Core Viewpoint - The company reported a decline in revenue for the first half of 2025, but managed to achieve a slight increase in net profit, indicating resilience amidst challenging market conditions [1][2]. Financial Performance - In 25H1, the company achieved operating revenue of 1.518 billion yuan, a year-on-year decrease of 9.77%, while net profit attributable to shareholders was 36 million yuan, an increase of 0.18% [1]. - For 25Q2, the company recorded operating revenue of 880 million yuan, a year-on-year decline of 10.49%, but net profit attributable to shareholders rose to 2.38 million yuan, a significant increase of 79.09% [1]. - The gross margin for 25H1 slightly decreased to 6.77%, down 0.23 percentage points year-on-year, while the expense ratio increased to 3.97%, up 0.17 percentage points year-on-year [1]. - The company reported a significant improvement in credit impairment losses, with 8.84 million yuan in provisions for 25H1, compared to 35.45 million yuan in 24H1 [1]. Product Performance - The company's interconnect welding strips generated revenue of 1.224 billion yuan in 25H1, down 10.59% year-on-year, with a gross margin of 5.44%, a decrease of 0.67 percentage points [1]. - The revenue from converging welding strips was 267 million yuan, down 8.87% year-on-year, but the gross margin improved to 7.82%, an increase of 0.65 percentage points [1]. - The multi-layer composite welding strips are positioned as a cost-reducing solution for BC components, leveraging advanced material design and optimization technologies [2]. Market Outlook - Despite competitive pressures from rapidly declining prices in the industry, the company remains profitable. The "anti-involution" policy is expected to stabilize prices in the photovoltaic supply chain, which may alleviate cost pressures [3]. - The multi-layer composite welding strips are anticipated to contribute significantly to profits as BC technology continues to develop, with projected net profits of 86 million, 141 million, and 172 million yuan for 2025 to 2027, respectively [3].