Financial Performance - The company's operating revenue decreased by 21.99% year-on-year, while the net profit attributable to shareholders dropped by 61.69% [2][4] - Domestic sales amounted to only 32.8475 million yuan, indicating a heavy reliance on overseas markets, which account for over 93% of total sales [3] Market Conditions - Despite the decline in performance, the overall demand in Europe remains positive, and Asia's performing arts activities continue to grow steadily [3] - The Middle East market is showing signs of recovery, while the U.S. market is affected by tariffs [3] Strategic Outlook - The company plans to enhance its R&D capabilities and introduce competitive products to increase market share and overall competitiveness [4][5] - Adjustments in product structure and optimization of product proportions in niche markets are part of the strategy to address future market challenges [5] Operational Developments - The fixed assets increased by 10.31% year-on-year, primarily due to the completion of fundraising projects, which are expected to enhance production capacity [3][4] - The company is actively monitoring the progress of its overseas production base in Vietnam, with updates to be disclosed in future announcements [3]

Core Viewpoint - The integration of subsidiaries under Guotai Haitong Securities has officially begun, marking a significant step towards comprehensive consolidation within the company [1][6]. Summary by Sections Integration Announcement - On July 25, Guotai Haitong announced the board's approval for Guotai Junan Asset Management to absorb Haitong Asset Management, with the company name changing to "Shanghai Guotai Haitong Securities Asset Management Co., Ltd." [1] Key Steps in Integration - The absorption and merger of the asset management companies will involve critical steps such as product migration and legal entity consolidation, which will be implemented based on the progress of product migration [2]. Industry Context - The integration of Guotai Haitong's subsidiaries has garnered significant attention this year, with the company proceeding with the integration of various subsidiaries in an orderly manner as per regulatory requirements [3][7]. First of Its Kind - This merger represents the first instance of a securities asset management subsidiary merger in the domestic securities industry, highlighting its pioneering nature [4]. Company Background - Both asset management companies have substantial influence in the industry, with Guotai Junan Asset Management established in 2010 and Haitong Asset Management founded in 2012. As of the end of 2024, Guotai Junan Asset Management's assets under management (AUM) reached 588.43 billion yuan, while Haitong Asset Management's AUM was 106.98 billion yuan [5]. Future Goals - The merger signifies a critical step towards achieving the goal of full integration within Guotai Haitong Securities, aiming to unify business directions and develop innovative strategies [6]. Product Migration Plans - There are already arrangements in place for the migration and renaming of products under both asset management companies, with future changes to public fund product names anticipated [9]. Strategic Focus Post-Merger - After the merger, the companies plan to unify their business strategies, optimize service systems, and enhance their asset management platform to better meet the growing wealth management needs of clients [10][11].