Macro Strategy - The core viewpoint is that the "innovation bull market" in 2025 is driven by a positive cycle of capital pricing and industrial implementation under policy guidance, with macro policies anchoring industrial direction and capital markets facilitating value discovery [1] - The market liquidity and valuation have improved, with A-share trading volume exceeding 2 trillion yuan, indicating a positive trading structure and sentiment cycle [1] - The initial phase of the "innovation bull" is likely to extend towards financial sectors and technology industries, particularly in robotics, computing power, and innovative pharmaceuticals [1] Economic Outlook - The report anticipates that China's export growth may continue to exceed market expectations due to the dual easing of U.S. fiscal and monetary policies, suggesting resilience in external demand [2] - The expectation of interest rate cuts by the Federal Reserve is highlighted, with predictions of two cuts in September and December, although there is caution regarding overly optimistic market pricing [2] Fixed Income Market - The fixed income market has shown a "desensitization" to fundamental data, with the yield on 10-year government bonds rising to 1.745% despite disappointing economic indicators [4] - The report notes that structural policy tools may replace total monetary policies as the main line of easing in the third quarter [4] Company Performance - 瑞芯微 (Rockchip) reported a significant revenue increase of 63.85% year-on-year in H1 2025, with a net profit growth of 190.61%, driven by strong performance in AIoT products [8] - 禾赛科技 (Hesai Technology) achieved a revenue increase of 53.9% year-on-year in Q2 2025, with a net profit growth of 161.2%, supported by strong demand for ADAS and robotics [9] - 道通科技 (Dautong Technology) reported a revenue increase of 27.3% year-on-year in H1 2025, driven by advancements in digital repair and energy solutions [10] Industry Trends - The report emphasizes the growth potential in the AI and robotics sectors, with companies like 禾赛科技 and 瑞芯微 leading in their respective fields [9][8] - The demand for 3D vision technology is highlighted as a key growth driver for 奥比中光 (Orbbec), with expected rapid revenue growth in the coming years [20] Investment Ratings - The report maintains a "buy" rating for several companies, including 瑞芯微, 禾赛科技, and 道通科技, based on their strong performance and growth prospects in innovative sectors [8][9][10]

Group 1 - A new company named Baotai Shengye Paper Products Sales Co., Ltd. has been established in Baoding City, with a registered capital of 10,000 RMB [1] - The legal representative of the company is Song Wang [1] - The business scope includes sales of paper products, personal hygiene products, sanitary and disposable medical supplies, daily necessities, and internet sales, among other services [1] Group 2 - The company is also involved in technology services, development, consulting, and promotion, as well as IoT technology services and information technology consulting [1] - The company operates under the principle of conducting business activities independently with its business license, except for projects that require approval [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [7]. Core Views - The company's 2025 interim results met expectations, with a revenue of 405 million yuan, a slight year-on-year decline of 7.1%, while net profit reached 203 million yuan, reflecting a year-on-year growth of 22.9% [7]. - The company is focusing on a light asset strategy, enhancing its technology platform capabilities to better serve small and medium enterprises in their supply chain financing needs [7]. - The growth in net profit is attributed to an increase in platform clients and financial lending, with the total number of platform clients rising to 19,128, up from 18,113 at the end of 2024 [7]. - The report highlights the anticipated growth in e-commerce and robotics sectors, with significant partnerships established to enhance service offerings [7]. Financial Summary - Total revenue projections for the company are as follows: 2023A: 1,024.23 million yuan, 2024A: 976.22 million yuan, 2025E: 1,097.31 million yuan, 2026E: 1,328.74 million yuan, and 2027E: 1,571.74 million yuan [7]. - The forecasted net profit for the company is projected to be: 2023A: 268.25 million yuan, 2024A: 380.18 million yuan, 2025E: 497.43 million yuan, 2026E: 655.01 million yuan, and 2027E: 821.54 million yuan [7]. - The earnings per share (EPS) estimates are: 2023A: 0.27 yuan, 2024A: 0.38 yuan, 2025E: 0.49 yuan, 2026E: 0.65 yuan, and 2027E: 0.81 yuan [7]. - The current price-to-earnings (P/E) ratios are projected to be 41.56 for 2023A, 29.33 for 2024A, 22.41 for 2025E, 17.02 for 2026E, and 13.57 for 2027E [7].

