Core Viewpoint - Beidouxing (002151) expects a significant increase in net profit attributable to shareholders for the period from January 1, 2025, to June 30, 2025, with projections ranging from 1 million to 1.5 million yuan, representing a year-on-year growth of 102.27% to 103.41% [1] Financial Summary - The net profit after deducting non-recurring gains and losses is expected to be a loss of 30 million to 40 million yuan, showing a year-on-year improvement of 52.58% to 64.44% [1] - The basic earnings per share are projected to be between 0 yuan and 0.01 yuan [1] Business Focus - The company is concentrating on its core businesses of intelligent positioning digital infrastructure and ceramic components, which have contributed to substantial revenue growth and a significant increase in net profit attributable to shareholders [1] - Key factors influencing this growth include the rapid increase in demand from emerging sectors such as lawn mowers and intelligent driving, as well as the acquisition of Shenzhen Tianli during the reporting period, which has boosted revenue [1]

Core Viewpoint - The organic silicon market is experiencing a significant decline, with core product prices dropping sharply due to oversupply and weak demand, leading to widespread losses in the industry [1][2]. Group 1: Market Conditions - The price of DMC, a core organic silicon product, fell below 10,500 yuan per ton, representing an approximately 83% decrease from the peak in September 2021, and a cumulative decline of over 23% this year [1]. - The average transaction price has dropped below the cost line, resulting in the industry facing widespread losses [1]. - Supply growth is outpacing demand, with production expected to reach 2.533 million tons in 2024, a year-on-year increase of 20.4%, while demand is projected at 2.191 million tons, a growth of 18.4% [1]. Group 2: Trade and Economic Impact - Trade tensions, particularly the U.S. tariffs on organic silicon products, have increased export costs for Chinese ordinary silicone rubber products by 15% to 20%, impacting the $2.28 billion trade market between China and the U.S. [1]. - The overall performance of listed organic silicon companies has declined in the first quarter, with significant drops in revenue and net profit across multiple firms [2]. Group 3: Industry Challenges and Future Outlook - The primary challenge for the organic silicon sector is the excessive new production capacity, with a projected 24.2% year-on-year increase in production capacity for 2024, marking the peak of the current expansion cycle [2]. - Despite short-term challenges, there are long-term opportunities as policies indicate continued development in real estate, which may boost demand for construction sealants [2]. - The industry is encouraged to focus on high-end and emerging fields, such as medical personal care, photovoltaic films, and automotive sealing components, which are expected to grow at an annual rate exceeding 15% [3].