Core Viewpoint - The company held an online earnings presentation discussing its Q2 and half-year performance, market conditions, and business developments, highlighting challenges and strategies moving forward [1] Group 1: Market Environment and Industry Impact - The agricultural protection industry is experiencing pressure due to oversupply of chemical raw materials and pesticides, which is affecting pricing despite indications of interest rate cuts [2] - The company noted that while there are early signs of recovery in the pesticide market, macroeconomic factors and high interest rates continue to exert pressure on prices [7] - The Chinese export market is facing challenges with oversupply and tariff impacts, leading to increased market pressure, particularly in Brazil [8] Group 2: Financial Performance and Profitability - The company reported a seasonal decline in Q2 net profit compared to Q1, influenced by seasonal business patterns and net bad debt losses [3] - Despite increased financial expenses due to restructuring and consulting costs, the company achieved a 3.54 percentage point increase in gross margin to 26.58% due to improved operational efficiency and cost management [9] Group 3: Strategic Initiatives and Future Outlook - The "Fengjin" plan is expected to be completed by the end of 2025, aiming to restore financial health and profitability, with continuous improvement in EBITDA and cash flow [5] - The company is focusing on the Latin American market, particularly Brazil, to counter challenges and is confident in regaining market share through innovative product launches [6] - Cost control measures will be implemented in the second half of the year, balancing operational cost reduction with value innovation strategies [10]