Shale Innovation's inventory turnover rate significantly slowed down, exacerbating globalization challenges.

YingShi Innovation, which landed on the Sci-Tech Innovation Board in June this year, is facing increasingly fierce competition in the global smart imaging device market. Its semi-annual report data shows that the inventory turnover rate has decreased from 2.10 in the same period last year to 1.43 in the first half of this year, a decrease of 32%; at the same time, the net cash flow from operating activities has decreased from 606 million yuan in the same period last year to 241 million yuan in the first half of this year, a decrease of more than 60%. Insiders point out that YingShi Innovation is experiencing the typical dilemma of Chinese high-tech companies entering the global market: on one hand, it needs to rely on rapid iteration and cost advantages to seize market share, while on the other hand, it also needs to deal with international patent encirclement and a more complex legal environment. Specifically, YingShi Innovation adopts a "self-developed design + outsourced production" model, and the core chips are mainly purchased from international manufacturers such as Sony and Ambarella. Shenwan Hongyuan Research believes that by 2024, YingShi Innovation's chip procurement amount will account for 28.82% of the total material procurement amount, and the substitutability is poor. Against the backdrop of fluctuating global chip supply and changing international trade environment, this supply chain structure poses potential risks. Meanwhile, overseas competitors are challenging in the field of intellectual property rights. In March last year, American action camera giant GoPro filed an investigation application with the United States International Trade Commission in accordance with Section 337 of the U.S. Tariff Act of 1930, accusing YingShi Innovation and its U.S. subsidiary of infringing its intellectual property rights. Subsequently, GoPro also filed a civil lawsuit in the Central District Federal Court of California. This directly targets YingShi Innovation's core product line and may pose a significant threat to its expansion in the U.S. market.