On September 2nd, at the 2024 interim performance briefing, Li Yin, Chairman and CEO of Huayi Technology, explained that the company has incurred losses for three consecutive quarters mainly due to the construction investment period. In order to expand production capacity and improve productivity, the company has made a significant amount of necessary investments.

As a leading provider in the automotive testing industry and intelligent driving perception and positioning solution provider, Huayi Technology focuses on the transformation and upgrading of automotive electrification and intelligence. It provides core intelligent driving products, research and development testing services, and high-end equipment for quality assurance.

Due to rapid growth in demand for downstream testing services, in the first half of this year, Huayi Technology achieved a revenue of 0.175 billion yuan, a year-on-year increase of 13.34%. However, the net income attributable to shareholders was -31.727 million yuan, a year-on-year decrease of 1317.14%.

Li Yin explained, "The decrease in net income is due to the gradual process of income growth from the newly invested testing equipment. During this process, fixed costs account for a relatively large proportion, resulting in a year-on-year decrease in net income."

The net income of Huayi Technology has been continuously declining and fluctuating significantly in recent years.

From the fourth quarter of 2023 to the second quarter of this year, the net income attributable to shareholders recorded losses of 22.19 million yuan, 9.693 million yuan, and 22.03 million yuan, respectively, for three consecutive quarters.

In response to a question from a reporter from the Sci-tech Innovation Board Daily, Li Yin said, 'The company has transitioned from testing equipment to the testing services field. In the future, as testing service revenue continues to increase, it will dilute unit fixed costs and improve operating performance.'

'We have also expanded into the smart automobile field. Currently, we are actively deploying high-precision inertial navigation business for smart automobiles and have completed vehicle matching work with multiple automakers. The high-precision inertial navigation products are currently being delivered in bulk,' said Li Yin.

HuaYi Technology mentioned during an investor interaction on August 20th that it has obtained product placement from three customers, including SAIC Motor Corporation's IMU (Inertial Measurement Unit), which is the core sensor for attitude measurement and inertial navigation technology.

'HuaYi Technology's inertial navigation products can be applied in the fields of smart automobiles, flying cars, drones, and robots,' said Li Yin during today's (September 2nd) performance briefing. 'With the flourishing development of low-altitude economy, we are actively developing the IMU business for flying cars, which is used to measure the motion and attitude of the aircraft itself, including parameters such as acceleration, angular velocity, and magnetic field.'

Earlier, on the evening of March 14th this year, HuaYi Technology announced that it had reached a cooperation intention with Jifudongli Technology (China) Co., Ltd. to collaborate on the core components of humanoid robot flexible control - the six-dimensional force sensor business.