Core Viewpoint - The company has decided to postpone the expected completion dates for certain fundraising investment projects, specifically the "New Annual Production of 10,000 Tons of Aerospace Grade High-Temperature Alloy Technology Transformation Project" and the "New R&D Center Project," extending the deadlines to December 2027 due to various operational and market factors [1][10]. Fundraising Overview - The company raised a total of approximately 2.41 billion RMB from its initial public offering, with a net amount of about 2.20 billion RMB after deducting issuance costs [1]. - The company has established special accounts for managing and using the raised funds, ensuring dedicated storage and regulatory agreements with banks and sponsors [2]. Investment Project Status - As of July 31, 2025, the total investment amount for the "New Annual Production of 10,000 Tons of Aerospace Grade High-Temperature Alloy Technology Transformation Project" was adjusted from 100,016.76 million RMB to 80,177.59 million RMB, with cumulative investment reaching 45,237.72 million RMB, representing 56.42% of the total [2]. Reasons for Project Delay - The delay in the "New Annual Production of 10,000 Tons of Aerospace Grade High-Temperature Alloy Technology Transformation Project" is attributed to macroeconomic conditions and market demand, as well as the need to ensure process stability for high-temperature alloy rod production [4]. - The "New R&D Center Project" has also faced delays due to the company's involvement in national-level research projects, which required strict adherence to funding usage, impacting the pace of fundraising project execution [5]. Re-evaluation of Projects - The company has conducted a re-evaluation of the necessity and feasibility of continuing the "New R&D Center Project," concluding that it remains aligned with strategic planning despite the low cumulative investment ratio [6][9]. Impact of Project Delay - The postponement of these projects is a cautious decision that does not alter the project content, investment purposes, or scales, and is not expected to have a significant adverse effect on the company's normal operations [10][11]. - The company aims to optimize resource allocation and accelerate the implementation of these projects while adhering to regulatory requirements [10].

Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company achieved a revenue of 630 million yuan in 1H25, representing a year-over-year (YOY) growth of 24.4%, with a net profit attributable to shareholders of 120 million yuan, up 21.8% YOY [1]. - The high-temperature alloy division has seen significant growth, with a 73.3% increase in revenue from high-temperature alloy materials, reaching 160 million yuan, which constitutes 26% of total revenue [2]. - The company has made breakthroughs in gas turbine clients, securing contracts with major industry players such as Shanghai Electric and Siemens, and has also started receiving international orders in the automotive turbine sector [2]. Summary by Sections Financial Performance - In 2Q25, the company reported a revenue of 290 million yuan, a YOY increase of 36.8%, and a net profit of 50 million yuan, up 44.9% YOY [1]. - The gross margin for 1H25 decreased by 3.8 percentage points to 73.1%, primarily due to the increased revenue share from lower-margin high-temperature alloy materials [1][3]. Product Breakdown - High-temperature alloy materials generated 160 million yuan in revenue, with a gross margin decline of 7.18 percentage points to 25.7% [2]. - The "Jin Shuangqi" product line achieved 310 million yuan in revenue, a 12.5% increase, with a gross margin improvement of 1.91 percentage points to 89.9% [2]. - The "Ding Jun Sheng" product line reported 140 million yuan in revenue, up 17.5%, with a gross margin increase of 1.97 percentage points to 92.9% [2]. Research and Development - The company has improved its R&D capabilities, with R&D expenses increasing by 1.5 percentage points to 13.2% of total revenue [3]. - The operating cash flow for 1H25 was 6 million yuan, compared to 3 million yuan in the same period last year, indicating a significant improvement [3]. Future Projections - The company is expected to achieve net profits of 301 million yuan, 431 million yuan, and 579 million yuan for the years 2025, 2026, and 2027, respectively [4]. - The current stock price corresponds to price-to-earnings (PE) ratios of 29x, 20x, and 15x for the years 2025, 2026, and 2027 [4].