Core Viewpoint - The operational status of Victory Precision (002426.SZ) has shown slight improvement after aggressive expansion and significant losses, as indicated in its 2025 semi-annual report, which reveals a revenue of 1.699 billion yuan and a net profit loss of 42.41 million yuan, marking a shift from profit to loss compared to the previous year [1][4]. Financial Performance - In the first half of 2025, the company reported a revenue of 1.699 billion yuan, a slight decrease of 0.54% year-on-year, and a net profit loss of 42.41 million yuan, compared to a profit in the same period last year [4]. - The net profit loss was primarily due to the absence of investment income and performance compensation income that were present in the previous year [2][4]. - The adjusted net profit (扣非净利润) showed a significant reduction in losses, decreasing by 22.53 million yuan, or approximately 30% year-on-year [2][4]. Business Segments - The main business segments include consumer electronics and automotive parts, with consumer electronics generating 1.170 billion yuan in revenue, down 3.38% year-on-year, accounting for 68.87% of total revenue [4]. - The automotive parts segment saw a revenue increase of 9.07%, reaching 508 million yuan, which now represents 29.93% of total revenue, up from 27.29% the previous year [4]. Historical Context - Victory Precision experienced aggressive expansion from 2010 to 2017, raising nearly 10 billion yuan through various fundraising activities, leading to a total asset peak of 17.955 billion yuan by the end of 2017, a more than ninefold increase since 2010 [2][8]. - However, since 2017, the company has faced continuous losses, with total assets shrinking to 6.558 billion yuan by June 2025, a decrease of approximately 13.882 billion yuan over seven years [6][9]. Financial Health - As of June 2025, the company's debt-to-asset ratio stood at 62.91%, with financial expenses amounting to 40.91 million yuan, reflecting a year-on-year increase of 91.68% [3][10]. - Cumulatively, since its listing in 2010, the company has reported a total net profit loss of 4.33 billion yuan [10]. Future Outlook - Despite a reduction in losses in the first half of 2025, the company's ability to return to profitability for the entire year remains uncertain, and it continues to face challenges in overcoming its operational losses [5][11].