Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company reported a revenue of 633 million yuan for H1 2025, a year-on-year decline of 57.47%. The net profit attributable to the parent company was -133 million yuan, showing a reduction in losses [2][5] - In Q2 2025, the company achieved a revenue of 318 million yuan, down 48.07% year-on-year but up 0.66% quarter-on-quarter, with a net profit of -76 million yuan, also indicating a reduction in losses [2][5] - The company is experiencing significant challenges in its film business, with expected sales volume declines and increased costs due to depreciation and labor [10] - The automotive business, particularly the PDCLC dimming film, has made substantial progress, securing partnerships with major automotive manufacturers and initiating a production expansion project [10] - Financial risks have been alleviated, with the debt-to-asset ratio dropping below 50% and inventory decreasing by 40% [10] Summary by Sections Financial Performance - For H1 2025, the company reported a revenue of 633 million yuan, a decrease of 57.47% year-on-year, and a net profit of -133 million yuan, indicating a reduction in losses [2][5] - Q2 2025 revenue was 318 million yuan, down 48.07% year-on-year but up 0.66% from the previous quarter, with a net profit of -76 million yuan [2][5] Business Outlook - The film business is expected to face challenges with declining sales volumes and increased costs, while the automotive business is poised for growth with ongoing partnerships and production expansion [10] - The company is optimistic about the profitability recovery in its film business due to rising EVA particle prices and ongoing collaborations with local enterprises in various countries [10]