Investment Rating - The report maintains a "Buy" rating for the company, anticipating a price increase of over 15% in the next 6-12 months [5][12]. Core Insights - In the first half of 2025, the company achieved a revenue of 405 million RMB, a year-on-year decrease of 7.1%, while the net profit attributable to shareholders increased by 28.7% to 200 million RMB [2]. - The decline in revenue is attributed to the company's ongoing shift towards a light-asset strategy, which has led to reduced interest income from self-funded investments and declining returns from supply chain asset refinancing. However, this impact has been partially offset by the successful implementation of a platform strategy [3]. - The company's platform technology service revenue reached 211 million RMB, showing a robust year-on-year growth of 37.0%, accounting for over 50.0% of total revenue, thus becoming a core growth driver [3]. - The company has seen a significant increase in its share of joint venture performance, which rose by 94.1% to 79 million RMB, providing crucial support for net profit growth [3]. - The cumulative transaction scale of the company's platform exceeded 2,780 billion RMB by the end of June 2025, reflecting a year-on-year growth of approximately 29% [3]. - The company is actively expanding into innovative sectors such as e-commerce, achieving a cumulative transaction scale of over 2.8 billion RMB in this area, which represents an almost eightfold increase year-on-year [3]. - A strategic partnership with a leading global industrial robotics company has been established, marking significant progress in the emerging robotics sector [4]. Financial Forecasts and Valuation - The company is expected to continue benefiting from its strategic positioning in e-commerce, AI, and robotics, driving further expansion of its supply chain technology platform [5]. - The overall fee structure is anticipated to improve as the proportion of high-value income increases, enhancing profitability [5]. - The total dividend payout for 2025 is projected to be approximately 950 million RMB, resulting in a high expected dividend yield of 8.6% for shareholders [5]. - The forecasted net profit for the full year 2025 is estimated to reach 512 million RMB, representing a year-on-year growth of 35%, with a corresponding price-to-earnings ratio of 21.4 times [5].

Core Viewpoint - Shengye Holdings Group Limited has demonstrated a successful strategic transformation, achieving a net profit increase of approximately 23% despite a slight decline in overall revenue, highlighting the effectiveness of its platform technology services and light-asset strategy [1][3][8]. Financial Performance - For the six months ending June 30, 2025, Shengye reported a main business revenue of 405 million yuan, a year-on-year decrease of 7.1%, while net profit rose to 203 million yuan [1]. - The platform technology service revenue reached 211 million yuan, a significant year-on-year increase of 37%, accounting for over 50% of total revenue [1][3]. - The company has maintained profitability for 11 consecutive years and has committed to a dividend payout ratio of no less than 90% from 2024 to 2026, with an expected total dividend of 950 million yuan for 2025 [2]. Strategic Transformation - The increase in platform technology service revenue is attributed to the continuous expansion of Shengye's platform ecosystem and enhanced technological capabilities, with over 19,100 cumulative clients, a 14.4% year-on-year growth [1][3]. - The light-asset strategy has led to a 33.9% reduction in financing costs, while the average financing cost for clients using the platform has decreased by over 30% [3][4]. Technological Investment - Shengye has invested nearly 270 million yuan in R&D in the first half of 2025, maintaining a high proportion of R&D personnel at 30% [4]. - The company holds 88 national invention patents and software copyrights, with applications in AI, big data, and cloud computing [4][6]. New Industry Layout - Shengye is actively expanding into emerging industries such as e-commerce, robotics, and AI applications, with significant growth in e-commerce partnerships, achieving a funding scale of over 2.8 billion yuan, an increase of nearly 800% year-on-year [5][6]. - The company has established strategic cooperation with leading firms in the robotics sector, positioning itself for growth in the rapidly expanding Chinese robotics market, which exceeds 190 billion yuan [5]. Internationalization and Innovation - Shengye has designated its Singapore subsidiary as its international headquarters and is expanding its presence in Southeast Asia and Turkey, successfully completing its first international funding facilitation [7]. - The company is exploring Web 3.0 and stablecoin applications to reduce cross-border payment costs and mitigate exchange rate risks, with a current operating cash flow of 3.56 billion yuan [7]. Industry Outlook - The supply chain finance industry is experiencing growth driven by national policies, particularly in technology finance, green finance, and digital finance, despite challenges such as information inadequacies and financing difficulties for SMEs [8][9]. - Shengye's performance reflects significant changes in China's supply chain finance and technology service sectors, leveraging AI and big data to enhance efficiency and reduce costs for SMEs [8].

