Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Views - The company reported a revenue of 420 million yuan in Q1 2025, a decrease of 4.9% year-on-year, while the net profit attributable to the parent company was 80 million yuan, an increase of 4.3% year-on-year. The net profit excluding non-recurring items was also 80 million yuan, reflecting a year-on-year increase of 13.0% [2][4]. Summary by Sections Revenue Performance - The decline in revenue is primarily attributed to a decrease in the shipment volume of amorphous products, likely due to delivery scheduling issues [9]. Profitability - The gross margin for Q1 2025 was 29.97%, a slight decrease of 0.28 percentage points year-on-year. This is mainly due to the reduced shipment volume of amorphous products and minor changes in product mix, with overall changes being limited [9]. Expense Management - The total expense ratio for Q1 2025 was 9.77%, down by 0.87 percentage points year-on-year. All expense ratios showed a decline, indicating effective cost control. The sales expense ratio was 1.98%, down by 0.27 percentage points; the management expense ratio was 2.26%, down by 0.21 percentage points; the R&D expense ratio was 6.03%, down by 0.06 percentage points; and the financial expense ratio was -0.49%, down by 0.32 percentage points [9]. Inventory and Liabilities - As of the end of Q1 2025, the company's inventory reached 185 million yuan, an increase of 11.6% year-on-year and a significant increase of 46.9% compared to the previous quarter. This increase in inventory may correspond to a slight decline in revenue [9]. - The contract liabilities at the end of Q1 2025 were 18 million yuan, up 19.4% year-on-year and up 238.4% compared to the previous quarter. Accounts receivable stood at 746 million yuan, an increase of 5.4% year-on-year and 7.5% quarter-on-quarter [9]. Future Outlook - The company is expected to continue expanding its production capacity, with the penetration rate of distribution amorphous products likely to increase. The amorphous transformer is anticipated to see gradual volume growth, and the future application space for amorphous motors appears promising. The company is projected to achieve a net profit of 420 million yuan in 2025, corresponding to a PE ratio of approximately 27 times [9].