Core Viewpoint - The company is experiencing revenue growth of 20% but is facing a significant decline in profits, indicating a strategic choice to prioritize long-term technological advancements over short-term financial performance [3][19][22]. Financial Analysis - Revenue for the first half of the year reached 843.3 million, a year-on-year increase of 20.46%, primarily driven by sales growth in DR and CT products and market expansion due to domestic procurement policies [6][7]. - The net profit attributable to shareholders was 51.3 million, a decrease of 39.46%, while the net profit after deducting non-recurring gains fell by 56.07%, highlighting the pressure on core business profitability [6][7]. - Operating cash flow turned negative at -335 million, indicating cash flow pressure and issues with receivables [6][7]. - The increase in operating costs was notable, with total operating costs rising by 27.19%, outpacing revenue growth and compressing gross margins [6][7]. Business Progress - Domestic market growth is primarily driven by policy support and channel expansion, but ongoing price pressures from centralized procurement are limiting profitability [11][12]. - The international market is growing rapidly, but this comes with increased upfront costs and localization expenses, which exert short-term pressure on profits [12][13]. - The company maintains a leading market share in DR products and has made significant inroads in CT market share, with a 20% share in the less than 64-slice CT segment [13]. R&D and Investment - Despite declining profits, the company has increased R&D spending to 107 million, a 35.83% year-on-year increase, reflecting a commitment to long-term competitiveness [14][20]. - Key technological advancements include the development of a helium-free superconducting MR system and quantum-level imaging technology, which could significantly enhance operational efficiency and clinical applications [21][22]. Observations and Future Outlook - The financial report indicates a clear trend of "increasing revenue without increasing profit," suggesting that the company is trading short-term profitability for future growth potential [19][22]. - The dual strategy of domestic procurement and international localization is crucial for the company's transformation from a domestic player to a global competitor [22].