Core Viewpoint - The company reported significant revenue and profit growth in the first half of 2025, driven by advancements in various business segments and a strong market position in emerging technologies [1][2][3]. Financial Performance - In 1H25, the company achieved revenue of 32.96 billion yuan, representing a year-over-year increase of 14.18% - The net profit attributable to shareholders was 1.143 billion yuan, up 32.68% year-over-year - In Q2 2025, revenue reached 15.897 billion yuan, reflecting an 18.91% year-over-year growth but a 6.83% quarter-over-quarter decline - The net profit for Q2 2025 was 714 million yuan, showing a year-over-year increase of 29.30% and a quarter-over-quarter increase of 66.43% - The gross margin improved to 15.75% on a quarter-over-quarter basis [1]. Business Segments - In 1H25, revenue from various business segments was as follows: - Smartphones: 27.2 billion yuan (YoY +13%) - Computers: 3.2 billion yuan (YoY +16%) - Smart automotive and cockpit: 1.6 billion yuan (YoY +15%) - Other smart terminals: 360 million yuan (YoY +128%) [1]. Market Position and Product Development - The company is a leading global supplier of ultra-thin flexible glass, with successful product development and capacity planning for new high-end smartphone models - The personal computer business benefited from a market demand recovery, with simultaneous increases in production, sales, and profitability - The smart automotive and cockpit business expanded its product matrix, achieving breakthroughs in core product lines and entering mass production phases for new models [2]. Global Expansion and Capital Utilization - The company went public in Hong Kong in 2025, raising funds to enhance technology reserves and production capacity for smart terminal components, automotive structural parts, and robotics - 30% of the raised funds will be allocated to smart terminal folding screen components, 8% to automotive parts, 5% to robotics, and 28% to expanding overseas operations - The company has achieved vertical integration across the entire supply chain, positioning itself as a one-stop precision manufacturing solution provider for smart terminals [3]. Investment Outlook - The company is expected to benefit from its vertical integration and global expansion strategy, with projected net profits for 2025-2027 of 5.146 billion, 6.434 billion, and 7.346 billion yuan, reflecting year-over-year growth rates of 42.0%, 25.0%, and 14.2% respectively - Corresponding price-to-earnings ratios are projected to be 29.9, 23.9, and 20.9 times [3].

Group 1: Market Position and Product Development - Lens Technology is a global leader in the post-processing of fragile materials, focusing on enhancing the value of cover glass through advanced processing technology [1] - The company is collaborating with partners to develop the next generation of cover glass, ensuring efficient supply through distribution centers in Hong Kong and bonded warehouses in Hunan [1] - Lens Technology has established a leading market position in ultra-thin flexible glass (UTG) and is progressing well in new product development and verification for foldable screens [2] Group 2: Innovations in Glass Technology - The new glass substrate will utilize innovative formulas to enhance the performance and user experience of cover glass, thereby increasing product value and market competitiveness [2] - The company has introduced a multi-layer structure design for foldable screens, effectively eliminating creases and improving screen flatness [2] - The demand for new 3D glass has rapidly increased this year, with expectations for a significant rise in market space and value due to the complexity of 3D structure processing [2] Group 3: Automotive Business Expansion - Lens Technology leverages its decades of experience in electronic glass processing to develop lightweight, multi-functional automotive glass, which includes features like sound insulation and UV protection [3] - The ultra-thin automotive laminated glass has been successfully integrated into new models from leading electric vehicle manufacturers, with mass production set to begin in the second half of the year [3] Group 4: Financial Strategy and Capital Expenditure - The company has completed its capital expenditure for new products this year and plans to upgrade existing production lines to reduce costs and improve efficiency [3] - With a strong cash flow and a historically low debt-to-asset ratio, the company is well-positioned to support international expansion and capitalize on market opportunities [3]