Core Viewpoint - The company reported a decline in revenue but an increase in net profit for the six months ending June 30, 2025, indicating a shift in business strategy towards a lighter asset model [1] Financial Performance - The company's main business revenue and income amounted to 405 million RMB, representing a year-on-year decrease of 7.1% [1] - Shareholders' profit attributable to the company was 200 million RMB, showing a year-on-year increase of 28.66% [1] - Basic earnings per share were 0.20 RMB [1] Business Strategy - The revenue decline was primarily due to the company's deepening of its light asset strategy, which redirected customer funding needs to be met through external partners [1] - The decrease in revenue from digital financial solutions and supply chain asset refinancing was partially offset by significant growth in platform technology service income [1]

Core Viewpoint - The company reported a decrease in main business revenue and income for the six months ending June 30, 2025, primarily due to a strategic shift towards a light-asset model and enhanced technology platform capabilities [1] Financial Performance - Main business revenue and income amounted to 405 million RMB, representing a year-on-year decrease of 7.1% [1] - Shareholder profit attributable to the company reached 200 million RMB, showing a year-on-year increase of 28.66% [1] - Basic earnings per share were 0.20 RMB [1] Market Focus - The majority of revenue and income is derived from the mainland China market, which experienced a slight decline of 7.1% year-on-year [1] - The decline in revenue is attributed to the company's ongoing strategy to deepen its light-asset approach and strengthen technology platform capabilities [1] Strategic Initiatives - The company is focusing on linking the supply chain financing needs of small and micro enterprises with external funding partners through its platform [1] - Despite the decrease in income from digital financial solutions and supply chain asset refinancing, this impact has been partially offset by significant growth in platform technology service revenue driven by the platformization strategy [1]

Core Viewpoint - The company is implementing a platformization strategy with a focus on "AI+" actions, leading to significant growth in net profit and adjusted net profit in the first half of 2025, with net profit reaching RMB 203 million, a year-on-year increase of 22.9% [1] Group 1 - The company is leveraging AI Agent technology to connect industry ecosystems and data, providing services that help small and micro enterprises find orders and funding, while reducing financing costs by at least 30% [2] - As of June 30, 2025, the platform has served over 19,100 clients, processing supply chain assets worth approximately RMB 2.78 billion, reflecting year-on-year growth of about 14.4% and 28.7% [2] - The platform's customer retention rate exceeds 80%, with over 30% of clients being first-time borrowers [2] Group 2 - The company has established strategic partnerships with over 10 Fortune 500 companies and linked with more than 180 funding partners, marking a year-on-year growth of over 30% [3] - The inclusive matching business accounts for approximately 88% of the platform's operations, showing a year-on-year increase of about 28.3% [3] - The revenue from technology services reached approximately RMB 210.6 million, a year-on-year growth of 37%, contributing to over 50% of total revenue [3]

[Performance Highlights](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) H1 2025 saw significant growth in platform technology service revenue and net profit, driven by platformization and AI applications Key Performance Indicators for H1 2025 | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Platform Technology Service Revenue | 210.6 million RMB | 153.8 million RMB | +37.0% | | Profit After Tax | 203.0 million RMB | 165.1 million RMB | +22.9% | | Total Cumulative Platform Customers | >19,100 | >16,700 | +14.4% | | Cumulative Supply Chain Assets Processed | ~278.0 billion RMB | ~216.0 billion RMB | +28.7% | - The platformization strategy continues to deepen, with funding partners increasing from 138 to 181, a **31.2% year-on-year growth**. Small and medium-sized enterprise (SME) clients account for **over 97%**[2](index=2&type=chunk) - Technology service revenue reached approximately **52.0% of total operating revenue**, a significant increase from **35.3% in the prior year**, becoming a core growth driver[2](index=2&type=chunk) - First-time AI information service revenue exceeded **400,000 RMB**, generated by AI Agents assisting clients in order acquisition, marking initial success in AI commercialization[2](index=2&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section analyzes the company's operational performance, financial results, and future outlook [Business Overview](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) The 'AI+Industrial Supply Chain' firm saw **22.9%** net profit growth in H1 2025, fueled by platform tech services and global expansion Key Financial and Operating Data for H1 2025 | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Net Profit | 203.0 million RMB | +22.9% | | Operating Revenue and Income | 405.1 million RMB | -7.1% | | Share of Results of Associates | 79.0 million RMB | +94.1% | | Total Cumulative Platform Customers | >19,100 | +14.4% | | Cumulative Supply Chain Assets Processed | ~278.0 billion RMB | +28.7% | | Platform Technology Service Revenue | 210.6 million RMB | +37.0% | - The company