HAILIANG(SZ:002203) Quan Jing Wang·2025-08-29 14:58Core Viewpoint - Hailiang Co., Ltd. demonstrated strong strategic resilience and operational strength in the face of international political and economic challenges, achieving solid financial performance and significant growth in emerging sectors during the first half of 2025 [1][2]. Financial Performance - The company reported a revenue of 44.476 billion yuan, a year-on-year increase of 1.17%, with copper processing business revenue reaching 34.070 billion yuan, up 13.59% [2]. - Profitability improved significantly, with total profit reaching 0.815 billion yuan, a 24.53% increase year-on-year; net profit attributable to shareholders was 0.711 billion yuan, up 15.03% [2]. - Operating cash flow saw a substantial increase of 72.13% year-on-year, indicating improved financial health [2]. Sales and Product Development - Hailiang sold 526,200 tons of copper and copper alloy products, a 3.79% increase year-on-year, with high-value products like copper foil and copper bars seeing significant sales growth of 72.33% and 33.44%, respectively [2]. - The company is shifting its growth focus from quantity to quality and structural optimization [2]. Global Expansion - The company’s strategic global capacity layout began to yield results, particularly in the U.S. market, where revenue from copper processing reached 2.469 billion yuan, a 50.77% increase year-on-year [3]. - Hailiang's Texas facility is expected to reach an annual capacity of 90,000 tons by the end of 2025, contributing to a projected 30% growth in U.S. market sales [3]. - The company is expanding its global footprint with operations in Vietnam, Thailand, and Indonesia, and is making progress in Morocco [3]. Emerging Markets and Technology - Hailiang is focusing on the new energy sector and high-end thermal management materials, achieving significant sales growth in copper foil products [5]. - The company has established partnerships with major global battery and electronics manufacturers, ensuring long-term supply agreements [5]. - Hailiang is innovating in advanced materials for solid-state batteries and has developed over 14 new products, enhancing its technological barriers [6]. Market Trends - The demand for copper-based materials in cooling solutions is increasing, driven by the growth of AI and data centers, with the liquid cooling server market in China projected to reach $3.39 billion in 2025 [7]. - Hailiang's copper materials are critical components in these cooling systems, with a significant increase in orders for thermal copper materials [8]. Management and Innovation - The company has initiated 88 cost-reduction and efficiency-enhancing projects and has filed numerous patents, indicating a strong commitment to innovation [9]. - A new management team has been established, characterized by youth, international experience, and a focus on technology, positioning the company for sustainable growth [9]. Future Outlook - Hailiang plans to continue expanding its global presence and enhancing its production capabilities in the U.S., Indonesia, and Morocco while advancing its digital transformation efforts [10].