Core Viewpoint - Guangdong Ruid Intelligent Technology Co., Ltd. has shown significant growth in its performance for the first half of 2025, driven by various strategic initiatives and a robust market demand for smart control devices [2][5]. Group 1: Performance Overview - In the first half of 2025, the company achieved an operating income of 695.33 million yuan, representing a year-on-year increase of 18.12% [2]. - The net profit attributable to shareholders reached 16.20 million yuan, up 11.94% year-on-year [2]. - The net profit after deducting non-recurring gains and losses surged by 129.76% to 15.61 million yuan [2]. - The net cash flow from operating activities significantly increased by 162.73% to 77.17 million yuan [2]. Group 2: Capacity Layout and Overseas Expansion - The company has established a three-pole capacity layout in the "Pearl River Delta - Yangtze River Delta - Southeast Asia" regions, with R&D and production bases in Shunde, Anhui, Zhejiang, and Dong Nai, Vietnam [3]. - To meet customer demand in East China, the company completed the relocation of its Zhejiang Shaoxing production base, which commenced full production in July with a capacity increase of over 50% [3]. - The production capacity at the Dong Nai base in Vietnam is currently saturated, and plans for expansion are underway [3]. Group 3: Investment and Acquisition Plans - The company has incorporated "industrial investment and capital synergy" into its long-term planning, focusing on related segments of the smart controller industry [4]. - It aims to identify target companies in core technology areas for equity participation or technical cooperation to address technological gaps [4]. - The company is also looking at strategic exploration businesses with advantages in end-user scenarios, customer resources, or supply chains, planning to accelerate industrialization through mergers or joint ventures [4]. Group 4: Full-Year Performance Outlook - The company maintains an optimistic outlook for the second half of the year, driven by seasonal demand, health and comfort living needs, smart upgrades, energy efficiency policies, and stable customer collaborations [5]. - Despite uncertainties in the macro environment, the inventory levels of major customers are healthy, and demand for essential products remains stable [5]. - With the arrival of the autumn and winter seasons, demand for environmental home appliances is expected to rise, and consumer focus on health and comfort products is increasing, supporting a positive growth trajectory for the year [5].

Financial Performance - In the first half of 2025, the company achieved a revenue of 69,532.98 million yuan, representing a year-on-year growth of 18.12% [1] - The net profit attributable to shareholders was 1,619.60 million yuan, with a year-on-year increase of 11.94% [1] - The net profit after deducting non-recurring gains and losses reached 1,561.06 million yuan, showing a significant growth of 129.76% year-on-year [1] - The net cash flow from operating activities increased by 162.73% year-on-year [1] Business Development Strategies - The company focuses on the smart control device sector, optimizing its business structure and expanding into emerging markets [2] - Continuous investment in core technology research and product innovation is emphasized, with a strategic partnership with multiple universities to foster an innovation ecosystem [2] - Implementation of the "733 Project" aims to enhance operational efficiency through digitalization and smart investments [2] - Lean manufacturing practices are being deepened to reduce costs and enhance competitive barriers [2] Capacity and Global Expansion - The company has established four R&D and production bases in Guangdong, Anhui, Zhejiang, and Vietnam, with a capacity increase of over 50% following the relocation of the Zhejiang base [2] - The Vietnam base is entering a rapid capacity release phase, with plans for further international market expansion [2] Mergers and Acquisitions - The company is exploring mergers and acquisitions as a means to optimize asset structure and enhance core competitiveness [3] - Focus areas for potential acquisitions include electric motors, automotive electronics, AI algorithms, and IoT communications [3] - The strategy includes assessing targets with strong technology barriers and established market presence to accelerate the transition from technology reserves to industrialization [3] Market Outlook - The company maintains an optimistic outlook for the second half of 2025, driven by seasonal demand and a stable inventory level among major clients [4] - Anticipated growth in demand for environmental appliances such as heaters, humidifiers, and air purifiers is expected to boost sales [4] - The increasing focus on energy efficiency and smart home appliances aligns with the company's product offerings and market trends [4]