Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating challenges in demand and increased competition in the industry [4][5]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 1.17 billion, net profit attributable to shareholders of 80 million, and net profit excluding non-recurring items of 70 million, representing year-on-year declines of 27.3%, 63.0%, and 63.9% respectively [4]. - The operating cash flow for the first half of 2025 was 10 million, a year-on-year decrease of 94.2% [4]. - For Q2 2025, the company reported revenue of 630 million, net profit attributable to shareholders of 20 million, and net profit excluding non-recurring items of 20 million, with year-on-year declines of 30.9%, 86.7%, and 87.5% respectively [4]. Group 2: Market Conditions - The company faced weak downstream demand and intensified industry competition, leading to an expanded revenue decline in Q2 compared to Q1 [5]. - Revenue from ceramic fiber, industrial filtration, and automotive pads was 1.03 billion, 80 million, and 60 million respectively, with year-on-year declines of 28.7%, 20.3%, and 4.0% [5]. Group 3: Profitability and Cost Structure - The gross margin for the first half of 2025 was 24.4%, a decrease of 4.4 percentage points year-on-year, with specific product margins of 25.7%, 8.9%, and 22.2% for ceramic fiber, industrial filtration, and automotive pads respectively [6]. - The expense ratio for the period was 13.4%, an increase of 1.1 percentage points year-on-year, with sales, management, financial, and R&D expense ratios of 6.3%, 6.0%, -0.2%, and 1.2% respectively [6]. - The final net profit margin was 6.5%, down 6.3 percentage points year-on-year [6].