Core Viewpoint - Hongfuhuan (301086.SZ) has released a performance forecast for the first half of 2025, indicating a significant decline in net profit compared to the same period last year, attributed to increased competition and rising labor costs [1][2]. Financial Performance Summary - The net profit attributable to shareholders is expected to be between 19.15 million and 23.72 million yuan, representing a decrease of 50.34% to 59.91% year-on-year [1][2]. - The net profit after deducting non-recurring gains and losses is projected to be between 17.41 million and 21.98 million yuan, reflecting a decline of 46.45% to 57.58% compared to the previous year [1][2]. - In the same period last year, the net profit attributable to shareholders was 47.77 million yuan, and the net profit after deducting non-recurring gains and losses was 41.05 million yuan [1][2]. Reasons for Performance Changes - The company cites intensified industry competition and a decline in overall gross margin as primary reasons for the profit decrease [2]. - Increased labor costs due to the addition of employee positions for production, management, and business expansion needs have also contributed to the decline [2]. - The estimated impact of non-recurring gains and losses on net profit is approximately 1.74 million yuan [2]. Company Background - Hongfuhuan was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on October 20, 2021, with an initial offering price of 96.66 yuan per share [3]. - The stock opened at 129.70 yuan on its first trading day and reached a high of 129.74 yuan, but has since experienced a decline and is currently in a state of loss [3]. - The company raised a total of 1.45 billion yuan through its initial public offering, with a net amount of 1.31 billion yuan after deducting issuance costs [3]. - The funds raised are intended for projects related to functional electronic materials, smart devices, and the construction of an industrial automation equipment production base [3].