Revenue and Profit - The company's total revenue reached 8.347 billion yuan, a year-on-year increase of 15.43% [2] - The net profit attributable to shareholders was 964 million yuan, up 14.19% year-on-year [2] - The net profit after deducting non-recurring gains and losses was 927 million yuan, reflecting a year-on-year increase of 17.85% [2] - In Q2, total revenue was 4.364 billion yuan, a 15.51% increase year-on-year, with net profit at 553 million yuan, up 13.25% [2] Profitability - The company's gross margin was 34.24%, a decrease of 1.37 percentage points year-on-year [3] - The net profit margin was 15.32%, showing a slight increase of 0.09 percentage points year-on-year [3] - Despite the decline in gross margin, the stability in net profit margin indicates effective cost control [3] Cost Control - Total selling, administrative, and financial expenses amounted to 986 million yuan, accounting for 11.81% of revenue, a decrease of 9.87% year-on-year [4] - This improvement in expense control contributes positively to profitability [4] Cash Flow and Debt - Operating cash flow per share was 0.57 yuan, a decrease of 39.17% year-on-year [5] - Cash and cash equivalents were 3.471 billion yuan, an increase of 26.47% year-on-year [5] - The ratio of cash to current liabilities was 98.72%, indicating a need for attention to cash flow management [5] - Interest-bearing debt was 3.46 billion yuan, reflecting a year-on-year increase of 14.96% [5] Accounts Receivable - Accounts receivable stood at 4.33 billion yuan, a year-on-year increase of 7.74% [6] - Accounts receivable accounted for 265.5% of the latest annual net profit, indicating a significant amount that requires monitoring for collection [6] Main Business Performance - Revenue from the main business, primarily relay products, was 7.614 billion yuan, accounting for 91.22% of total revenue, with a gross margin of 35.25% [7] - Revenue from electrical products was 386 million yuan, representing 4.63% of total revenue, with a gross margin of 28.09% [7] Development Review - During the reporting period, the company completed 462 new product R&D projects and filed 587 patent applications, a year-on-year increase of 10.55% [8] - The company achieved growth in various sectors, particularly in high-voltage DC series products for new energy vehicles and inverter matching businesses in the "wind, solar, and storage" new energy field [8] Summary - Overall, the company's 2025 mid-term report indicates steady growth in revenue and profit, improved cost control, but a need for enhancement in cash flow management and accounts receivable collection [9]

Core Viewpoint - The company has experienced a significant decline in revenue and profitability, primarily due to challenges in the photovoltaic and lithium battery sectors, leading to a shift from profit to loss in 2024 [2][3][5]. Group 1: Operating Conditions - The company reported a revenue of 22,950.27 million yuan in Q1 2025, a year-on-year increase of 11.77%, but a net loss of 2,693.91 million yuan, representing a 79.48% increase in losses compared to the previous year [2]. - The gross profit margins for 2022, 2023, and 2024 were 30.44%, 29.45%, and 26.18%, respectively, indicating a continuous decline over three years [2]. - The decline in revenue is attributed to a saturated photovoltaic industry and decreased demand for expansion, significantly impacting sales in this sector [3][5]. Group 2: Customer and Supplier Conditions - The company’s reliance on the photovoltaic and lithium battery industries has resulted in a significant drop in sales, with a reported decrease of 31,501.51 million yuan from major clients in these sectors [3]. - The backlog of orders at the end of 2024 was 11,069.15 million yuan, showing a recovery from 4,179.18 million yuan in 2023, but new orders in 2025 (January to May) were only 46,551.87 million yuan [3]. Group 3: Cash Flow from Operating Activities - The company’s cash flow from operating activities has been negatively impacted by the decline in sales and profitability, leading to concerns about its financial stability [2][5]. Group 4: Accounts Receivable - The company has faced challenges in managing accounts receivable due to the downturn in the photovoltaic sector, which has affected its cash flow and liquidity [2][5]. Group 5: Inventory Conditions - The inventory levels have been affected by the decline in sales, particularly in the photovoltaic sector, leading to potential overstock issues [2][5]. Group 6: Equity Acquisition - There are no significant updates regarding equity acquisitions in the recent reports, indicating a focus on stabilizing current operations [2]. Group 7: Fixed and Intangible Assets - The company has continued to invest in fixed and intangible assets, but the returns on these investments have been hampered by the overall decline in market demand [2][5]. Group 8: Sales and Management Expenses - Sales and management expenses have increased as the company attempts to maintain market presence despite declining revenues, impacting overall profitability [2][5].