Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation of returns exceeding the market benchmark by more than 15% over the next 6-12 months [4][6]. Core Insights - The company reported a significant decline in revenue and increased losses in the first half of 2025, with total revenue of 3.663 billion yuan, down 42.53% year-on-year, and a net profit attributable to shareholders of -264 million yuan, indicating an expanded loss [1]. - Despite domestic market challenges, the company achieved a remarkable 116.15% year-on-year growth in overseas sales, reaching 1.9 billion yuan, which now constitutes 51.87% of total revenue [2]. - The company is actively enhancing its N-type battery technology, achieving over 0.2% improvement in average production conversion efficiency and a 20% reduction in non-silicon costs [3]. - The company is diversifying its overseas production capacity, having signed a strategic cooperation agreement for a high-efficiency battery project in Turkey, although the progress of the Oman 5GW project has been affected by international trade conditions [4]. Summary by Sections Financial Performance - In H1 2025, the company reported a revenue of 3.663 billion yuan, a decrease of 42.53% year-on-year, and a net profit of -264 million yuan, worsening from the previous year [1]. - The Q2 2025 revenue was 1.788 billion yuan, down 32.76% year-on-year, with a net profit of -158 million yuan, indicating a sequential increase in losses [1]. Overseas Market Expansion - The overseas sales revenue grew by 116.15% to 1.9 billion yuan in H1 2025, increasing its share of total revenue from 23.85% in 2024 to 51.87% [2]. - The gross margin for overseas sales improved by 2.83 percentage points to 4.50%, while domestic sales faced a 67.91% decline to 1.763 billion yuan, with a gross margin of -0.78% [2]. Technology Development - The company is focused on improving N-type battery efficiency and reducing costs, with a 0.2% increase in average production conversion efficiency and a 20% decrease in non-silicon costs [3]. - The TBC battery's conversion efficiency is projected to exceed mainstream N-type battery efficiency by 1-1.5 percentage points, with laboratory efficiency for perovskite tandem batteries reaching 32.08% [3]. Strategic Initiatives - The company is pursuing a diversified approach to overseas production capacity, including a strategic partnership in Turkey to address regional battery capacity gaps [4]. - The construction of the Oman 5GW project is being approached cautiously due to fluctuations in international trade and tariff policies [4].