product solution provider.

2. The momentum of the new solution business is obvious. In cooperation with Shanghai Unicom to promote the construction of digital economy, ① intelligent energy revenue is 65.001 million yuan, up 5.3% over the same period last year; ② industrial Internet revenue is 57.052 million yuan, up 320.6% over the same period last year; ③ intelligent transportation revenue is 38.755 million yuan, up 122.7% over the same period last year; ④ smart city income is 14.322 million yuan; ⑤ other industry sectors income 2039.7 yuan.

According to the product structure, ① industrial switching revenue is 137 million yuan, up 37.3% over the same period last year; ② industrial gateway revenue is 16 million yuan, up 22.6% over the same period last year; ③ industrial wireless revenue is 6 million yuan, ④ solution revenue is 34 million yuan, ⑤ industrial software revenue is 447300 yuan, and ⑥ other products income is 4.8945 million yuan.

On August 16, 2023, Sanwang Qitong, a wholly owned subsidiary of the company, signed a "Strategic Cooperation Agreement" with China Unicom Shanghai Branch, which will carry out strategic cooperation around the digital transformation of enterprises, parks and governments in Songjiang District.

Shanghai actively develops the digital economy and issues the Action Plan for promoting the Innovation and Development of the data Factor Industry based on the New Racetrack of the Digital economy (2023-2025), while China Unicom is accelerating the transformation into a scientific and technological innovation company advancing into the main channel of the digital economy in an all-round way. We believe that the cooperation between the company and Shanghai Unicom is of great significance and has won the priority of cooperation in projects related to the digital transformation of Shanghai Unicom. it will have a positive impact on the company to give full play to its technological and talent advantages to promote the construction of the digital economy and to the future business development of the company.

Risk tips: product research and development risk; raw material supply fluctuation risk; market expansion is not as expected risk.