Core Insights - The company reported a revenue of 943 million yuan for the first half of 2025, representing a year-on-year growth of 10.70% [1] - The net profit attributable to shareholders reached 386 million yuan, with a year-on-year increase of 6.75%, marking seven consecutive years of growth in both revenue and profit [1] Production and Capacity Expansion - The company achieved significant results in capacity expansion, with revenue from the mass production of metamaterials reaching 936 million yuan, a year-on-year increase of 47.35%, setting a historical record [1] - The ramp-up of the second phase of the 709 base's production capacity is progressing smoothly, with new capacity starting delivery in mid-May after being put into operation in October of the previous year [1] - Inventory increased by over 70% year-on-year and over 40% quarter-on-quarter, indicating early success from the expansion at the 709 base [1] Contracts and R&D Investment - The company signed contracts for mass production of metamaterial products totaling approximately 780 million yuan with two clients, providing stable support for capacity release [1] - R&D investment increased by 14.83% year-on-year, enhancing the company's core competitiveness and potentially solidifying its leading position in the metamaterials industry [1] Market Expansion - In addition to focusing on aerospace and marine equipment, the company is actively expanding into emerging sectors such as low-altitude economy, new energy vehicles, and robotics [2] - The company is constructing an advanced low-altitude drone industry chain headquarters in Leshan, and has successfully conducted test flights of a self-developed fixed-wing metamaterial low-altitude drone [2]

Financial Performance - In 2024, the company's revenue from the metamaterials business reached 1.552 billion CNY, a year-on-year increase of 21.69%, marking nearly an 11-fold increase over six years [1] - The net profit attributable to shareholders, excluding non-recurring gains and losses, was 643 million CNY, a year-on-year growth of 18.47%, with a nearly 13-fold increase over six years [2] - In Q1 2025, the company achieved operating revenue of 372 million CNY, a year-on-year increase of 15.96%, and a net profit of 151 million CNY, up 10.82% [2] Production Capacity and Investment - The 709 base's second phase was completed and put into production in October 2024, but the revenue and net profit growth for 2024 was modest due to production equipment needing a debugging period [2] - As of the end of 2024, the company had used 4.111 billion CNY of the raised funds, with a usage progress of 60.12% [3] - The investment progress for the 709 base was 73.76%, while the 905 and 906 bases were newly established with investment progress of 8.37% and 1.12%, respectively [3] Cash Flow and Accounts Receivable - The operating cash flow for Q1 2025 was 326 million CNY, a significant year-on-year increase of 597.24% [2] - By the end of 2024, accounts receivable aged within one year accounted for approximately 78%, and those aged between one to two years accounted for about 17% [5] Product Development and Market Demand - The company is advancing the application of metamaterials in civilian sectors such as electronic equipment, smart vehicle testing, and drones [6] - In February 2025, the company signed batch production contracts worth a total of 780 million CNY with two clients, aiming for delivery by the end of 2025 [8] Quality Assurance and Testing Facilities - The company has built 10 electromagnetic modulation testing chambers, including 3 compression fields, and is constructing 11 more, expected to be completed by Q4 2025 [7] Strategic Focus and Challenges - The company emphasizes the importance of full-chain collaboration in the metamaterials industry, which involves complex performance indicators and extensive documentation [9]