continues to advance its 'asset-light' operating model, with platform technology service revenue exceeding **50% of total revenue**, becoming the primary growth driver[5](index=5&type=chunk) - Initial commercialization of AI technology achieved, with AI Agent-assisted order acquisition generating over **400,000 RMB** in AI information service revenue[5](index=5&type=chunk) - Actively expanding into strategic emerging industries, with e-commerce funding facilitation growing nearly **8 times year-on-year**; partnered with Standard Robots to enter the robotics sector; introduced XtalPi and Jiaoge Pengyou as strategic investors to enhance AI R&D and live e-commerce capabilities[7](index=7&type=chunk) - The company committed to a three-year dividend payout ratio of no less than **90% until 2026**, with total dividends for 2025 expected to be approximately **950 million RMB**[6](index=6&type=chunk) [Business Outlook and Prospects](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B%E8%88%87%E5%89%8D%E6%99%AF) The company established its Singapore HQ to expand internationally, exploring Web3.0 and stablecoins for global supply chain efficiency - Established Singapore International Headquarters to expand international markets and explore innovative applications of Web3.0 and stablecoins[8](index=8&type=chunk) - Invested in a top SHEIN supplier to support the construction of flexible smart factories overseas and promote the globalization of China's apparel industry; completed the first international working capital facilitation business with the largest integrated logistics enterprise in the Philippines[9](index=9&type=chunk) - Plans to explore the compliant application of stablecoins in international supply chain working capital services, leveraging their 'payment-as-settlement' feature to reduce payment costs to **0.1%**, mitigate exchange rate risks, and enhance capital efficiency[10](index=10&type=chunk) [Financial Review](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) H1 2025 saw structural financial optimization: **7.1%** revenue decrease, **22.9%** net profit growth, driven by platform tech services and reduced financing costs [Financial Summary](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E6%A6%82%E8%A6%81) Operating revenue decreased **7.1%**, but net profit rose **22.9%**, with EPS increasing from **16 to 20 RMB cents** Financial Summary (Six Months Ended June 30) | Indicator (RMB thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue and Income** | **405,090** | **436,050** | **(7.1%)** | | — Platform Technology Service Revenue | 210,641 | 153,779 | 37.0% | | — Digital Financial Solutions Revenue | 194,021 | 275,038 | (29.5%) | | Financing Costs | 122,599 | 185,414 | (33.9%) | | Share of Results of Associates | 78,994 | 40,702 | 94.1% | | **Net Profit** | **202,959** | **165,126** | **22.9%** | | Earnings Per Share (RMB cents) | 20 RMB cents | 16 RMB cents | 25.0% | [Operating Revenue and Income](index=6&type=section&id=%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Total revenue decreased **7.1%** due to the asset-light strategy, offset by significant growth in platform technology service revenue - Platform technology service revenue increased from **154 million RMB** to **211 million RMB**, a **37.0% year-on-year growth**, primarily due to strengthened platform ecosystem connections and technological capabilities, serving more SME clients[14](index=14&type=chunk) - Digital financial solutions revenue decreased from **275 million RMB** to **194 million RMB**, a **29.5% year-on-year reduction**, reflecting the company's asset-light strategy of reducing proprietary capital investment and shifting towards platform facilitation[15](index=15&type=chunk) [Share of Results of Associates](index=8&type=section&id=%E6%87%89%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%A5%AD%E7%B8%BE) Share of results of associates significantly increased by **94.1%** to **79.0 million RMB**, a key outcome of platformization - Share of results of associates significantly increased from **40.7 million RMB** in the prior year to **79.0 million RMB**, a **94.1% year-on-year increase**[18](index=18&type=chunk) [Expenses](index=8&type=section&id=%E6%94%AF%E5%87%BA) Total operating expenses increased by **13.8%** to **123 million RMB**, with the cost-to-revenue ratio rising to **30.4%** Operating Expense Details (Six Months Ended June 30) | Expense Item (RMB thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Staff Costs | 73,708 | 69,127 | 6.6% | | Depreciation and Amortization | 19,057 | 15,003 | 27.0% | | Other Operating Expenses | 30,393 | 24,108 | 26.1% | | **Total** | **123,158** | **108,238** | **13.8%** | [Capital Structure, Liquidity, Financial Resources, and Leverage](index=13&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B%E3%80%81%E6%B5%81%E5%8B%95%E6%80%A7%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%A3%BF%E6%A1%BF) As of June 30, 2025, cash and cash equivalents were **713 million RMB**, operating cash inflow was **3.56 billion RMB**, and leverage ratio increased from **1.58 to 1.95** Key Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 712.8 million RMB | 515.6 million RMB | | Interest-bearing Borrowings and Related Party Loans | 4.7421 billion RMB | 5.1361 billion RMB | | Leverage Ratio | 1.95 | 1.58 | [Use of Proceeds](index=13&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) Proceeds from 2021 and 2025 placements were largely used for strategic acquisitions, tech service expansion, platform development, and