Core Viewpoint - The company reported a revenue of 2.154 billion yuan in the first half of 2025, reflecting a year-on-year increase of 10.3%, with a net profit attributable to shareholders of 332 million yuan, up 0.4% year-on-year, indicating stable performance despite some margin pressures across various segments [1]. Financial Performance - The company achieved a revenue of 1.179 billion yuan in Q2 2025, which is a 4.7% year-on-year increase and a 21% quarter-on-quarter increase, with a net profit of 196 million yuan, showing a slight decline of 0.6% year-on-year but a significant 44.3% increase quarter-on-quarter [1]. - The overall gross margin decreased by 1.59 percentage points to 38.3%, and the net profit margin fell by 1.64 percentage points to 17.39% due to price adjustments in MLCC powder and oral products [1]. Segment Performance Electronic Materials Segment - The electronic materials segment generated a revenue of 344 million yuan, a year-on-year increase of 23.65%, driven by electronic slurry and electronic-grade zirconia powder [1]. - The gross margin for this segment declined by 2.61 percentage points to 32.97% due to price adjustments in traditional products and increased demand for automotive-grade and AI-grade powders [1]. Catalytic Materials Segment - The catalytic materials segment reported a revenue of 456 million yuan, up 12.3% year-on-year, with the honeycomb ceramic product line contributing approximately 372 million yuan [2]. - The gross margin for this segment decreased by 1.76 percentage points to 41.8% due to the impact of raw material costs, particularly rare earth elements [2]. Biomedical Segment - The biomedical segment achieved a revenue of 438 million yuan, remaining stable year-on-year, but the gross margin fell by 5.73 percentage points to 52.18% due to a decline in domestic prices for powders and ceramic blocks [2]. - The company is focusing on R&D for second and third-generation powders and expanding into other materials and segments through self-research and acquisitions [2]. New Energy Materials Segment - The new energy materials segment reported a revenue of 217 million yuan, a year-on-year increase of 26.4%, with a slight gross margin increase of 0.13 percentage points to 21.2% [3]. - The company is entering mainstream customer supply chains with alumina and barium products and has established a joint venture to develop solid-state battery electrolyte products [3]. Precision Ceramics Segment - The precision ceramics segment saw growth in ceramic balls and substrates, with significant supply to global bearing manufacturers and major clients like BYD and Xiaomi [3]. - The segment is expected to see further margin improvements as powder production capacity is completed [3]. Building Ceramics Segment - The building ceramics segment achieved a revenue of 484 million yuan, a year-on-year increase of 2.6%, with a gross margin increase of 1.22 percentage points to 37.42% [3]. - New products such as textile inks and digital glazes are expected to contribute to revenue growth [3]. Profit Forecast and Valuation - The company maintains a steady growth outlook, projecting net profits attributable to shareholders of approximately 712 million, 836 million, and 987 million yuan for 2025-2027, corresponding to P/E ratios of about 29, 25, and 21 times [4].