Core Viewpoint - The laser industry is showing a stable and positive trend in H1 2025, with the company experiencing simultaneous growth in revenue and shipment volume. Q2 revenue increased by 20.73% year-on-year and 32.67% quarter-on-quarter, indicating a performance turning point. Additionally, overseas revenue grew nearly 40% year-on-year, reflecting the company's ongoing international strategy and market expansion in various sectors such as consumer, medical, and security lasers [1][3]. Financial Performance - In H1 2025, the company achieved operating revenue of 1.664 billion yuan, a year-on-year increase of 4.85%. However, net profit attributable to shareholders decreased by 23.78% to 73 million yuan, while the net profit excluding non-recurring items fell by 38.84% to 32 million yuan [2]. - In Q2 2025, the company reported operating revenue of 949 million yuan, a year-on-year increase of 20.73%. Net profit attributable to shareholders rose significantly by 73.79% to 56 million yuan, and net profit excluding non-recurring items surged by 155.28% to 30 million yuan [2][4]. Profitability and Cost Management - The company's gross margin remained relatively stable at 19.00% in H1 2025, down 4.67 percentage points year-on-year. The gross margin for core products, continuous fiber lasers, was 17.20%, also down 4.75 percentage points year-on-year. Adjusting for accounting changes, the gross margin could be around 24%-25%, with expectations for improvement as cost optimization and rebate adjustments take effect [4]. - The company maintained good control over operating expenses, with a total expense ratio of 14.59% in H1 2025, a slight decrease of 0.28 percentage points year-on-year. The breakdown of expenses includes sales at 2.00%, management at 2.87%, R&D at 10.25%, and financial expenses at -0.54% [4]. Market Expansion and New Opportunities - The company is making significant strides in various niche markets, including consumer, medical, and security lasers. In the consumer sector, laser sales exceeded 10,000 units in H1 2025, driven by a strategic focus on miniaturization and smart consumer products [5]. - In the medical field, the company launched a specialized thulium laser targeting urology, achieving import substitution and laying a solid foundation for market promotion [5]. - In the security sector, the company is advancing key technologies for laser security, with a subsidiary reporting over 420% year-on-year revenue growth in H1 2025 [5].