AI R&D - Net proceeds from the 2021 placement, approximately **551 million HKD**, have been substantially utilized for strategic acquisitions, development of supply chain technology services, and general working capital for platformization[41](index=41&type=chunk)[45](index=45&type=chunk) - Net proceeds from the 2025 placement, approximately **209 million HKD**, have been largely used to accelerate platform technology service expansion, focusing on innovative areas like e-commerce, AI applications, and robotics, as well as increasing R&D investment in the 'Shengyitong Cloud Platform'[43](index=43&type=chunk)[45](index=45&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The company complied with corporate governance codes, maintained public float, and the Audit Committee reviewed interim financials - The company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period[71](index=71&type=chunk) - The company maintained a public float of no less than **25%**[68](index=68&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[73](index=73&type=chunk) [Condensed Consolidated Financial Statements](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's condensed consolidated financial statements: profit or loss, comprehensive income, financial position, equity, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=24&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) Despite revenue decrease, profit increased from **165 million RMB to 203 million RMB**, driven by lower financing costs and associate profits [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Total comprehensive income for the period was **205 million RMB**, higher than **168 million RMB** in the prior year, including other comprehensive income [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets decreased from **10.60 billion RMB** to **10.54 billion RMB**, total liabilities increased from **6.48 billion RMB** to **6.97 billion RMB**, reducing net assets [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details changes in shareholders' equity components, including profit, dividends, share issuance, and share-based payments [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash inflow from operating activities was **3.56 billion RMB**, with net outflows from investing and financing activities, ending with **713 million RMB** cash [Notes to the Condensed Consolidated Financial Statements](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated financial statements, explaining key financial figures and accounting policies [Note 4: Operating Revenue and Income](index=33&type=section&id=4.%20%E4%B8%BB%E7%87%9F%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) This note details operating revenue breakdown, with platform inclusive matching and referral services as key components of platform technology service revenue Platform Technology Service Revenue Breakdown (RMB thousands) | Service Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Platform Inclusive Matching Technology Services | 97,825 | 100,997 | | Referral Services | 92,577 | 50,913 | | Digital Ecosystem Services | 12,517 | – | | ABS Product Technology Services | 3,561 | 1,038 | | AI Information Services | 427 | – | | Other Services | 3,734 | 831 | | **Total** | **210,641** | **153,779** | [Note 9: Dividends](index=36&type=section&id=9.%20%E8%82%A1%20%E6%81%AF) This note discloses dividends declared, including the 2024 final and 2025 special dividends, totaling approximately **951 million RMB** Dividends Declared During the Period | Dividend Item | Amount (RMB thousands) | | :--- | :--- | | 2024 Final Dividend (RMB 0.347 per share) | 349,504 | | 2025 Special Dividend (RMB 0.596 per share) | 601,149 | | **Total** | **950,653** | [Note 10: Earnings Per Share](index=36&type=section&id=10.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note presents data for basic and diluted EPS calculation, with both basic and diluted EPS at **20 RMB cents** Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit (RMB thousands) | 199,841 | 155,322 | | Weighted Average Number of Ordinary Shares (thousands) | 980,234 | 979,697 | | Diluted Weighted Average Number of Ordinary Shares (thousands) | 984,071 | 979,957 |

Group 1: Key Recommendations - The report recommends 盛业 (06069) as a supply chain technology leader with a projected revenue growth of 24%/26%/24% and net profit growth of 43%/46%/33% from 2025 to 2027, with a target price of 21.65 HKD, indicating a potential upside of 62.9% [4] - 百亚股份 (003006) is highlighted as a leading regional sanitary napkin brand, with expected revenue growth of 26.33%/26.10%/25.11% and net profit growth of 28.20%/41.27%/37.43% from 2025 to 2027, driven by online strategy optimization and scale effects [5] - 日久光电 (003015) is identified as a leader in the membrane materials sector, with projected revenue growth of 36%/26%/20% and net profit growth of 112%/58%/32% from 2025 to 2027, benefiting from new product applications in automotive displays [6][9] Group 2: Industry Insights - The macroeconomic report indicates that excess household savings since 2020 amount to approximately 4.25 trillion, suggesting that the capital market may become a key outlet for these funds, potentially enhancing market liquidity and investor participation [10] - The A-share strategy report notes a divergence in index performance, with a "systematic slow bull" market outlook, suggesting that investors should maintain current positions and look for mid-term opportunities amidst potential short-term volatility [11][12]