Core Viewpoint - The company, Hechuan Technology, reported a decline in net profit and significant credit impairment losses in its 2025 semi-annual report, despite a slight increase in revenue due to growth in orders from downstream industries [1][2]. Financial Performance - In the first half of 2025, Hechuan Technology achieved revenue of 5.09 billion yuan, a year-on-year increase of 5.32% [1]. - The company reported a net loss attributable to shareholders of 38.16 million yuan and a non-recurring net loss of 57.44 million yuan, indicating a substantial decline [1]. - The company recognized a total of 30.27 million yuan in credit and asset impairment provisions, impacting the profit total [1][6]. Industry Context - Hechuan Technology operates in the industrial automation sector, focusing on the research, production, and sales of automation products, including servo systems and PLCs [2]. - The company has maintained a competitive position in the domestic servo system market, while also expanding its presence in the industrial control chip sector [2]. Profitability Challenges - The gross margin for the company's servo system products has been declining over the past three years, with figures of 29.47%, 28.83%, and 28.37% respectively [3]. - The gross margin for servo drivers decreased to 21.54% in 2024, down 1.78 percentage points year-on-year, primarily due to intensified market competition and a 5.72% drop in average selling prices [3]. Accounts Receivable Issues - As of June 30, 2025, the company's accounts receivable amounted to 553 million yuan, with a high proportion of 151.63% relative to revenue, indicating potential liquidity issues [6][7]. - The aging of accounts receivable has worsened, with significant delays in payment from clients in the photovoltaic and lithium battery sectors, leading to increased credit impairment risks [5][7]. Strategic Initiatives - The company is focusing on humanoid robots as a key growth area, having launched several core components and two humanoid robot models by July 2025 [4]. - Hechuan Technology is actively engaging with mainstream humanoid robot clients to expand its market presence, although specific partnerships remain confidential [4].

Group 1 - The company operates in the industrial control and specialized electrical equipment manufacturing industry, focusing on automation and efficiency in manufacturing processes [2] - The main business includes the development of hardware and software products for industrial electrical automation and information technology, such as medium redundancy PLCs, edge controllers, SCADA software, and intelligent network management software [2] - The company's accumulated technologies in automation and information can be reused in the development of the robotics industry, integrating with the control and data interaction layers of their "digitalization" solutions [2] Group 2 - The company is involved in the application of unmanned intelligent systems in industries such as metallurgy, pipe corridors, and ports, which require adaptability, replicability, and iterability [2] - The integration of technologies like intelligent control, intelligent computing, and intelligent display is essential for enhancing the overall intelligence level of the systems [2]